Aurelia Butler

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.The top-tier Asian economic data cupboard on Thursday is bare, meaning regional markets will probably feed off U.S. earnings, banking sector woes, debt ceiling developments and geopolitical events for direction.From a corporate perspective, Wall Street this week appears to have slipped into a ‘push and pull’ between upbeat results – especially mega tech – and deepening concern over the health of small and regional U.S. banks.Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) ‘beats’ on Tuesday helped push the Nasdaq up 0.5% on Wednesday but the Dow Jones and S&P 500 fell 0.7% and 0.4%, respectively. This was followed up on Wednesday by Meta, whose shares surged 12% after hours after the company’s strong earnings beat. First Republic Bank (NYSE:FRC)’s shares plunged to another record low, but PacWest Bancorp jumped 8% after beating estimates and stemming deposit outflows. The regional banking index rose for the first day in five.Avid readers of the geopolitical tea leaves in Asia will be kept busy after South Korea’s President Yoon Suk Yeol met U.S. President Joe Biden in Washington, and China’s Xi Jinping held talks with Ukraine’s Volodymyr Zelenskiy – their first direct communication since Russia invaded Ukraine last year.Biden said maintaining U.S. access to Korean semiconductors is not designed to hurt China. Beijing may beg to differ, and may be equally wary of Biden and Yoon’s pledge to deepen cooperation on deterrence against North Korea and strengthen trilateral ties with Japan.Washington welcomed Xi’s call with Zelenskiy, but may privately question Xi’s sincerity and motives reaching out to the Ukrainian leader 14 months after Russia’s invasion but only days after the furor sparked by China’s envoy to Paris.On the macro front, Beijing will no doubt welcome news that the yuan became the most widely used currency for cross-border transactions in China in March, overtaking the dollar for the first time. The yuan was used in 48.4% of transactions, Reuters calculated, while the dollar’s share declined to 46.7%. (Graphic: Foreign central banks & US Treasuries flows – https://fingfx.thomsonreuters.com/gfx/mkt/zdvxdkalevx/UST_Flows_Fed.jpg) The ‘de-dollarization’ debate has picked up again recently, but the latest flows estimates from two Fed economists show central banks remain buyers of U.S. Treasuries and added to their holdings in the first two months of the year.China added to its Treasuries holdings in February, but not enough to make up for the fairly heavy selling in January.Asian markets will also be sensitive to the U.S. debt ceiling standoff. So far, stress has only flared up in the U.S. T-bills market, but that could spread quickly if the Republican bill in the House is voted down later on Wednesday.Here are three key developments that could provide more direction to markets on Thursday:- Singapore unemployment (March)- Australia export and import prices (Q1)- China industrial profit (YTD) (By Jamie McGeever; Editing by Josie Kao) More

NEW YORK (Reuters) – Tiffany & Co (NYSE:TIF). lifted the lid on its newly renovated New York city flagship on Wednesday, the centerpiece of a broad brand reset orchestrated by its owner, the world’s biggest luxury group LVMH.”Wonder Woman” film actress Gal Gadot presided over the early morning ribbon cutting ceremony, flanked by Tiffany CEO Anthony Ledru and Alexandre Arnault, executive vice president of product and communications for the label — one of LMVH chair and CEO Bernard Arnault’s five children who hold key positions in the French firm.The executives snipped the ribbon in the label’s trademark robin’s egg blue, prompting applause from the crowd that spilled out onto the sidewalk of the store, at the corner of East 57th Street and 5th Avenue. The nearly four-year overhaul of the historic building, which was built in the early 1940s and anchors a prominent stretch of midtown Manhattan real estate, began before Tiffany was purchased by LVMH, Europe’s most valuable company.The store accounted for 10% of Tiffany’s global sales before closing for renovations in 2019 and will likely remain the label’s most important retail outlet, both in terms of sales and as a means to project its image, Ledru said. “It’s not a flagship, it’s a landmark — a landmark that has been here for 83 years, it’s the renovation of the century,” Ledru told journalists after the ceremony, speaking from the glass-lined penthouse on the 10th floor, overlooking Central Park.LVMH did not reveal the cost of renovations, but executives said it was by far the group’s largest retail investment — surpassing Dior’s Avenue Montaigne flagship in Paris, opened last year. Tiffany’s Fifth Avenue outpost is key to its brand revival, hinged on moving upmarket and beyond the traditional focus on engagement rings. Alexandre Arnault spearheaded the label’s initial reset with an advertising campaign starring Beyonce — wearing the famous yellow Tiffany diamond — and Jay-Z.Product-wise, the label’s top selling product lines include the T-shaped jewelry, chunky HardWear line and the more recently introduced oval-shaped Lock bracelets. Now the priority will be on renovating the label’s retail network, essential for Tiffany to bridge the gap with Cartier, the world’s largest jewelry label, which belongs to Richemont, Ledru said. The investment comes as European labels including LVMH’s star fashion labels Louis Vuitton and Dior, have recorded strong, post-pandemic demand from Americans that has lasted for months but is beginning to show signs of easing up.LVMH’s U.S. sales grew 15% last year, and the U.S. market accounted for 27% of overall revenue, as shoppers shrugged off rising prices and turbulent markets.LVMH officials have said they prioritize developing Tiffany’s sales while margin growth would likely kick in at a later stage, mirroring its strategy for its Italian jewelry label Bulgari.Tiffany sales came to 5.1 billion euros ($5.63 billion) in 2022 and are forecast to reach 7.4 billion in 2025, according to HSBC.($1 = 0.9061 euros) More

Good morning. China president Xi Jinping urged his Ukraine counterpart Volodymyr Zelenskyy to negotiate with Moscow in the first phone call between the two leaders since Russia’s full-scale invasion of Ukraine.In an almost hour-long call that Ukraine’s president called “long and meaningful”, Xi told Zelenskyy that he would send a representative to talk to “all parties” to seek a “political settlement” of the war, according to China’s foreign ministry. However, a readout of the call from Zelenskyy’s office avoided any reference to negotiation. Instead, it “expressed hope for China’s active participation in efforts to restore peace”. Ukraine dismissed a “peace plan” put forward by China in February in part because it did not include the withdrawal of Russian forces from occupied territory. But Zelenskyy has long sought a conversation with Xi to put forward Ukraine’s cause and persuade China’s leader to exercise pressure on Vladimir Putin to rein in his war. Here’s what else I’ll be watching today: Turkey: The country’s first nuclear power reactor — the Akkuyu Nuclear Power Plant, funded by Russia — is set to open today. Turkey president Recep Tayyip Erdoğan said Putin may visit for the occasion. (Reuters) Sudan: The limited 72-hour ceasefire between the rival military groups in Sudan finishes at midnight local time on Thursday.Earnings: A bumper week in earnings continues. Companies reporting results include Amazon, Barclays, Deutsche Bank, Intel, Merck, Samsung and Unilever to name a few. See our full list in the Week Ahead newsletter.Five more top stories1. Chinese police question employees at Bain & Company’s Shanghai office, in the latest case of heightened scrutiny of foreign businesses in China as tensions between Beijing and Washington rise. Six people familiar with the situation said Chinese police had made a surprise visit to the US management consulting group two weeks ago2. UK competition regulator blocks Microsoft’s $75bn acquisition of Activision Blizzard, drawing a furious response from the video games maker, which branded Britain “clearly closed for business”. The ruling is a huge blow to the deal’s global prospects and comes ahead of regulatory decisions in the EU and the US. More tech news: Meta shares rose 10 per cent after it reported better than expected sales guidance.3. US to step up its nuclear commitment to South Korea as it seeks to reassure Seoul about the strength of their alliance in the face of threats from North Korea. Here are the details from yesterday’s announcement.4. Walt Disney sues Florida governor Ron DeSantis and other officials, claiming the state’s “retaliation” for its stance on the “Don’t Say Gay” law violated its constitutional rights. Until now the US media company has held back from taking legal action in the course of a bitter year-long fight with DeSantis. The entertainment group said in the legal filing it was “left with no choice”.5. Exclusive: Tencent expands overseas investment in gaming assets with a focus on Europe, seeking to diversify away from China even as Beijing lifts punishing restrictions on the industry. Read the full story. The Big Read

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From a St Petersburg grandmother with her own art gallery to a teenager competing in international equestrian events, the family members of Russian warlord Yevgeny Prigozhin have led a charmed life. Western governments have struggled to impose costs on the Wagner founder’s relatives, even though they have been heavily involved in his businesses.We’re also reading . . . EV boom: An inside look at how South Korea’s three leading battery companies have made themselves integral to electric vehicle manufacturing in the US.Heavy industry: The irony of our dash to live on digital devices is that it has created a dire need for metals and rare earth minerals. It’s a space with a dire need for more entrepreneurs, writes Gillian Tett. Scientific rivalries: Isaac Newton is known as first-class scientist. Less known, is that he was a ruthless enemy who thrived on one-upmanship. Chart of the dayChinese equities have suffered a brutal sell-off since China reported a strong first-quarter of economic growth — sign of investor doubts over whether the country can sustain its rebound. Analysts said the higher than expected growth may have actually helped spur the sell-off. FT’s Hudson Lockett and Cheng Leng explain why. Take a break from the newsKing Charles has often been described as stiff and awkward-looking. But this has obscured the fact that he is an exceptionally good dresser. As a wiry, fit young man in his polo kit, Charles was, whisper it, even a little bit hot, writes FT’s Robert Armstrong. Don’t miss Rob’s column on what makes King Charles III’s sense of dress majestic.Additional contributions by Camilla Bell-Davies and Tee Zhuo More

(Reuters) – Raymond James Financial (NYSE:RJF) Inc missed Wall Street estimates for second-quarter profit on Wednesday as a prolonged dealmaking slump weighed on the investment bank and brokerage’s mainstay business. Investment banking revenue fell 36% to $145 million from a year earlier. Dealmaking was at a virtual halt for most of last year as risk appetite waned amid deteriorating macroeconomic conditions and geopolitical tensions.”Persistent market volatility and macroeconomic uncertainties continue to dampen capital markets activity across the industry – particularly for investment banking,” Chief Executive Paul Reilly said. The gloom follows a bumper 2021 for Wall Street’s investment bankers who advised on multi-billion dollar mergers and buyouts, while underwriting listings of some of the biggest clients to tap the public markets in more than a decade. “Despite a healthy investment banking pipeline and solid new business activity, the timing of closings is largely dependent on improving market conditions,” Reilly said. Earlier in April, Wall Street’s investment banking giants Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS) also reported a drop quarterly profit amid a downswing in mainstay investment banking business. On an adjusted basis, Raymond James’ net income available to common shareholders was up at $446 million, or $2.03 per share, in the three months ended March 31, compared with $346 million, or $1.62 per share, a year ago. Analysts on average had expected $2.23 per share, according to Refinitiv data. Raymond James shares fell 1% to $91.15 in extended trading after results as profit lagged estimates. However, net interest income and Raymond James Bank Deposit Program fees from third-party banks was a bright spot. It surged 226% to $731 million from a year ago. (This story has been refiled to correct a typo in the headline, the dateline, and the day in paragraph 1) More

McCarthy floated a plan last week that would pair $4.5 trillion in spending cuts with a $1.5 trillion increase in the $31.4 trillion U.S. debt limit. He has said the House would vote on his bill this week and has also invited Biden to discuss the debt ceiling with him.”House Republicans must take default off the table and address the debt limit without demands and conditions,” the White House said on Tuesday. More