Japanese Yen strengthens after Paul’s comments on small hikes
Temasek’s $245m FTX loss has damaged Singapore’s reputation, says deputy prime minister
Singapore’s Deputy Prime Minister Lawrence Wong said the state sovereign fund’s loss of a $275 million investment in collapsed crypto exchange FTX was “disappointing and caused reputational damage to the city-state”.
But the loss of investment doesn’t mean the governance system isn’t working, Wang said, adding that an internal review is underway.
“Rather, it’s the nature of investing and risk-taking,” he said.
The loss of FTX will not affect Singapore’s net investment returns, which are “linked to the aggregate expected long-term returns of our investment companies and not to individual investments.”
Going forward, Singapore plans to require crypto service providers to implement basic investor protection measures, but “no amount of regulation can remove this risk,” he warned.
– Sheila Chiang
China’s Caixin manufacturing PMI marks fourth straight month of contraction
China’s Caixin/Market Manufacturing Purchasing Managers’ Index for November came in at 49.4, higher than the 48.9 expected in a Reuters survey of economists.
The reading marked the fourth straight month of contraction after reading 49.2 since October and falling to 48.1 in September — below the 50-point mark that separates growth from contraction.
Separately, the official PMI print from China’s National Bureau of Statistics reported Wednesday that it came in at 48, showing a second consecutive month of contraction in factory activity.
– Jaehee Lee
Oil prices were little changed as the White House weighed additional oil reserves
The White House is considering building additional oil reserves amid uncertainty surrounding the upcoming winter and the market, sources told CNBC.
The Biden administration is weighing whether to call on Congress to raise the stockpile limit, potentially doubling it, to create additional reserves that the administration can release if supplies tighten or prices rise again, people said
The United States currently has about 1 million barrels of heating oil in New York and Connecticut.
The White House is bracing for a possible price hike, as the European oil embargo and G-7 price cap on Russian oil move forward, potentially disrupting supply.
Oil prices were little changed in early Asian hours. West Texas Intermediate futures fell slightly to $80.53 a barrel, while Brent crude futures fell 0.06% to settle at $86.92 a barrel.
— Kayla Toshe, Lee Young Shan
CNBC Pro: Forget Amazon. Here’s what high-tech investor Paul Max is buying
Investor confidence in the technology sector has slumped this year amid a flight to safety, but senior tech investor Paul Max said he is now “more bullish” on the sector than in recent months, although he Remains the best in the sector.
He tells CNBC the stocks he likes.
Pro customers can read more here.
– Xavier Ong
South Korea’s revised GDP confirms growth in the third quarter
South Korea’s revised gross domestic product for the third quarter confirmed growth of 3.1% over the same period last year – higher than the 2.9% expansion seen in the second quarter.
The economy grew at a slower pace of 0.3% in the third quarter, following growth of 0.7% in the previous period.
Separately, South Korea reported a trade deficit of $7.01 billion for November, beating expectations of $4.42 billion — marking the third consecutive month of a trade deficit driven by sluggish exports.
Exports fell 14%, less than forecasts for an 11% decline – while imports rose 2.7% more than expected, according to preliminary data from the customs agency.
– Jaehee Lee
CNBC Pro: UBS reveals 15 global stocks sensitive to China’s reopening plans
Chinese stocks rose this week after the country’s health officials reported a recent improvement in vaccination rates, which experts say is critical to reopening the country.
The effects of Beijing’s changes to combat the Covid-19 pandemic are being felt not only in China but also around the world.
Swiss bank UBS identified 15 stocks MSCI Europe Index It will “do well in an environment where China’s growth is picking up and the country is reopening its borders.”
CNBC Pro subscribers can read more here.
– Ganesh Rao
Paul continues to believe in the soft landing approach
Federal Reserve Chairman Jerome Powell says he continues to believe the path to a “soft Ash” Earth — even if the path has narrowed over the past year.
“I want to continue to believe that there is a path to a softer or softer landing,” Paul said at the Brookings Institution.
“Our job is to try to achieve that, and I think it’s still achievable,” Paul said. “If you look at history, it’s not a likely outcome, but I would just say it’s a different set of circumstances.”
– Sarah Min
Indicators go to Paul’s comments
Fed Chairman Jerome Powell’s comments suggest the central bank will slow future interest rate hikes when December puts pressure on the three major indexes.
of the S&P 500 rose 0.6% from the red on the news.
of the dau After trading lower for most of the day, it was close to flat.
of the Nasdaq Composite Gained steam to a 1.3% high.
– Alex Haring
Powell says the Fed could “moderate the pace” of future rate hikes because of the lagged effect of past hikes
Federal Reserve Chairman Jerome Powell told an audience at the Brookings Institution on Wednesday that the central bank could be able to reverse its tight monetary policy at its December meeting (due to end on December 14).
The residual effect of higher rates already taken into 2022, as well as the shrinking of the Fed’s balance sheet through quantitative tightening, means that “moderating the pace of our rate hikes makes sense as we Limiting levels that will be enough to bring down inflation,” Paul said.
“The timing of the pace of rate hikes may come as soon as the December meeting,” the 69-year-old Fed chairman said.
In response to Paul’s comments, the S&P 500 quickly rose to around 3970, compared to 3950 before the address.
– Scott Schnipper, Jeff Cox