Bank Indonesia mandate is in the spotlight as lawmakers debate finance law
Bank Indonesia mandate is in the spotlight as lawmakers debate finance law
Indonesian lawmakers are resuming discussions on the financial sector reform bill that risks eroding the autonomy of their central bank.
Indonesia has sought to renew its financial sector laws since 2020. Talks stalled due to the pandemic and investor concerns about the central bank’s independence. Since then, Parliament’s finance committee has revived meetings. They have been meeting drafting the so-called omnibus financial sector law since June. Economists and bankers were invited to give their opinion last week.
Indonesia’s bill seeks to limit central bank autonomy
The latest draft includes adding economic growth and job creation to the central bank’s mandate. These drafts provide a legal basis for Bank Indonesia to buy sovereign bonds in the primary market. It is needed during a financial crisis, according to a recent copy that includes proposals from parliamentary factions.
Other proposed central bank-related changes:
The central bank can buy back debt papers. Papers, from the Indonesian Deposit Insurance Corporation to address bank liquidity issues.
The largest political faction of the Indonesian Democratic Party of Struggle, or PDIP, is proposing to allow Bank Indonesia’s board of governors. The reason is to extend its five-year terms for a largest of two times, once at present.
The second-largest party, Golkar, suggests including the digital rupee as the official currency issued by the central bank.
The US and South Korea to Share Data on Crypto Cases
The US and South Korea to Share Data on Crypto Cases
The U.S. and South Korean governments have reportedly agreed to share data on ongoing crypto cases. It includes the case surrounding Terraform Labs CEO Do Kwon and the collapse of the terra cryptocurrency (LUNA) and stablecoin terrausd (UST).
The U.S. and South Korea to Share Data on Crypto Research
South Korean Justice Minister Han Dong-hoon met with U.S. prosecutors’ office officials during a visit to New York this week. the Yonhap news agency reported Wednesday.
U.S. officials present at the meeting included Andrea Griswold, senior adviser to the U.S. Attorney, and Scott Hartman, co-chair of the U.S. Attorney’s Office of the Southern District of New York’s Securities and Commodity Fraud Task Force.
Officials from the two countries examined ways to improve cooperation. The cooperation will be in investigating major securities frauds and financial crimes. Also including those involving cryptocurrencies. They discussed the exchange of information between the U.S. Attorney’s Office of the Southern District of Seoul and the Office of the Southern District of New York.
The two sides agreed to share their latest investigative data on ongoing crypto cases. It includes the case surrounding the collapse of the terra cryptocurrency (LUNA) and the algorithmic terrausd stablecoin (UST), the post conveyed.
Both the United States and South Korea are investigating Terraform Labs founder Do Kwon and the implosion of LUNA and UST.
South Korean prosecutors are investigating possible fraud charges. Besides, the Korean government is considering imposing a unified listing. The listing would be standard on cryptocurrency exchanges.
In the United States, the Securities and Exchange Commission (SEC) is investigating Do Kwon and whether UST is trading. Before, it crashed and violated investor protection regulations. The Luna implosion led SEC Chairman Gary Gensler to warn that many crypto tokens will fail. Meanwhile, U.S. lawmakers are also calling for urgent regulation of stablecoins.
Apple plans an extreme sports watch with a larger screen and metal case
Apple plans an extreme sports watch with a larger screen and metal case
Apple Inc. plans its largest smartwatch display to date. A larger battery, and a sturdy metal case as part of the upcoming Apple Watch. Apple Watch aims for extreme sports athletes, according to people with knowledge of the plans.
The rugged version of the Apple Watch will have a screen. The screen measures 2 inches diagonally. A new standard Apple Watch Series 8 will maintain the 1.9-inch diagonal screen size of the current Series 7. A planned update to the low-end Apple Watch SE will also keep the current screen size.
The larger screen in the extreme sports model has planned to be announced later this year with the other two models. The other two models will have about 7% more screen area than the current larger Apple Watch. The display will have a resolution of about 410 pixels by 502 pixels and retain the same overall sharpness as existing models.
Apple could use the larger screen area to display more fitness metrics or information about watch faces at once. The company added several new fitness features in watchOS 9. WatchOS 9 includes multisport workouts and improved intensity tracking during exercise routines.
First launched in 2015, the Apple Watch has become a key piece of Apple’s hardware lineup. Watch models include in the wearables, home, and accessories division. Watch models generated $38.4 billion, or 10% of the company’s total revenue, in the last fiscal year. But smartwatches and fitness wearables are crowded markets. Apple competes with the likes of Google’s Fitbit and Samsung Electronics Co.
The extreme sports watch will use a strong metallic material instead of aluminum. Extreme sports watches have a more shatter-resistant display. It includes a larger battery compared to standard Apple Watches. The shatter-resistant display allows athletes to track workouts for longer periods. The people who say this are not to be identified because details of the watch have not been announced.
Like the standard Series 8, the toughest watch will have the ability to take a wearer’s body temperature. Now one will be able to identify fever. It will also improve tracking metrics like elevation during hiking workouts and data while swimming.
All-new Apple Watches will use an S8 processor with performance like the S7 chip in the Apple Watch Series 7. It was on par with the S6 in the Apple Watch Series 6 two years ago. This will be the first time the company has maintained the same performance on the Apple Watch for three consecutive generations.
An Apple spokeswoman declined to comment on the company’s plans. Apple usually announces its new watch models in September along with the new iPhones. The Cupertino, California-based company is planning four new iPhone 14 models for the fall. The new iPhone 14 will include new professional versions with faster chips and a 48-megapixel rear camera.
The increase in screen size for the rugged model will be the third in the history of the Apple Watch. The company expanded the device’s display in 2018 with the Series 4 and again last year with the Series 7. The nearly 2-inch display on the rugged model will make the display one of the biggest offerings from a conventional smartwatch manufacturer.
Bloomberg News first reported early last year that Apple planned to expand the Apple Watch lineup with a rugged version to better compete with Garmin and other extreme sports-oriented offerings. The high-end watch is likely to be more expensive than the standard stainless steel Apple Watch, which starts today at $699.
“The Wacky Races cartoon from the late 1960s featured exciting competition, with characters like Mean Machine piloted by Dick Dastardly and Muttley taking on the mighty Turbo Terrific driven by Peter Perfect.”
Infinitely fun and ultimately harmless, it was a tempting yet unrealistic first taste of motorsport for budding petrol heads. But does any real-world equivalent come close to whimsical emotions?
Welcome to the seductive world of classic racing, off-road racing where anything goes… apart from four-wheel drive. That would be too easy.
Conceived in the early 20th century, and grew in popularity during the 1920s and 1930s. Classic testing is effectively an off-road climbing event that has remained unchanged since its start.
Around 20-25 tests occur in the UK each year. It is organized by several different motor clubs that are part of the Association of Classic Trial Clubs (ACTC). “Classic” refers to the duration of the event itself rather than the age of the vehicles involved. It’s not about getting to the top of each climb. Because competitors must finish the entire event included in the final results. It’s also a bit like an endurance race, only with more bounces.
Participants tackle around 12 to 16 hills and use public roads to get between stages. The goal is simple: score the fewest points in an event by reaching the top of each hill.
The Perfect Cheap and Cheerful Motorsport
Points are recorded using scoreboards that run parallel to each hill, or “observed” sections as they are known in the test world, ranging from ’12’ at the starting line to ‘1’ at the finish line.
The Class 11 system means that many and varied cars can compete, from the Peugeot 205 to the Volkswagen Beetle, the Reliant Scimitar, and the Mazda MX-5. Although many of the cars in the lower classes are competitive. The ‘class 8’ racers are often the ones who must beat. Here, you’ll find bespoke, hand-built machines, as well as Volkswagen beach buggies and limited-production cars like the terrifyingly named Troll T6.
The stages themselves also come in many and varied forms, from deep, muddy climbs through dense, root-ridden forests to near-vertical walks along paths covered in loose rocks.
Event organizers will add an extra crumb of difficulty when implementing a “reset.” This means driving so far into a section, stopping, and then starting over. Reboots are often placed on the roots or swampy parts of the hill in a dick dastardly-style ploy to make it even more challenging. which I was reminded of on my first outing in over two years recently, with my VW Beetle-based buggy.
Our first climb of the Torbay Trial featured a tricky restart on a leaf-crusted hill that runs through some forests. Fortunately, a good bit of clutch control, and some rebounds to gain more traction (a common sight), took us to the top. We accumulated only a small number of points in the following sections and it wasn’t until the infamous Tipley climb that our luck began to wane.
The Perfect Cheap and Cheerful Motorsport
This time, a restart proved too challenging and, even with a lot of wheel spin and bounce, we gave up on a plume of smoke.
Reboots can often be a deciding factor in a classic test. After our unfortunate efforts at Tipley, we started accumulating points as we scored more sections.
We regained some confidence in Simms. Simms is a well-known section that challenges even the best prepared and most regular competitors. I judged the restart well and managed to get away on the slippery rock without any drama. More points were added to our scorecard after a silly mistake saw me stop while trying to skillfully maneuver to a restart. Another section surprised me for being too heavy.
The last climbs of the day were very entertaining, with a final race through a wooded area to conclude the race.
I ended up finishing towards the end of class 8. But the result did not detract from what had been a rewarding and refreshingly low-pressure motorsport day.
Classic testing is unique, testing not only the ability of the driver and passenger but also of the car. If you have a sturdy set of wheels out there, and the willingness to cover yourself in mud, it might as well be motorsport for you.
How to get involved?
The Perfect Cheap and Cheerful Motorsport
Classic Trial Club Association (ACTC) President Dave Haizelden offers some of the best advice on how to get into the sport.
How much does the average trial cost?
“Your average event costs around £50 to enter and is £20 for insurance. With fuel costs, it’s a couple of hundred pounds in total.”
Why should someone go to try?
“It’s the cheapest motorsport out there, other than a production car test in a field.
“You can also meet so many people from all over the country. The testing community is very friendly, and if you do an event and break up, other competitors will help you and take care of you.”
What’s the best way to get started?
“I would take an online look at the ACTC website as there is a lot of information there.
“Head to a local event and look because this will give you a proper idea of what classic testing is.”
Can I get involved in other ways?
“I would say go and marshal. Contact a club and help in a section because when you see cars going up the hill, you’ll want to try it yourself.”
Hong Kong stock market sees uncertain future as China grows
Hong Kong stock market sees uncertain future as China grows
Under Chinese rule, Hong Kong’s stock market has more than tripled. That’s still below Shanghai.
Hong Kong’s benchmark stock index has earned a total return of more than 230 percent since delivery in July 1997. That compares with 320% of the Shanghai Composite Index and 580% of the S&P 500 Index in the United States.
Underperformance has accompanied Hong Kong’s shift from a place. The place, dominated by local real estate developers, banks, and utility giants. It shifts to a place that is now tied to mainland China and Xi Jinping’s vision for the nation.
The shift has provided enormous opportunities for investors to take advantage of China’s economic rise. But it has also brought a cycle of booms and busts, and staggering risks. staggering risks weren’t appreciated until Beijing’s sweeping regulatory crackdown. The crackdown was on private enterprise over the past year and a half.
The Hang Seng Index has underperformed most of its peers since the trade-off.
Hong Kong stock market sees uncertain future as China grows
Hong Kong’s relative underperformance has been more acute. It is since late 2020 when Chinese regulators suspended the listing of Jack Ma’s Ant Group Co. and began a crackdown on many of the tech giants that have made their home on the city’s exchange.
Three of the six largest stocks by market value today come from this sector leaving it vulnerable to pressure from the dictates of Xi. Xi wants Chinese companies to wrest technological supremacy from the United States. It is while doubling down on their business models toward their goal of “common prosperity.”
Highlighting the dangers for buy-and-hold investors, e-commerce heavyweight Tencent Holdings Ltd. has seen its market value drop from a high of around $1 trillion last year to less than $450 billion.
Big Tech. Big Risk
New Era
Technological growth has reshaped the Hang Seng Index
The current turmoil is not unique to Hong Kong’s actions. PetroChina Co. suffered a similar fate to Tencent’s. Tencent’s going from being a $1 trillion market favorite in 2007 to $138 billion. The journey, after the government moved away from commodity-intensive development.
“Unfortunately, I would think that if we talk about Chinese tech companies in Hong Kong or just Chinese companies in general in Hong Kong, in my opinion, they will probably continue to go through the boom-bust cycle,” said Jian Shi Cortesi, Zurich-based chief investment officer at GAM Investment Management.
Boom and Bust
That said, he remains optimistic about the long-term outlook and sees big opportunities in Hong Kong stocks. Because Hong Kong stocks have started to rise again after hitting a nadir in March.
“We’re seeing a lot of companies trading at multi-year low valuations,” Cortesi said, adding that some had fallen as much as 90%.
The continent dominates
Red flag
The number of companies in each area in the Hang Seng Index
Hong Kong Exchanges and Clearing Ltd. CHIEF Executive Nicolas Aguzin is also unperturbed. He expects China’s onshore stock and bond markets to more than triple to more than $100 trillion over the next decade. It will bring huge potential for the market operator to expand.
“We have a unique position that is next to the biggest opportunity in the world,” Aguzin told Bloomberg last month.
One of the great successes of the exchange has been the trade link between Hong Kong and Shanghai. It was added at the end of 2014, followed by another with Shenzhen in 2016. Since then, domestic Chinese investors have become a new Hong Kong stock trading force, accounting for more than 10% of daily turnover.
This year under Aguzin, the stock exchange received the go-ahead from Beijing to include exchange-traded funds in the stock connection program to take advantage of the demand for passive investments, starting July 4.
Onshore money flows
It is also betting that more mainland companies will be listed in Hong Kong and that Chinese companies kicked off U.S. exchanges will move to the city.
“With tensions rising between Beijing and Washington, Hong Kong will benefit as Chinese companies seek alternative and politically safer places closer to home,” said Hyde Chen, managing director and head of the investment strategy, at Haitong International Asset Management in Hong Kong.
However, he’s not playing that way yet. The torrent of stock sales that saw some 2,300 companies listed in Hong Kong since 1997 has slowed to a trickle, Bloomberg data shows.
Share Sales
IPO Drought
Hong Kong depends on the mainland for new listings
Money raised in new stocks valued in the city since the beginning of January is down about 90% from the same period last year, compared with a drop of around 70% for IPOs worldwide and a 29% decline in Asian exchanges.
Meanwhile, activity on continental exchanges has remained strong, with total revenue collected around 10% this year, according to the data.
“Long seen as the West’s window to China, a convenient but more predictable and secure base from which to conduct business, Hong Kong now increasingly serves China’s window to the West,” said Brock Silvers, chief investment officer at Hong Kong-based private equity firm Kaiyuan Capital. “The inextricable economic link between Hong Kong and the mainland carries benefits, but it also transfers risks.”
Bitcoin Rally Falters as Inflation Fears Weigh on Crypto Assets
Bitcoin Rally Falters as Inflation Fears Weigh on Crypto Assets
Bitcoin is fresh off its biggest monthly decline in history. Bitcoin lashed traders with wild swings on Friday as digital assets struggle to regain their footing.
The largest token rallied as much as 11.3% in Asia on Friday, approaching the $21,000 level. Bitcoin then gave up most of those gains as global stock markets sank, trading at $19,410 at 7 a.m. in London. June’s 41% drop was the steepest in Bloomberg data dating back to 2010.
Bitcoin’s spins underscore the uncertainty looming over cryptocurrencies. It is as investors struggle to gauge how far central banks will go to control rampant inflation. In addition to the confusion, major crypto players range from hedge fund Three Arrows Capital to lender Celsius Network. It messes up the market sell-off, raising the possibility of further contagion.
Bitcoin “could be vulnerable to an uglier drop. It could cause many traders to fear a drop into the $10,000 area” if the turmoil on Wall Street continues into the third quarter, Edward Moya. Edward Moya a senior market analyst at Oanda Corp., wrote in a note. The token was last traded at those levels in mid-2020.
Such risks are not deterring El Salvador, whose president Nayib Bukele said on Twitter that the nation had bought back the fall. This time adding 80 Bitcoins for $19,000 each.
Earlier this week, Michael Saylor’s Bitcoin-backed tech firm MicroStrategy Inc. said in a filing that it had bought another 480 coins worth about $10 million at the height of the crypto fainting.
Bitcoin has been swirling around the $20,000 mark after falling below $18,000 on June 18. The lack of direction is reminiscent of how the currency trades in the wake of the collapse of the TerraUSD stablecoin in early May. It happens when it held on to nearly $30,000 for weeks before falling again.
IMF says Sri Lanka deal moves forward and needs guarantees from creditors
IMF says Sri Lanka deal moves forward and needs guarantees from creditors
IMF says Sri Lanka deal moves forward and needs guarantees from creditors. The International Monetary Fund says, “Significant progress” has been made toward an aid program for Sri Lanka. It requires restoring debt sustainability and financing guarantees from the country’s creditors. It also requires “far-reaching” fiscal reforms.
“Monetary, fiscal and other actions by the authorities since early April were the first important steps to address the crisis”. The IMF said in a statement on Thursday after the June 20-30 meetings in Colombo. “Discussions will continue to reach a staff-level agreement. It will be an EFF agreement in the short term,” he said. That referring to the lender’s Extended Fund Facility.
The Washington-based lender has said Sri Lanka needs to reduce existing debt. The dept. is to “sustainable” levels before it can receive aid. On Thursday, it said the executive board’s approval would “require adequate financing guarantees. The guarantees, from Sri Lanka’s creditors, that debt sustainability restores.”
Sri Lanka is experiencing its worst economic crisis. Siri Lanka has been in crisis since independence and defaulted on its international debt. Siri Lanka needs at least $6 billion in the coming months to stabilize the finances of the nation. It was devastated by years of political blunders and the Covid-19 pandemic. With authorities now turning to money printing to pay government salaries. The economy runs the risk of runaway inflation amid shortages of everything from fuel to medicine.
On Monday, Sri Lanka urged residents to stay home until July 10 to conserve fuel amid difficulties in importing. It is as suppliers insist on settling past debts. Sri Lanka has asked the IMF for quick help and a longer-term loan. Any approval of the country’s debt plan would signal to other creditors that the nation is doing enough to qualify for fresh funds.
Prime Minister Ranil Wickremesinghe, who also oversees the Finance Ministry. He told Bloomberg News last month that the multilateral lender had sought a primary surplus of 2% of gross domestic product by 2025. While, Sri Lanka was more likely to only break even or post a 1% surplus by then.
His government has taken steps to raise taxes, put state assets up for sale, and has pledged to cut spending down to “bare bones.”
Sri Lanka hired Lazard Ltd. and Clifford Chance LLP in May to serve as financial and legal advisors on debt restructuring. It would after the nation fell into default with a 30-day grace period due after interest payments were lost on some sovereign bonds.
The country needs to agree on a baseline for a debt sustainability analysis. It determines what kind of offer it makes in separate restructuring talks with bondholders. It includes a group of the country’s largest creditors: Pacific Investment Management Co., T. Rowe Price Group Inc., and BlackRock Inc.
Meanwhile, Hamilton Reserve Bank Ltd., which owns more than $250 million of Sri Lanka’s 5.875% International Sovereign Bonds due July 25, last week filed a lawsuit in a New York federal court seeking full payment of principal and interest.
The IMF said Sri Lanka must also address:
Rising inflation levels and severe balance of payments pressures
Vulnerabilities to corruption and undertaking reforms that foster growth
Virtual Currency is the "largest Ponzi Scheme in Human History"
Virtual Currency is the “largest Ponzi Scheme in Human History”
The chairman of China’s Blockchain Services Network Development Alliance (BSN), Shan Zhiguang insisted. He and his colleague insisted in a recently published op-ed that virtual currency is “the largest Ponzi scheme in human history”. However, they have said that the “value of blockchain technology must not be ignored because of virtual currency.”
Opinion piece claims that 90% of the 100 richest people have bad-spoken virtual currency
Op-ed published by the People Daily Online newspaper. The BSN chairman and his colleague begin their attack on virtual currency and bitcoin. They point to the fact that it has been “foul-mouthed” by at least 90% of the world’s 100 richest people. The duo also gives the reasons that forced them to view BTC or virtual currency negatively. They wrote:
This type of Ponzi scheme classifies as ‘capital type’. It has three main characteristics: first, it is based on the equity that can be denominated. Second, capital can be traded and circulated. Finally, and most importantly, this equity is not associated with any assets. It is not productive labor, or social value, but is completely fictitious.
According to the duo, equity in virtual currency capital in Ponzi schemes is not tied to any real assets or labor. The risk is “close to infinity.” Looking at the features of the virtual currency. Zhiguang and Yifan said it is evident that these are consistent with those of a so-called Capital Ponzi scheme.
Elsewhere in the article, the president of BSN and Yifan use the dogecoin example. They show how only an influential individual can manipulate or control the value of a virtual currency.
“So, it’s easy to understand that Musk can turn his practical dogecoin like a cloud and turn his hands into the rain. Sending a tweet can make the price of the virtual currency flat,” the duo claimed.
Despite their stance on virtual currency, Zhiguang and Yifan insisted on their op-ed. The blockchain technology which anchors most cryptocurrencies, “should not be ignored”. The duo suggested that regulatory technology is still needed to ensure that blockchain plays “a very important role in various fields of application.”
India's Currency Dove urges slow hikes as rates approach neutrality
India’s Currency Dove urges slow hikes as rates approach neutrality
A dove of Indian monetary policy signals. It is time to abandon the aggressive pace of increases in borrowing costs. It says the inflation-adjusted real interest rate is approaching neutral ground. As a result, it will reach a level where it can help control inflation without stifling economic growth.
Sticking to larger increases instead carries the risk. Risk of reducing already weakened the demand without softening inflation. Ashima Goyal, one of the six members of the Monetary Policy Committee, warned in an email interview. She added that he is not speaking on behalf of the full MPC.
“Indian real interest rates are not far from neutral,” he said. The Benchmark rate has risen to 4.9%, amid inflation that fell to 7% in May from 7.8% in the previous month.
The Reserve Bank of India’s rate panel increased its key rate by 90 basis points in two moves since May. It is among 60 others that have raised borrowing costs by half a percentage point or more in a single session to control inflation.
Goyal knows for her reluctance to make loans more expensive. As actions to cool demand can lead to a rise in the unemployment rate in an economy still struggling to recover. There is no general agreement on what the neutral rate should be for a particular country. A recent paper from the Reserve Bank of India suggested that it may have fallen after the pandemic.
Economists see the central bank raising rates at least twice. It is more before weighing a pause. The consumer price growth in India has remained above the RBI’s 6% upper tolerance limit since earlier this year.
Goyal is a professor at the Indira Gandhi Development Institute. Goyal says rates will rise. The pace will depend on inflation and growth outcomes and their impact on inflation forecasts.
Continued aggressive hikes happen when the economy is recovering from a pandemic shock. It will “impose a large production sacrifice with little effect on inflation,” he said. He also adds that “swift and decisive action to keep real rates close to neutrality is adequate to anchor inflation expectations.”
Also, government measures to address supply-side inflation continue, he said. His colleague on the panel is Jayanth Rama Varma. He advocated adopting rate guidance from the Federal Reserve’s dot plot, along with the inflation forecast.
MPC minutes released last week showed members decided on a 50-basis point rate increase. But the rate differed on how inflation will evolve. Lt. Gov. Michael Patra said last week that MPC will likely lose its inflation mandate.
Here are a few more excerpts from the interview with Goyal:
“Losing the goal of the MPC is not important and is understandable given the circumstances. The important thing is to confirm the commitment to flexible inflation. Flexible inflation targets and reduce inflation with the least sacrifice of output.”
“My future votes will depend on the results, not on a preconceived ideological position.”
On inflation, “we may be pleasantly surprised. Crude oil and palm oil are softening, as are other commodities. The uncertainties are still big, so we look forward to the data.”
The chances of stagflation in India are “zero”. “Growth remains large and positive despite repeated shocks. A slight slowdown in growth is not stagflation. The economy has demonstrated intrinsic resilience, supported by its growing diversity.”
Today we look at how Asia’s anti-inflationary defenses are weakening. What big central banks are doing this week? And how are global imbalances widening?
Asia’s inflation buffers weaken
The worst to come
Many Asian economies have managed to protect their citizens. The protection is from rising energy and food prices that are sweeping the global economy. The global economy is sweeping through subsidies and other fiscal support.
But now, the months since Russia’s invasion of Ukraine have passed. Same governments were forced to narrow down their target to those most in need to ease the pressure on their pandemic-hit budgets.
Indonesia and Malaysia are reorienting subsidies to ease the financial burden. They face a financial burden after two years of big spending to weather Covid-19. The Philippines’ incoming president has proposed a similar plan.
Asian economies face budgetary constraints even before prices rise. The Nomura analysts see spillover effects. Rising global food prices leading to food price inflation in Asia. It usually occurs with a delay.
The decline in fiscal support could not come at a worse time for the region. Inflation has yet to peak in Asia, according to economists at Nomura. Economists see risks of grunts and protectionism in the global supply chain. It is due to continued Covid-19 lockdowns in China and weaker harvests in India.
A worsening inflation outlook across Asia threatens disposable incomes and consumption. Disposable incomes and consumptions are already under pressure from interest rate hikes. Interest rate hikes cool and fights inflation.
