It is quite possible that everything will have to take second place to the 2024 US Presidential election on Tuesday 5 November. We should have a good idea of who will be the next president by 12am US Eastern Time.
But life will still go on, regardless of who will win. On Friday, the US Fed will announce its latest interest-rate decision. The market still expects a rate cut of 0.25% to 4.75%.
Staying with interest rates, the Reserve Bank of Australia is expected to maintain the cash rate at 4.35%. The Bank of England could cut interest rates by 0.25% to 4.75%, while Bank Negara could keep borrowing costs in Malaysia unchanged at 3%.
Over in China, the Standing Committee of the National People’s Congress could announce measures to stabilise the housing market and drive the economy towards its growth target of 5%
Corporate Events
Two of Singapore’s biggest banks will report quarterly earnings. In August, DBS Group (SGX: D05) reported a 4% rise in second-quarter net profit thanks to record fee income. The bank expects total income growth for the year to be a high single digit.
Oversea-Chinese Banking Corporation (SGX: O39) reported a 14% rise in second-quarter net profit that was underpinned by income growth and a drop in allowances. The bank is confident that it is well-positioned to navigate the challenging macroeconomic landscape.
The owner of Burger King and Popeyes, Restaurant Brands International (NYSE: QSR), could tell us a thing or two about how consumers are coping with higher prices around the world. Whilst the company’s Tim Hortons performed well, same-store sales at Burger King slipped despite the launch of a $5 meal.
Yum China Holdings (NYSE: YUMC) has adopted a low-price strategy to help increase sales and boost market share. But the owner of KFC and Pizza Hut in China continues to face headwinds as the Chinese economy slows and poor job prospects deter households from dining out.
Food and beverage maker Fraser & Neave (SGX: F99) said in August that third-quarter profit jumped 37% in the first nine months. The company attributed the rise to its dairy segment that saw earnings increases across all core markets. This was fuelled by higher sales and an improved cost environment.
Arm Holdings (Nasdaq: ARM) could be an alternative play on A.I. In July, the chip designer said revenue grew 39%, whilst profit more than doubled. But it disappointed investors when it announced that it would shift its focus to higher-value, lower volume markets such as data centre servers, A.I. accelerators and smartphone applications processors.
Other companies that are pencilled in for results include Malaysian port owner Westports Holdings (KLSE: 5246), Singapore flag carrier Singapore Airlines (SGX: C6L) and aircraft maintenance company SIA Engineering (SGX: S59).
Also on tap are 3M (NYSE: MMM) spin-off Solventum (NYSE: SOLV), UK retailer Marks & Spencer (NYSE: MAKSY) and German pharmaceutical company BioNTech (Nasdaq: BNTX).
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Disclosure: Fraser & Neave, 3M, Solventum and Westports Holdings are constituents of the DKIP group of portfolios. David owns shares. DBS Group and OCBC.
