What to see in Asia today
Events: Bank Negara Malaysia begins a two-day Monetary Policy Committee meeting. The Central Bank of Kazakhstan announces its interest rate decision. Uzbekistan’s Foreign Minister Bakhtiyor Saidov arrives in Azerbaijan.
Economic data: In China, Caixin publishes its purchasing managers’ index for services and the overall index for June. Monthly Australian services PMI will be released, as well as AIG June construction and manufacturing indices, ANZ commodity price index and the latest retail sales data. Japan releases its June services PMI, while Hong Kong releases a manufacturing PMI. In India, the Nikkei Services PMI will be released. Singapore also releases May Retail Sales figures.
Markets: Futures in Hong Kong and Tokyo pointed lower on Wednesday. European stocks were up modestly the previous day while US markets were closed.
Zelenskyy claims that Russia has mined a nuclear power plant
Ukrainian President Volodymyr Zelenskyy warned Tuesday that Russia may be preparing to attack the Zaporizhia nuclear power plant, the largest of its kind in Europe.
“The Russian military placed objects resembling explosives on the roof of several power plant units of the Zaporizhia nuclear power plant,” he said, citing Ukrainian intelligence. “Perhaps to simulate an attack on the plant. Maybe they have a different scenario.”
Russian forces have controlled the power plant since the invasion began last year. Rockets and mortar shells fell near the plant, and shooting broke out around the plant.
Judge restricts US officials’ links to social media groups
A US judge has barred federal government officials from contacting social media companies to remove certain communications from their platforms. This is a politically contentious case involving tensions between freedom of expression and efforts to curb online misinformation.
Judge Terry Doughty in Louisiana’s Western District on Tuesday issued an injunction barring agencies like the U.S. Department of Justice and the FBI, as well as officials, including senior White House officials, from meeting with social media companies to discuss them Urge social media companies to take down content that “contains protected free speech” from their platforms.
Read more about the injunction here.
The BoE is considering forcing foreign banks to replace branches with subsidiaries
The Bank of England is considering controversial plans to force more international banks to set up subsidiaries in the UK, people familiar with the situation have said.
The move could lower the hurdles that require foreign banks with corporate operations in the country to set up subsidiaries with their own capital and liquidity. The BoE is considering this as part of a review of the Silicon Valley bank collapse, people said.
Subsidiaries – like those of SVB – allow local regulators to take control of failing banks, rather than leaving their fate to the discretion of their parent company’s regulators.
Read more about the Bank of England’s plans here.