Nature Wreaks Havoc in Asia

April 26, 2023

Good Morning,

Biden asks voters for more time to "finish the job" in the US, as he launches his re-election campaign for 2024. Meanwhile, China is set to pay public sector workers fully in digital yuan in the city of Changshu. Other countries in Asia are starting to feel the heat (literally), with Thailand experiencing sweltering temperatures of over 43 degrees and Indonesia facing the aftermath of a 7.3 magnitude earthquake and many aftershocks in Sumatra.

Let's jump in.

Before The Bell

Markets

  • OPEC's share of India's oil imports fell at the fastest pace in 2022/23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged, data obtained from industry sources show, and the major producers' share could shrink further this year. (RT)

  • Gold prices ticked higher on Tuesday after the dollar retreated as cautious investors awaited further U.S. economic data due this week to gauge the Federal Reserve's next policy move. (RT)

  • Europe and US equity futures declined, along with most Asian shares, as investors awaited more reports in a busy week for earnings. China’s economic and geopolitical headwinds weighed on sentiment. (BBG)

  • BlackRock Inc.’s research arm is growing even more bullish on emerging markets, where central bankers are moving far faster than the Federal Reserve to reach a peak in their interest rate hiking cycles. (BBG)

  • Thailand’s government will cut power rates ahead of next month’s general election, in an effort to ease the plight of consumers and businesses grappling with sweltering temperatures. (BBG)

  • Stocks fell broadly and the U.S. dollar also weakened early on Tuesday, reflecting investors' uncertainty in a busy week for corporate earnings and economic data. (RT)

  • The European Central Bank will need to raise interest rates again at its forthcoming meeting next week but the size of the move is still open to debate, its chief economist told French paper Le Monde in an interview published on Tuesday. (RT)

    Earnings and Data

    • Nestle reported slightly better-than-expected first-quarter sales on Tuesday as the world's biggest packaged food company hiked prices to offset its tepid sales volume. (RT)

    • First Republic Bank shares sank more than 20% after the closing bell on Monday as it said deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet. (RT)

    • Citigroup's Asia wealth revenue surged 20% in the first quarter of 2023, backed by investment gains, insurance revenue and a jump in new private banking clients, according to a company spokesperson. (RT)

      News Summary

      • Being associated with United States homeware giant Bed Bath & Beyond may have been a smart move at the time, but now the unrelated New Zealand business has no choice but to cop fall out from its namesake’s demise. (Stuff)

      • Public sector workers in an eastern Chinese city are set to be paid fully in digital yuan, as the country makes a significant push to popularize the currency. (CNN)

      • The New Zealand Defence Force is facing an “unbelievable surge’ in people leaving the organisation. (Herald)

      • EY CEO denies job cuts as transaction staff told not to expect bonuses. (AFR)

      • KPMG turns to AI to improve its audits (AFR)

      • LVMH is closing in on Tesla for ninth spot on the list of the world’s biggest companies by market capitalisation, only days after entering the top 10. (AFR)

      • After months of legal battles, infighting between defence lawyers and dozens of rejected mistrial motions, the federal criminal trial against five Proud Boys accused of plotting to attack the US Capitol on January 6, 2021, moved to its final stage (9 News)

      • A statue in Sydney's north-west has been vandalised with red paint after the Anzac Day dawn services. (9 News)

      • China will be urged to be more open about the reasons behind its military expansion during a speech by the UK foreign secretary on Tuesday. (9 News)

      • Indonesian authorities urged caution on Tuesday as residents returned gradually to their homes in western Sumatra after being rattled by a magnitude 7.3 earthquake and several aftershocks. (RT)

      • Two explosions in a counter-terrorism ammunition depot in northwest Pakistan killed at least 13 people and wounded over 50 on Monday, police said. (RT)

      • South Korea's heavily trade-reliant economy barely averted a recession posting slim growth in the first quarter, but the outlook remained clouded by weak exports due to a cooling global economy, even with China's reopening. (RT)

      • Xi Jinping had been on a winning streak of late, successfully rebuffing US attempts to portray China as a threat to the global order. Then an envoy in France instantly revived all those fears. (BBG)

      • With China’s economic recovery well on track, top leaders will likely turn their policy focus now to boosting business confidence, increasing jobs and strengthening the property market without adding extra stimulus. (BBG)

      • Walt Disney Co has begun a second round of layoffs as part of an earlier announced restructuring expected to result in 7,000 job losses. (BBC)

      • NBCUniversal chief executive Jeff Shell has left the US media and entertainment giant following an allegation against him of sexual harassment, its parent company has said. (BBC)

        Deal Flow

        Investments / M&A

        • Netflix Inc said on Tuesday it plans to invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies and unscripted shows, doubling the amount the company has invested in the market since 2016. (RT)

        • General Motors Co and Samsung SDI are set to announce as early as Tuesday the plan to build a joint venture electric vehicle battery manufacturing plant in the U.S., as the automaker diversifies its component suppliers, sources said. (RT)

        • Fred Woollard’s activist investment firm Samuel Terry Asset Management has lobbed a 93¢ per stapled security off-market takeover bid for listed property investment outfit Eildon Capital, which has $280 million in funds under management. (AFR)

        • Rising concerns that the U.S. Treasury Department could hit its debt limit in the coming months are leading investors to shun certain Treasury bills and pour into others as they seek out low risk places to park cash. (RT)

        Daily Picks

        • See this article about a man driving who has been pulled over and had his medicinal cannabis taken off him by police.

        • See here for more on the single motorcycle crash in Auckland on ANZAC Day, leaving one dead.

        • Biden launches his re-election campaign. See here for for details.

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