49 minutes ago
Despite uneven recovery, we remain optimistic on China: Deutsche Bank
Stephanie Holze-Gen, chief investment officer for Asia Pacific at Deutsche Bank, said Deutsche Bank “remains optimistic” about China in the medium to long term despite an uneven economic recovery.
“Overall, it’s been an uneven recovery. I think everyone gets it now,” Holze-Jen said Monday on CNBC’s “Squawk Box Asia.” China’s industrial enterprises slowed the pace of profit declines in April, but retail sales rose 18.4% year-on-year.
“But these are part of the economy and will be very supportive, especially on the consumer side, and we’re getting a lot of rhetoric from the government about that,” Holze-Jen said.
The Communist Party said in April it would maintain support for the economy with a focus on boosting domestic demand.
“The data before and after the May Day holidays in China were very interesting,” she added. During the May Day holiday, China’s tourism industry recovered to pre-coronavirus levels, with domestic travel surged by more than two-thirds from a year ago.
Holze-Jen pointed out that Thailand has reported “very optimistic tourist inflows from China” and that “the rest of Asia has also benefited greatly from talk of China’s economic reopening. And this story will go on for a long time.”
“I am still very optimistic about the Asian complex, especially compared to the US and Europe,” Holze-Jen said.
— Sheila Chan
1 hour ago
Turkish lira drops to near all-time low after Erdogan stays in office
The Turkish lira has fallen against the US dollar as incumbent Recep Tayyip Erdogan won the 2023 presidential election and extended his term in power for 30 years.
The currency was trading at $19.97 against the dollar as of 4am London time on Monday.
Brendan McKenna, an emerging markets economist and currency strategist at Wells Fargo, told CNBC’s Squawk Box Asia: “Erdoğan’s stay in office after the election has left him quite pessimistic about the Turkish lira. I have an outlook,” he said.
“The economic and market outlook is very bleak for Turkey,” McKenna added, expecting the lira to reach a record low of 23 lira against the dollar by the end of the second quarter.
— Lee Yingxiang
1 hour ago
Sumitomo Mitsui Banking Corporation announces that the dollar index will rise this week, focusing on economic indicators
In a note on Monday, SMBC said the U.S. jobs report later this week and the imminent vote on the debt ceiling deal could push the dollar index further to 105 in the short term.
“Asian currencies are expected to fall, but more market participants are looking for opportunities to appreciate Asian currencies in preparation for the risk-on sentiment after the Fed’s suspension of rate hikes,” said Ryota Abe, an Asia-Pacific economist at the same newspaper. may be limited,” he said. Written by Sumitomo Mitsui Banking Corporation (SMBC).
The dollar index fell slightly to 104.164 in Asian markets morning trading. The Japanese yen rose slightly to 140.52 yuan against the US dollar, while the offshore Chinese renminbi fell to 7.0791 yuan against the US dollar.
“The US economic data released last week confirm a hawkish stance on rate hikes,” Abe said in a memo. “Combined with the CPI released earlier this month, the data point to stronger-than-expected inflationary pressures, rekindling fears of U.S. inflation,” he said.
— Lee Ji-hye
57 minutes ago
Wharton’s Siegel worries about impact of US credit tightening on small businesses
Wharton School professor Jeremy Siegel said he fears tighter lending standards, combined with a “monsterious tightening” by the US Federal Reserve, could hurt small businesses later this year. Stated.
“I think smart money is really settled in that a (debt ceiling) deal is going to happen, so that removes some of the uncertainty, but the incredible tightening that the Federal Reserve has done, I think, is really settled,” Siegel said. There are many concerns in the future,” he said. CNBC Monday.
“Bank problems will not lead to a bank deposit crisis, but to stricter lending standards, especially for small businesses,” he added. “And I’m concerned about the second half of the year, and maybe those issues will be the focus going forward.”
— Clement Tan
1 hour ago
Nikkei 225 led by trading companies and tech stocks
Stocks of Japanese trading companies, distribution services and tech stocks were the biggest gainers in Japan’s Nikkei 225 index on Monday, with the index up 2% at the opening and 1.32% in closing trade.
Optical and imaging company Nikon led the index with a 4.51% increase, while semiconductor equipment maker Advantest rose 4.18%, the second largest increase.
SoftBank Group Corp., as well as trading houses Sumitomo and Mitsubishi Corp.
2 hours ago
Deloitte economist says China considers rate cut debate
Deloitte China told CNBC that China’s recent plunge in industrial profits is reasoning for the central bank to cut interest rates.
“There is no inflation in China, so we need a more accommodative monetary policy,” Sitao Xu, chief economist at Deloitte China, told CNBC’s “Squawk Box Asia” Monday.
He pointed out that the People’s Bank of China’s daily USD/RMB reference rate, or midpoint revision, works similarly to rate cuts.
“If you look at recent exchange rate changes, the impact is the same as lower interest rates,” he told CNBC.
The People’s Bank of China (PBOC) on Monday set the yuan’s benchmark against the US dollar at 7.0575 yuan, up from 7.0760 yuan in previous trading.
— Lee Ji-hye
3 hours ago
CNBC Pro: How much of AI is just hype? Bulls and bears share tips on how to invest
Artificial intelligence has taken the investment world by storm since the beginning of the year. This is largely thanks to the emergence of ChatGPT, which sparked a buying wave in AI stocks.
Or is it just hype?
On CNBC’s “Street Signs Asia,” bulls and bears squared off, telling investors how to overcome dilemmas and which stocks should lead the trend.
CNBC Pro subscribers can read more here.
— Tan Weizhen
3 hours ago
CNBC Pro: TSMC or Samsung? Analyst Says One Chipmaker Is Better Given AI, Geopolitics and Revenue
3 hours ago
Singapore’s Temasek cuts salaries for senior management and investor team involved in FTX
Singapore’s state-owned investment firm Temasek has cut compensation for its management and investment team responsible for recommending investments in failed crypto exchange FTX.
“Although there was no misconduct by the investment team leading up to the investment recommendation, the investment team and senior management, who are ultimately responsible for the investment decisions, were subject to collective liability and reduced compensation.” Chairman Lim Boon Heng said in a statement.
Temasek’s move comes after an internal investigation was launched to look into its investment in FTX, resulting in a $275 million write-down.
Lim added that fraud by FTX was “deliberately hidden from investors, including Temasek.” The statement did not specify how many employees were affected or the extent of the pay cuts.
— Lim Huisier
Friday, May 26 2023 11:38 EDT
Fed’s Loretta Mester predicts rate hike will be needed
Cleveland Fed President Loretta Mester told CNBC on Friday that more rate hikes will be needed as inflation remains high.
“When you look at what’s going on with the data and the inflation numbers, I think we need to tighten up a bit more,” Mester told Squawk on the Streets. “We have made progress.
Mester is a non-voting member of the Federal Open Market Committee, which sets interest rates this year.
— Jeff Cox
Friday, May 26, 2023 8:39 EDT
Fed’s preferred inflation gauge rises more than expected
The core personal consumption expenditure index, which the Fed recommends as a measure of inflation, rose 0.4% in April. That beat the expectations of economists surveyed by Dow Jones. Core PCE rose 4.7% year-on-year, also better than expected.
— Fred Imbert
Friday, May 26, 2023 9:19 AM EDT
Markets now expect Fed rate hike in June
Friday morning’s better-than-expected inflation data boosted market expectations of a June rate hike by the Federal Reserve.
The odds of a one-quarter point increase jumped to 56%, according to CME Group data. This was followed by a report showing private consumption spending prices rose 0.4% in April, up 4.7% year-on-year.
The chance of an increase was just 17% a week ago. The odds of a rate hike by July at the latest rose to 75%.
— Jeff Cox
Friday, May 26 2023 11:13 EDT
Consumer Sentiment Slightly Exceeds Expectations
The final figures for consumer sentiment in May were slightly better than expected.of the University of Michigan consumer sentiment index Economists polled by Dow Jones had predicted a reading of 57.7, but it came in at 59.2.
Indeed, this level is well below April’s 63.5.
“Consumer sentiment plunged 7% on concerns about the direction of the economy, wiping out nearly half of the gains achieved after hitting a historic low since June last year. , and consumer sentiment plummeted in the meantime,” Surveys said. Consumer Director Joanne Hsu writes:
— Fred Imbert