Federal Reserve chair Jerome Powell is expected to set the scene for both the US and the global economy when he speaks at the Fed’s annual Jackson Hole symposium on Friday. He could outline the trajectory for the Fed’s interest rates and monetary policy. He might fall short in specifically announcing a cut in the Fed fund rate in September. But a nudge may be as good as a wink as far as markets are concerned.
Staying with monetary policy, there are interest-rate decisions from Indonesia, where the Bank of Indonesia is more concerned about currency stability than inflation, and Korea, where the Bank of Korea is also keeping an eye on volatility in forex markets.
On the results front
With the US earnings season almost done and dusted, the attention of the market turns to the East. Hong Kong Exchange & Clearing (SEHK: 388) will step in with half-year results. In April, the Hong Kong bourse operator bemoaned the dearth of fresh listings and muted trading activities. Its performance has not been helped by geopolitical tensions and China’s faltering economy. The exchange said in May that 100 companies were waiting to float. But only a fifth have done so thus far.
Xiaomi (SEHK: 1810) said in May that it aims to deliver 120,000 electric vehicles in 2024 following a better-than-expected first quarter. We will find out whether it can meet its monthly delivery target of 10,000 SU7 EVs. The company could also provide some insights as to whether the global smartphone market has recovered.
Hong Kong-based insurer, AIA (SEHK: 1299) reported a 31% jump in the value of new business in the first quarter. It said that its performance in China and Hong Kong was particularly strong. It has increased its share buyback programme by $2 billion to improve shareholder return.
Flying high
Ping An Insurance (SEHK: 2318) first-quarter results were good in parts. The volume of new business grew 36%. But net profit fell 23%. The drop in earnings was primarily driven by losses at its asset management division. This was attributed to the weak stock market that affected the value of its equity investments.
Airport services titan SATS (SGX: S58) reported a tenfold increase in half-time profit in May. Revenue more than doubled thanks to the acquisition of World Flight Services. SATS has also reinstated its dividend. The company is expected to report further progress as global air travel is forecast to fully recover to pre-pandemic levels.
Other companies that are pencilled in for results include the owner of the Petronas Twin Towers KLCC Stapled Securities (KLSE: 5235SS) and Malaysian industrial conglomerate Sime Darby (KLSE: 4197).
If you’d like to learn more investing concepts, and how to apply them to your investing needs, sign up for our free investing education newsletter, Get Smart! Click HERE to sign up now.
Get more stock updates on our Facebook page. Click here to like and follow us on Facebook.
Disclosure: KLCC Stapled Securities is a component of DKIP’s MMM. David owns shares in SATS, AIA, Ping An and HKEX.
