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Australia PMI, Japan Jibun Flash PMI, Lunar New Year holidays

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New Zealand’s Auckland airport passenger volumes hit 74% of pre-pandemic levels in November

New Zealand’s Auckland Airport saw its total passenger volumes for November reach 74% of levels seen in the financial year to June 2019, or the last full-year not impacted by the pandemic, according to the airport’s monthly traffic update.

International passengers were at 67% of pre-pandemic levels, the release said, adding that a majority of the recovered overseas travel was short-haul flights from Australia and the Pacific Islands.

The demand for routes between New Zealand and North American regions has recovered to 86% of pre-pandemic levels, including two added destinations in Texas (Dallas/Fort Worth) and New York.

— Jihye Lee

CNBC Pro: These 6 low-debt global stocks are set to outperform, Bernstein says

Rising interest rates have major implications for companies with large amounts of debt, as they will likely experience higher costs from increased borrowing.

As interest rates continue to rise, analysts at Bernstein think that stocks with low debt exposure and a higher quality of debt should outperform.

The investment bank named a handful of global low-debt stocks with an investment-grade credit rating there likely to outperform.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Shares of Zip reverses after initial rally

Australian “buy now, pay later” company Zip fell by more than 10% after a short-lived rally following its quarterly results.

Zip traded 15% lower, a sharp turnaround from its earlier gains of more than 10% after posting 12% revenue growth.

The company said underlying “monthly cash burn has continued to decrease and expected to further improve.” It said currently available cash and liquidity position is “sufficient to see the company through to generating positive cash flow” and expects to deliver positive cash EBITDA by the first half of fiscal 2024.

Week ahead: PMIs, Australia and Singapore inflation reports, South Korea GDP

Here are some of the major economic events in the Asia-Pacific that investors will be closely watching this week.

Stock markets in mainland China and Taiwan will remain closed until they resume trade on Jan. 30.

On Tuesday, regional purchasing managers’ index readings for Japan and Australia will be in focus while most markets remain closed to observe the Lunar New Year — with the exception of Australia, Japan and Indonesia.

Inflation reports will be in focus on Wednesday as Australia and New Zealand release their consumer price index readings for the final quarter of 2022. Singapore will publish its inflation print for December.

Hong Kong’s market is scheduled to resume trade on Thursday.

Fourth-quarter gross domestic product for South Korea and Philippines will be published Thursday, while the Bank of Japan will release its summary of opinions from its latest monetary policy meeting in January. Japan also reports its services producer price index on Thursday.

Japan’s core CPI readings for capital Tokyo will be a barometer for where monetary policy is headed.

Australia’s producer price index and trade data will also be closely monitored indicators ahead of the Reserve Bank of Australia’s meeting in the first week of February.

— Jihye Lee

Australia’s business conditions worsened last month: NAB survey

National Australia Bank’s monthly business survey showed worsened business conditions for December with a reading of 12 points, a decline from November’s print of 20 points.

The survey reflects deteriorated trading conditions, profitability, and employment, NAB said.

“The main message from the December monthly survey is that the growth momentum has slowed significantly in late 2022 while price and purchase cost pressures have probably peaked,” NAB chief economist Alan Oster said.

Meanwhile, business confidence in December rose by 3 points to -1, an improved reading from -4 points seen in November.

— Jihye Lee

Japan’s headline factory data shows second month of contraction

The au Jibun Bank Flash Japan manufacturing purchasing managers’ index in January was unchanged for a second-straight month at 48.9, below the 50-mark that separates contraction and growth from the previous month.

The reading “signaled the joint-strongest deterioration in the health [of] the Japanese manufacturing sector since October 2020,” S&P Global said.

The au Jibun Bank flash composite output index rose to 50.8 in January, slightly higher than the reading of 49.7 seen in December.

Flash services business activity rose further with a print of 52.4, higher than December’s reading of 51.1.

— Jihye Lee

CNBC Pro: Wall Street is excited about Chinese tech — and loves one mega-cap stock

After more than 2 years of regulatory crackdowns and a pandemic-induced slump, Chinese tech names are back on Wall Street’s radar, with one stock in particular standing out as a top pick for many.

Pro subscribers can read more here.

— Zavier Ong

Fed likely to discuss next week when to halt hikes, Journal report says

Federal Reserve officials next week are almost certain to approve another deceleration in interest rate hikes while also discussing when to stop the increases altogether, according to a Wall Street Journal report.

The rate-setting Federal Open Market Committee is set to convene Jan. 31-Feb. 1, with markets pricing in almost a 100% chance of a quarter-point increase in the central bank’s benchmark rate. Most prominently, Fed Governor Christopher Waller said Friday he sees a 0.25 percentage point increase as the preferred move for the upcoming meeting.

However, Waller said he doesn’t think the Fed is done tightening yet, and several other central bankers in recent days have backed up that notion.

The Journal report, citing public statements from policymakers, said slowing the pace of hikes could provide the chance to assess what impact the increases so far are having on the economy. A series of rate hikes begun in March 2022 has resulted in increases of 4.25 percentage points.

Market pricing is currently indicating quarter-point hikes at the next two meetings, a period of no action, and then up to a half-point reduction by the end of 2023, according to CME Group data.

However, several officials, including Governor Lael Brainard and New York Fed President John Williams, have used the expression “stay the course” to describe the future policy path.

— Jeff Cox

Nasdaq on pace for back-to-back gains as tech shares rise

The Nasdaq Composite rallied more than 2.2% during midday trading Monday, lifted by shares of beaten-up technology stocks.

The move put the tech-heavy index on pace for a consecutive day of gains exceeding 2%. The index finished 2.66% higher on Friday.

Rising semiconductor stocks helped pushed the index higher. Tesla and Apple, meanwhile, surged 7.7% and 3.2%, respectively, as China reopening lifted hopes of a boost to their businesses. Western Digital and Advanced Micro Devices rose about 8% each, while Qualcomm and Nvidia jumped about 7%.

Information technology was the best-performing S&P 500 sector, gaining 2.7%. That was in part due to gains within chip sector. Communication services added 1.9%, boosted by the likes of Netflix, Meta Platforms, Alphabet and Match Group.

— Samantha Subin

El-Erian says Fed should hike by 50 basis points, calls smaller increase a ‘mistake’

Surging inflation may appear largely in the past, but a shift to a 25 basis point hike at the next Federal Reserve policy meeting is a “mistake,” according to Allianz Chief Economic Adviser Mohamed El-Erian.

“‘I’m in a very, very small camp who thinks that they should not downshift to 25 basis points, they should do 50,” he told CNBC’s “Squawk Box” on Monday. “They should take advantage of this growth window we’re in, they should take advantage of where the market is, and they should try to tighten financial conditions because I do think that we still have an inflation issue.”

Inflation, he said, has shifted from the goods to the services sector, but could very well resurge if energy prices rise as China reopens.

El-Erian expects inflation to plateau around 4%. This, he said, will put the Fed in a difficult position as to whether they should continue crushing the economy to reach 2%, or promise that level in the future and hope investors can tolerate a steady 3% to 4% nearer term.

“That’s probably the best outcome,” he said of the latter.

— Samantha Subin

An earnings recession is imminent, according to Morgan Stanley

An earnings recession is imminent this year, according to Morgan Stanley equity strategist Michael Wilson. 

“Our view has not changed as we expect the path of earnings in the US to disappoint both consensus expectations and current valuations,” he said in a note to clients Sunday.

Some positive developments have unfolded recent weeks — such as China’s ongoing reopening and falling natural gas prices in Europe — and contributed to some investors viewing market prospects more optimistically. 

However, Wilson advises investors to remain bearish on equities, citing price action as the main influence for this year’s rally. 

“The rally this year has been led by low-quality and heavily shorted stocks,” he said. “It’s also witnessed a strong move in cyclical stocks relative to defensives.”

Wilson has based his forecasts on margin disappointment, and he believes the case for this is growing. Many industries are already facing revenue slowdowns, as well as inventory bloating, less productive headcount. 

“It’s simply a matter of timing and magnitude,” said Wilson. “We advise investors to stay focused on fundamentals and ignore the false signals and misleading reflections in this bear market hall of mirrors.”

— Hakyung Kim

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Business

Samsung earnings guidance, Japan services PMI, U.S. jobs data

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Tesla cuts some model prices in China, suppliers rise

Tesla slashed prices for some models in China for the second time in three months, the firm announced in a Weibo post.

The firm said its Model 3 and Model Y vehicles in China are now priced at 229,900 yuan and 259,900 yuan, respectively.

That’s a drop of 6% to 13.5%, a separate calculation by Reuters showed.

Shenzhen-listed shares of Tesla’s Chinese suppliers rallied amid optimism the price cut could boost demand for the electric vehicle maker.

Shares of Anhui Shiny Electronic Technology rose as much as 10% in Asia’s trade and Hengdian Group DMEGC Magnetics gained nearly 9%. Zhejiang Chint Electrics climbed about 10% and Shandong Jinjing Science & Tech rose more than 7%.

— Jihye Lee

More Chinese electronics firms set to take away market share from Taiwanese companies like Foxconn: Investment fund

More Chinese electronic component manufacturing companies are set to take away market share from Taiwanese counterparts such as Foxconn, Kirk Yang, chairman and CEO of Kirkland Capital, told CNBC’s “Squawk Box Asia” Friday.

Apple supplier Foxconn is facing rivalry from Luxshare, which was awarded a contract for iPhone production in China, even as Foxconn posted record revenue and its Zhengzhou plant returned to normalcy following Covid restrictions and labor unrest.

“Chinese companies are getting pretty competitive for iPhone assemblers. China is doing quite well in pretty much everything, aside from semiconductors,” said Yang.

Yang further added that with China-Taiwan geopolitical tensions, Taiwanese companies in China, in the last five years, have seen a lot of pressure. “A lot of them are moving out of China,” said Yang.

This is why Apple has to diversify, he said, adding that the US-China tech war is also causing companies to move even faster out of China to diversify.

– Sheila Chiang

Samsung Electronics could cut production in coming months, says CLSA

Samsung Electronics may follow its competitors Micron Technology and SK Hynix in cutting production in the later part of 2023, Sanjeev Rana, senior analyst at CLSA said.

The company has “no other option but to cut their production because inventories are quickly building up,” Rana said on CNBC’s Squawk Box Asia on Friday.

“If they don’t cut production, inventories could go up even higher,” he said, adding the demand for IT products have plunged in recent months, causing the sale of memory chips to also fall.

Rana said on the demand side, China’s reopening could lead to a double-digit growth in smartphone shipments to China on an annualized basis.

Oil prices to stay around $85 per barrel for the next five years, analyst says

Oil prices are expected to hover around $85 per barrel for the next five years as a result of “underinvestment on the supply side” and likely growing demand, said Pickering Energy Partners’ Dan Pickering.

Once China gets through its Covid wave, “a million to two million barrels a day of incremental demand,” can be expected, Pickering said, adding this will be supportive of the commodity’s prices.

He added further support will also be priced in once the world steps out of the global economic downturn.

Brent crude futures added 1.12% to stand at $79.57 per barrel. Similarly, the U.S. West Texas Intermediate rose 1.15% to $74.74 per barrel.

Overnight in the U.S. also reported lower fuel inventories in the wake of a winter storm, adding on to pressures on supply.

—Lee Ying Shan

China relaxes floor rates on mortgage loans for first home buyers

The People’s Bank of China and the China Banking and Insurance Regulatory Commission announced approval for lower mortgage rates for first-time home buyers if newly constructed house prices drop for three consecutive months, a notice said.

The latest measures show further support from the government for the property sector.

Housing sales in China fell more than 20% on an annualized basis each month last year through November, Factset data showed. Home prices fell for the fourth-straight month in November on a monthly basis, Reuters reported.

Property stocks listed in Hong Kong were mostly up, with Logan group rising 5.48% and Cifi Holdings gaining 0.79%. Country Garden and Longfor Group were flat in Friday’s morning session.

— Jihye Lee

CNBC Pro: Veteran investor sees energy as the biggest winner in 2023 — and names the stocks to play it

After a standout performance in 2022, energy stocks are having a slow start to the year.

But veteran investor Louis Navellier is unfazed. He believes the sector is set for another bumper year in 2023, and has a number of stock picks to play it.

Pro subscribers can read more here.

— Zavier Ong

Japan’s service sector grows for fourth straight month

Japan’s services sector activity showed a fourth-consecutive month of growth in December as the nation’s central bank maintains its ultra-dovish policy, in contrast with its hawkish global peers.

The final au Jibun Bank Japan Services Purchasing Managers’ Index rose to 51.1, compared with the sharp fall in November’s reading of 50.3 from 53.2 in October.

The 50-point mark in PMI readings separates contraction from expansion.

The Japanese yen traded marginally stronger after the report and last stood at 133.38 against the greenback.

— Jihye Lee

Samsung Electronics’ earnings guidance flags nearly 70% plunge in quarterly profits

Samsung Electronics flagged the worst quarterly profit in nearly 8 years with a roughly 70% decline in its final quarter’s operating profit, according to the company’s latest earnings guidance.

The tech giant estimated its profit slumping to 4.3 trillion won ($3.37 billion) in the period from October to December on weakened global demand, after posting a profit of 13.87 trillion won ($10.92 billion) in its previous quarter.

Shares of the tech giant inched up 0.17% shortly after the guidance release.

— Jihye Lee

CNBC Pro: Citi’s Chronert says a recession is near; shares his ‘top conviction calls’ to tough it out

Citi’s Scott Chronert expects a mild recession in the first half of this year and revealed three strategy calls that could help investors trade the downturn.

He shared three “top conviction calls” with CNBC that could help investors navigate the macro environment.

CNBC Pro subscribers can read more here.

— Weizhen Tan

St. Louis Fed President James Bullard says 2023 is poised to be a disinflationary year

There are a number of factors that could make 2023 a disinflationary year, according to St. Louis Federal Reserve Bank President James Bullard in a Thursday speech.

He noted that GDP growth likely improved in the second half of 2022 and inflation has declined recently, even though it remains too high overall.

He added that while current policy is not yet “sufficiently restrictive” but is moving closer and will reach that level this year. This signaled to markets that he may be backing off the more than 5% terminal rate he sees the central bank reaching before pausing or pivoting rate hikes, bringing stocks off lows of the day.

The labor market strength that has been seen in the midst of a hiking cycle is unprecedented, he said.

—Carmen Reinicke

CNBC Pro: Goldman Sachs reveals 7 under-the-radar global stocks to buy this year

Many under-the-radar stocks are key to a green energy transition, according to Goldman Sachs — and it expects them to take off in 2023.

The Wall Street bank said the decade-long trend of investing in large clean energy stocks would shift this year, with the focus moving to smaller supply chain firms.

The investment bank identified seven stocks in the Europe, Middle East, and Asia regions that will benefit from the new trend.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Big declines for Silvergate, Bed Bath & Beyond highlight midday movers

Here are some of the biggest stock moves during Thursday’s trading session:

Silvergate — Shares of the crypto-focused bank tumbled more than 42% after Silvergate disclosed massive customer withdrawals during the fourth quarter. The bank said it $3.8 billion in assets from digital asset customers at the end of December, down more than 60% from three months earlier. The company also sold off more the $5 billion of debt securities to cover the withdrawals, resulting in a loss on those sales of $718 million.

Bed Bath & Beyond — The home goods retailer plummeted 24% after reporting it’s running out of cash and is considering bankruptcy, citing weaker-than-expected sales. The company said it is exploring financial options including restructuring, seeking additional capital or selling assets, in addition to a potential bankruptcy.

Lamb Weston Holdings — The food processing company jumped 9% after it smashed quarterly earnings and revenue estimates. Lamb Weston also raised its financial guidance for the full year.

Check out more movers here.

— Jesse Pound

Continuing jobless claims dip, signaling labor market strength

Initial jobless claims ticked up slightly to 225,000 in the week ending Dec. 24, according to the Labor Department. But continuing claims – which count those who have been on unemployment for more than one week – dropped.

Continuing claims fell more than 24,000 to 1,569,764 in the previous week. This signals that people are finding new jobs amid a strong labor market.

—Carmen Reinicke

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Business

Asia-Pacific markets, Fed minutes, inflation, PMI, Singapore retail, Caixin services

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Oil prices bounce after two days of declines on Chinese pent-up travel demand

Oil prices climbed more than 1% after seeing two days of declines, as China’s reopening added optimism for an economic rebound and support in demand.

Brent crude futures rose 1.08% to $78.68 a barrel, while the U.S. West Texas Intermediate futures gained 1.19% to $73.71 a barrel.

Investors appeared to have shrugged off concerns of a potential global recession dogged by shaky economic growth prospects of U.S. and China, leading to a more than 9% slump in oil prices in the past two days.

– Lee Ying Shan

CNBC Pro: Bank of America sees 50% upside in this global fertilizer stock due to a worldwide shortage

Bank of America sees a 50% upside in the shares of a global fertilizer maker due to a worldwide shortage.

The Wall Street bank says the company commands a 55% profit margin as it is insulated from the rise in natural gas prices.

CNBC Pro subscribers can read more here.

China’s Caixin services data shows improvement, remains in contraction territory

The Caixin China general services purchasing manager’s index showed easing of pressure on the sector for the month of December, with a reading of 48, maintaining in contraction territory.

The print rose from seeing a six-month low in the previous month with a reading of 46.7.

The 50-point mark separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.

“Optimism improved significantly,” Caixin Insight Group’s senior economist Wang Zhe said, adding that the gauge for expectations for future activity rose nearly 4 points compared to a month ago.

“Service providers expressed strong confidence in an economic recovery following the easing of Covid containment measures,” said Wang.

– Jihye Lee

CNBC Pro: Tech’s had a brutal year. But four stocks have bright future, investor says

The technology sector took a bashing in 2022.

But investment pro Jason Ware is unfazed. He remains bullish on tech and named four stocks he likes.

Pro subscribers can read more here.

— Zavier Ong

Hong Kong’s S&P Global PMI indicates ease in private sector contraction

Hong Kong’s S&P Purchasing Managers’ Index ticked higher to 49.6 in December from 48.7 in November despite remaining in contraction territory for the fourth consecutive month.

S&P said a slower contraction seen in the city’s private sector was due to a pickup in business activity in the final month of 2022, buoyed by easing of Covid restrictions.

Demand in the city still remains subdued, S&P said, adding that overall new orders are shrinking on the back of deteriorating economic conditions.

— Lee Ying Shan

CNBC Pro: Citi is bearish on lithium — at least for the near future. But it’s giving some stocks big upside

Citi is bearish on lithium — at least for the near future. Lithium is a critical component of electric vehicle batteries.

But the bank remains bullish on its long-term outlook, and names three stocks to watch.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Fed officials expect higher rates for “some time,” minutes show

The Federal Reserve released the minutes from its Dec. 13-14 meeting, which showed central bank officials expect rates to be higher for “some time.”

“Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 percent, which was likely to take some time,” the meeting summary stated. “In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”

“A number of participants emphasized that it would be important to clearly communicate that a slowing in the pace of rate increases was not an indication of any weakening of the Committee’s resolve to achieve its price-stability goal or a judgment that inflation was already on a persistent downward path,” the minutes said.

— Jeff Cox

November JOLTS better than expected

Job openings in November were 10.5 million, according to the latest Job Openings and Labor Turnover Survey, or JOLTS.

The report came in slightly better than expected even though it was little changed from the previous month. Analysts expected JOLTS to be about 10 million in November.

The number of hires and total separations were also little changed at 6.1 million and 5.9 million, respectively. There were also 4.2 million quits and 1.4 million layoffs and discharges during the month.

—Carmen Reinicke

Chinese ADRs rise in premarket trading

Chinese ADRs climbed in premarket trading after Ant Group received approval to increase its registered capital, a sign that Chinese regulators may be loosening their grip on the country’s tech sector.

Shares of JD.com and Alibaba each rose more than 6%. NetEase, Baidu and Trip.com were other stocks making notable moves higher.

Ant Group, which previously had its own IPO plans scuttled by regulatory concerns, was allowed to double its registered capital as part of the new plan.

— Jesse Pound

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Business

Asia-Pacific markets, Fed, Wall Street, Apple, Tesla, Japan PMI

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Alibaba shares rise after Ant Group receives approval for capital plan

Shares of Alibaba listed in Hong Kong rose 6.43% in Wednesday’s morning trade – after China’s Banking and Insurance Regulatory Commission approved a plan for Ant Group’s capital expansion plan for its consumer financial unit based in Chongqing.

According to a notice posted last week, Chinese regulators gave the greenlight to billionaire Jack Ma’s financial technology firm to raise 10.5 billion yuan ($1.5 billion).

Ant Group is an affiliate of Alibaba in which the e-commerce giant owns 33%. Ant Group runs the Alipay mobile payments wallet in China. Alibaba’s shares rose 2.78% on Tuesday, the first trading session after the notice was posted.

Other companies named in the notice included Hangzhou Jintou Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset management.

The approval marks progress in the state-led regulatory overhaul of the fintech giant.

– Jihye Lee, Evelyn Cheng

CNBC Pro: Analysts see these 10 global renewable energy stocks rising despite higher rates with one offering 50% upside

Skyrocketing energy costs have spurred investment in renewable energy across the world.

Swiss investment bank UBS named 10 prominent renewable energy players capitalizing on the trend and are set to outperform over the next year.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Japan’s manufacturing activity marks weakest in more than two years

The au Jibun Bank Flash Japan Manufacturing Purchasing manager’s index for December posted a reading of 48.9, marking a second consecutive month in contraction territory.

The reading inched down from November’s 49.0, and marked the weakest figure since October 2020’s figure of 48.70.

The sustained contractions in production was attributed to “weak global economic trends,” the report stated.

—Lee Ying Shan

Tesla’s Asia suppliers fall after deliveries report

Tesla’s suppliers in Asia fell after it reported its fourth-quarter vehicle production and delivery numbers for 2022 that fell short of expectations.

The deliveries report showed 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year, lower than expectations to see around 427,000 deliveries for the final quarter of the year.

Japan’s Panasonic lost 1.82% in early Asia trade – South Korea’s LG Chem fell 0.17% in earlier hours and Samsung SDI shed about 2%.

Shenzhen-listed shares of Contemporary Amperex Technology, or also known as CATL, fell 1.7%. Shares of Tesla closed down 12% on Tuesday on Wall Street.

– Ashley Capoot, Jihye Lee

CNBC Pro: Wall Street is bullish on this chip giant, with Morgan Stanley giving it 55% upside

The once-hot chip sector suffered in 2022, but Wall Street looks to be turning more optimistic on semiconductor stocks for the year ahead.

Recently, several pros have urged investors to take a longer-term view on the sector, given the importance of chips in several key secular trends.

Analysts named one stock in particular they’re bullish on, citing its earnings potential and future profitability.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Apple’s Asia suppliers trade mostly up in spite of production cut reports

U.S. manufacturing PMI slips at fastest rate since May 2020

The U.S. manufacturing price managers’ index, a measure of output, fell at the fastest rate in December since May 2020, according to S&P Global.

The index was 46.2 in December, down from 47.7 in November, according to data released Tuesday. Lower prices and contracting production levels weighed on the index. In addition, December saw a sharper than expected decline on new sales, with companies noting uncertainty due to the economic backdrop.

—Carmen Reinicke

Tesla sheds 13%, hits new 52-week low

The stock slipped more than 13%, hitting levels not seen since August 2020. The slide is coming off the worst annual performance for the stock – Tesla fell 65% in 2022.

—Carmen Reinicke

Apple market cap falls below $2 trillion

A selloff in Apple shares pushed the iPhone maker’s market capitalization below $2 trillion on Tuesday.

Shares shed 4% amid news that it’s reportedly cutting production on some items due to weak demand. Concerns over iPhone supply during the holiday period have mounted in recent weeks and pressured shares as shutdowns rippled through Apple’s major supplier in China.

The drop in shares contrasts a year ago, when Apple became the first U.S. company to hit a $3 trillion market cap.

Apple was the last of the mega cap technology stocks to hover above the $2 trillion level.

— Samantha Subin

U.S. will avoid recession in 2023, Goldman Sachs says

Goldman Sachs has an out-of-consensus forecast for the U.S. economy in 2023.

“Our economists continue to believe that the US will avoid recession as the Fed successfully engineers a soft landing of the economy,” analysts wrote Tuesday.

“This out-of-consensus forecast partly reflects our view that a period of below-potential growth is enough to gradually rebalance the labor market and dampen wage and price pressures,” the note said. “But it also reflects our analysis that indicates that the drag from fiscal and monetary policy tightening will diminish sharply next year, in contrast to the consensus view that the lagged effects of interest rate hikes will cause a recession in 2023.”

In addition, the bank today raised its 4Q22 GDP growth forecast by 10bp to +2.1% on the back of a surprisingly strong November Construction Spending release

“The disconnect between the resilience of the US economy in 2022 and the downdraft experienced by stocks is has been a key narrative of the past year,” Goldman said. “And, whether this disconnect continues, or the economy matches the market downdraft, or the market rebounds in the wake of an economic soft landing may be at least part of the narrative of 2023.”

—Carmen Reinicke

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World

Xi says COVID control is entering new phase as cases surge after reopening

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  • China overcame unprecedented difficulties in COVID battle: Xi
  • Still a time of struggle for controlling COVID: Xi
  • In Wuhan, surge in new cases shows signs of easing
  • Shanghai has 10 million infections, health official says
  • End of zero-COVID curbs prompts global concern

WUHAN/BEIJING, Dec 31 (Reuters) – Chinese President Xi Jinping called on Saturday for more effort and unity as the country enters a “new phase” in its approach to combating the pandemic, in his first comments to the public on COVID-19 since his government changed course three weeks ago and relaxed its rigorous policy of lockdowns and mass testing.

China’s abrupt switch earlier this month from the “zero-COVID” policy that it had maintained for nearly three years has led to infections sweeping across the country unchecked. It has also caused a further drop in economic activity and international concern, with Britain and France becoming the latest countries to impose curbs on travellers from China.

The switch by China followed unprecedented protests over the policy championed by Xi, marking the strongest show of public defiance in his decade-old presidency and coinciding with grim growth figures for the country’s $17 trillion economy.

In a televised speech to mark the New Year, Xi said China had overcome unprecedented difficulties and challenges in the battle against COVID, and that its policies were “optimised” when the situation and time so required.

“Since the outbreak of the epidemic … the majority of cadres and masses, especially medical personnel, grassroots workers braved hardships and courageously persevered,” Xi said.

“At present, the epidemic prevention and control is entering a new phase, it is still a time of struggle, everyone is persevering and working hard, and the dawn is ahead. Let’s work harder, persistence means victory, and unity means victory.”

New Year’s Eve prompted reflection online and by residents of Wuhan, the epicentre of the COVID outbreak nearly three years ago, about the zero-COVID policy and the impact of its reversal.

People in the central city of Wuhan expressed hope that normal life would return in 2023 despite a surge in cases since pandemic curbs were lifted.

Wuhan resident Chen Mei, 45, said she hoped her teenage daughter would see no further disruptions to her schooling.

“When she can’t go to the school and can only have classes online it’s definitely not an effective way of learning,” she said.

VIDEO REMOVED

Across the country, many people voiced similar hopes on social media, while others were critical.

Thousands of users on China’s Twitter-like Weibo criticised the removal of a video made by local outlet Netease News that collated real-life stories from 2022 that had captivated the Chinese public.

Many of the stories included in the video, which by Saturday could not be seen or shared on domestic social media platforms, highlighted the difficulties ordinary Chinese faced as a result of the previously strict COVID policy.

Weibo and Netease did not immediately reply to a request for comment.

One Weibo hashtag about the video garnered almost 4 million hits before it disappeared from platforms at about noon on Saturday. Social media users created new hashtags to keep the comments pouring in.

“What a perverse world, you can only sing the praises of the fake but you cannot show real life,” one user wrote, attaching a screenshot of a blank page that is displayed when searching for the hashtags.

The disappearance of the videos and hashtags, seen by many as an act of censorship, suggests the Chinese government still sees the narrative surrounding its handling of the disease as a politically sensitive issue.

HOSPITALS OVERWHELMED

The wave of new infections has overwhelmed hospitals and funeral homes across the country, with lines of hearses outside crematoriums fuelling public concern.

China, a country of 1.4 billion people, reported one new COVID death for Friday, the same as the day before – numbers that do not match the experience of other countries after they reopened.

UK-based health data firm Airfinity said on Thursday that about 9,000 people in China were probably dying each day from COVID. Cumulative deaths in China since Dec. 1 have likely reached 100,000, with infections totalling 18.6 million, it said.

Zhang Wenhong, director of the National Centre for Infectious Diseases, told the People’s Daily in an interview published on Saturday that Shanghai had reached a peak of infections on Dec. 22, saying there were currently about 10 million cases.

He said those numbers indicated that some 50,000 people in the city of 25 million would need to be hospitalized in the next few weeks.

At the central hospital of Wuhan, where former COVID whistleblower Li Wenliang worked and later died of the virus in early 2020, patient numbers were down on Saturday compared with the rush of the past few weeks, a worker outside the hospital’s fever clinic told Reuters.

“This wave is almost over,” said the worker, who was wearing a hazmat suit.

A pharmacist whose store is next to the hospital said most people in the city had now been infected and recovered.

“It is mainly old people who are getting sick with it now,” he said.

In the first indication of the toll on China’s giant manufacturing sector from the change in COVID policy, data on Saturday showed factory activity shrank for the third straight month in December and at the sharpest pace in nearly three years.

Reporting by Martin Quinn Pollard, Tingshu Wang and Xiaoyu Yin in Wuhan, Eduardo Baptista in Beijing; Writing by Sumeet Chatterjee
Editing by Helen Popper and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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Wall St slides as services data spooks investors about Fed rate hikes

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  • U.S. service sector activity picks up in November
  • Tesla cuts output plan for Shanghai plant for December-sources
  • All S&P 500 sectors decline, with energy stocks hit hard
  • Indexes down: Dow 1.4%, S&P 1.79%, Nasdaq 1.93%

Dec 5 (Reuters) – U.S. markets ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China.

The electric-vehicle maker (TSLA.O) slumped 6.4% on plans to cut December output of the Model Y at its Shanghai plant by more than 20% from the previous month.

This weighed on the Nasdaq, where Tesla was one of the biggest fallers, pulling the tech-heavy index to its second straight decline.

Broadly, indexes suffered as data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy.

The data came on the heels of a survey last week that showed stronger-than-expected job and wage growth in November, challenging hopes that the Fed might slow the pace and intensity of its rate hikes amid recent signs of ebbing inflation.

“Today is a bit of a response to Friday, because that jobs report, showing the economy was not slowing down that much, was contrary to the message which (Chair Jerome) Powell had delivered on Wednesday afternoon,” said Bernard Drury, CEO of Drury Capital, referencing comments made by the head of the Federal Reserve saying it was time to slow the pace of coming interest rate hikes.

“We’re back to inflation-fighting mode,” Drury added.

Investors see an 89% chance that the U.S. central bank will increase interest rates by 50 basis points next week to 4.25%-4.50%, with the rates peaking at 4.984% in May 2023.

The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year, which saw the central bank attempt to arrest a multi-decade rise in inflation with record interest rate hikes.

“Stock Exchange” is seen over an entrance to the New York Stock Exchange (NYSE) on Wall St. in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid/File Photo

The aggressive policy tightening has also triggered worries of an economic downturn, with JPMorgan, Citigroup and BlackRock among those that believe a recession is likely in 2023.

The Dow Jones Industrial Average (.DJI) fell 482.78 points, or 1.4%, to close at 33,947.1, the S&P 500 (.SPX) lost 72.86 points, or 1.79%, to end on 3,998.84, and the Nasdaq Composite (.IXIC) dropped 221.56 points, or 1.93%, to finish on 11,239.94.

In other economic data this week, investors will also monitor weekly jobless claims, producer prices and the University of Michigan’s consumer sentiment survey for more clues on the health of the U.S. economy.

Energy (.SPNY) was among the biggest S&P sectoral losers, dropping 2.9%. It was weighed by U.S. natural gas futures slumping more than 10% on Monday, as the outlook dimmed due to forecasts for milder weather and the delayed restart of the Freeport liquefied natural gas (LNG) export plant.

EQT Corp (EQT.N), one of the largest U.S. natural gas producers, was the steepest faller on the energy index, closing 7.2% lower.

Financials (.SPSY) were also hit hard, slipping 2.5%. Although bank profits are typically boosted by rising interest rates, they are also sensitive to concerns about bad loans or slowing loan growth amid an economic downturn.

Meanwhile, apparel maker VF Corp (VFC.N) dropped 11.2% – its largest one-day decline since March 2020 – after announcing the sudden retirement of CEO Steve Rendle. The firm, which owns names including outdoor wear brand The North Face and sneaker maker Vans, also cut its full-year sales and profit forecasts, blaming weaker-than-anticipated consumer demand.

Volume on U.S. exchanges was 10.78 billion shares, compared with the 11.04 billion average for the full session over the last 20 trading days.

The S&P 500 posted six new 52-week highs and four new lows; the Nasdaq Composite recorded 105 new highs and 133 new lows.

Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Devik Jain in Bengaluru and David French in New York; Editing by Anil D’Silva, Shounak Dasgupta and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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South Korea GDP, Caixin Manufacturing PMI, Japan Consumer Confidence

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Japanese yen strengthens after Powell commentary on smaller hikes

Temasek’s $245 million FTX loss ’caused reputational damage’ to Singapore, says deputy prime minister

Singapore’s Deputy Prime Minister Lawrence Wong said the state sovereign wealth fund’s investment loss of $275 million in collapsed crypto exchange FTX is “disappointing and has caused reputational damage” to the city-state.

But the investment loss does not mean the governance system is not working, Wong said, adding that an internal review is being conducted.

“Rather, it is the nature of investment and risk-taking,” he said.

The FTX loss will not impact the net investment returns of Singapore’s reserves, which are “tied to the overall expected long term returns of our investment entities and not to individual investments,” he said.

Going forward, Singapore plans to require crypto service providers to implement basic investor protection measures, but “no amount of regulation can remove this risk,” he warned.

– Sheila Chiang

China’s Caixin manufacturing PMI marks fourth straight month of contraction

China’s Caixin/Markit Manufacturing Purchasing Managers’ Index for November came in at 49.4, higher than expectations of 48.9 in a Reuters survey of economists.

The reading marks a fourth consecutive month of contraction, after a reading of 49.2 from October and dipping to 48.1 in September — below the 50-point mark which separates growth from contraction.

Separately, the official PMI print from China’s National Bureau of Statistics reported Wednesday came in at 48, showing a second consecutive month of contraction in factory activity.

– Jihye Lee

Oil prices little changed as White House weighs additional oil reserves

The White House is considering building additional oil reserves against the backdrop of the upcoming winter and uncertainty surrounding the market, sources familiar with the matter told CNBC.

The Biden administration is weighing whether to call on Congress to raise the storage limit, potentially doubling it, to build additional reserves the administration could release if supply tightens or prices rise again, the people said.

The U.S. currently holds about 1 million barrels of heating oil in New York and Connecticut.

The White House is bracing for a potential price spike, as Europe’s oil embargo and G-7’s price cap on Russian oil looms ahead, potentially disrupting supply.

Oil prices are little changed in early Asia hours. The West Texas Intermediate futures dipped fractionally to stand at $80.53 per barrel, while the Brent crude futures shed 0.06% to stand at $86.92 per barrel.

— Kayla Tausche, Lee Ying Shan

CNBC Pro: Forget Amazon. Here’s what top tech investor Paul Meeks is buying

Investor confidence in the tech sector has been shaken this year amid a flight to safety, but top tech investor Paul Meeks said he is now “more bullish” on the sector than in recent months, though he remains selective within the sector.

He tells CNBC the stocks he favors.

Pro subscribers can read more here.

— Zavier Ong

South Korea’s revised GDP confirms growth in the third quarter

South Korea’s revised gross domestic product for the third quarter confirmed growth of 3.1% compared to the same period a year ago – higher than a 2.9% expansion seen in the second quarter.

The economy saw slower quarterly growth of 0.3% in the third quarter, following a growth of 0.7% in the previous period.

Separately, South Korea reported a trade deficit of $7.01 billion for November, exceeding expectations of $4.42 billion — marking the third consecutive month of rising trade deficit driven by sluggish exports.

Exports shrank by 14%, lower than forecasts of a drop of 11% — while imports grew more than expected by 2.7%, according to preliminary data from the customs agency.

– Jihye Lee

CNBC Pro: UBS reveals 15 global stocks sensitive to China’s reopening plans

Chinese stocks have risen this week after the nation’s health authorities reported a recent uptick in vaccination rates, which experts regard as crucial to reopening the country.

The impact of Beijing’s change in tack toward dealing with the outbreak of Covid-19 is being felt not only in China but also around the world.

The Swiss bank UBS has identified 15 stocks in the MSCI Europe index that will outperform “in an environment where China’s growth rebounds and the country reopens its borders.”

CNBC Pro subscribers can read more here.

— Ganesh Rao

Powell continues to believe in a path to a soft-ish landing

Federal Reserve Chair Jerome Powell says he continues to believe in a path to a “soft-ish” landing — even if the path has narrowed over the past year.

“I would like to continue to believe that there’s a path to a soft or soft-ish landing” Powell said at the Brookings Institution.

“Our job is to try to achieve that, and I think it’s still achievable,” Powell said. “If you look at the history, it’s not a likely outcome, but I would just say this is a different set of circumstances.”

— Sarah Min

Indexes jump on Powell comments

Fed Chair Jerome Powell’s comments indicating the central bank will slow future interest rate hikes as soon as December put upward pressure on the three major indexes.

The S&P 500 jumped up 0.6% from the red on the news.

The Dow was near flat after trading down for most of the day.

The Nasdaq Composite gained steam to 1.3% up.

— Alex Harring

Powell says Fed can “moderate the pace” of future rate increases due to lagged effect of past hikes

Federal Reserve chairman Jerome Powell told an audience at the Brookings Institution Wednesday that the central bank can afford to ease back on its tighter monetary policy at its December meeting (due to wrap up Dec. 14).

The lagged effect of higher rates already taken in 2022, plus the drawing down of the size of the Fed’s balance sheet through quantitative tightening, mean “it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” Powell said.

“The time for moderating the pace of rate increases may come as soon as the December meeting,” said the 69-year-old Fed chair.

In response to Powell’s remarks, the S&P 500 quickly gained to about 3970 vs about 3950 before the address.

— Scott Schnipper, Jeff Cox

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Business

Shares rise, U.S. Treasury yields drop ahead of Fed minutes’ release

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  • Fed minutes for November due at 1900 GMT
  • Wall Street stocks trade higher
  • U.S. Treasury yields retreat
  • Crude prices drop more than 4%
  • U.S. dollar falls

NEW YORK, Nov 23 (Reuters) – World equities rose while U.S. Treasury yields were lower ahead of the release of the Federal Reserve’s meeting minutes that would offer a glimpse on whether officials are likely to soften their stiff monetary policy stance.

Traders are expecting the minutes, which will be published on Wednesday, to provide clues that the Fed is set to end its pace of sharp interest rate hikes in response to a moderation in economic conditions.

Labor Department data showed on Wednesday that U.S. jobless claims increased more than expected last week while U.S. business activity contracted for a fifth month in November, according to the S&P Global flash U.S. Composite PMI Output Index.

“What investors are hoping for is that the Fed acknowledges that since the consumer price index looks like it might be peaking that there’s going to be some language that they see a pause on the near-term horizon,” said Jordan Kahn, chief investment officer at ACM Funds in Los Angeles, California.

The MSCI All Country stock index (.MIWD00000PUS) was up 0.8%, while European shares (.STOXX) rose 0.62%.

U.S. Treasury yields were trading lower. Benchmark 10-year notes were down to 3.7242% while the yields on two-year notes dropped to 4.4835%.

The yield curve that compares these two bonds widened further into negative territory, to -76.30 basis points. When inverted, that part of the curve is seen as an indicator of an upcoming recession.

“I tend to think that investors that are looking for any sought of hint of a pause are going to be disappointed. I think the Fed is going to keep the message they’ve been saying for a while, which is that their job isn’t done yet and need to bring down demand,” Kahn said.

“The yield curve is still screaming that the economy is on the precipice of a slowdown,” he added.

On Wall Street, all three major indexes were trading higher, led by gains in technology, consumer discretionary, communication, and industrial stocks.

The Dow Jones Industrial Average (.DJI) rose 0.29% to 34,196.78, the S&P 500 (.SPX) gained 0.56% to 4,025.81 and the Nasdaq Composite (.IXIC) added 0.96% to 11,282.14.

Oil prices fell more than 4% as the Group of Seven (G7) nations looked at a price cap on Russian oil that is above where it is currently trading and as gasoline inventories in the United States built more than analysts expected.

Brent futures for January delivery fell 4.2% to $84.65 a barrel, while U.S. crude fell 4.46%, to $77.34 per barrel.

The U.S. dollar fell across the board ahead of the release of the Fed’s minutes and new data showing weaker economic conditions. The dollar index fell 0.7%, with the euro up 0.62% to $1.0366.

Gold prices were choppy as the U.S. dollar fell. Spot gold added 0.1% to $1,742.66 an ounce, while U.S. gold futures fell 0.10% to $1,736.50 an ounce.

Reporting by Chibuike Oguh in New York
Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

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Business

Wall St down for fourth straight day on Fed rate hike worry

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  • U.S. initial weekly jobless claims fall
  • Services industry growth slows
  • Qualcomm, Roku slump on weak forecasts
  • Dow down 0.46%, S&P 500 down 1.06%, Nasdaq down 1.73%

NEW YORK, Nov 3 (Reuters) – U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.

Following the Federal Reserve’s statement on Wednesday, comments from Fed Chair Jerome Powell that it was “very premature” to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.

Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.

Jobless claims and Challenger Gray

“Years ago the Fed’s job was to take away the punch bowl and that balance is always a very difficult transition, you want the economy to slow to keep inflation from getting out of hand but you want enough earnings to support stock prices,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

“It is about the rate of change as much as the change so when the rate of change starts to slow … that almost becomes a positive even though in absolute terms we are going to continue to see higher rates, and higher rates means more competition for stocks and lower multiples.”

The Dow Jones Industrial Average (.DJI) fell 146.51 points, or 0.46%, to 32,001.25, the S&P 500 (.SPX) lost 39.8 points, or 1.06%, to 3,719.89 and the Nasdaq Composite (.IXIC) dropped 181.86 points, or 1.73%, to 10,342.94.

While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of a rise to the 4.50%-4.75% range.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 14, 2022. REUTERS/Brendan McDermid

Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed’s rate hikes are beginning to have a notable impact on slowing the economy.

The climb in yields weighed on megacap growth companies such as Apple Inc (AAPL.O), down 4.24%, and Alphabet Inc (GOOGL.O), which lost 4.07% and pulled down the technology (.SPLRCT) and communication services (.SPLRCL) sectors as the worst-performing on the session.

Losses were curbed on the Dow thanks to gains in industrials including Boeing Co (BA.N), which rose 6.34%, and a 2.20% climb in heavy equipment maker Caterpillar Inc (CAT.N).

Qualcomm Inc (QCOM.O) and Roku Inc (ROKU.O) shed 7.66% and 4.57%, respectively, after their holiday quarter forecasts fell below expectations. read more

With roughly 80% of S&P 500 companies having reported earnings, the expected growth rate is 4.7%, according to Refinitiv data, up slightly from the 4.5% at the start of October.

Volume on U.S. exchanges was 11.81 billion shares, compared with the 11.63 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored decliners.

The S&P 500 posted 6 new 52-week highs and 46 new lows; the Nasdaq Composite recorded 77 new highs and 291 new lows.

Reporting by Chuck Mikolajczak in New York
Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Business

Stocks higher ahead of RBA decision; Caixin PMI below 50

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Hang Seng loses more than 14% in the month of October

Asia-Pacific market performance in October

Market Month-to-date performance Year-to-date performance
Australia’s S&P ASX 200 6.01% -7.81%
Japan’s Nikkei 225 4.5% -5.86%
South Korea’s Kospi 6.23% -23.1%
China’s Shanghai Composite -4.33% -20.5%
Hong Kong’s Hang Seng -14.55% -37.1%

Mainland China and Hong Kong markets underperformed Asia-Pacific peers in the month of October.

The Hang Seng index wallowed at its lowest levels since April 2009 after losing 14.55% as of Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the year’s final quarter, while the Shanghai Composite slipped 4.33%.

Japan stocks closed at their highest since Sept. 20, but major APAC indexes were all still underwater from the start of the year.

— Abigail Ng

CNBC Pro: What investors should buy in this ‘short lived’ rally, according to one analyst

After October’s stock market rally, investors are debating whether stocks have hit the bottom or if it’s another short-lived bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing the rally, once again, looks temporary.

He told CNBC what he thinks investors should buy — and short.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity shrank for a third consecutive month in October, private survey says

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third month in a row.

The reading came in at 49.2, compared with expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50-point mark that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a print of 50.

— Abigail Ng

Hong Kong’s economy shrank by 4.5% in the third quarter

Hong Kong’s gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday.

That’s the worst contraction since the second quarter of 2020. Analysts polled by Reuters expected 0.7% growth, while GDP decreased 1.3% in the second quarter.

“The worsened external environment and continued disruptions to cross-boundary land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding the drop in GDP was “mainly attributable to the weak performance in external demand during the quarter.”

Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.

— Abigail Ng

CNBC Pro: This Chinese electric carmaker’s stock could rally by more than 260%, Citi says

Citi has picked a large electric car maker as one of its “top” buy ideas among Chinese stocks.

It expects shares in the automaker to rise by more than 260% over the next 12 months as EV sales soar.

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea’s trade deficit widens for the month of October

South Korea’s trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September, data from the customs agency showed.

Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports dropped 5.7% to $52.48 billion.

The latest data shows the biggest drop in exports since August 2020, according to FactSet.

–Jihye Lee

CNBC Pro: Forget Tesla? Citi and HSBC name 2 alternatives to play the EV boom

Tesla may be an investor favorite for exposure to the EV industry, but Citi and HSBC name two alternatives to play the growing demand for electric vehicles.

Pro subscribers can read more here.

— Zavier Ong

Japan spent $42.7 billion to prop up the yen, ministry says

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