INDONESIA: Country Wrap: Russia to Invest with Danantara
Jun-20 05:44
- The Russian Direct Investment Fund and Danantara Indonesia will launch a joint investment platform with up to EUR2b of capital, according to statements. RDIF and Danantara Indonesia will focus on investments in promising Russian and Indonesian companies in strategic industries, RDIF says in an emailed statement. The platform will speed up industrial upgrading and deepen technological self-reliance in sectors such as infrastructure, energy, advanced manufacturing and food security, according to Danantara in a separate statement (source BBG)
- The Ministry of State-Owned Enterprises (SOEs) reports a steady increase in contributions from state-owned companies to the nation over the past five years, generating income of Rp2,516 trillion (US$155.5 billion) for the state through taxes, non-tax state revenues (PNBP), and dividends or profit shares.
- Data from the Ministry of SOEs shows that the majority of these contributions came from taxes, totaling Rp1,749 trillion, while contributions in the form of PNBP reached Rp523 trillion, and dividends adding another Rp245 trillion. (source Indo Bus Post)
- The Jakarta Composite is down -0.72% today and -3.4% for the week
- The BI was seen in supporting IDR this week which is flat today at 16,410 but down -0.65% for the week.
- Bonds saw yields drift higher by up to 2bps across the curve today. The 10YR is at 6.73%, +4bp for the week.
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EUROZONE T-BILL ISSUANCE: W/C 19 May
May-21 05:41
Portugal and the EU are still due to sell bills this week, while Germany, the Netherlands, France and the ESM have already come to the market. We expect issuance to be E19.8bln in first-round operations, up from E18.1bln last week.
- This morning, Portugal will come to the market with a combined E1.25-1.50bln of the 6-month Nov 21, 2025 BT and the new 12-month May 22, 2026 BT.
- Finally today, the EU will look to issue up to E1.0bln of the 3-month Aug 8, 2025 EU-bill, up to E1.0bln of the 6-month Nov 7, 2025 EU-bill and up to E1.0bln of the 12-month May 8, 2026 EU-bill.
CHINA: Country Wrap: January April Deficit Record
May-21 05:36
- Ministry of Finance data shows the Chinese government deficit tipped CNY2.6tn in the year to April. This deficit is one of the largest on record and represented a 50% increase year on year. The government is looking to cushion the economy as it is buffeted by the impacts of the trade war. Total expenditure rose 7.2 per cent to CNY12 trillion yuan, the data showed. In signs the economy may be stabilizing, tax revenue rose 1.9% from a year earlier after a 2.2% decline in March. Signs that the wave of government bond issuance are impacting the fiscal position were evident as interest payments rose 11%. With signs that the US China relationship is thawing and this release could represent the low point in the deficit as signs that economic activity is stabilizing. (source MNI Market News)
- The US Commerce Department set the stage for anti-subsidy duties on imports of key battery components from China, after concluding materials had been unfairly subsidized. The agency’s preliminary determination is an early milestone in a trade case looking at supplies of active anode material, which is vital for electric vehicle batteries, and includes materials such as graphite and silicon. (source BBG)
- China's major bourses were all positive today with the CSI 300 leading the way, up +0.68%, the Hang Seng up +0.53%, Shanghai up +0.38% and Shenzhen up a mere +0.09%.
- Yuan Reference Rate at 7.1937 Per USD; Estimate 7.2181
- CGBs are steady to a little softer with the 10YR at 1.67%
SCHATZ TECHS: (M5) Resistance Remains Intact
May-21 05:35
- RES 4: 107.775 High Apr 7 and the bull trigger
- RES 3: 107.600 High Apr 30
- RES 2: 107.550 High May 7
- RES 1: 107.335 High May 12 / 20
- PRICE: 107.255 @ 06:15 BST May 21
- SUP 1: 107.175/070 Low May 19 / 13 and the bear trigger
- SUP 2: 106.965 Low Apr 9 and a key support
- SUP 3: 106.928 61.8% retracement of the Mar 6 - Apr 7 bull cycle
- SUP 4: 106.830 Low Mar 27
Despite recent gains, a bearish theme in Schatz futures remains intact for now. A resumption of the bear leg would signal scope for an extension towards the next key support at 106.965, the Apr 9 low. The bear trigger has been defined at 107.070, the May 13 low. On the upside, resistance to watch is 107.335, the May 12 / 20 high. Clearance of this hurdle would signal a potential reversal. This would open 107.550, the May 7 high.
