An hour ago
China’s April inflation is expected to come in at 0.3%, lowest since Feb 2021
China’s inflation for April is expected to fall further to 0.3%, according to a Reuters poll of 37 economists. The country will release the consumer price index this Thursday.
If the forecast proves accurate, that would mark the third consecutive month of declining inflation rates, and the lowest reading since February 2021, when inflation was at -0.2%.
China’s inflation stood at 0.7% in March after falling from a peak of 2.1% in January.
— Lim Hui Jie
3 Hours ago
South Korea is ‘pursuing various policy measures’ to strengthen the VC sector, the minister said
South Korea’s ministry for small and medium-sized enterprises and startups is promoting several measures to boost the country’s declining venture capital sector.
In an exclusive interview with CNBC, Lee Young, South Korea’s minister for SMEs and startups, said the measures include injecting 1 trillion Korean won ($748.43 million) into a government-owned fund, which it estimates will generate 2 trillion won in venture capital investments. .
Venture capital investment in South Korea fell 60.3% in the first quarter compared with a year ago, ministry data showed. The ministry attributed the decline to factors such as the economic slowdown and high interest rates that resulted in more expensive capital.
“Secondly, we will provide comprehensive support for the fundraising of innovative startups. And we are offering many incentive programs to private capital to actively act in this difficult situation,” Lee told CNBC’s Chery Kang.
“Finally, we have continued to try to create a joint global fund. For example, President Yoon visited New York last year to discuss the creation of a joint fund. And now we are talking with the government of Saudi Arabia. And I am confident that we will announce it soon,” said Lee.
Saudi Arabia is making a series of investments in South Korean companies such as Kakao and petrochemical companies.
— Sheila Chiang
4 hours ago
Australia should focus on looming deficits, says the Australian Chamber of Commerce and Industry
The Australian government should not rest on its laurels and instead work to improve the structural budget position in the medium term, according to Andrew McKellar, chief executive of the Australian Chamber of Commerce and Industry.
“If you look at what’s projected at the moment: in two years, we’re projected to be back to a deficit of $35 billion a year, so that needs to be addressed,” ACCI chief executive McKellar told CNBC on an interview on Wednesday.
Late Tuesday, Treasurer Jim Chalmers announced billions in cost-of-living aid aimed at lowering electricity bills and consumer prices, with defense and ties to neighboring Pacific nations another priority as Australia looks to counter China’s growing strategic influence in the region, Reuters reported.
In separate interviews with Australian media on Wednesday morning, Chalmers and Prime Minister Anthony Albanese dismissed concerns that the budget would lead to a worsening of inflation.
Chalmers expects domestic growth to slow to just 1.25% in 2023/24 from 3.25% this fiscal year, in large part due to a 375-basis-points rate hike from the Reserve Bank of Australia.
“Our assessment is that it is time to pause,” said ACCI chief executive McKellar. “The real test for the budget’s success: will the Reserve Bank see it through to take on the inflation risk. If we see further interest rate hikes in the coming months, we may see monetary and fiscal policy potentially push against each other. That’s the situation we want to avoid.”
— Clement Tan
6 hours ago
Korean Air CEO expects a full recovery in the third quarter
Korean Air CEO Walter Cho expects a full recovery in the third quarter. The airline doubled its operating profit compared to 2019, he told CNBC’s “Squawk Box Asia.”
Passenger demand is “very strong right now” and the airline has reached about 90% capacity in passenger traffic, Cho added.
Korean Air is seeing “very strong” demand from China but, Cho said, it is currently only at about 30% capacity. Cho said the airline expects to open to full capacity in the second half of the third quarter.
Japan has shown strong traffic from the fourth quarter of last year and the first quarter of this year, which the airline expects to continue “throughout this year,” Cho said.
– Audrey Wan
6 hours ago
Mitsubishi posts record first quarter profit, announces 300 billion yen share buyback
Japanese conglomerate Mitsubishi Corp posted record net income of 1.18 trillion yen ($8.72 billion) for its financial year that ended in March, the first time net profit has crossed the 1 trillion mark.
The 1.18 trillion yen figure was 25.94% higher compared to the 2021 fiscal year, which saw net income of 937.5 billion yen. Earnings were led by gains in the natural gas, industrial materials and real estate segments.
However, the company said net income for the current fiscal year is likely to be below 920 billion yen due to high market prices for resources.
Mitsubishi also announced additional share buybacks of 200 billion yen for its fiscal year 2022, bringing the total value of its buybacks to 370 billion yen. The company estimates 100 billion yen in share buybacks for the current fiscal year.
Mitsubishi shares rose 4.04% on Wednesday and were the top gainers on the Topix in terms of index points.
8 Hours ago
McConnell joins Democrats to rule out US debt default after White House meeting
President Joe Biden and Democratic leaders, as well as Republican Senate Majority Leader Mitch McConnell, pledged that the United States will not default on its debt after a high stakes meeting at the White House.
“I made it clear in the meeting that default is not an option,” Biden said in a hastily called press conference.
“The United States has never defaulted on its debt and it never will,” said McConnell, who attended the meeting with GOP House Speaker Kevin McCarthy, Calif., Democratic Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, fellow of New York .
Schumer said McCarthy was the only person in attendance at the meeting that would not rule on a debt default. “We asked Speaker McCarthy bluntly if he would take the default off the table. He refused,” Schumer said.
For his part, McCarthy told reporters he did not see “any new movement” in the negotiating positions. “Everyone in this meeting reiterated the positions they were in,” he said.
Despite little progress, leaders will meet again on Friday. In the interim, Biden said, their aides will meet daily.
— Christina Wikie
9 Hours ago
Airbnb fell 11% on soft guidance
Airbnb shares lost 11% in extended trading after sharing soft guidance for the current quarter.
Despite after-hours losses, Airbnb reported a first quarter earnings which beat analyst estimates on both the top and bottom lines.
Looking ahead, the company warned of poor comparables in the second quarter. Last year, the company benefited in time from pent-up demand for travel following the omicron surge.
For the current period, Airbnb said it expects a decline in bookings growth and average daily rates from last year.
Airbnb falls into disappointing guidance
— Samantha Subin, Ashley Capoot
9 Hours ago
Twilio, Consolidate on stocks that move after hours
Here are some of the names making the biggest moves after the bell:
Twilio — Twilio shares are down nearly 14% after providing a lighter-than-expected forecast for the current quarter. The company posted a slight profit loss.
Rivian — The electric vehicle stock gained more than 5% in extended trading. Rivian reported a narrower-than-expected loss and revenue beat Wall Street expectations. The company also reaffirmed its EV production target.
Confirm — Shares of the buy-now-pay-later company fell more than 9% despite better-than-expected earnings. Losses for the quarter tripled from a year ago, but were narrower than expected.
— Samantha Subin
9 Hours ago