Fed minutes, Bank of Korea decision, Sri Lanka

New Zealand’s central bank discussed 100 basis point hike, governor says

We are unambiguously contractionary in our monetary position, says RBNZ

The Reserve Bank of New Zealand considered an even bigger rate hike in its latest official cash rate decision – despite having already raised rates by the sharpest 75 basis points on record.

“I would say we’ve had more discussions around 75 versus 100 than we’ve had around 50 versus 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”

“Now we can say that we are unambiguously shrinking in our monetary situation,” said Orr, “We have to be, taking into account the potential of the economy at the moment,” he said.

– Jihye Lee

Foxconn says wage concerns raised with new hires, it sets up communication

A major supplier of Apple Foxconn New recruits to its iPhone factory in Zhengzhou have “appealed to the company” for compensation, according to a statement on its website.

The statement comes after media reported that a large protest by hundreds of workers appeared to have been prompted by a delay in bonus payments, with videos circulating on social media showing people breaking surveillance cameras and windows.

“The company has emphasized that the allowance has always been fulfilled based on a contractual obligation and will continue to communicate with relevant colleagues,” Foxconn said in a statement, adding that employee reports of Covid-positive they live in the factory dormitories “patentably false. “

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“Regarding any violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again.”

Taiwan-listed shares of Hon Hai Technology Group, formally known as Foxconn, traded 0.5% lower in the early session on Thursday.

– Jihye Lee

Bank of Korea raises rates 25 basis points, meets expectations

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

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

The nation’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 Rhee Chang-yong intends to hold a press conference later in the day about the monetary decision.

– Jihye Lee

CNBC Pro: Asset manager says investors need to buy this large-cap stock right now

There is one large-cap stock that investors need to buy into right now, according to Rob Luna, chief investment strategist with asset manager Surevest.

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He calls his CEO a “significant video.”

While Luna has selected the only large-cap stock, he advised investors in general to reallocate to smaller names, naming two stocks that he called “best of breed.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks rise for a second day as Wall Street cheers the Fed signaling a smaller rate hike ahead

Stocks rose on Wednesday for a second straight day of gains as investors applauded a Federal Reserve minute that signaled a slower pace of interest rate hikes ahead.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26 and the Nasdaq Composite rose 0.99% to 11,285.32.

Nordstrom shares fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat profit and sales expectations in its latest results, according to consensus expectations on Refinitiv. Tesla rose 7.82% after Citi upgraded shares to neutral from sell. Deer 5.03% increase on earnings beat.

-Carmen Reinicke

CNBC Pro: Betting against British supermarket, short-seller expects share price to drop nearly 50%

There is more pain to come for investors in a British supermarket company if short sellers are predicted.

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The hedge fund currently has a bearish bet worth £32.6 million and shares in the grocer are expected to fall by 44%.

The fund’s chief investment officer also believes the supermarket will raise fresh 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 rate hikes ahead, stock gains

Stocks rose on Wednesday evening after the release of minutes from the November meeting of the Federal Reserve. The report indicated that the central bank sees progress in its fight to lower inflation and expects to slow the pace of future interest rate increases.

“The vast majority of participants considered that a slowdown in the pace of the appropriate increase was likely soon,” the minutes stated. “The delays and uncertainties surrounding the effects of monetary policy actions on economic activity and inflation were among the reasons cited as to why such an assessment was important.”

That means the Fed is likely to deliver a smaller rate hike in December and early 2023.

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

-Carmen Reinicke


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