35 minutes ago
China’s economic growth expected to be ‘slightly more’ than 5%: Portal
China’s economy is expected to grow by just over 5% this year, an adviser to the People’s Bank of China said on Wednesday.
Portal reported that Wang Yiming, a member of the PBOC’s monetary policy committee, said China’s economic situation is very different from that of Japan in the 1990s and there is no basis for the feared “Japanization.”
The term refers to the low growth Japan faced after an asset bubble burst in the early 1990s, leading to about two decades of sluggish economic activity, deflation, falling asset prices and financial stress.
The comments come a day after HSBC cut its growth forecast for China’s gross domestic product for this year to 4.9% from 5.3% and its GDP growth forecast for 2024 to 4.6% from 4.9%.
—Lim Hui Jie, Portal
4 hours ago
China’s industrial profits show a weaker decline in August
In the first eight months of the year, Chinese industrial companies’ profits fell by double digits, but the pace of the decline eased slightly in August.
Profits fell 11.7% in August from a year earlier, a smaller decline than the 15.5% drop in the first seven months.
China’s National Bureau of Statistics said profits at industrial companies rose 17.2% year-on-year in August, the first monthly growth since the second half of 2022.
—Lim Hui Jie
6 hours ago
Minutes show that at the July meeting, Bank of Japan members disagreed about when to raise interest rates
According to minutes of the July monetary policy meeting, Japan’s central bank board was divided over when the Bank of Japan should start raising interest rates.
This came against the backdrop of inflation exceeding the BOJ’s inflation target of 2% for 15 consecutive months.
One member said that “there is still a significant way to go before negative interest rate policy is revised and the yield curve control framework must be maintained”.
However, another member noted that achieving the 2% “in a sustainable and stable manner” appeared to be “clearly within sight” and that it could be estimated whether the BOJ would achieve this target around January-March next year.
—Lim Hui Jie
6 hours ago
CNBC Pro: Shares of this cutting-edge British chip designer are expected to rise over 100%, says Jefferies
Shares of a British chip designer are set to rise over 100% in the next 12 months, according to Jefferies
The investment bank believes the company develops chips for American Big Tech companies, which is expected to increase its profit margins.
The chip stock is also seen as “one of the key potential beneficiaries” of the growing trend in artificial intelligence applications.
CNBC Pro subscribers can read more here.
– Ganesh Rao
7 hours ago
Hong Kong trading recorded minor declines in August
Hong Kong’s trade fell more slowly in August, with imports and exports falling 0.3% and 3.7% year-on-year, respectively.
In comparison, imports fell 7.9% and exports fell 9.1% in July.
Total trade in August was HK$742.18 million, down 2% year-on-year.
—Lim Hui Jie
6 hours ago
CNBC Pro: Forget India: A portfolio manager bucks the trend, says another market offers ‘great value’
India’s growth prospects have led many investors and big-name banks to be optimistic about the country, but portfolio manager Kamil Dimmich says he is keeping his distance.
“We are probably in the minority here [and] We don’t mind being in the minority,” North of South Capital resident Dimmich told CNBC Pro Talks last week.
Instead, he revealed an emerging market that he believes offers “great value” with two of his favorite stocks.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
7 hours ago
CNBC Pro: “I believe in the industry”: Investing in K-Pop? Bernstein is a fan of this stock
K-Pop is a music phenomenon that reaches far beyond South Korea – and for investors looking to make money, there are only a few major agencies behind the more than 300 groups.
Bokyung Suh, director and senior research analyst at Bernstein, is particularly bullish on one of these, citing a key reason for his outperform rating on the stock.
CNBC Pro subscribers can read more here.
—Lim Hui Jie
16 hours ago
Dow falls below the 200-day moving average
Tuesday’s selloff pushed the Dow Jones Industrial Average below its 200-day moving average, a key long-term technical level. The move suggests that the benchmark’s long-term momentum may be weakening.
The Dow hasn’t closed below this level since May.
—Fred Imbert
16 hours ago
The S&P 500 falls below 4,300 for the first time since June 9th
All three major indexes accelerated their losses on Tuesday morning following the release of disappointing economic data.
The S&P 500 fell about 1% to 4,295, its lowest level since June 9. Year to date, the index is still up almost 12%.
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S&P 500 YTD chart
According to the Commerce Department, new home sales in August fell short of analysts’ expectations and also fell 8.7% from July. The Conference Board’s consumer confidence index also fell short of expectations, falling to 103 in September from 108.7 in August.
Remarks from JPMorgan Chase CEO Jamie Dimon, who expected there to be more room for interest rate hikes, also caused stocks to fall this morning.
—Lisa Kailai Han, Jeff Cox
17 hours ago
Oil prices continue to rise this quarter
Strong oil prices in recent months give crude oil hope for its best quarter in more than a year.
With only a few days left in the trading month and quarter, both West Texas Intermediate and Brent crude oil are on track to record their first consecutive month of price increases. That means if it stays that way, both will have increased in price every month in the third quarter.
WTI has gained around 26.1% since the start of the quarter, while Brent has gained around 23.8% over the same period. With this progress, both are on track to post their best quarters since the first quarter of 2022.
— Alex Harring, Gina Francolla
22 hours ago
Tesla falls after report that the EU will investigate the electric vehicle maker over China exports
Tesla shares fell more than 1% after a European Union trade official told the Financial Times that the company, along with other European automakers exporting from China, is facing an investigation into whether electric vehicle makers receive unfair subsidies.
“Strictly speaking, it is not only limited to electric vehicles of Chinese brands, it can also be vehicles from other manufacturers if they receive production-side subsidies,” EU Vice President Valdis Dombrovskis told the FT.
—Fred Imbert