|
|
| |
 |
|
| HKECIC Weekly Market News |
| 10 August 2020 |
|
|
|
| |
 |
| |
| |
| Market Snapshots |
| Asia and Australasia |
Hong Kong: Survey shows business conditions worsen in July
The IHS Markit Hong Kong Purchasing Manager’s Index (PMI) came in at 44.5 in July, versus 49.6 in June and declined for the first time since February. The latest data suggest that Hong Kong's business conditions worsened amid a tightening of containment measures due to a rise in new COVID-19 infections. Business activity and new orders both declined at steeper rates during July. Meanwhile, business confidence was consequently dented further, with the proportion of firms anticipating a decline in business activity over the next 12 months increasing noticeably from June. Principal Economist at IHS Markit, Bernard Aw, commented that latest PMI data pointed to a marked deterioration in private sector conditions across Hong Kong, representing a setback to the economic recovery. The tightening of COVID-19 related measures in response to a rise in new infections dealt a new blow to the economy.
Australia: Retail sales growth slows in June
Figures from the Australian Bureau of Statistics showed that Australia’s retail sales in seasonally adjusted terms rose 2.7% mth/mth to AUD 29.76 billion in June, slowing from a growth of 16.9% in May. Sales went up at a slower pace for cafes & restaurants (+27.9%) and clothing & footwear (+20.5%), among other categories, while fall in sales was seen in department stores (-12.1%) and household goods retailing (-3.2%). The outlook of retail sales has been recently clouded by a second wave of COVID-19 infections in the state of Victoria, where the transmission source of many cases was not yet known. In response, Premier of Victoria Daniel Andrews has declared a state of disaster in the region. Tighter lockdown measures including a night curfew and a ban on virtually all trips outdoors have been imposed. New restrictions will be in effect for six weeks until mid-September. |
|
|
| North America |
US: Secretary of State urges US app stores to remove untrusted Chinese-owned apps
US Secretary of State Mike Pompeo has unveiled a series of new actions designed to reduce China's access to American data. Pompeo said expanded US efforts on a program it calls “Clean Network” would focus on five areas and include steps to prevent various Chinese apps, as well as Chinese telecoms companies, from accessing sensitive information on American citizens and businesses. President Donald Trump on 7 August issued executive orders banning any transactions with ByteDance, the Chinese company that owns video-sharing app TikTok, and Tencent, owner of the WeChat app, starting in 45 days. |
|
|
| Latin America |
Argentina: Government reaches restructuring deal with creditors
Last week, Argentina’s government announced that it has reached an agreement with its major foreign private creditors to restructure around US$65 billion in sovereign debt, in a bid to resolve its ninth sovereign default in history. Under the agreement, Argentina will change the payment dates for some new bonds, without increasing the aggregate amount of principal payments or interest payments that it commits to make while enhancing the value of the proposal for the creditors. The deadline for creditors to formally accept the new deal is 24 August. The Argentine economy has been severely hit by its ongoing sovereign debt crisis, sluggish domestic demand as well as disrupted global supply chain due to the COVID-19 epidemic. The economy contracted by 5.4% yr/yr in Q1 2020, after shrinking 1.1% in the Q4 2019. |
|
|
|
| |
|
| |
|
|
| |
Tailored Brands Inc., owners of the brands Men’s Wearhouse and Jos. A. Bank, has filed for Chapter 11 bankruptcy protection due to the lowered demand for clothing industry amid the COVID-19 pandemic. Tailored Brands said that it secured support with more than three-fourths of its senior lenders for a US$630 million debt structuring plan that would allow it to survive the bankruptcy. The struggling retailer has raised substantial doubt in late July about its ability to continue as a going concern, and announced to close up to 500 stores and slash 20% of its corporate jobs.
UK-based airline company Virgin Atlantic Ltd. has filed for Chapter 15 bankruptcy protection in the US as part of a debt restructuring process. Chapter 15 shields Virgin Atlantic against lawsuits by US creditors while it reorganizes its debt in the UK. The airline said in a filing that it has negotiated a deal with stakeholders for a consensual recapitalization that will improve its financial strength, and will put the plan to a creditor vote on 25 August. |
|
|
| |
|
|
| |
Hong Kong Export Credit Insurance Corporation
2/F, Tower 1, South Seas Centre, 75 Mody Road, Tsim Sha Tsui East, Kowloon, Hong Kong |
| Phone：(852) 2732 9988 Website : www.hkecic.com E-mail : info@hkecic.com |
| If you no longer wish to receive email messages from HKECIC, please click "unsubscribe". |
|
|
|
| |
Copyright © 2020 Hong Kong Export Credit Insurance Corporation |
|
|
|
|
Disclaimer
The information contained in the ‘Weekly Market News’ (WMN) is compiled by the Hong Kong Export Credit Insurance Corporation ("HKECIC") for general information only. Whilst HKECIC endeavours to ensure the accuracy of this general information, no statement, representation, warranty or guarantee, express or implied, is given as to its accuracy or appropriateness for use in any particular circumstances.
HKECIC is not responsible for any loss or damage whatsoever arising out of or in connection with any information including data or programmes on the WMN. HKECIC reserves the right to omit, suspend or edit all information compiled by HKECIC on the WMN at any time in its absolute discretion without giving any reason or prior notice. Users are responsible for making their own assessment of all information contained in this WMN and are advised to verify such information and obtain independent advice before acting upon it.
|
|
