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On August 13th, it was learned from a press conference held by the Jinan Municipal Information Office that in the first half of the year, the added value of Jinans financial industry reached 77.53 billion yuan, a year-on-year increase of 14.7%, accounting for 11% of the citys GDP. As of the end of June, Jinans total social financing balance was 5.63 trillion yuan, a year-on-year increase of 8.6%; the balance of domestic and foreign currency deposits was 3.4 trillion yuan, a year-on-year increase of 5.8%; and the balance of domestic and foreign currency loans was 3.67 trillion yuan, a year-on-year increase of 8%.On August 13th, the Beijing Equity Exchange (BEEE) reported significant achievements in revitalizing existing assets and maximizing asset value by focusing on key areas and priorities for various business entities to revitalize their assets through a "platform + investment banking" transaction ecosystem. To better serve various business entities in revitalizing their existing assets, BEEE recently launched a "Prestigious Asset Revitalization Service Column." This column focuses on the efficient revitalization and value enhancement of existing assets, covering 14 areas including equity and debt transfers, real estate and land transfers and leases, and the disposal of machinery, equipment, and idle assets. Leveraging years of professional service capabilities and extensive experience, BEEE provides a one-stop, full-process service for existing asset revitalization, including advisory services, asset valuation, due diligence, promotion, transaction matching, and financial services. This significantly improves transaction efficiency, reduces transaction costs, and empowers the efficient revitalization of existing assets.New York silver futures fell 1.00% on the day, currently trading at $64.87 per ounce.Switzerlands producer/import price index fell 2.1% year-on-year in July, compared with a previous reading of -2.10%.On August 13th, Citigroup released a research report stating that Lenovo Groups (00992.HK) performance growth was primarily supported by the explosive growth of its Infrastructure Solutions Group (ISG) and the continued leadership of its Intelligent Devices Group (IDG). Gross margin expanded year-on-year to 16.5%, exceeding Citigroup and market expectations, reflecting improved revenue mix and ISG gross margin expansion. Non-GAAP net profit surged 176% year-on-year to US$1.075 billion, exceeding Citigroup and market expectations by 64% and 149% respectively, with non-GAAP net profit margin expanding to 4%. Citigroup stated that based on a sum-of-the-parts valuation method, it set a target price of HK$31 for Lenovo Group, corresponding to a projected P/E ratio of approximately 13.6 times for fiscal year 2028. The IDG and SSG businesses are valued at a P/E ratio of 10 times, and the ISG business at a P/E ratio of 16.7 times, consistent with industry standards. The bank maintained its "Buy" rating on Lenovo Group, citing strong server demand prospects and profitability, as well as the stable performance of its PC, mobile phone, and service businesses.

USD/TRY reestablishes its annual high on route to 17.00, notwithstanding Erdogan's expectation of future inflation moderation

Alina Haynes

Jun 06, 2022 15:25

 截屏2022-06-06 下午3.23.52.png

 

In spite of Turkish currency (TRY) traders' inflation worries and President Erdogan's efforts to appease TRY purchasers, the USD/TRY continues to trade near $16.36, the highest level since 2022. The pair's upward momentum is influenced by Friday's high Turkish inflation data for May, as well as the US dollar's comeback over the last week, not to mention expectations of the Fed's faster/more aggressive rate rises.

 

According to Reuters, "Turkish President Tayyip Erdogan stated on Sunday that inflation numbers from the month of May, when annual consumer prices soared to a 24-year high, indicate that inflation is now on the down." It is noteworthy that the May inflation rate for Turkey increased to 73.5 percent in the most recent report.

 

Reuters also reported that the lira fell by 44 percent last year and has been the poorest performer in emerging markets for several consecutive years, mostly owing to economic and monetary policy worries under the administration of President Tayyip Erdogan.

 

In contrast, the odds supporting a 0.50 percent rate hike by the Federal Reserve in September have lately increased to 75 percent from 35 percent a week earlier, which emphasizes this week's US Consumer Price Index (CPI) data and favors US dollar purchasers. In spite of this, the US Dollar Index (DXY) reversed a two-week downward trend at Friday's close, trading down 0.14 percent intraday near 102.000 as of press time.

 

US Nonfarm Payrolls (NFP) for May came in at 390K, above expectations of 325K but falling short of the upwardly revised prior readings of 428K. In addition, the unemployment rate stayed constant at 3.6% against predictions of a minor reduction to 3.5%. In addition, the US ISM Services PMI dropped to 55.9 in May, compared to the market estimate of 56.4 and the flash reading of 57.1 in April. Following the release of the statistics, Loretta Mester, president of the Federal Reserve Bank of Cleveland, stated that the Fed's only worry is inflation. The officials underlined that the likelihood of a recession has increased.

 

Wall Street benchmarks finished in the negative and US 10-year Treasury rates saw their first weekly increase in three weeks to reflect the risk-averse sentiment of the previous day. However, S&P 500 Futures increased by 0.5 percent to 4,126 and US 10-year Treasury rates fell by 1.3 basis points (bps) to 2.942 percent as per the most recent data available.

 

Amid a pre-Fed blackout for Fed officials and in anticipation of Friday's US CPI, USD/TRY traders should pay attention to risk drivers moving forward.

Technical Evaluation

A successful breach of the prior resistance line from early January, about 16.45 at the time of publication, would lead USD/TRY values toward the $17.00 mark before testing the late 2021 top at $18.36.


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