Global IPO market half the size it should be: SGX CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The global market for initial public offerings (IPOs) is nearly half the size it should be, the CEO of the Singapore exchange (SGX) Magnus Bocker told CNBC.

“There is no doubt, we have a slowdown in IPOs. If you look long-term we are nearly down 40-50 percent,” said Bocker, referring to the projected annual growth rate for 2013.

According to Bocker, looking at IPO rates on a historical basis, the global IPO market is falling well short of its projected growth rate this year.

“If you go back to 1990 to 2000 there was a little less than 2,000 IPOs in the world per annum, then in the next ten years we had about 2000 to 2200,” he said.

“We should probably be at 2,300 to 2,400 [per annum] for the next ten years. So if you take that as a measure and look at it now, we are at a run rate of around 1,000 to 1,200. I would say we are 40-50 percent down,” said Bocker.

Appetite for new company listings on global stock markets has waned in recent times as volatile market conditions put investors off.

In the first half of 2013, the number of companies to list on Asian stock exchanges nearly halved from 209 (worth USD 24 billion) to 111 (worth USD16 billion), according to Ernst and Young. And in recent months, several firms have delayed launches or adapted their IPO strategies in a bid to try and attract investor interest.

But Bocker said one bright spot for Asia was that the percentage of global IPOs taking place in the region is growing.

“Ten years ago 30 percent of IPOs took place in Asia, but in the last 10 years, 40-50 percent of global IPOs taking place in Asia,” he added.

Furthermore,the pipeline of small and medium sized companies coming to market is growing, said Bocker, and overtaking appetite from larger companies.

Bocker said he expects to see an influx of Real Estate Investment Trusts (REITs) coming to market in the near future.

On Wednesday, Singapore`s IPO market got a boost from the debut of Singapore Press holdings` Real estate investment trust (Reit). The IPO featured 308.9 million shares at 90 cents each, raising a total of USD 504 million. The public tranche of about 84 million units was 25 times subscribed, the Straits Times reported.

Copyright 2011 cnbc.com

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Euro zone business activity expands, euro rallies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Economic activity in the euro zone expanded in July, purchasing managers index (PMI) readings showed on Wednesday, marking the first uptick for business activity since January this year.

The euro zone flash composite PMI for July came in at 50.4 versus forecasts of 49.1 and June’s reading of 48.7. A reading above 50 indicates an expansion of business activity.

Activity in the euro zone’s largest economies, France and German, also improved in July, with business in the private sector in both Germany and France performing better than expectations.

The news sent the euro to a one-month high against the dollar.

“This is a very strong number, it was surprisingly strong across the board,” Chris Williamson, chief economist at Markit told CNBC. “Leading the growth is Germany, with strong growth in manufacturing and services and in France, which has been a weak spot in these surveys, the manufacturing there even returned to growth.”

France’s composite PMI was at a 17-month high with a reading of 48.8 up from 47.4 in June. Meanwhile, Germany’s composite figure came in at 52.8 from 50.4 in June.
While the readings were better than expected, one economist warned that the outlook for the euro zone economy remained weak.

“It’s encouraging to see the improvement but even my very downbeat forecast on Europe really requires the PMI to go up by one point this year and by another two points next year and that’s just to be able to clock in a little bit of growth,” Michala Marcussen, head of global economics at Societe Generale told CNBC.

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This African city is world’s most expensive for expats

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Luanda, the capital of Angola in Southern Africa, has overtaken Tokyo as the world`s most expensive city to live in for expatriates, according to Mercer`s latest annual cost of living survey.

The oil-rich nation, which struggles with high costs of accommodation and imported goods, is back at the top of the rankings after falling into second place last year, a 2013 survey by the human resources firm showed on Tuesday. Luanda topped the list in 2010, and again in 2011.

Europe and the Asia-Pacific region were tied for the number of cities among the top 10 costliest, at four each.

Moscow was the highest-ranked European city in second place, followed by the three Swiss cities of Geneva, Zurich and Bern, which were placed seventh, eighth and ninth, respectively.

The most expensive Asian city is Japan, coming in third this year after placing first in 2012.

The survey covers 214 cities around the world and measures the cost of over 200 items in each place in March such as housing, transportation, food and clothing, using New York as a the base city.

Angola, which is Africa`s second largest oil producer after Nigeria, attracts large multinational firms to set up base there.

But finding appropriate expat housing is one of the biggest expenses that employers face, Barb Marder, senior partner and global mobility practice leader at Mercer said in a media release.

“Despite being one of Africa`s major oil producers, Angola is a relatively poor country yet expensive for expatriates since imported goods can be costly,” Marder said. `In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly.”

Last year, the average monthly rent for a luxury two-bedroom apartment in Luanda was $6,500, according to Mercer, just about $500 less than the cost in Hong Kong – which considered one of the world`s most expensive real estate markets.

Europe and Asia dominate

European cities continue to dominate the rankings of the 10 most expensive places to live for expats despite moderate price increases, Mercer said.

“Switzerland remains one of the costliest locations for expatriates despite decreasing or stable accommodation costs and a robust Swiss franc,” the release said.

Last year, Geneva and Zurich ranked fifth and sixth, respectively, and also made top 10 rankings in 2011.

Other Asian cities to make the top 10 rankings include island nation Singapore in fifth place, followed by Hong Kong in the sixth spot and rounded out by Sydney in Australia and Bern in Switzerland, which tied for the ninth spot. The region also had a strong showing last year with four Asian cities ranked within the top 10 most expensive places to live.

But, currency fluctuations and impact of inflation on goods and services have impacted Asia`s overall rankings in the survey, according to Mercer.

“In Asia, about half of the cities went down in the ranking – Japan especially – due to local currencies` weakening against the U.S. dollar,” Nathalie Constantin-Métral, principal at Mercer said.

The Japanese yen (Exchange: JPYUSD=)has depreciated more than 15 percent this year to the 100 level against the U.S. dollar on Prime Minister Shinzo Abe`s radical economic policies to revive the world`s third largest economy.

-By CNBC.com`s Rajeshni Naidu-Ghelani; Follow her on Twitter @RajeshniNaidu

Copyright 2011 cnbc.com

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Abe’s party has won, so why is the yen strengthening?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Yen strength following a clear election win for Japan`s ruling coalition in weekend elections has defied expectations of further currency weakness and has left the yen once again drifting away from the key 100-mark versus the dollar.

The Japanese currency on Tuesday firmed to about 99.13 per dollar, its strongest level in almost a week and up more than 2 percent from a one-and-a-half month low hit earlier this month.

Analysts say the yen`s reaction to Sunday`s upper house election is partly explained by the currency already weakening last week in anticipation of Prime Minister Shinzo Abe`s ruling coalition securing a decisive win that strengthens Abe`s position to push through economic reform.  

The other reason, they add, is that with the election over there is an element of uncertainty about how aggressive Abe will be with his economic program and that means traders are holding back from pushing the yen lower for now.

“We saw this `buy the rumor, sell the fact` trade yesterday with the yen, but there is also a question of uncertainty,” said Harmen Overdijk, the head of portfolio management for Asia at EFG International, a private banking group.

“Monetary stimulus has been effective in pushing down the yen. The next step is, will Abe really deliver and will he deliver structural reforms?,” he said.

The yen has tumbled more than 15 percent against the dollar this year, underperforming its major currency counterparts, amid aggressive monetary stimulus from the Bank of Japan.

Currency weakness, which provides a powerful boost to exporters, is seen as a key part of Abe`s efforts to revive Japan`s economic fortunes and end years of deflation.

Strategists say the yen`s downward trend remains intact and the currency should weaken towards 105 to 110 against the dollar in the months ahead, even though the 100-barrier appears elusive for now.

“It [yen strength] does have something to do with the benign environment. The Fed isn`t moving yet and there`s also been talk after this election about how aggressively Abe will pursue fiscal and monetary policies,” said Nick Bennenbroek, head of currency strategy at Wells Fargo in New York, referring to an easing of expectations for the Federal Reserve to unwind its monetary stimulus soon that has slowed a broad-based rally in the dollar.

“The base case scenario is still that he [Abe] will pursue those economic policies. Over time, the markets will absorb that message and as people become convinced that the focus remains on the economy, dollar/yen will push higher again so we remain yen bears,” he added.

A concern is that although Abe looks likely to have a long tenure as prime minister following Sunday`s election win, there is now less pressure to deliver long-term economic reforms.

Kocihi Hamada, a professor at Yale University and a special economic adviser to Abe`s cabinet, told CNBC Asia`s “The Call” that reviving the economy remained Abe`s top priority.  

“Economic revival is the third arrow of his [Abe`s] economic agenda and he has at least three years to concentrate on growth. He will focus on these matters,” Hamada said.

And with the yen a central part of Abe`s plan to revive Japan`s economy, further strength in the currency could serve as timely reminder why not to let the reform mantle slip, analysts said.

“The tough part is to judge whether we will see serious yen weakness in the next six months,” said David Mann, head of regional research for Asia at Standard Chartered Bank.

– By CNBC.Com`s Dhara Ranasinghe, Follow her on Twitter: @DharaCNBC

Copyright 2011 cnbc.com

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‘Walking Dead’ market: Why the rally keeps going

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Call it the Zombie Market, if you will, a staggering, stumbling, somnambulant thing of macabre beauty that sustains slings, arrows and shotgun blasts but still marches forward.

Jeff Kleintop, chief market strategist at LPL Financial, is more succinct and culturally aware: He calls it the “Walking Dead” market, after the wildly popular, zeitgeist-y AMC zombie series.

Instead of the perils zombies face to survive in a post-Apocalyptic world, the “walkers” of Wall Street must fend off the many macro and micro economic threats to their existence.

Negligible economic growth? No sweat. Recession in Europe? Nobody cares. China slowdown? Big deal. Near-zero revenue growth? Someone else’s problem. Federal Reserve tapering? Who needs ’em?

Kleintop bemoans the lack of Emmy nominations for “Walking Dead,” and said the stock market,—like the shows zombies—doesn’t get enough credit for defying its many detractors.

“This unkillable stock market rally seems to get no respect. US stocks have been snubbed by investors this year,” he said. “The S&P 500 has continued the strongest bull market since WWII despite all the shots fired at the market this year.”

In addition to the aforementioned zombie-slayers, he also cited the “fiscal cliff” tax increases and sequestration spending cuts in Congress; zooming oil prices, European debt woes; rising interest rates, geopolitical turmoil and low market participation.
 
“While it has been impossible to kill so far this year despite all the shots fired at it, this is no mindless and shambling rally,” Kleintop contended. “Stocks have deliberately moved past these events that did not stop the still-beating heart of economic growth in the United States.”

About that last point: The “beating heart” has been less a beat and more a fading tap lately.

Second-quarter gross domestic product growth likely will register below 1 percent after a disappointing 1.8 percent in the first quarter.

US investors, meanwhile, are bailing on bonds but not exactly flocking to stocks either. A record outflow from fixed-income funds in June saw that money go not to equities but rather en masse—to the tune of nearly USD 110 billion—into savings and money market funds.

But those are just two more to add to the list of demons this market has vanquished and may yet again, in Kleintop’s view.
He advised investors to stay tuned for a raft of data points likely to influence the markets ahead.

“A volatile second half in the stock market is likely, but so too are potential gains as the US economy continues to post growth of about 2 percent, resulting in opportunities to buy on the dips,” he said.

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Defending currencies? More like digging a hole

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Emerging market policymakers who have in recent times tightened monetary conditions in an effort to shore up their currencies, may be digging themselves into a hole, economists have warned.

Brazil, Indonesia and most recently India have tightened monetary policy in the face of rapid currency depreciation stemming from worries over the Federal Reserve scaling back its extraordinary monetary stimulus.

But there are concerns that the moves will do little to support currencies with economic growth suffering as a result.

“If you want to keep capital onshore, raising rates is one way to attempt to do that. But under these circumstances of U.S. monetary tightening, I think it’s useless,” said Uwe Parpart, chief strategist and head of research, Reorient Financial Markets told CNBC.

 “Once the outflows start, policymakers can raise rates all they want, but they are just going to make the economic situation worse and outflows will accelerate. I don’t understand the thinking of central bankers, this is a measure of desperation which is not well thought out,” he added.

The Brazilian real, Indonesian rupiah and Indian rupee have declined 10 percent, 3 percent and 7.2 percent, respectively, against the U.S. dollar since Fed Chairman Ben Bernanke started talking about tapering on May 22. These currencies have been vulnerable to heavy selling given worries about their large current account deficits.

 Despite aggressive intervention by the Brazilian Central Bank, the real has so far failed to respond to the tightening policies. The central bank has raised its benchmark rate by 125 basis points since April.

“The failure of the Brazilian real to rally in response to monetary policy tightening is disturbing. It is a bad sign for an emerging market currency when the central bank tightens policy and the currency depreciates sharply. It can signal a lack of faith in policy credibility,” said Nicholas Ferres, investment director at Eastspring Investments.

 A combination of higher interest rates and continued weakness in a currency would present a host of issues for an economy including tighter domestic liquidity conditions, higher costs to service U.S. dollar dominated debt and pricier imports.

Growth threat

Tightening monetary policy in a fragile economic environment also threatens to exacerbate the slowdown in economic growth, say analysts.

Brazil, Indonesia and India together account for 10 percent of global gross domestic product (GDP), thus a slowdown in their economies would have a material impact on global growth.

“This effective tightening of financing conditions across these countries does pose a downside risk to growth, exacerbating sluggish growth in India, Turkey and Brazil, while cooling down relatively strong growth in Indonesia,” said Rachel Ziemba, director, global emerging markets at Roubini Global Economics.

Credit Agricole on Monday warned that India’s monetary tightening could hit growth in Asia’s third largest economy.

“The Reserve Bank of India’s actions could lead to a sharp slowdown in growth; unless interbank market liquidity tightness abates soon, we will look to revise our growth and inflation forecasts,” the bank wrote in a report.

Last week, the Reserve Bank of India introduced a limit on the amount banks are able to borrow from the central bank at the benchmark interest rate of 7.25 percent. Above that limit, banks would be subject to higher rates of 10.25 percent.

Several banks have downgraded their growth outlook for India in the last week, with Nomura and Deutsche Bank both lowering their forecasts to 5 percent for the fiscal year 2014, from previous estimates of 5.6 percent and 6 percent, respectively.

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Gold regains some luster, has best day of the year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices jumped as the dollar slipped, giving the precious metal its best day of the year Monday and setting up for further gains.

U.S. gold futures for August delivery rose 3.3 percent, to a four-week high USD 1,336 a troy ounce, its best one-day gain since June 2012. The dollar index was down about 0.5 percent in afternoon trading, at 82.19.

“You’ve got technical momentum,” said RBC commodities analyst George Gero. “You have fund buying. You have physical need for gold in the forwards in Europe, and you have no willing sellers left because we had that selloff to below USD 1,200. Almost anyone who was a weak holder got out. On Thursday, there’s expirations, and that encourages short covering.”

Analysts expect the buying activity to spur more upside for now. Gold had been crushed as the dollar gained on expectations that the Fed tapering its USD 85 billion a month in bond purchases would drive interest rates up. The 10-year Treasury note, which had reached a recent high of 2.75 percent, was at 2.48 percent Monday.

 But as the Fed has tempered expectations for tapering to a gradual withdrawal with no hike in short-term rates, the dollar has pulled back and gold has found support. Gold, which entered a bear market in April, struck a low of USD 1,179 on June 28.

“What [Fed Chairman Ben] Bernanke’s been trying to do for the past few weeks is push the marketplace into the notion that tapering and the end of quantitative easing is going to be later rather than sooner,” said Jim Wyckoff, senior analyst at Kitco. “And I think he’s done a good job of convincing the marketplace of that. That’s what pressured the dollar, and it’s been a bit bullish for raw commodities.”

 Fed officials have assured markets that though they could start winding down the bond purchases by year-end, they will rely on economic data to determine their asset purchases and they have no intention of raising the Federal funds target rate anytime soon.

Traders said gold gained momentum after piercing USD 1,300, a level it had failed to break above over the last several weeks. Large speculative short positions also have been built up in gold as it declined. The Commodity Futures Trading Commission’s latest weekly data show that funds’ gold net-long positions rose 48 percent, increasing for the first time since the start of June as traders covered short positions.

Net longs also rose for silver, which gained 5.4 percent Monday.

 Gero at RBC said there has been strong buying interest in gold from China and Japan but that India, the biggest market, is still sidelined because of new taxes on gold and a weak currency.

On Monday, the Reserve Bank of India moved to tighten gold imports again by restricting bank holdings of the metal. It asked all nominated banks and agencies to export at least a fifth of every lot of imported gold in all forms and to make it available only to local jewelers. India has been struggling to contain its record current account deficit.

“The fact that we settled above the April 15 low of USD 1,321 is bullish,” said Kevin Grady, president of Phoenix 1,335 we’re sitting on is a very key area. Wyckoff said the next upside target is USD 1,350.

“I think the gold market today gained some good upside technical momentum,” he said. “The price action negated a 9.5-month-old down trend on the daily chart. Also, we have a fledgling 3-week-old uptrend,” he added. “It’s a near-term bottom. We’ll have to wait and see if it’s any kind of a longer-term bottom. Certainly the bulls have gained important near-term technical momentum.”

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Russia Fin Min: Ruble devaluation ‘not in our interest’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Russia`s finance minister told CNBC it was not in the country`s interest to devalue the ruble, although last month he argued that a weaker currency would help boost flagging economic growth.

Speaking at the G-20 meeting of finance ministers in Moscow, Anton Siluanov said neither Russia`s finance ministry nor its central bank had plans to interfere with the currency.

“We have no aim to weaken or strengthen the ruble. We are coming from – and are in – the situation of having a balance of demand and supply on ruble liquidity,” he said on Saturday.

“It`s not in our interest to have sharp fluctuations of the ruble. We are for the ruble to be fluctuating within the narrow corridors that have been created.”

Siluanov said in June that he would welcome a weaker ruble to boost Russia`s weakening economy.

Russia`s economy grew by 1.6 percent year-on-year in the first quarter of 2013 – its slowest since 2009. The government forecasts that gross domestic product will come in at 2.4 percent in 2013, a significant fall from 2012`s 3.4 percent.

Reforms?

Russia, one of the world`s largest energy exporters, has been urged to boost its economy by diversifying away from its heavy reliance on the energy sector.

Siluanov told CNBC these reforms would not be stalled by a recent rise in oil prices – which hit USD 108 per barrel last week.

“All oil and gas revenues will go into the reserve fund,” he said. “That`s why the rise of revenues on account of market-determined prices, are not going to be reflected on spending increases. The rise of oil prices does not relax in our undertaking of the intended structural reforms.”

The Kremlin has been heavily criticized by some in recent days for the sentencing of Alexei Navalny, a protest leader and one of President Vladimir Putin`s biggest critics. Navalny was sentenced to five years in prison, a move that was slammed by human rights activists, before being released on bail on Friday pending appeal.

But Siluanov said the international perception of Russia had not been damaged by the news.

“For the investors, the main thing is the economic policies of the government,” he said. “The economic policies remain the same. There are some events that happen in the world, but I don`t think they can influence, on the whole, the investment climate in Russia.”

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‘All systems go’ after Abe’s big election win?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The convincing victory by Shinzo Abe`s ruling coalition in Sunday`s election helps pave the way for long-awaited economic reforms, but only time will tell whether Abe seizes the opportunity to transform the world`s third largest economy or follows the same path as predecessors and let reform efforts fizzle.

Abe`s Liberal Democratic Party (LDP) and its coalition partner, the New Komeito party, won at least 74 of the 127 seats being contested in the 242-seat upper house election , Japanese media reported early on Monday.

The election is significant because it means the ruling coalition now has a majority in both houses of parliament, making it easier to push through changes.

The win also raises the likelihood that Japan could get a leader who`s staying the course. Since former Prime Minister Junichiro Koizumi ended his five-year term in 2006, no leader has been in office for longer than 15 months.

“It`s all systems go now and the focus is very clear,” Jesper Koll, head of Japanese equity research at JP Morgan Securities, told CNBC Asia`s “ Squawk Box .” “The first six months of Abe`s rule was all about getting a cyclical upturn, now it`s going to be focused on getting a structural upturn so that Japan`s potential growth rate can be revised up.”

The benchmark Nikkei-225 (CBOE: .NKXQ) stock index edged up on Monday amid optimism that with the upper house election over, Abe can focus on implementing the final part of his three-pronged strategy to boost growth and end the deflation that has hampered Japan`s economy for years.

Aggressive monetary stimulus and fiscal spending have already helped give Japan`s economy a boost this year and economists say it`s the third part of Abe`s strategy of structural reforms that are key to the long-term economic outlook.

Potential reforms include joining the Trans-Pacific Partnership, a trade deal that is expected to pave the way for opening up sectors such as agriculture to foreign competition, reforming the corporate tax structure and introducing a consumption tax as well as labor market reforms such as trying to bring more women into the work force.

Japan watchers say there are two concerns. The first is that Sunday`s decisive election win will make Abe more complacent about delivering painful economic reforms or taking on vested interests within his own party. The second is that Abe will prioritize his nationalist agenda before economic reforms.

“We`ve had a very successful election; the problem is all these members [of parliament] have their own agenda and will they support the difficult and important structural changes Abe is talking about? This will be important,” said Stephen Nagy, an assistant professor at the Department of Japanese Studies at the Chinese University of Hong Kong.

According to HSBC Economist Izumi Devalier, Abe`s biggest challenge could come from within the LDP.

“Abe is in the best position to push through reforms since Koizumi,” she said. “But he does have to deal with vested interests. After this election, the LDP will have upwards of 400 members and voices on agriculture, labor [reform] are divided so his biggest enemies will be within his own party.”

She said one reason Abe was unlikely to put nationalist policies such as changing Japan`s pacifist constitution before economic reform was caution from the LDP`s coalition ally, the New Komeito, which could “rein in any nationalist impulses.”

Other Japan watchers pointed to the poor the track record of Japanese prime ministers, many of whom were hopeful of reforming the economy but ultimately failed. Japan has suffered from deflation for 20 years and its economic performance has generally been meager compared with its peers.

“You have to be very skeptical,” said Richard Jerram, chief economist at Bank of Singapore. “We`ve had every prime minister in the past 20 years, and there have been about 15, that have had a structural reform program. They`ve all promised and not delivered on that front.”

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China manufacturing back in focus this week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HSBC`s flash estimate of the China purchasing managers` index (PMI) is likely to feature high on the list of data to be watched closely in Asia this week.

The week ahead also sees the latest inflation releases from Japan, Australia, Hong Kong and Singapore, while any comments from Japanese Prime Minister Shinzo Abe following Sunday`s election win for his ruling coalition to the upper house of parliament could also be in focus.

The HSBC PMI is due out on Wednesday and should provide the first clues of how the manufacturing sector is holding up this month.

The HSBC June PMI fell to a nine-month low of 48.2 from 49.2 in May, slipping further below the 50-mark that divides expanding activity in the sector from a contraction.

Data on China`s economy is much in focus for global markets as investors try to assess the extent of a slowdown.

“We would be surprised if the flash HSBC PMI wasn`t weak and it does come after the credit crunch in June,” Richard Yetsenga, head of global market research at ANZ, told CNBC Asia`s “Squawk Box” on Monday.

A credit squeeze for local lenders last month has raised concerns that tight liquidity conditions will spill over to the broader economy and undermine growth.

China releases its latest industrial profit numbers at the weekend.

Inflation watch

Hong Kong releases June inflation data Monday, followed by Singapore on Tuesday. Australia posts its second quarter consumer price index (CPI) on Wednesday and Japan publishes its latest CPI data on Friday.

“In Australia, June quarter inflation data to be released Wednesday are expected to show that inflation remains benign, likely setting the scene for another cut by the Reserve Bank of Australia when it meets in early August,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note.

Any signs that Japan is moving out of deflation could cheer local markets and give further ammunition to Shinzo Abe and his radical plans to transform Japan`s economy.

Abe is scheduled to visit Malaysia, Singapore and the Philippines later this week.

Investors will be watching for potential comments from Abe on his long-term plans for Japan`s economy amid some concern that his strong election win at the weekend could reduce the incentive to initiate structural reforms.

Central banks in New Zealand and the Philippines are scheduled to meet this Thursday, while South Korea releases its second-quarter economic growth numbers the same day.

Analysts at Bank of America Merrill Lynch expect the Philippine central bank to leave its key rate unchanged at 3.50 percent

“We expect Korea`s GDP growth to improve to 1.9 percent year-on-year in Q2 from 1.5 percent in Q1 on strong construction investment and favorable base effects,” they added in a research note.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow