2 Hours Ago
Travel is driving the increased oil demand in China, says S&P Global
China’s economic recovery is key for global oil markets as post-pandemic trends drive demand, S&P Global said.
“It hasn’t been manufacturing … it’s been jet, it’s been gasoline. And why? When the Covid restrictions were lifted, people wanted to move again,” Carlos Pascual, senior vice president for global energy and international affairs at S&P Global Commodity Insights told CNBC’s “Squawk Box Asia.”
He said China’s industrial manufacturing has not been the “critical factor” in driving the oil market recently and the increase in demand may taper off in 2024.
— Quek Jie Ann
3 Hours Ago
Hong Kong property stocks surge as Country Garden extends bond deadline
Hong Kong’s real estate stocks surged, leading gains on the Hang Seng on Monday.
This comes after embattled developer Country Garden Holdings reportedly won approval to extend payments for an onshore private bond over the weekend and some of China’s banks cut mortgage rates on Friday.
Country Garden shares jumped 7.87%, while shares of Evergrande rose 7.27%. Other gainers also included Longfor Group, which spiked 9.44%, and China Resources Land, which gained 9.8%.
At 10 a.m. Hong Kong time, the Hang Seng Mainland Properties Index was 7.32% up compared to its last close, marking its largest one day gain since July 25.
5 Hours Ago
New Zealand trade expands in second quarter
New Zealand’s trade expanded in the quarter ended June, with total trade coming in at 51.8 billion New Zealand dollars, 4.9% higher compared with June 2022.
Government data showed that the exports of goods and services for the quarter totaled NZ$25.3 billion, up from NZ$23.1 billion a year ago.
Meanwhile, imports of goods and services for the quarter totaled NZ$26.6 billion, up from NZ$26.3 billion last year.
— Lim Hui Jie
5 Hours Ago
Arm targets $47 to $51 per share in IPO: Reuters
Semiconductor and software design company Arm will reportedly seek a listing price from $47 to $51 per share, Reuters reported, citing people familiar with the matter.
This would translate to a valuation between $50 billion and $54 billion.
Arm is set to begin marketing its initial public offering next week.
Sources told Reuters that “SoftBank could possibly raise this range before the IPO prices, should investor demand prove strong.” Japanese investment holding company SoftBank is the parent company of Arm.
— Reuters, Lim Hui Jie
6 Hours Ago
CNBC Pro: A China fund from Fidelity is beating the crowd. How it plans to keep doing it
A Fidelity fund that invests billions of dollars into a China-related strategy is on track to outperform its peers this year for a second straight year, according to Morningstar.
“It’s very fashionable or favorable to be underweight on China. But we think there’s way too much negative news priced in and sentiment is too bearish,” said Catherine Yeung, a Hong Kong-based investment director focused on equities at Fidelity International.
She told CNBC that in general, it’s taken different parts of the world about 15 months to fully recover from Covid lockdowns.
“China only reopened in January,” she said.
CNBC Pro subscribers can read more here.
Fri, Sep 1 2023 8:36 AM EDT
Unemployment ticks up to 3.8% in August, average hourly wages rise less than expected
The unemployment rate jumped to 3.8% in August, while wages rose less than expected, the U.S. Department of Labor said Friday, signs of a slowing economy and easing pricing pressures.
The jobless rate was expected to be 3.5%, according to economists polled by Dow Jones, equal with what it was in the prior month. Average hourly earnings rose 0.24% for the month, or 4.29% year-over-year. That was less than the 4.4% increase expected by economists.
Nonfarm payrolls grew by a seasonally adjusted 187,000 for the month, above the 170,000 expected by economists polled by Dow Jones. However, job numbers first reported for June and July were revised down by a combined 110,000.
— Samantha Subin
Fri, Sep 1 2023 9:18 AM EDT
Traders increasingly bet the Federal Reserve is done hiking rates
Traders are growing more confident the Federal Reserve could be done hiking rates this year after the August’s unemployment rate suggested a cooling labor market.
Markets are pricing in a 93% likelihood Friday morning the Fed will hold rates in September, according to the CME FedWatch Tool. That’s up from an 88% chance on Thursday.
Meanwhile, chances the central bank will not raise rates in November also jumped to 65%. That’s up from 58.9% the previous day.
— Sarah Min
Fri, Sep 1 2023 1:04 PM EDT
Highly anticipated Arm IPO could arrive later this month
The highly anticipated IPO of Softbank-backed Arm could arrive this month, marking a major test for the market sentiment, according to Wall Street firm Roth MKM.
“We believe ARM could launch its IPO roadshow as early as next week with a likely first day of trading before September 20th,” Roth MKM said in a note.
The Cambridge, England-headquartered tech giant touts advanced chip designs that can be found in nearly all the world’s smartphones. Arm benefits from secular tailwinds with AI demand as well as non-smartphone semiconductor penetration, Roth MKM said.
Its debut will be a big signal as to whether the IPO market is ready to rebound after a drought due to higher interest rates.
— Yun Li
Fri, Sep 1 2023 2:08 PM EDT
Explosive rally in VinFast fades swiftly
Vietnamese EV maker VinFast failed to cement meme stock status as its eye-popping rally faded quickly. After a head-scratching six-day winning streak, VinFast has lost 60% this week, cutting its gains since its market debut to about 170%.
The retail participation in VinFast is still much lower than other popular Asian carmakers during their peak popularity, according to Vanda Research.
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