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Global investors still rattled by US subprime market
Turbulence in share markets around the globe is likely to continue this week, which means investors will have to either hang on for a bumpy ride or bail out if they can't handle the nerve-wracking dips.
At the close of trade on Friday it was evident that markets remain rattled over the prospect of further defaults in the United States subprime mortgage market and remain on high alert for signals of how far the problem might have spread, making buyers cautious.
However, companies here are expected to continue delivering generally strong earnings and economists remain upbeat on the mainland growth story.
With plenty of factors underpinning the market, there could therefore be as many bottom-fishers in search of bargains as there are investors eager to dump shares on small price rallies.
Meanwhile all eyes will be on the outcome of the US Federal Reserve Open Market Committee meeting tomorrow, though investors would do well to look beyond any immediate decision on interest rates and listen to what the Fed has to say about the state of the US economy.
In a clear signal that the Fed is not expected to raise rates, however, investors were piling into US Treasuries ahead of the meeting.
Bank of Korea's policy makers will meet on Thursday to review interest rates. Although no change is expected, central bankers there are expected to up rates again this year after raising the cost of borrowing in July.
Wynning ways
Billionaire Las Vegas casino developer Steve Wynn's Nasdaq-listed Wynn Resorts reports second-quarter earnings after US markets close today. Investors will be watching to see whether the performance of his US$1.2 billion Macau property will track the record numbers reported by rival Sands Macao casino last week.
Sands saw global profits fall by 69 per cent but record levels of high stakes play at its Macau casino helped lift profits there by 3.1 per cent from a year ago and 15.7 per cent from the previous quarter.
A handful of Hong Kong's biggest names will be reporting interim results this week, with Standard Chartered predicted to deliver strong earnings tomorrow.
Singapore's state-owned investment holding group Temasek last week raised its stake in the bank.
MTR Corp is also reporting results tomorrow and on Wednesday Cathay Pacific will open its books. The airline's results are likely to have suffered from the high price of oil.
China Merchants Bank will announce results on Thursday.
Shares in the mainland bank rallied last month when it said strong loan and fee income would result in a doubling of first half profits compared with last year.
I-Cable Communications will announce its interim results on Friday, and most of the focus will be on the impact of losing its exclusive English Premier League rights to rival PCCW. Investors will want to know how many subscribers I-Cable has lost as a result and what parent Wharf Holdings plans to do with the company going forward.
Limbering up
And then there's sport and all the money that goes with it. Wednesday marks one year from the start of the Beijing Olympics, and big sponsors such as Coca-Cola, Lenovo and McDonald's are gearing up their marketing machines.
The Olympic Economic Forum, which covers the sponsorship and marketing circus that is created around the sporting event, is being held in Beijing today and burger chain McDonald's will put some of its top executives in front of the press on Thursday to talk about its strategy of using super-svelte athletes to market fattening burgers to mainlanders.
Digesting that message may present more of a challenge than a Big Mac.
