Daily BriefsMacro

Daily Brief Macro: Hong Kong: Worries About The Collapse Of The Currency Peg Are Overblown and more

In today’s briefing:

  • Hong Kong: Worries About The Collapse Of The Currency Peg Are Overblown
  • The Week That Was in [email protected] – Bank Jago, Meralco’s Sell-Down, and Unilever Indonesia
  • The Philippines: First SONA By Marcos Falls Short Of Expectations
  • The Commodity Report #62

Hong Kong: Worries About The Collapse Of The Currency Peg Are Overblown

By Manu Bhaskaran

  • Falling foreign exchange reserves have reawakened fears for the HK Dollar peg to the US Dollar. This fear is fundamentally misplaced. 
  • The currency board system underpinning the peg cannot break by definition unless there is a political decision to break it.
  • Instead, what HK might have to fear is the consequences of the peg for the domestic economy by way of asset price deflation and falling wages.

The Week That Was in [email protected] – Bank Jago, Meralco’s Sell-Down, and Unilever Indonesia

By Angus Mackintosh


The Philippines: First SONA By Marcos Falls Short Of Expectations

By Nicholas Chia

  • President Marcos’ first State of the Nation Address (SONA) represents a missed opportunity of-sorts, given his sizeable mandate & political capital. The address lacked fresh reforms on taxation or economic liberalisation.
  • Without a renewed push to open up the economy, foreign investment approvals, which have slowed, will only continue to languish.
  • Conversely, a large part of his speech addressed the agriculture sector which he personally oversees, reflecting attempts by Marcos to broaden his family’s political base beyond the Solid North.

The Commodity Report #62

By The Commodity Report

  • Commodities rallied as the dollar weakened and real rates declined again.
  • As you can see above, the CRB index bounced right from the 200D MA.
  • More important commodities did so even while GDP data was worse than expected.

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