Samsung earnings guidance, Japan services PMI, US jobs data

Tesla cuts prices on some models in China, suppliers increase

Tesla has cut the prices of some models in China for the second time in three months, the company announced in a Post on Weibo.

The firm said its Model 3 and Model Y vehicles in China are now priced at 229,900 yuan and 259,900 yuan respectively.

That’s down from 6% to 13.5%, a separate calculation from Reuters shown

Shenzhen-listed shares of Tesla’s Chinese suppliers rose on optimism that a price cut could boost demand for the electric vehicle maker.

Shares of Anhui Shiny Electronic Technology rose as much as 10 percent in Asian trade, and Hengdian Group DMEGC Magnetics gained nearly 9 percent. Zhejiang Chint Electrics rose about 10% and Shandong Jinjing Science & Tech rose more than 7%.

— Jihe Lee

More Chinese electronics firms to take market share from Taiwanese companies like Foxconn: Investment Fund

More Chinese electronic component companies are set to take market share away from their Taiwanese counterparts, such as FoxconnKirk Yang, chairman and CEO of Kirkland Capital, told CNBC “Squawk Box Asia“Friday.

An apple supplier Foxconn faces competition from Luxshare, which was won a contract to manufacture iPhones in Chinaeven as Foxconn reported record earnings and its Zhengzhou plant returned to normal after Covid restrictions and labor unrest.

“Chinese companies are becoming quite competitive for iPhone assemblers. China is doing quite well in almost everything except semiconductors,” Yang said.

Yang also added that with the geopolitical tension between China and Taiwan, Taiwanese companies in China have been under a lot of pressure in the past five years. “A lot of them are moving from China,” Yang said.

That’s why Apple needs to diversify, he said, adding that the tech war between the U.S. and China is also making companies move even faster from China to diversify.

– Sheila Chang

Samsung Electronics may cut production in the coming months, CLSA says

Samsung Electronics can follow its competitors Micron technology and SK Hynix in production cuts in the later part of 2023, said Sanjiv Rana, senior analyst at CLSA.

The company has “no choice but to cut production as inventories are rapidly building up,” Rana said on CNBC Squawk Box Asia in Friday.

“If they don’t cut production, stocks could go up even more,” he said, adding that demand for IT products has weakened in recent months, leading to a drop in memory chip sales.

On the demand side, Rana said China’s reopening could lead to double-digit growth in smartphone shipments to China year-on-year.

Oil prices will remain around $85 a barrel for the next five years, an analyst says

Oil prices are expected to hover around $85 a barrel for the next five years as a result of “underinvestment on the supply side” and likely rising demand, said Dan Pickering of Pickering Energy Partners.

Once China gets through the Covid wave, “one million to two million barrels per day of increased demand” can be expected, Pickering said, adding that this would support crude prices.

He added that additional support would also be appreciated once the world emerges from the global economic downturn.

Brent Crude Oil Futures added 1.12% to $79.57 a barrel. Similarly, on American West Texas Intermediate rose 1.15% to $74.74 a barrel.

Also reported overnight in the US lower fuel supplies as a result of a winter storm, increasing pressure on supplies.

– Lee Ing Shan

China eases minimum mortgage interest rates for first home buyers

The People’s Bank of China and the China Banking and Insurance Regulatory Commission announced approval for lower mortgage rates for first-time home buyers if new home prices fall for three consecutive months, it said in a statement.

The latest measures show further government support for the property sector.

Home sales in China fell more than 20 percent year-on-year in each month last year through November, Factset data showed. Home prices fell for a fourth month in a row in November on a monthly basis, Reuters reported.

Hong Kong-listed property shares were mostly higher, with Logan group up 5.48% and Cifi Holdings gaining 0.79%. Country Garden and Longfor Group were unchanged in the morning session on Friday.

— Jihe Lee

CNBC Pro: Veteran investor sees energy as the biggest gainer in 2023 — and names stocks to play

After a stellar performance in 2022, energy stocks are off to a slow start to the year.

But veteran investor Louis Navellier isn’t worried. He believes the sector is poised for another great year in 2023 and has a number of stock picks to play.

Professional subscribers can read more here.

— Zavier Ong

Japan’s services sector grew for the fourth month in a row

Japan’s services sector activity posted a fourth straight month of growth in December as the nation’s central bank kept its ultra-bold policy in contrast to its hawkish global peers.

Jibun Bank Japan’s final service purchasing managers’ index rose to 51.1, compared with a sharp drop in November to 50.3 from 53.2 in October.

The 50-point mark in PMI readings separates contraction from expansion.

The Japanese yen traded marginally higher following the report and was last at 133.38 against the greenback.

— Jihe Lee

Samsung Electronics’ earnings guidance shows a nearly 70% drop in quarterly profits

Samsung Electronics posted its worst quarterly profit ever for nearly 8 years with an estimated 70% drop in operating profit for the most recent quarter, according to the company’s latest figures profit guidelines.

The tech giant estimated its profit fell to 4.3 trillion won ($3.37 billion) in the October-December period due to weaker global demand, after posting a profit of 13.87 trillion won ($10.92 billion) in the previous year. quarter.

Shares of the tech giant rose 0.17% shortly after the guidance was released.

— Jihe Lee

CNBC Pro: Citi’s Chronert Says Recession Is Near; shares his “appeals of the highest conviction” to confront him

Citi’s Scott Kronert expects a mild recession in the first half of this year and revealed three strategic suggestions that could help investors trade the dip.

He shared with CNBC three “top conviction calls” that could help investors navigate the macro environment.

CNBC Pro subscribers can read more here.

— Weizhen Tan

St. Louis Fed President James Bullard says 2023 is on track to be a disinflation year

There are a number of factors that could make 2023 a deflationary year, according to St. Louis Federal Reserve Bank President James Bullard in a speech Thursday.

He noted that GDP growth is likely to have improved in the second half of 2022 and inflation has eased recently, although overall it remains too high.

He added that while the current policy is not yet “restrictive enough,” it is getting close and will reach that level this year. That signaled to markets that he could walk away from more than the 5% terminal rate he sees the central bank reaching before pausing or reversing rate hikes, sending stocks to their lowest levels for the day.

The strength of the labor market seen in the middle of the hiking cycle is unprecedented, he said.

— Carmen Reinicke

CNBC Pro: Goldman Sachs reveals 7 understated global stocks to buy this year

According to Goldman Sachs, many under-the-radar stocks are key to the green energy transition and are expected to grow in 2023.

The Wall Street bank said the decade-long trend of investing in big clean energy stocks will shift this year, with the focus shifting to smaller supply chain firms.

The investment bank has identified seven stocks in the EMEA region that will benefit from the new trend.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Big drops for Silvergate, Bed Bath & Beyond highlight midday movers

Here are some of the biggest stock moves during Thursday’s trading session:

Silvergate — Shares of the crypto-focused bank plunged more than 42% after Silvergate revealed massive customer withdrawals in the fourth quarter. The bank said it had $3.8 billion in assets from digital asset clients at the end of December, down more than 60% from three months earlier. The company also sold off $5 billion in debt securities to cover the withdrawals, resulting in a loss on those sales of $718 million.

Bed Bath & Beyond — The home goods retailer tumbled 24% after it said it was running out of cash and considering bankruptcy, citing weaker-than-expected sales. The company said it is exploring financial options, including restructuring, seeking additional capital or selling assets, in addition to potential bankruptcy.

Lamb Weston Holdings — The food processor jumped 9% after beating estimates on quarterly earnings and revenue. Lamb Weston also raised its financial guidance for the full year.

See more movers here.

— Jesse Pound

Continued decline in jobless claims, signaling strength in labor market

Initial jobless claims rose slightly to 225,000 in the week ending Dec. 24, according to the Labor Department. But continuing claims – which include those who have been unemployed for more than a week – fell.

Continuing claims fell by more than 24,000 to 1,569,764 in the previous week. This is a signal that people are finding new jobs amid a strong labor market.

— Carmen Reinicke

#Samsung #earnings #guidance #Japan #services #PMI #jobs #data

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