Adidas is investigating allegations of bribery in China. Its share price fell 4%.

Adidas has commenced an investigation into allegations of widespread bribery in China. The company received an anonymous letter from a whistleblower, who claimed that senior employees had embezzled millions of euros. The letter specifically named several Adidas China employees, including a senior manager responsible for the marketing budget in the country, which reportedly amounted to 250 million euros per year. Adidas has confirmed that it received the letter on 7 June 2024 and is now conducting an investigation with the assistance of external legal counsel. The sportswear company has stated that it takes compliance violations seriously and is committed to adhering to legal and ethical standards in all markets. The letter alleges that Adidas employees accepted bribes from external service providers commissioned by the company, including cash and physical goods such as real estate. Further information will be provided upon the conclusion of the investigation.

https://internasional.kontan.co.id/news/adidas-selidiki-tuduhan-penyuapan-skala-besar-di-china-harga-saham-anjlok-4

Inflationary pressure eases, Bank of Korea predicted to cut interest rates by year-end.

The Bank of Korea has indicated that consumer inflation is anticipated to continue decelerating, which is expected to result in a reduction in interest rates later this year. The bank's governor, Rhee Chang-yong, noted that the slowdown in international oil and agricultural product prices will contribute to the gradual decline in future inflation. He also highlighted that inflationary pressure from domestic demand is likely to remain under control, while export growth is expected to drive the economy, with projected growth of 2.5% this year. Analysts anticipate that the Bank of Korea will reduce interest rates by 50 basis points in the fourth quarter in order to align with the target rate of approximately 2% by the end of this year or early next year. South Korea's headline inflation decreased to a 10-month low of 2.7% in May, continuing the trend of slowing inflation in recent months.

https://internasional.kontan.co.id/news/tekanan-inflasi-mereda-bank-of-korea-diprediksi-pangkas-suku-bunga-di-akhir-tahun

A senior Federal official has indicated that interest rates will decline gradually.

In a recent statement, John Williams, Governor of the Federal Reserve Bank of New York, indicated that interest rates in the US are likely to decline gradually over time. He anticipates that this will be a reflection of inflation returning to the Fed's target of 2% and the economy continuing to grow strongly and sustainably. However, Mr. Williams did not provide a specific timeline for when the central bank might begin to ease its monetary policy. When asked about the likelihood of a rate cut in September, Williams declined to make any predictions, stating that it would depend on how the data evolves. Nevertheless, Williams expressed confidence that the conditions are moving in the right direction for the central bank to eventually ease monetary policy. Mr. Williams' remarks followed the recent Federal Reserve policy meeting, during which the central bank decided to maintain its benchmark interest rate at 5.25% to 5.50%. The Federal Reserve also revised its forecast for the number of rate cuts it expects to implement this year, reducing it from three to one.

https://internasional.kontan.co.id/news/pejabat-the-fed-suku-bunga-akan-turun-secara-bertahap