So, now we know. US importers that bring Chinese-made goods into America must pay a tariff of 25% on some US$200 billion worth of items, rather than just 10%. China is unlikely to take this lying down. It has threatened to retaliate. We wait with bated breath.
Staying in America, retail sales for April could provide some clues to the impact of higher import prices on consumer spending. They are expected to show a sharp drop in growth from the previous month.
But retail sales growth in China in April could be almost unchanged from the previous month at 8.7%. Malaysia will report retail sales for March. It is expected to have grown 7.7% from a year ago, which would be slower than the 8.5% in February. Malaysia is also expected to say that the economy grew at an annualised rate of 4.5% in the first quarter.
The annual rate of inflation in the eurozone could have moderated to just 0.7% in April. Meanwhile, the second estimate of economic growth is expected to confirm that the economic bloc expanded 1.2%.
India, which is at the tail end of a general election, is expected to say that the rate of inflation for April was marginally higher at 2.97%. In March, the retail prices inflation rate climbed to a five-month high of 2.86%.
And just as India’s election draws to a close, Australia will hold its federal election on 18 May. It is essentially a battle between the incumbent Liberal party led by Scott Morrison and the centre left Labor Party, headed by former union leader Bill Shorten.
On the earnings front, investors will be hoping that Singtel (SGZ: Z74) can break five straight quarters of falling profits. In February, the telecom operator said net profits fell 14.2% in the third quarter.
In February, Singapore Airlines (SGX: C6L) reported a 27% drop in third-quarter income. But group revenue rose 7%, despite flat average ticket prices.
Meanwhile, SATS (SGX: S58) said profit rose 3.5% in the third quarter thanks to improvements in both food solutions and gateway services. It said it plans to build new central kitchens in China to supply fast casual restaurants in key cities.
There are also results from Golden Agri-Resources (SGX: E5H), ComfortDelGro (SGX: C52), Singapore Technologies Engineering (SGX: S63). City Developments (SGX: C09) and Sembcorp Industries (SGX: U96) are also pencilled in for numbers.
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