Fed Minutes, Bank of Korea Decision, Sri Lanka


Bill Ackman says the Hong Kong dollar peg will break

Billionaire hedge fund manager Bill Ackman Sustainability questioned Hong Kong dollarHe pegged his currency to the dollar, adding that his company Pershing Square He has a large short position on the currency.

“We have a short-term hypothetical position against the HKD through ownership of put options,” the CEO of Pershing Square Holdings said in a series of tweets.

“The currency peg no longer makes sense for Hong Kong and it is only a matter of time before it breaks,” Ackman wrote.

However, Bank of Singapore currency analyst Sim Moh Seong said the currency peg will remain resilient as negative sentiment about China has recently “calmed” with recent adjustments including China’s quarantine period for international travelers.

“The currency peg is likely to hold given fundamentals continue to support the Fed,” he said. “I think that may be the case [have] Somewhat calming down on the Chinese front and that in turn could increase the flexibility of Hong Kong’s currency peg to the dollar.”

– Jihe Lee

Grab and Gojek respond to Singapore’s move to expand job protections for gig workers

Grab said he supports Singapore broadly post ad To expand job protections and benefits to gig workers starting in 2024.

The decision includes guaranteeing injury compensation and pension payments as part of the new norms for the temporary work economy, which primarily affects delivery and delivery companies.

In response to CNBC’s request for comment, Grab said it was “broadly supportive” of the measures, adding that implementation should be “gradual,” citing current headwinds to the global economy, such as recession fears.

“We will be guided by these considerations to ensure a minimal impact on our partners’ profits and consumer prices,” Grab said.

The company called for the measures to also apply to all financial services platforms citing fairness concerns.

Gojek said that measures requiring companies to match contribution rates to Central Provident Fund pensions with those of employers “will mean lower take-home earnings” for gig workers, and that the company already has similar policies in place.

“These recommendations will build on the existing guarantees we provide our driver partners, which are offered through the Driver Benefits Program,” Gojek told CNBC.

– JB Ong, Sheila Chiang

The governor said the New Zealand central bank has discussed raising interest rates by 100 basis points

RBNZ says: We are unequivocally contracted in our monetary position

The RBNZ had considered further rate hikes in its last official rate decision – although its move to raise rates by 75bp was already the sharpest on record.

“I would say we’ve had more debates about 75-to-100 than we have about 50-to-75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia”.

“Now we can say that we are unequivocally diminished in our monetary position. We need to be, given the integrity of the economy at the moment,” Orr said.

– Jihe Lee

Foxconn says the new hires have raised wage concerns, and adds ongoing contacts

Apple’s main supplier Foxconn He said new recruits at its iPhone factory in Zhengzhou have “appealed to the company” regarding compensation, according to a reporter. statement on its website.

The statement comes after the media mentioned A massive demonstration by hundreds of workers appeared to have been sparked by the delay in the payment of bonuses, with videos circulating on social media showing people smashing security cameras and windows.

“The company has confirmed that the allowance has always been met on the basis of contractual obligation and will continue to communicate with relevant colleagues,” Foxconn said in its statement, adding that reports of COVID-positive employees staying in factory dormitories are “clearly untrue.”

“Regarding any acts of violence, the company will continue to communicate with employees and the government to prevent the recurrence of such incidents,” he added.

Shares of Taiwan-listed Hon Hai Technology Group, the official name of Foxconn, traded down 0.5% in the early Thursday session.

– Jihe Lee

The Bank of Korea raised interest rates by 25 basis points, meeting expectations

Bank of Korea raised the benchmark interest rate by 25 basis points to 3.25%, which is a smaller rise than its previous move and broadly in line with expectations.

A Reuters poll of economists expected the move amid signs of slowing domestic growth.

The country’s inflation rate for October was 5.7%, according to the latest figures released earlier this month – well above the central bank’s target of 2%.

BoK Governor Ri Chang-yong is scheduled to hold a press conference later in the day regarding the monetary decision.

– Jihe Lee

CNBC Pro: The asset manager says investors should buy these great stocks right now

There’s one big-cap stock that investors should buy right now, according to Rob Luna, chief investment strategist at asset management firm Surevest.

He describes its CEO as a “big visionary”.

While Luna picked one big stock, he generally advised investors to reallocate to smaller names, naming two stocks he described as “best in breed.”

CNBC Pro subscribers can read more here.

– Wizen tan

Stocks are rising for a second day as Wall Street cheers that fewer interest rate hikes are ahead

Stocks rose on Wednesday, posting gains for the second day in a row as investors cheered the Federal Reserve’s minutes that signaled a slower pace of rate hikes ahead.

The Dow Jones industrial average rose 95.96 points, or 0.28 percent, to 34,194.06 points. The S&P 500 rose 0.59%, closing at 4,027.26, and the Nasdaq Composite rose 0.99%, to 11,285.32.

Nordstrom shares decreased 4.24% After the supermarket chain reaffirmed its expectations. However, Nordstrom beat earnings and sales expectations in its most recent results, according to Refinitiv consensus forecasts. Tesla It rose 7.82% after Citi raised its shares to neutral from selling. monastery It rose 5.03% on the earnings beat.

– Carmen Renick

CNBC Pro: Betting on British supermarket, short sellers expect nearly 50% collapse in share price

There is more pain to come for investors in a UK supermarket company if the short seller’s expectation comes true.

The hedge fund is currently holding a £32.6m bearish bet and expects shares in the grocery to fall by 44%.

The fund’s chief investment officer also believes that the supermarket will raise new capital by diluting shareholders year after year to keep itself afloat in a challenging environment.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Fed minutes show smaller price hikes in the future, and stocks win

Shares rose on Wednesday afternoon after the release of the minutes The Federal Reserve meeting in November. The report showed that the central bank sees progress in its battle to bring down inflation and expects to slow the pace of interest rate hikes going forward.

The minutes stated that “a large majority of the participants believed that slowing down the pace of increase would be appropriate in the near future.” “Delays and uncertainties associated with the effects of monetary policy measures on economic activity and inflation were among the reasons cited for the importance of this assessment.”

This means that the Fed is likely to raise interest rates in December and in the early months of 2023.

The markets rejoiced at the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 rose 0.70% and the Nasdaq Composite gained 1.10%.

– Carmen Renick


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