In today’s briefing:
- Part Four: The Sharply Slowing UK Economy
- Last Week in Event SPACE: Fujitsu General, Swire Pacific, Li Ning, IJJT
- Part Three: Australian Dollar and AGB Yields
Part Four: The Sharply Slowing UK Economy
- The UK economy has been facing a series of challenges in recent weeks.
- Economic data has been disappointing, with weak unemployment, earnings, GDP, industrial production, manufacturing, services, and trade balance.
- As I write this report, 10-year UK government bond yields have fallen by 20 basis points (bps) in the past two days.
Last Week in Event SPACE: Fujitsu General, Swire Pacific, Li Ning, IJJT
- The BIG Risk is that Fujitsu Ltd (6702 JP) sells its stake in Fujitsu General (6755 JP) to someone in a below-market tender offer.
- Swire Pacific (A) (19 HK) may still see more outperformance from its latest buyback. But it’s up ~29% since the company announced it was buying both the As and Bs.
- Li Ning (2331 HK)‘s shares continue to edge up after its founder recently increased its stake.
Part Three: Australian Dollar and AGB Yields
- The Aussie Dollar is acting as a delta one to the Chinese Economic data, as the People’s Bank of China (PBOC) remains committed to maintaining the stability of the CNY.
- The AUDJPY has formed an intermediate double-top pattern.
- While it is likely to rebound, it could also be influenced by the difference in export growth between ROW with China and Japan.
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