13 minutes ago
Japan sees 'early signs' of rising inflation, wages: Cabinet official
Japan is seeing early signs of entering a virtuous cycle of rising inflation and wages, said Deputy Chief Cabinet Secretary Hideki Murai, according to a Portal report.
Murai said the government is increasing efforts to curb the bargaining power of large companies that pressure smaller suppliers to accept price cuts.
In guidance published in November, the government urged company executives to become more involved in price-setting processes and warned of possible sanctions against companies that put undue pressure on suppliers to lower prices.
While large companies have announced wage increases, the Kishida government has focused on increasing the profits of smaller companies, which can then use them to raise wages.
The Bank of Japan has also made sustained wage increases a prerequisite for exiting its ultra-loose monetary policy, but Portal reported that Murai declined to comment on whether the conditions for the BOJ's exit from negative interest rates had been met.
—Portal, Lim Hui Jie
3 hours ago
Shares of Tata Motors are rising over 7% after it was announced that the company will split its commercial vehicle and passenger car divisions
Shares of Indian automaker Tata Motors rose more than 7% on Tuesday, a day after the company said it would separate its commercial vehicle and passenger car divisions in a demerger.
Tata Motors said the demerger will be implemented through a scheme of arrangement and all shareholders will continue to hold identical shares in both the listed companies.
The move will “further empower the respective companies to pursue their respective strategies to achieve higher growth with greater agility while strengthening accountability,” the company said.
The demerger is expected to be completed in 12 to 15 months, subject to shareholder, creditor and regulatory approval. According to the company, it should not have any adverse effects on employees, customers and our business partners.
5 hours ago
Chinese defense stocks rise as the country announces a 7.2% increase in defense spending
The 46th Fleet of the Chinese People's Liberation Army Navy sets sail at a military port in Zhanjiang, south China's Guangdong province, Feb. 21, 2024.
Xinhua News Agency | Xinhua News Agency | Getty Images
China is expected to increase its defense spending by 7.2% in 2024, Portal reported on Tuesday, citing the government's official release at the start of the country's annual parliamentary sessions in Beijing.
This follows a 7.2% increase last year, a 7.1% increase in 2022, a 6.8% increase in 2021, a 6.6% increase in 2020 and a 7% increase .5% in 2019.
The CSI Defense Index rose 2.2% to its highest level since January 15. Shenzhen-listed Fujian Torch Electron rose 1.1%, Aerospace CH UAV rose 3.7%, Avic Shenyang Aircraft Co rose 2% and Avic Aviation High Technology rose 1.3%.
—Shreyashi Sanyal
5 hours ago
China services activity grows slower in February: Caixin survey
China's services sector grew slower in February than in January, with the Caixin Services Purchasing Managers' Index falling to 52.5 in February from 52.7 the previous month.
The report noted that employment rose slightly for the second straight month and companies were generally optimistic about the 12-month outlook for activity.
A PMI reading above 50 indicates expansion in the sector, while a PMI reading below 50 indicates contraction.
—Lim Hui Jie
5 hours ago
Gold futures surpass $2,100 and hit record highs, with spot prices approaching all-time highs
Gold prices rose slightly on Friday, on track for their first weekly rise in three weeks, as a generally weaker U.S. dollar and rising tensions in the Middle East boosted the appeal of gold bullion.
Bloomberg Creative | Creative Bloomberg Photos | Getty Images
Spot gold prices hovered near record levels while futures settled at all-time highs on Monday.
Traders are betting that the Federal Reserve will begin cutting interest rates in the second half of the year, driving up prices for the precious metal.
The April gold contract rose $30.60, or 1.46%, to close at $2,126.30 an ounce, the highest since the contract began in 1974.
Spot gold prices fell slightly by 0.16% on the day to trade at $2,111.69, just below the record high of 2,135.40 reached in December 2023.
—Shreyashi Sanyal, Spencer Kimball
6 hours ago
Australia's current account surplus jumps in fourth quarter
MELBOURNE, AUSTRALIA – JANUARY 31: People sit at an outdoor table near a cafe in the CBD in Melbourne, Australia on January 31, 2023. On July 6, 2022, the Australian government lifted all COVID-19 requirements for locals and travelers, ending a two-year lockdown period. (Photo by Alexi Rosenfeld/Getty Images)
Alexi Rosenfeld | Getty Images Entertainment | Getty Images
Australia's current account surplus rose to its highest level since the first quarter in the fourth quarter, according to official data on Tuesday.
The current account surplus jumped to 11.8 billion Australian dollars (US$7.68 billion) in the fourth quarter. The figure was much higher than a Portal poll forecast of a surplus of AU$5.6 billion.
According to the data, exports of iron ore and coal rose sharply.
“The current account surplus reflected a higher trade surplus driven by raw material exports in mining. Meanwhile, the net primary income deficit narrowed,” said Grace Kim, ABS head of international statistics.
—Shreyashi Sanyal
6 hours ago
Japan is not thinking of calling for an 'end to deflation': economy minister
Japan is not thinking of calling for an “end to deflation,” its economy minister said, according to a Portal report.
Yoshitaka Shindo said during a news conference that “the government will strive to ensure that wages in Japan rise above inflation so that the economy does not fall back into a period of sustained price declines,” the Portal report added.
The statement contradicted a weekend report by Japanese media outlet Kyodo News that said the country was considering announcing an end to deflation based on the results of wage negotiations in the spring.
The Japanese government first admitted in March 2001 that the country was in deflation.
—Lim Hui Jie, Portal
7 hours ago
South Korea's GDP grows 0.6% in fourth quarter
A customer pays for his shopping at Moraenae Market ahead of the Lunar New Year in Jeonju, Jeollabuk Province, South Korea, Thursday, February 8, 2024.
Bloomberg | Bloomberg | Getty Images
South Korea's economy grew 0.6% quarter-on-quarter in the fourth quarter, according to revised central bank data.
The figure remained unchanged from the central bank's preliminary estimates.
South Korea's GDP rose 2.2% annualized in the fourth quarter, also in line with the advance estimate.
Stock prices in the country fell, with the Kospi losing 0.2%.
—Shreyashi Sanyal
7 hours ago
CNBC Pro: We're in a “boomer renaissance,” says a top hedge fund manager – and names sectors and stocks that matter
Top hedge fund manager David Neuhauser says the world is in a “boomer renaissance” and investors should bet heavily on specific sectors that play this theme.
“I think the world is in this boomer renaissance now and there are some stocks that are seeing big moves,” he told CNBC Pro.
He added that the stocks “are not mega-tech stocks, which shows other areas tied to wealth.” [effect] help expand profits.”
CNBC Pro subscribers can read more here.
– Weizhen Tan
7 hours ago
Tokyo inflation accelerates in February, recovering from 22-month low
Headline inflation in Japan's capital Tokyo accelerated to 2.6% in February, compared with a revised reading of 1.8% in January.
This is the first time in three months that Tokyo's inflation rate has risen, recovering from the 22-month low recorded in January.
Core inflation, which takes into account fresh food prices, was 2.5%, in line with expectations in a Portal poll. The so-called “core-core” inflation metric, which excludes food and energy prices, remained stable at 2.5%.
Tokyo inflation numbers are widely considered a leading indicator of nationwide trends in Japan.
—Lim Hui Jie
7 hours ago
CNBC Pro: Skip EV stocks like Tesla, fund manager says, citing a “phenomenal” alternative
Competition in the electric vehicle industry is heating up, particularly between investor-favorite Tesla and Chinese automakers like Warren Buffett-backed BYD.
However, one fund manager has significant reservations about this sector.
“We don’t own any of it [EV] I think the arms race to develop electric vehicles will be winless for many of these companies, including Tesla. So I'm afraid I would avoid everything,” he added.
The fund manager is instead setting his sights on what he calls “larger integrated coverages” and lists his favorite alternative stocks.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
11 hours ago
This bull market has elements of both a post-recession recovery and a bubble, says Deutsche Bank
Deutsche Bank reported third quarter results.
Bloomberg | Bloomberg | Getty Images
Previous instances of U.S. stocks rising so inexorably (at least since World War II) have only occurred in the wake of a recession or a “bubble scenario” – and the current market has elements of both, Deutsche Bank macro strategist wrote, Henry Allen to customers Monday.
“Recoveries this quick are rare, and when they do happen, it's usually because the economy is coming out of recession and the stock market has just gone through a slump,” Allen wrote, pointing out that the S&P 500 in 2019 In 2022, the decline was 19.4%, the fourth worst annual result since 1945. “The only time in post-war history that this was not the case was during the dot-com bubble.”
Historically, after strong rallies, what matters next is that “the S&P 500 has continued to rise at every opportunity over the next 6 and 12 months,” Deutsche Bank said. The difference this time is that the economy never fell into a recession from which it needed to recover, while last year's stock market rally was “unusually narrow by historical standards.”
Last year, for example, was the first time since 1998 that the market capitalization-weighted S&P 500 outperformed the equally weighted S&P 500 by more than 10 percentage points, the report said. Whatever the momentum, with the S&P 500 rising in 16 of the past 18 weeks since the October 2023 low, “it is rare to see such a sustained period of outperformance,” Allen wrote.
– Scott Schnipper
11 hours ago
UBS recommends investors diversify to further benefit from the tech rally
The technology-driven rally has pushed stocks to new highs this year, with all three major indexes posting new closing records in 2024.
UBS sees no end in sight to the tech rally – but believes investors would be best placed to diversify their assets.
“With generative AI set to be the growth theme of the decade and U.S. large-cap tech companies leading the revolution, we continue to believe that U.S. tech stocks should represent a significant portion of investors’ equity allocations. That means building a “strategic U.S. large cap holding for those who are underinvested,” the bank wrote. “But investors with excessive exposure should, in our view, consider diversifying.”
To achieve this, UBS recommended investors consider emerging trends in the industry so they can expand their portfolios to “capture the next growth opportunities.”
“We believe Asia is a compelling destination for technology diversification and see further potential in AI customs chips and foundries,” the bank added.
—Lisa Kailai Han
11 hours ago
US gold futures rise to their highest level ever
US gold futures hit a record high on Monday on market interest rate cut expectations.
Gold prices typically have an inverse relationship to interest rates, meaning that prices rise when interest rates fall. Gold prices began rising after inflation met expectations in January, with traders widely expecting a first rate cut in the second half of 2024.
April-dated gold contracts rose $30.60, or 1.46%, to close at a record close of $2,126.30 on Monday.
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