Brace for the new week
(Bloomberg) — This week there will be little respite from the ongoing repercussions of the collapse of Silicon Valley Bank, with questions hanging over how regulators failed to prevent such a disorderly mess and the fallout for tech companies and crypto firms, not to mention other lenders. In Asia, we begin Act 3 of Xi Jinping’s reign in China with early indications on how the new team will reboot the economy, while India’s LGBGT community face a watershed moment in the Supreme Court. Here’s a guide to everything, everywhere, all at once.
The big selloff: Regulators are racing to sell assets of SVB Financial Group so that at least some of clients’ uninsured deposits can be made available as soon as Monday, with many startups and other depositors needing cash to meet payrolls and expenses. What could they get?
The big question: “Next week is impossible to position for,” says Jim Bianco of Bianco Research. With one shock after another, markets are struggling to find momentum. As one threat recedes, another takes its place. This is what traders would like to see next.
The big speech: China wraps up its National People’s Congress meeting on Monday after President Xi Jinping assembled his new team of top officials, including the surprise reappointment of central bank Governor Yi Gang. Xi will deliver a speech at the closing event and the new Premier Li Qiang’s first press conference will follow.
The big data: China’s industrial production and retail sales numbers should add fuel to its recovery story, helping the central bank keep interest rates steady. Bank Indonesia may also extend its pause, as inflation heads back down. In India, though, consumer prices are likely to stay above target, bolstering the case for the Reserve Bank of India to tighten again in April. Neighboring Sri Lanka’s quarterly GDP report is likely to show a deeper contraction while New Zealand’s economic recovery could sputter. Australia is expected to show a sharp jump in jobs.
The big results: Apple’s partners in Taiwan are in focus this week, with Foxconn Technology Group’s Hon Hai Precision Industry Co. and Pegatron Corp. scheduled to announce results. Investors want to know how much these sorts of firms will be affected by faltering global smartphone demand, especially after Apple reported a steep sales decline in its holiday period.
The big petition: India’s Supreme Court tomorrow will begin examining a petition to allow same-sex couples to marry, a judgement that could more than double the number of people globally with marriage equality rights. Here’s the story of how one couple took the decision to carry their fight to the highest court.
The big statue: While Silicon Valley may be in turmoil, a little further south they have other winners and losers to think about. It’s the 95th Academy Awards, the annual festival of Hollywood glitz and glamor. Is high-flying media company A24 really going to take everything?
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