THE MOST IMPORTANT NEWS OF THE LAST WEEK 24.2.2023

Inflation in Turkey to remain at 40%

More than 43,000 people were killed in the country's 6 February earthquake. The devastating event will cost the economy more than USD 50 billion, leaving inflation above 40% just in time for the elections scheduled for June.  If we look at the lira, we can see that it too is in trouble, as its net reserves have fallen by USD 7 billion since the earthquake and bankers are expecting further action by the authorities to reduce demand for foreign exchange. [1] In Turkey after the earthquake, the cost of not only food but also of renting and building houses is rising.

Netflix now also in Vietnam

Popular streaming company Netflix will open its latest branch in Vietnam after years of negotiations with the authorities. The giant finally managed to complete a risk assessment in late 2022, which focused on examining the security and political risks of operating a branch in Vietnam and handling user data and sensitive content. Netflix is expected to open its branch in late 2023, this will require a lengthy regulatory process that may take longer.

Netflix's stock performance over the past 5 years. (Source: Investing) *

BHP counts on optimism in the commodity market

Growth in countries such as China and India will boost demand for commodities. This is what Australian mining giant BHP is counting on, despite their half-year profit decline. The long-term outlook within commodities will be an advantage for this company. Shortages of some minerals will be supported by population growth, raising living standards. [2] BHP saw its revenue fall 16% from $30.53 billion to $25.71 billion in the six months to the end of December. The company's half-year profit was $6.46 billion, down 32% from $9.44 billion in the same period a year ago.

The release in China also helped Alibaba

Alibaba Group Holding Ltd reported better-than-expected quarterly earnings. The electronics retailing leader benefited from the country's easing of Covid-19 restrictions. The giant has coped with a worse economic situation in China, which scrapped its zero-Covid policy in December 2022 after three years. The company's revenue in the three months to December 31 rose 2% to 247.76 billion yuan ($35.92 billion). Net profit attributable to common shareholders also rose, reaching 46.82 billion yuan, up from 27.69 billion yuan in the same quarter during 2022.

* Past performance is no guarantee of future results

[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.