INDONESIA: Country Wrap: PPP Scheme Under Pressure from Business
Jun-11 05:23
- Reciprocal tariffs of 32% announced by the Donald Trump administration will impact Indonesian palm oil shipments to the US, as the move undermines the country’s competitiveness in the global market, according to the Indonesian Palm Oil Association, known as Gapki. (source BBG)
- Businesses are expressing frustration with the government’s public-private partnership (KPBU) scheme, citing overly complicated procedures and lengthy timelines that hamper the feasibility of projects offered. They are calling for a faster process with clearer project specifications to ensure smooth execution and more predictable returns. (source Jakarta Pos)
- The Jakarta Composite's gains of +1.65% yesterday were forgotten today as it fell -0.40%.
- The rupiah hardly moved today, hovering around 16,270
- Bonds were lower in yield across the curve with the 10YR the best performer, down -2bps at 6.74%
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LOOK AHEAD: UK Timeline of Key Events (Times BST)
May-12 05:23
| Date | UK | Period | Event |
| 12-May | 0001 | Apr | KPMG/REC Jobs Report |
| 12-May | 0900 | --- | BOE Lombardelli At BOE Bank Watcher's Conference |
| 12-May | 1130 | --- | BOE Greene On Monetary policy outlook |
| 12-May | 1350 | --- | BOE Mann On Neutral Rate Of Interest |
| 12-May | 1530 | --- | DMO likely to publish FQ2 consultation agenda |
| 12-May | 1700 | --- | BOE Taylor Fireside Chat With Ed Balls |
| 13-May | 0001 | Apr | BRC-KPMG Shop Sales Monitor |
| 13-May | 0700 | Mar/Apr | Labour Market Survey |
| 14-May | 0815 | --- | BOE Breeden At ISDA Conference |
| 15-May | 0700 | Mar / Q1 | GDP / Services / Production / Trade / Construction |
| 15-May | 1500 | --- | BOE Dhingra At New Economics Foundation conference |
| 19-May | - | --- | DMO to hold FQ2 consultations with investors / GEMMs |
| 20-May | 0900 | --- | BOE's Pill At Barclays Briefing |
| 21-May | 0001 | May | Brightmine pay deals for whole economy |
| 21-May | 0700 | Apr | Consumer inflation report |
CHINA: Country Wrap: Progress Made in Discussions. No Details as Yet
May-12 05:22
- The US and China both reported “substantial progress” after two days of talks in Switzerland aimed at de-escalating a trade war, marking what Chinese Vice Premier He Lifeng called “an important first step” toward resolving differences. While neither side immediately announced specific measures on Sunday, He said the world’s two biggest economies agreed to create a mechanism for further talks, led by US Treasury Secretary Scott Bessent and himself. Bessent said the US would share details on Monday and He promised a joint statement. (source BBG)
- China has more space to roll out financial policies to support services consumption, as the world’s second-largest economy needs to further prioritize boosting demand in face of external shocks, reports the China Securities Journal, citing experts. (source BBG).
- China's key indexes were up strongly with the Hang Seng up +0.95%, the CSI 300 +0.60%, Shanghai +0.35% and Shenzhen up +1.05%
- Yuan Reference Rate at 7.2066 Per USD; Estimate 7.2441
- Bonds remain very steady with the CGB stationary at 1.63%
BOBL TECHS: (M5) Approaching The 50-Day EMA
May-12 05:18
- RES 4: 120.20 High Dec 12 ‘24 (cont)
- RES 3: 120.000 Psychological round number
- RES 2: 119.960 High Apr 7 and the bull trigger
- RES 1: 119.600/780 High May 7 / High Apr 22
- PRICE: 119.060 @ 05:45 BST May 9
- SUP 1: 118.737 50-day EMA
- SUP 2: 118.543 38.2% retracement of the Mar 6 - Apr 7 bull run
- SUP 3: 118.105 50.0% retracement of the Mar 6 - Apr 7 bull run
- SUP 4: 117.680 Low Apr 9 and a key support
A bull cycle in Bobl futures remains intact, however, for now a corrective phase remains in play and the contract is trading lower today. Support at the 20-day EMA has been breached and attention turns to the next key support at 118.737, the 50-day EMA. A break of this average would signal scope for a deeper retracement. On the upside, resistance to watch is 119.600, the May 7 high. Clearance of this level would signal the end of the correction.
