There are no significant central bank interest-rate decisions pencilled in for the week. But there is no shortage of Federal Reserve governors that are expected to take to the rostrum. It should keep the market guessing about which monetary path the US central bank will take, following the surprising mid-term elections.
On tap are speeches from Michelle Bowman, Austan Goolsbee, Tom Barkin, Chris Waller, Lorie Logan, Jeffrey Schmid, Beth Hammack, Michael Barr, Mary Daly, John Wliiams, Philip Jefferson. Some are known to be hawks, whilst some believe that interest rates should be cut.
What is undeniable is that both the core inflation rate and the headline inflation rate remain above the Fed’s target of 2%. Another set of bad inflation numbers on Tuesday could make it difficult for the Federal Open Market Committee to ignore that prices in the US are showing no signs of abating,
On the corporate front
As the earnings season winds down in the US, attention now turns to Asia. But there are still a few stragglers that are expected to take to the spotlight in America. Cisco Systems (Nasdaq: CSCO) is scheduled to report first-quarter numbers. The network-gear maker is expected to benefit from the continuing build out of AI infrastructure by hyperscalers. It could post a sequential rise in both quarterly earnings and revenue.
Applied Materials (NYSE: AMAT) makes the chip-making equipment that allows chip makers to make chips. Its machines have been in demand as the rollout of AI has fuelled demand for its machinery. The company could post another set of strong fourth-quarter numbers, with revenue and earnings up strongly.
Another AI-related company is pencilled in for quarterly results. CoreWeave (Nasdaq: CRWV) rents out its specialised infrastructure to developers to train AI models. The neocloud outfit could report a sharp rise in revenue and a reversal of a second-quarter loss into a profit for the third quarter.
Sea Limited (NYSE: SE), which owns the internet shopping website, Shopee, reaffirmed its outlook for the full when it reported second-quarter numbers in August. For the third quarter, the gaming and e-tailer company could post a significant rise on earnings per share in revenue of around US$8 billion.
Turning to local issue, Singapore’s two dominant telecom companies are expected to report half-year numbers. In August, Singtel (SGX: Z74) reported a 21% rise in first-quarter underlying profit thanks to strong contributions from regional associates Airtel and AIS. More of the same is on the cards when the telecom company reports halftime figures.
Meanwhile, StarHub (SGX: CC3) will provide a third-quarter business update. In October, Singapore’s second-largest telco said it will buy MyRepublic’s mobile business. It appears that consolidation is happening in Singapore. Starhub has said that there is a natural progression in which mobile virtual network operators (VMNO) will gravitate around and then be absorbed and adopted by the large, well-capitalised players. Could it have its eyes on another player?
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David Kuo does not owns shares in any of the companies mentioned.
