An hour ago
DBS shares climb after additional capital requirements imposed for May 5 disruption
Shares of Singapore’s DBS Group Holdings soared as much as 0.94% even after regulators raised the bank’s capital requirements.
On Friday, DBS suffered widespread disruption to its digital banking and ATM services, the second such disruption in less than two months.
The Monetary Authority of Singapore said DBS’ additional capital requirement is now a 1.8x multiplier to its risk-weighted assets for operational risk of approximately S$1.6 billion. ($1.21 billion) of total additional regulatory capital.
In February 2022, MAS applied a 1.5x multiplier for another disruption in November 2021.
4 hours ago
Japan: Services sector grows at record pace in April (at Jibun bank)
Japan’s service sector grew at a record pace in April, according to a private survey.
The Services Purchasing Managers Index at Jibun Bank Japan was 55.4, higher than the March figure of 54.9 and marking its fifth straight month in expansion territory.
A figure above 50 indicates expansion in the sector, while a figure below 50 indicates contraction.
Japan’s April composite PMI – which combines manufacturing and services figures – was unchanged at 52.9.
This is the fastest pace of growth since June 2022, and the fourth month in a row the composite PMI has remained above the 50 mark.
—Lim Hui Jie
4 hours ago
Bank of Japan warned of inflation accelerating more than expected in March, minutes show
Members of the Bank of Japan’s board discussed concerns about inflation rising more than expected, according to minutes from former Governor Haruhiko Kuroda’s last meeting.
“Some members expressed recognition that, although the current situation was a phase of close monitoring of the achievement of a virtuous cycle between prices and wages, particular attention was warranted on the risk of price increases more than planned,” the minutes read.
Members of the central bank’s board “shared the recognition that the rate of increase should moderately accelerate again” after slowing down towards the middle of fiscal 2023.
They also warned against “hasty” changes to the central bank’s monetary policy, including its 2% inflation target.
One member said that “the risk of a hasty policy change that could miss a chance to achieve the price stability objective should be considered greater than the risk of a delay in policy change” , the minutes said.
5 hours ago
China’s trade surplus reportedly shrunk to $74 billion in April
China’s trade surplus is expected to have narrowed slightly, from $88.2 billion in March to $74.3 billion in April, according to a Reuters poll of economists.
Exports are expected to have risen 8% year-on-year after rising 14.8% in March, while imports are expected to remain unchanged after falling 1.4% year-on-year in the previous month.
April’s weaker trade data will likely reflect “residual seasonality” after this year’s Lunar New Year, Goldman Sachs economists said in a Monday note.
“We expect the dissipation of this seasonal bias to slow export growth in April. We expect import growth to slow month-over-month,” the economists wrote, adding that Seasonal holiday trends are less evident in imports.
The economy is also expected to release its inflation data later in the week.
Thu, May 4, 2023 9:39 PM EDT
Week Ahead: Trade and Inflation in China, Unemployment in South Korea, Industrial Production in India
A number of economic data releases are due next week for Asia-Pacific markets, including inflation data from China, industrial production from India and trade balance from the Philippines.
On Monday, Taiwan releases its trade data. Citi economists expect that in April, Taiwan’s exports fell 21.4% year on year and imports fell 22.6% year on year.
“Non-tech exports to China have yet to recover (as indicated by China’s trade data) and lower commodity prices will reduce the value of exports,” Citi economists wrote in a note. of Thursday.
China’s April trade data will also be released on Tuesday along with Malaysia’s gross domestic product.
South Korea’s current account balance for March and unemployment rate for April are due out on Wednesday.
China’s Producer Price Index and Consumer Price Index are due out on Thursday. For the month of March, China’s CPI edged up 0.7% year-on-year, while PPI dipped 2.5% year-on-year. The Philippines also reports its gross domestic product for the first quarter on this day.
India’s industrial production for March will be released on Friday after marking an annual growth of 5.6% in February. Citi economists expect headline inflation to ease toward 4.8% year on year, marking the first print below 5% since November 2021.
4 hours ago
CNBC Pro: Morgan Stanley Says Global Education Market Will Be Worth $8 Trillion, Names 4 Stock Picks
Global spending on education will hit $8 trillion by 2030, predicts Morgan Stanley, saying there are market opportunities that are “just beginning to be enabled by technology”.
Morgan Stanley named seven stock picks to capitalize on the trend.
CNBC Pro subscribers can read about four here.
4 hours ago
CNBC Pro: Here are 10 global stock analysts that analysts love coming out of earnings week, according to Bank of America
Major European companies have reported bumper profits over the past two weeks.
However, according to Bank of America strategists, there have been more analyst downgrades than upgrades for corporate earnings estimates.
The investment bank selected large-cap European stocks that saw an increase in earnings-per-share revisions.
CNBC Pro subscribers can learn more about the 10 stocks they highlighted here.
Fri, May 5, 2023 8:01 AM EDT
Apple earnings show signs of resilience in challenging environment, analysts say
Wall Street analysts see Apple’s latest results as another sign of the tech giant’s continued resilience and defensive positioning.
According to Evercore ISI’s Amit Daryanani, the results underscore the company’s diverse revenue streams and show the “basic consumer nature” of the iPhone.
The stock rose 2.7% in premarket trading.
Learn more about what analysts are saying after Apple’s results here.
See the table…
Apple shares profit gain
Fri, May 5, 2023 3:53 PM EDT
Oil prices end with losses since the beginning of the week
WTI Crude (JUN) settled 4.05% on Friday at $71.34 after hitting a high of $71.81 earlier on Friday. This is the highest level since May 2sd, when WTI traded as high as $71.42
Meanwhile, WTI Crude is down -7.09% since the start of the week for the 3rd consecutive negative week and worst week since March 17, when WTI Crude lost -12.96%
Brent rose 3.86% to $75.30 to hit a high of $75.75. Brent closed down -5.33% WTD for the 3rd right negative week.
Natural gas (JUN) gained 1.71% to $2.137 after hitting a low of $2.031. Natural gas closed -11.33% week-to-date for the first negative week in 4 and the worst week since March 10, when natural gas lost -19.24% Natural gas is down 52.25% in 2023.
Fri, May 5, 2023 8:34 AM EDT
US jobs rose by 253,000 in April
The US economy added 253,000 jobs in April, the Labor Department said. Economists polled by Dow Jones expected 180,000 jobs to be added. The report comes after the Federal Reserve raised rates by 25 basis points on Wednesday and signaled that a pause may be on the horizon.
—Jeff Cox, Fred Imbert
Fri, May 5, 2023 11:28 a.m. EDT
PacWest jumps 70% as regional bank stocks recoup losses
The values of regional banks extend their rebound on Friday, led by PacWest with a gain of more than 70%.
However, the stock still has a long way to go to recoup all of its losses from this year. In fact, shares of PacWest are still trading below Wednesday’s close.
See the table…
PacWest is still down for the week despite Friday’s rally.