3 hours ago
CNBC Pro: Bank of America or Citi? Analysts say a stock will rise 50%
3 hours ago
Executives should not hand over all decisions to artificial intelligence: Oracle
Artificial intelligence-based tools can support business decisions, but executives should still have decision-making authority, an Oracle executive said.
“We believe that the AI tools will help leaders and decision makers. I don’t think the approach of changing all your decisions is wise,” Jason Maynard, executive vice president of software company Oracle, told CNBC’s “Squawk Box Asia” Friday.
He added that he would be “very wary” of any company out there that completely replaces its decision-makers with a robot.
“I think it’s a trust, but check the information that’s coming from the systems. But I don’t think it will replace the ultimate decision-makers in these organizations,” Maynard said.
– Sheila Chiang
3 hours ago
Bank of Japan open to tweaking yield curve controls this year: Portal
The Bank of Japan is “warming to the idea” of making changes to its yield curve control policy later this year, but is likely to leave them unchanged at next week’s meeting, Portal reported.
Bank of Japan Governor Kazuo Ueda will chair his first policy meeting since becoming governor next week.
Portal quoted sources “familiar with the BOJ’s mindset” as saying the bank’s approach will be to stay the course and not make any major immediate changes to the YCC and its dovish policies.
However, the sources added that there may be a “livelier debate on the fate of the YCC” when the BOJ meets in June and July. There could also be scope to discuss tweaking in the future, as big companies made big wage increases in the spring’s annual pay talks, the sources said.
— Lim Hui Jie
4 hours ago
Japan’s factory activity continues to contract in April but offset by a strong service sector
Japan’s manufacturing purchasing managers’ index rose to 49.5 in April from 49.2 in March, marking the slowest pace of contraction in the industry in six months. This is according to flash estimates by au Jibun Bank.
The PMI measures factory and manufacturing activities from the perspective of purchasing managers. A number above 50 indicates expansion compared to the previous month, while a number below 50 signals contraction.
The Flash services PMI was little changed in April at 54.9 compared to a reading of 55 in March, the second highest since October 2013.
“Japan’s private sector continued to expand solidly into the second quarter…with a resurgent services economy helping to offset a weak manufacturing performance,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence.
The Flash Composite Index fell marginally to 52.5 in April from 52.9 in March.
— Yeo Boon Ping
4 hours ago
Australia’s service activities continue to expand in April: Juno Bank
Australia’s services sector expanded in April, hitting a 10-month high on its Purchasing Managers’ Index.
The country’s services PMI came in at 52.6, up from 48.6 in March, according to a private survey by Juno Bank.
The manufacturing PMI fell to 48.1 in April from 49.1 in March, signaling a second consecutive monthly deterioration in manufacturing business conditions.
A PMI reading above 50 indicates expansion of the sector, while a reading below 50 indicates contraction.
— Lim Hui Jie
4 hours ago
Infosys founder says he’s not worried ChatGPT will replace humans
Nothing beats the human mind — don’t worry too much about ChatGPT for now, says Narayana Murthy, founder of leading Indian IT company Infosys.
ChatGPT, an artificial intelligence-based chatbot, has taken the world by storm as it’s touted for a range of tasks including writing essays, coding, and having human-like conversations.
“If there’s competition between you and me, use the ChatGPT output as a base and then add your own differentiation, your own intelligence and your own tweaks,” Murthy told The CNBC Conversation.
“That’s why I’m not that worried about ChatGPT,” Murthy said. “Ultimately, I firmly believe in the theory that the human mind is the most powerful imagination, the machine. There is nothing that can beat the human spirit.”
Read the whole story here.
– Sheila Chiang
5 hours before
Japan’s March core inflation remains steady at 3.1%
Japan’s inflation rate was 3.2% in March, slightly below February’s reading of 3.3%.
This is the second consecutive month of slowing inflation after Japanese headline inflation hit a 41-year high of 4.3% in January.
Core inflation, which excludes both food and energy costs, has remained steady at 3.1% since February.
— Lim Hui Jie
5 hours before
CNBC Pro: Want to invest in the AI boom? Seasoned tech fund manager names 4 stocks to own
Artificial intelligence is no longer a futuristic fantasy, but a reality that is transforming many industries. From chatbots to content creation, AI is making its presence felt in the digital space and beyond.
Ben Rogoff, portfolio manager at Polar Capital, told CNBC the current investment environment appears to be the “iPhone moment for the artificial intelligence sector.”
The tech fund manager also told CNBC’s Pro Talks that four large-cap stocks are driving some of the biggest and most tangible advances in artificial intelligence.
CNBC Pro subscribers can read more here.
— Ganesh Rao
5 hours before
CNBC Pro: UBS says this semiconductor stock is a ‘buy’ — and is doubling its price target
TSMC might be an obvious choice for investors looking for exposure to the Asian semiconductor industry, but UBS likes one of its lesser-known rivals.
Pro subscribers can read more here.
– Zavier Ong
12 hours ago
Q1 result scorecard
The reporting season for the first quarter is in full swing. Of the 81 companies in the S&P 500 that have reported earnings so far, 76.5% have beaten analysts’ expectations, according to Refinitiv.
Expectations for American companies are low given persistent fears of inflation and recession. According to FactSet, S&P 500 companies are expected to report a 6.8% drop in earnings this quarter, which would mark the largest earnings drop since the second quarter of 2020.
— Yun-Li
13 hours ago
Fed’s Mester points to likely higher interest rates ahead
Cleveland Federal Reserve Chair Loretta Mester hinted Thursday that interest rates could rise a little more this year and stay there for a while.
“My expectation is that monetary policy will need to move a little further into the restrictive territory this year, with the fed funds rate hovering above 5% and the real fed funds rate remaining in positive territory for some time,” she said during one Speech in Akron. Ohio.
“Exactly how much higher the federal funds rate needs to be from here, and how long policies need to remain restrictive, depends on economic and financial developments,” Mester added.
With the benchmark overnight interest rate currently between 4.75% and 5%, Mester’s comments suggest another hike may be on the horizon. This is in line with market prices, which have an 83% chance of a 25 basis point gain in May. However, markets are also expecting the Fed to cut rates by the end of the year as the economy slows.
Mester added that she has seen progress on inflation but it “remains too high”.
“We are much closer to the end of the tightening journey than to the beginning and how much further tightening is needed will depend on economic and financial developments and progress on our monetary policy targets,” she added.
– Jeff Cox
14 hours ago
Tesla posts its worst post-earnings since 2019
Tesla shares opened about 8% lower on Thursday as investors analyzed the earnings report that came after Wednesday’s IPO. It is the worst post-earnings report for the electric vehicle maker since the pandemic began Data from Bespoke Investment Group.
The stock hasn’t posted that much of a post-earnings drop since the stock fell 11.9% on July 24, 2019, data from the company showed.
The company reported a slight decline in revenue while earnings per share were in line with analysts’ expectations. But both net income and GAAP earnings fell more than 20% year over year.
Thursday’s opening also comes in sharp contrast to the company’s latest earnings report. Shares opened up 10.8% on Jan. 25, the trading session following Tesla’s fourth-quarter report.
– Alex Harring
18 hours ago
Fed’s Williams says inflation is still a problem
New York Fed President John Williams said on Wednesday that inflation remains a problem for the US economy, although he gave no specifics on where he thinks policy should go.
“Inflation is still too high and we will use our monetary policy tools to restore price stability,” Williams said in a speech at New York University, according to Portal. Markets widely expect the Fed to hike rates by another quarter of a point at its next meeting, and Williams didn’t contradict that view.
Along with his comments on inflation, Williams noted that the banking system had “stabilized” after the March turmoil and said he did not expect the economy to slide into recession.
– Jeff Cox