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(Bloomberg) — The dramatic events that occurred overnight in Russia sent shockwaves far beyond the theaters of war in Ukraine and Russia. Here’s what you need to know about Wagner’s aborted mercenary revolt and what it might mean, plus upcoming events this week in Asia.
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The big shift. Mercenary leader Wagner Yevgeny Prigozhin halted his advance on Moscow and pulled his fighters back, defusing what has become the biggest threat to Vladimir Putin’s control of Russia in his nearly quarter-century rule.
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Big data. We expect more gloom from China this week, as PMIs and industrial earnings point to the need for stronger policy support. Lower fuel prices should help ease Australian inflation, while Tokyo CPI data may show that price gains have peaked there, giving the Bank of Japan more headroom to spur it. In Sri Lanka, inflation may halve as food and fuel shortages ease after bailout loans from the International Monetary Fund arrive.
The big danger. Bullish bets on high-yield corporate bonds began to unravel as fixed interest rates turned investors back to safer investment-grade notes.
The big meeting. Chris Hipkins is in China as of today and will meet President Xi Jinping (whom Hipkins said is not a dictator) during his visit, the first by a New Zealand prime minister since 2019. The trip could be a stepping stone to deals for New Zealand’s largest country. comp.
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Big grazing. With soaring fuel costs and labor pressure, some clean energy companies are turning to an unlikely ally to keep solar panels out of the shade — sheep.
The big loan. Time is running out for Pakistan to get a bailout from the International Monetary Fund. Its current $6.7 billion program ends Friday with a new deal facing hurdles over issues such as the budget and funding gap.
The big separator. Indonesian President Joko Widodo announced two more days of vacation this weekend in order to boost consumer spending. Economic policy has not been very popular since Charles the Wise of France abolished taxes on his deathbed. Other departments please take note.
Finally, after a four-year hiatus, the international dragon boat races are back in Hong Kong this weekend, including an opening showdown between Hong Kong and Macau.
I wish you a harmonious week.