In addition to the ECB’s monetary policy, investors are also looking forward to the US jobless claims data and Powell’s speech. Based on a Bloomberg survey, the ECB Main Refinancing Rate Sept. is projected to rise +75Bps to 1.25% (Vs. Aug. 0.50%), with US Initial Jobless Claims ending September 3 projected to be maintained at 235K claims. Fed Chair Powell is scheduled to take part in a panel discussion at the Cato Institute virtual meeting.
Corporate Bonds
TLKM : Partners with Amazon Web Service. PT Telkom Indonesia (Persero) Tbk (TLKM) established a strategic partnership with Amazon Web Services (AWS). This is done to accelerate national digitization, support solution acceleration, and cloud computing technology for digital industry players. Meanwhile, Telkom established a partnership with AWS Indonesia with the vision of being the core of digital Indonesia through people and technology. (Emiten News)
Domestic Issue
Indonesia’s Forex Reserves at USD 132.2 Billion. Bank Indonesia (BI) reported that Indonesia’s foreign exchange reserves at the end of August 2022 reached USD 132.2 billion, at the same level as the end of July 2022. This development was influenced by tax and service receipts, oil and gas foreign exchange receipts, amid the need for exchange rate stabilization as the Rupiah is in line with the high uncertainty in global financial markets. (Kompas)
Recommendation
The trade deficit narrowed, easing fears of further 3Q22 US GDP contraction. US Trade Balance Jul. recorded a deficit of -USD70.6B (Vs. Jun. -USD80.9B) or a 13% MoM lower deficit. Previously, Trade Balance added 1.42% points to 2Q22 US GDP which experienced a Technical Recession -0.6% QoQ (Vs. 1Q22 -1.6% QoQ). Wall Street’s appreciation also occurred in line with the strengthening of Risk Free UST10Y, which recorded a decrease in yield of 9Bps to a level of 3.27%, from yield of 3.35% or the highest level since June 2022.
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