What’s Happening Today in Asia
George Russell in Hong Kong | Buddhist monks receiving alms in Thailand last week | Asanha Bucha festival | Reserve Bank of Australia interest rate decision | Caixin’s latest data for China | Nikkei’s manufacturing PMI for Japan | S&P Global’s figures for India, South Korea, the Philippines, Taiwan, and Vietnam | HSBC’s first-half earnings | Robert F Kennedy Jr’s White House bid | Joe Biden keeping the US Space Command in Colorado | Avis Budget Group’s exceeding profit expectations | Birkenstock owner considering September IPO.
Today in Asia:
In Hong Kong, George Russell covers the news about Buddhist monks receiving alms in the southern Thailand province of Narathiwat during the Asanha Bucha festival. This festival marks an important Buddhist observance on the full moon of the eighth lunar month, and as a result, Thailand’s financial markets are closed. Meanwhile, the Reserve Bank of Australia is expected to make an interest rate decision, with economists anticipating a 25-basis-point rise to 4.35 per cent. The Bank of Japan will release the minutes of its June monetary policy meeting, providing insights into the country’s economic decisions. Additionally, China will be celebrating Army Day, commemorating the founding of its armed forces in 1927 during the Chinese civil war.
Indicators to look out for today are purchasing managers’ indices. Caixin will be releasing its latest data for China, while Japan’s Nikkei will publish the manufacturing PMI for July. S&P Global will release similar figures for India, South Korea, the Philippines, Taiwan, and Vietnam. Australia will also provide a manufacturing PMI. Indonesia will be publishing consumer price index figures, and Hong Kong will announce the latest retail sales data. Japan will note its June unemployment rate, and South Korea will release June trade data.
In terms of financial results, HSBC, a UK-based bank with a focus on Asia, will be issuing its first-half earnings. Japanese companies such as Mitsui & Co, Mitsubishi UFJ Financial Group, Nomura, TDK, and Toyota will be publishing their first-quarter data. Hong Kong’s Kerry Group will provide second-quarter results.
Moving onto US politics, Timothy Mellon, a top Republican donor who has supported Donald Trump’s past presidential campaigns, has emerged as a major financial supporter of Robert F Kennedy Jr’s White House bid. Mellon’s donation of $5mn to American Values, the main political action committee supporting Kennedy’s campaign, highlights the continued financial backing from conservatives towards Biden’s main challenger for the Democratic nomination. Republicans are drawn to Kennedy’s views on vaccinations and US support for Ukraine, seeing it as a way to weaken Biden in the general election.
In other political news, President Joe Biden has decided to keep the US Space Command in Colorado, reversing Donald Trump’s plan to move it to Alabama. Biden’s decision comes as frustration grows towards Republican senator Tommy Tuberville, who has been blocking the confirmation of senior military officers as a protest against the Pentagon’s efforts to protect abortion access in the military. Prior to Biden’s decision, Democratic lawmakers in Colorado had already been pressuring him to overturn Trump’s plan. Alabama Republicans have criticized the move, viewing it as politically motivated and targeting a conservative state.
Switching gears, Avis Budget Group, a car rental company, has exceeded Wall Street’s profit expectations due to high demand for summer travel. With a net income of $436mn in the three months ending in June, Avis surpassed analysts’ forecasts by 18 percent. While revenue was slightly below expectations at $3.1bn, the company was able to capitalize on strong travel demand and price improvements during the summer period. Despite a 7 percent dip in revenue on a per-day basis compared to the same quarter last year, rental days increased by 4 percent.
Lastly, the private equity owners of German sandal maker Birkenstock are considering an initial public offering (IPO) possibly taking place in September. L Catterton, backed by luxury fashion house LVMH, may value Birkenstock at over $8bn if they proceed with the listing. This potential IPO would mark a successful return for L Catterton, which has investments in consumer brands like Ganni and ClassPass.
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