New Zealand interest rate hikes, inflation data

The Central Bank of New Zealand has hinted at further hikes to come

The governor of the Reserve Bank of New Zealand (RBNZ) Adrian Orr said that the only objective of the bank is to get the official money rate where inflation may worsen.

Orr’s comments came after the central bank announced its largest rate hike of 75 basis points.

“The rate of core inflation is too high,” Orr said at a news conference, adding that the central bank is “well down the path of the economic cycle.” confirmation.”

In a separate press release shortly after the decision, the RBNZ said: “Committee members agreed that monetary conditions need to continue to tighten.

— Lee Ying Shan

BYD shares fell after Berkshire Hathaway cut its stake

Share the BYD Hong Kong-listed shares traded 2.64% lower after Warren Buffett’s Berkshire Hathaway announced it was cutting its stake in the Chinese electric car maker.

According to HKEX filings, the company sold 3.2 million shares worth 630 million Hong Kong dollars ($80.6 million), which brought the company’s ownership to 15.99% from 16.28%.

Separately, the company also announced that it will raise the prices of some of its EV models, according to Reuters.

– Jihye Lee

Kuaishou share price, Baidu

Xiaomi was expected to report a decline in revenue in the third quarter

Xiaomi A decline in revenue is expected in the third quarter of 2022, according to estimates from a Refinitiv poll.

The company is expected to see a 9.66% drop in revenue to 70.52 billion yuan ($9.87 billion) for the July-September quarter, compared with 78.06 billion yuan in the same period last year. same as last year.

The decline in expectations is likely due to “high smartphone sales,” as well as a weak macro environment and consumer sentiment, Daiwa Capital Markets wrote in a note.

Shares of Xiaomi fell as much as 1.72% in morning trading before the release, and were last around 1% lower.

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– Lee Ying Shan

The New Zealand dollar firmed after its biggest gain

The New Zealand dollar strengthened to 0.6192 against the greenback after the central bank raised rates by 75 basis points, the biggest increase on record.

The NZD last traded at 0.6170 against the dollar and New Zealand’s NZX 50 index fell 0.8%.

The 10-year New Zealand Treasury yield briefly touched 4.305% shortly after the decision, and last traded at 4.235%. The result is inversely proportional to the price, and the basis point is equal to 0.01%.

– Lee Ying Shan

CNBC Pro: Goldman says EV batteries are becoming ‘critical’ and names 2 stock picks

Electric vehicle batteries are gaining “significance” in the energy transition, according to Goldman Sachs.

The investment bank names two top stocks to play the EV battery sector, giving one a gain of nearly 70%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Singapore has released its GDP estimates for 2022

Singapore’s economy is expected to grow by around 3.5% in 2022, according to the Ministry of Trade and Industry, citing softening external demand following Europe’s energy crisis and restrictions. related to Covid in China.

The figure is a narrow estimate from previous forecasts of between 3% and 4% – and represents an annual increase of 4.1% in the third quarter and an increase of 1.1% in the previous one.

The ministry also said that it sees GDP growth for the country in 2023 between 0.5% and 2.5%.

— Jihye Lee

CNBC Pro: UBS says self-driving cars could become $100 billion market in China – and names stocks to play it

Electric vehicles are rapidly gaining traction, especially in China, the world’s largest EV market.

But UBS believes that autonomous vehicles will become a bigger megatrend than electric vehicles – with a market size in China alone of around $100 billion by 2030.

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Here’s how investors can play this megatrend, says UBS.

Pro customers can read more here.

— Zavier Ong

New Zealand’s central bank is raising rates by 75 basis points

The Reserve Bank of New Zealand raised its official interest rate by 75 basis points, the largest increase on record, to 4.25%.

The decision was in line with analysts’ expectations, according to a Reuters poll.

This is the ninth consecutive hike since the RBNZ began its rate hike cycle in October 2021, five of which have been 50 basis point hikes.

Inflation in New Zealand is currently at 7.2%, below a thirty-year high.

— Lee Ying Shan

Investors should turn to a second tier Chinese technology stock: UBS Global Wealth Management

Investors should take advantage of the boom in the Chinese technology market to move into smaller and less established companies, according to Eva Lee, head of China’s leading investment bureau. -fund major at UBS Global Wealth Management.

“According to the current rules, the second-tier players will do better than the top. Use this opportunity to turn to companies that are second-tier,” such as those with long-term income, he told CNBC’s “Street Signs Asia”.

Additionally, tech giants are considered “macro returns [proxies]and the road to eventual full reopening is “going to be up and down, it’s going to be bumpy,” he said.

“We’re moving there eventually but it’s going to take time,” he said.

— Abigail Ng

Stocks rose, with the S&P 500 closing above the 4,000 level for the first time since Sept.

Stocks rose on Tuesday with all three major averages gaining more than 1% as Wall Street bet that rising interest rates and inflation will ease the end of the year. The S&P 500 also closed at levels not seen since September.

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The Dow Jones Industrial Average closed 397.82 points, or 1.18%, higher at 34,098.10. The Nasdaq Composite also gained 1.36% to 11,174.41.

The S&P 500 rose 1.36% to close at 4,003.58, its first close above the 4,000 level since September.

—Carmen Reinicke

84% of 19 S&P 500 52-week highs are now all-time records

Nineteen stocks in the S&P 500 hit 52-week highs as of Tuesday and, of those, 16 (84%) also hit all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of them are among all-time highs:

  • General Parts Co. (GPC), highest since 1948
  • O’Reilly Auto (ORLY)’s 1993 low
  • The highest value of TJX Cos. was in 1987
  • General Mills (GIS), the all-time high in history since 1927
  • Monster Beverage (MNST), the highest on the previous Nasdaq list in 1992
  • Pepsico (PEP), all-time high, dates back to Pepsi-Cola’s merger with Frito-Lay in 1965
  • Marathon Petroleum (MPC), all-time high of spinoff from Marathon Oil in 2011
  • Aflac Inc. (AFL), the 1973 CNBC news story
  • Arthur J Gallagher (AJG), highest since 1984 IPO
  • Globe Life (GL), its highest return since the previous data in 1980
  • MetLife (MET), went public in 2000
  • Progressive (PGR), highest since 1971 IPO
  • Travelers (TRV), all-time return to Citi in 2002
  • Gilead Sciences (GILD), highest since April 2020
  • Merck & Co. (MRK), the highest turnover in CNBC history since 1978
  • PACCAR’s highest value was in 1971
  • Quanta Services (PWR), highest since 1998 IPO
  • Snap-On (SNA), highest since June 2021
  • International Business Machines (IBM), highest since February 2020

The S&P 500 hit two 52-week lows on Tuesday morning:

  • Tesla (TSLA), lowest since November 2020
  • The lowest value of Medtronic (MDT) in March 2020

Not to mention.

— Scott Schnipper and Christopher Hayes

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