Bank of Japan member says he wants to stick to ultra-lax policy
According to Reuters, Bank of Japan member Toyoaki Nakamura stressed the need to “patiently maintain” his stance on quantitative easing.
In a speech, he said that tightening monetary policy when the output gap remains negative will put heavy pressure on the economic activity of households.
Japan continued to keep its monetary policy extremely loose while other central banks increased rates aggressively. Inflation in Japan is above target, but not as high as in the US and UK
Nakamura said the gap between inflation in Japan and other economies is largely due to slow wage growth.
He also said that if China continues its restrictive Covid measures, it will prolong supply cuts and hurt Japan’s exports, production and capital expenditures.
Qantas shares rise after buyback announcement, earnings report
Shares of Australian airlines Qantas It climbed as much as 10% after the company reported earnings and announced its share repurchase plans.
The company reported a base loss of A$1.86 billion ($1.29 billion) before tax for fiscal year 2022.
“While the first three quarters of the year were defined by waves of border closures and uncertainty caused by Covid variants, the fourth quarter saw the highest levels of sustained travel demand since the start of the pandemic,” Qantas said in a statement. Said.
It also announced plans to repurchase shares for up to A$400 million, according to a filing.
“This is the first return to shareholders since 2019 and follows the $1.4 billion in equity raised at the start of the pandemic,” the company said.
– Abigail Ng
CNBC Pro: Why does Goldman Sachs consider this FAANG stock a sale?
FAANG shares posted mixed second-quarter earnings, but Goldman Sachs continues to purchase calls for almost the entire grouping.
According to the bank, only one stock is a sale.
For subscribers read the story here.
— Zavier Ong
HKEX postpones morning session to continue in the afternoon due to Typhoon
Windows of a restaurant at The Peak, on August 24, 2022, when the Hong Kong Observatory’s Typhoon Signal No. In the early hours of the morning. HKEX canceled the morning session as per T8 issuance. (Photo by ISAAC LAWRENCE/AFP) (Photo by ISAAC LAWRENCE/AFP via Getty Images)
Isaac Lawrence | AP | Getty Pictures
Hong Kong postponed the morning session due to the release of Typhoon Signal No.1. 8, change announced on the website. The session is likely to continue into the afternoon as the signal has now been reduced to a T3.
“If the 8 or higher Typhoon Signal or any Extreme Condition announcement continues to run at 9:00 am, morning trading sessions for all markets will be canceled,” he says.
HKEX’s guide to session resumption on its website states that “trading will begin in the first half hour, approximately two hours after the cessation of Typhoon Signal 8 or any Extreme Condition announcements.”
Central Bank of Korea raises interest rates
The Central Bank of Korea raised the country’s benchmark interest rate by 25 basis points to 2.50%.
The move was in line with a poll by Reuters in which all but one of 36 economists predicted a rise. One was expecting a 50 basis point increase.
That follows July’s rise of 50 basis points – the biggest since the bank adopted the currency policy system in 1999, despite expecting gross domestic product growth to be “below the 2.7% forecast in May.”
Central bank Governor Rhee Chang-yong is expected to hold a press conference later in the morning detailing today’s decision.
— Jihye Lee
CNBC Pro: Morgan Stanley, UBS favor these ‘cheap’ stocks even in a recession
Accordingly, the risk of recession increases Canaccord GenuityAnalysts led by Tony Dwyer.
“Our indicators show that a recession is increasingly likely as we enter next year, especially if the Fed continues to raise interest rates,” according to a report published in August. 22 research notes.
But accordingly Morgan Stanley and UBS, some stocks still look cheap – even if there is a risk of a slowdown in price. Here are some of their preferred stocks.
For subscribers read the story here.
— Zavier Ong
Treasury yields soar on expectations of a hawkish Jackson Hole Fed meeting
Treasury yields climb ahead of the Federal Reserve’s annual symposium in Jackson Hole, Wyo. on the idea that market sentiment is more dovish than the central bank.
The three-day event kicks off on Thursday, with the market most focused on Fed Chairman Jerome Powell’s speech on Friday morning.
The market expects a hawkish Fed based on pre-meeting comments. For example, some Fed officials are rebuffing the market view that the Fed may cut interest rates soon after it finishes raising it next year.
Yields moving against prices are rising on expectations that Powell will emphasize an aggressive disinflation policy and keep rates high for longer. this 10 years yield It hit 3.11% on Wednesday morning, the highest level since the end of June.
“I think what the bond market is trying to understand is Powell’s view of this policy shift in 2023,” said Jim Caron of Morgan Stanley Investment Management.
– Patti Domm
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