UBS expects to fully reopen China by the third quarter of 2023
UBS Wealth Management expects a full reopening of China by the third quarter of next year due to a number of factors.
“We think time is needed for a government that wants to scrutinize public messages because [some] “The concerns among the Chinese public are very real,” Min Lan Tan of UBS Global Wealth Management said on CNBC’s “Squawk Box Asia.”
She added that the country would need to work to increase the vaccination rate for the elderly as well as ensure a proper medical system was in place before a full reopening.
On the recent measures to ease quarantines for international travelers, Tan described it as “two steps forward and one step back”.
She said reopening the country “will be a process, not an event.”
– Jihe Lee
Singapore’s inflation rate is moderated by slight increases in gas and electricity prices
The Ministry of Trade and Industry (MTI) reported that Singapore’s core inflation rate eased 0.2% to 5.1% in October on a yearly basis – after seeing the same indicator at 5.3% in September.
The latest consumer price index for October was lower than a Reuters poll forecast of 5.3% for October.
The inflation rate for all items eased to 6.7% in October on an annual basis, after witnessing a rate of 7.5% in September.
MTI said the easing was due to small increases in goods and services, as well as gas and electricity prices.
“Prices of energy and food commodities have retreated from the high levels they reached earlier in the year, but remain high in light of the ongoing supply restrictions,” the ministry said in a statement.
– Lee Ying Chan
Malaysian stocks changed little as the nation continued to wait for a new prime minister
Listed stocks in Malaysia changed little as the political impasse continued in the country and local media reported that Malaysia’s King, Yang Di-Pertuan Agong, would make a decision, without giving a timeline.
The benchmark KLCI fell 0.09% after two negative sessions.
Among the index heavyweights, Genting Malaysia fell 2.33% after announcing its third-quarter earnings, Top Glove also lost 1.1% – while Nestle gained 0.28% and CIMB rose 0.18%.
The Malaysian ringgit It strengthened slightly against the US dollar in the morning session, and settled for the last time at 4.5690.
– Jihe Lee
Chinese online gaming stocks rose as the crackdown on the sector appears to be easing
New Zealand’s central bank hints at more increases to come
Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said the bank’s only goal is to reach the official money rate to a point where inflation can diminish.
Orr’s comments come after the central bank raised its largest interest rate hike, by 75 basis points.
“Our core inflation rate is very high,” Orr said at a news conference, adding that the central bank is “very much on the path of a tightening cycle.”
In a separate press release shortly after the decision, the RBNZ said, “Committee members agreed that monetary conditions are necessary to continue to tighten further.
– Lee Ying Chan
BYD shares plunge after Berkshire Hathaway stake cuts
shares BYD Hong Kong-listed shares traded down 2.64% after Warren Buffett’s Berkshire Hathaway announced that it had reduced its stake in the Chinese electric car maker.
The filing showed the company sold 3.2 million shares worth about HK$630 million ($80.6 million), according to the HKEX filing, reducing its holdings in the company to 15.99% from 16.28%.
Separately, the company also announced that it will raise the prices of some of its electric models, according to Reuters.
– Jihe Lee
Shares of Kuaishou and Baidu rose after the earnings announcement
Xiaomi expected to record a decline in revenue for the third quarter
Xiaomi It is expected to see lower revenues for the third quarter of 2022, according to the median estimate of a Refinitiv poll.
The company is expected to see revenue drop 9.66% to 70.52 billion yuan ($9.87 billion) in the July-September period, compared to 78.06 billion yuan in the same period last year.
The expected decline is likely due to “lukewarm smartphone sales,” as well as the weak macro environment and consumer sentiment, Daiwa Capital Markets wrote in a note.
Xiaomi shares fell as much as 1.72% in morning trading ahead of the release, and were last down about 1%.
Lee Ying Shan
The strength of the New Zealand dollar after the interest rate hike
The New Zealand dollar rose to 0.6192 per dollar after the central bank raised interest rates by 75 basis points, the largest ever rise.
NZD was last trading at 0.6170 per dollar and New Zealand’s NZX 50 Index was down 0.8%.
New Zealand’s 10-year Treasury yield briefly touched 4.305% shortly after the decision, last trading at 4.235%. Yields move inversely with prices, and the basis point is 0.01%.
– Lee Ying Chan
CNBC Pro: Goldman says EV batteries are becoming “critical” and names 2 pick stocks
Electric vehicle batteries are gaining “critical importance” amid the energy transition, according to Goldman Sachs.
The investment bank names two of the biggest stocks to play in the electric vehicle battery sector, giving an upside of nearly 70%.
CNBC Pro subscribers can read more here.
– Wizen tan
Singapore releases narrow GDP estimates for 2022
Singapore’s economy is expected to grow around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing softening external demand expectations in the wake of Europe’s energy crisis and China’s ongoing Covid-related restrictions.
The number is a narrow estimate from its previously forecast range of 3% to 4% — and reflects third quarter’s 4.1% annual growth and 1.1% growth from the previous quarter.
The ministry also said it expects the country’s GDP growth for 2023 to be between 0.5% and 2.5%.
– Jihe Lee
CNBC Pro: UBS says self-driving cars could become a $100 billion market in China — and the stock naming to power it
Electric vehicles are rapidly gaining momentum, particularly in China, the world’s largest market for electric vehicles.
But UBS believes that autonomous driving will be an even bigger trend than electrification — with a market size in China alone of about $100 billion by 2030.
Here’s how investors can play this huge trend, according to UBS.
Professional subscribers can read more here.
– Xavier Ong
New Zealand’s central bank raises interest rates by 75 basis points
The Reserve Bank of New Zealand raised its official cash rate by 75 basis points, its largest ever rise, to 4.25%.
The decision was in line with analysts’ expectations, according to a Reuters poll.
This is the ninth consecutive increase since the RBNZ first began its rate-raising cycle in October 2021, five of which were increases of 50 basis points.
New Zealand’s inflation rate is currently 7.2%, just below its highest level in three decades.
– Lee Ying Chan
Investors should take turns in the second-tier Chinese tech stock: UBS Global Wealth Management
Investors should take advantage of the bumpy ride in Chinese technology stocks to move into smaller, less established companies, according to Eva Li, head of major China equities in the principal investment office at UBS Global Wealth Management.
“Under current regulations, second-tier players will do better than top-tier players. Take this opportunity to rotate with companies that are second-tier,” like those with flexible income, she told CNBC’s “Street Signs Asia.”
In addition, the tech giants are seen as a “big recovery.” [proxies]The road to eventual full reopening, she said, “will be up and down, and it will be choppy.”
“We’re getting there eventually, but it takes time,” she said.
Stocks soar, the Standard & Poor’s 500 closes above the key 4000 level for the first time since September.
Stocks rose on Tuesday with all three major averages gaining more than 1% as Wall Street bets that interest rate hikes and inflation will ease heading into the end of the year. The S&P 500 also closed at a level not seen since September.
The Dow Jones Industrial Average closed up 397.82 points, or 1.18%, at 34,098.10 points. The Nasdaq Composite Index rose 1.36%, to 11,174.41.
The S&P 500 rose 1.36% to close at 4,003.58, its first close above 4,000 since September.
– Carmen Renick
84% of the 19 S&P 500 52-week highs are all-time records
Nineteen S&P 500 stocks hit 52-week highs so far on Tuesday, and among them, 16 (84%) also touched all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of them are among the all-time highs:
- General Parts Company (GPC), the highest since 1948
- O’Reilly Auto (ORLY), the highest level ever since the 1993 IPO
- TJXCos. (TJX), an all-time high dating back to the 1987 IPO
- General Mills (GIS), all-time highs dating back to 1927
- Monster Beverages (MNST), all-time high returns to predecessor’s Nasdaq listing in 1992
- Pepsico Inc. (PEP), the highest ever, dates back to Pepsi-Cola’s merger with Frito-Lay in 1965
- Marathon Petroleum (MPC), all-time highs from Marathon Oil production in 2011
- Aflac Inc. (AFL), all time through CNBC data history in 1973
- Arthur Gallagher (AJG), its highest ever since its IPO in 1984
- Globe Life (GL), the highest level ever for its predecessor data in 1980
- MetLife (MET), hit all-time highs for going public in 2000
- Progressive (PGR), all-time highs in 1971
- Travelers (TRV), an all-time high dating back to a spin-off from Citi in 2002
- Gilead Sciences (GILD), the highest since April 2020
- Merck & Co. (MRK), dating back to an all-time high in CNBC history starting in 1978
- PACCAR (PCAR), all-time high in 1971
- Quanta Services (PWR), at an all-time high in 1998
- Snap-On (SNA), the highest level since June 2021
- International Business Machines (IBM), the highest level since February 2020
There was a 52-week low in the S&P 500 early Tuesday:
- Tesla (TSLA), lowest since November 2020
- Medtronic (MDT), lowest since March 2020
Scott Schneiber and Christopher Hayes
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