Month: April 2017

Asian shares mostly lower, dollar weaker; investors eye Korea peninsula, China data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian equities were mostly lower in Monday trade, with the dollar sinking against the yen, as investors focused on Korean Peninsula tensions and Chinese economic data due later in the morning.

North Korea tested a missile which “blew up” soon after launch, following a military parade to commemorate the birthday of Kim Il-Sung over the weekend, Reuters said. The test came before US Vice President Mike Pence arrived in Seoul for a trip that aims to reassure American allies in Asia.

“(A)fter the share market gains of the last year, global … shares are a bit vulnerable to a correction and military conflict with North Korea may be a trigger … The bottom line though is that while conflict with North Korea will cause some volatility in investment markets, a long drawn out negative impact is unlikely,” said AMP Capital Chief Economist Shane Oliver in a note last Saturday.

The dollar/yen traded at 108.32, earlier plunging to its lowest levels since 15 November last year. Likewise, the yen was stronger compared to the euro, with the euro/yen weakening to a 5-month low of 114.82 yen earlier in the session. The euro/yen traded at 115.04 yen at 9:00 am HK/SIN.

Demand for other safe-haven assets strengthened, with spot gold trading at USD 1,294.34 an ounce at 8:55 am HK/SIN, hitting a five-month high of USD 1,295.50 earlier in the session.

“Gold has surged (classic geopolitical risk reflex) along with the slump in US Treasury yields (another haven trade) while equities are softer … Nonetheless, emerging markets and higher yielding currencies have not sold off in alarm either, with most emerging market Asia currencies still fairly buoyant,” Mizuho economist Vishnu Varathan said in a Monday morning note.

Japan’s Nikkei 225 was lower by 0.5 percent but the Kospi climbed 0.43 percent. In mainland China, the Shanghai Composite dropped 0.64 percent while the Shenzhen Composite fell 0.672 percent.

Hong Kong, Australia and New Zealand markets are closed for Easter Monday.

On the energy front, Brent crude was lower by 0.41 percent to trade at USD 55.66 per barrel and US crude fell by the same amount to trade at USD 52.96. Oil prices had hit a one-month high last Wednesday following news that OPEC could extend output cuts beyond June.

In other currency news, the greenback traded weaker against a basket of rivals at 100.39, significantly lower compared to the 101 handle seen last week. The Aussie strengthened to trade at USD 0.7587, its highest level since the beginning of April.

“What we see right now is the starting point for the dollar into 2017 was just very, very rich in terms of valuation. And as we see more disappointment from let’s say Trump’s policy and as the world outside the US looks better, I think we’re still going to see that continuation of dollar weakness,” UBS Head of Commodities and FX Dominic Schnider told CNBC.

“It’s not going to be a weak currency but the dollar continues to slide on a trade-weighted basis.”

Markets in Asia will be eyeing the release of key economic data from China later in the morning, including Q1 GDP figures at 10 am HK/SIN, March industrial production and March retail sales. Singapore is due to report March non-oil domestic exports (NODX) at 8:30am HK/SIN time.

Stateside, US equities were lower across the board before the Good Friday holiday, with the Dow Jones industrial average, S&P 500 and Nasdaq all down by more than 0.5 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian equities mostly lower; Nikkei falls 1%, dollar lower

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian equities were mostly lower in Thursday trade, following comments made by US President Donald Trump that the dollar was too strong.

The dollar tanked after Trump said in an interview with the Wall Street Journal that it was getting “too strong.” He also said the reason for the strong dollar was “partially” his fault as “people have confidence in (him).”

In response, the dollar index dropped to its lowest level since March 30. It last traded against a basket of currencies at 100.11, continuing a third straight session of declines.

The greenback also traded lower against other Asian currencies. Dollar/yen traded at 108.82, falling further from levels around 109.6 from the previous session. The Aussie traded at USD 0.7534, gaining from the USD 0.74 handle seen in the last session at 9:25 am HK/SIN.

“With political tensions remaining high and Trump’s call for a lower dollar, traders are more likely to take notice of bad news over good to keep pressure on the dollar and support the yen,” said ThinkMarkets’ senior market analyst Matt Simpson in a note.

Safe-haven assets like gold and bonds continued to be in high demand. The yellow metal eased slightly from the 5-month highs set yesterday, with spot gold trading at USD 1,286.76 an ounce. US ten-year Treasury yields traded at 2.2285 percent.

Trump also said that he would ultimately not label China a currency manipulator despite promising to do so while campaigning for the presidency last year.

Japan’s Nikkei 225 was down 1.16 percent on the back of the stronger yen. The ASX 200 was lower by 0.73 percent, driven mainly by in its materials and energy sub-indexes, which sank 2.54 percent and 1.68 percent respectively.

The South Korean benchmark Kospi index was marginally higher, trading 0.09 percent higher.

Mainland Chinese markets were lower across the board. The Shanghai Composite was down 0.25 percent, while the Shenzhen Composite inched down by 0.053 percent. Hong Kong’s Hang Seng Index was dropped 0.4 percent.

In corporate news, Western Digital warned that troubled Japanese conglomerate Toshiba will breach a joint venture contract if it sells its memory chip unit. Toshiba is looking to spin off its memory business in order to cover billions in losses incurred by its U.S. nuclear arm, Westinghouse. Toshiba shares were lower by 1.99 percent.

Hong Kong carrier Cathay Pacific announced several changes in top management, with Chief Operating Officer Rupert Hogg due to replace current Chief Executive Ivan Chu on May 1. The company said in a press release that Chu would be taking on the role of chairman at John Swire & Sons to focus on opportunities in mainland China.

The airline posted losses in March, the first time the company has reported annual losses since the 2008 financial crisis.

On the energy front, oil futures dropped after Energy Information Administration (EIA) data reflected that US production continued to rise. Brent crude was lower by 0.32 percent to trade at USD 55.86 a barrel while US crude was down by 0.4 percent to trade at USD 52.90. Oil futures had hit a one-month high in the session before.

In economic news, Singapore’s trade-reliant economy shrank 1.9 percent in the first quarter from the previous three months on an annualized basis, weighed by contractions in manufacturing and services, preliminary data showed on Thursday.

Separately, Singapore’s central bank left monetary policy steady on Thursday in a widely expected decision.

In Australia, March employment data was better than expected, reflecting 60,900 jobs added compared to forecasts of 20,000 new jobs.

China March trade data is expected later in the morning.

Stateside, US equities were lower across the board. The Dow Jones industrial average declined 0.29 percent or 56.44 points to close at 20,591.86, the S&P 500 fell 0.38 percent or 8.85 to end at 2,344.93 and the Nasdaq dropped 0.52 percent or 30.61 points to finish at 5,836.16.

US markets are waiting on earnings announcements from several major US financials, including Citigroup, JPMorgan Chase and Wells Fargo. The banks are expected to report results on Thursday ET.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s smartphone market is seeing a huge shift but Apple might not see the benefits for at least 2 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Most of India’s mobile phone users are planning to upgrade to a new device in the next 12 months driven by consumers wanting 4G handsets, a trend that is positive for premium electronics giants like Apple and Samsung in the long-term, according to Counterpoint Research.

Two in three of the over 1,500 Indian mobile users surveyed by Counterpoint, said they plan to upgrade within the next year. This is a shortening of the average 24 to 30-month upgrade cycle, to just under 20 months, the analyst firm concluded.

Indian mobile users’ desire for 4G capable phones with more advanced features is driving the trend. One in three respondents were considering phones with a fingerprint sensor and a better front-facing selfie camera.

The trend is positive in the long-term for the likes of Apple and Samsung, which both offer premium handsets at a high price. But in the near-term neither will see a boost in India, a country seen as a driver of growth in a slowing smartphone market.

“All the brands who are successful in sub-$200 segment like Lenovo, Xiaomi and a handful of Indian brands will benefit,” Neil Shah, research director of devices and ecosystems at Counterpoint Research, told CNBC by phone.

“In the longer term you will have a bigger user base who will want to upgrade to a better phone. Apple will benefit post-2018 with a maturing user base and the 4G network will be available everywhere. People will be using more services. In the next two years it would be a good idea for Apple to roll out their retail footprint and invest in manufacturing.”

Apple’s cheapest smartphone model is the iPhone SE which retails in India at 27,000 rupees ($420.50). Currently sub-$200 phones are the most popular in India. Apple Chief Executive Tim Cook has continuously talked up the potential of the Indian market and revealed earlier this year that Apple had “all-time record revenue results” in the country in 2016. Apple is keen to expand and do well in India given cooling sales in China.

Cook has visited the country and met with officials. Apple has set up a partnership with Taiwanese manufacturer Wistron which is set to soon start assembling iPhones in India, a move which could bring the cost of the device down. At the same time, Samsung has struggled in India for the past few years, but has a number of lower cost devices that could appeal. But it will also be hoping to find new consumers for its higher priced Galaxy S8 smartphone which was recently released.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia mostly lower, Korean peninsula tensions in focus; Nikkei down 1.2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian markets were mostly lower on Wednesday, as tensions continue to ratchet up on the Korean Peninsula following a warning from North Korea of a nuclear attack on the US.

North Korean state media said on Tuesday that the hermit state was watching every move made by “enemy elements” and that its “nuclear sight (was) focused on the US invasionary bases.”

The development takes place as a US aircraft carrier group makes its way toward the western Pacific following multiple missile launches from North Korea earlier in this year.

US President Donald Trump said in a tweet that “North Korea is looking for trouble,” adding that the US would solve the problem with or without the help of China.

Japan’s Nikkei 225 fell 1.19 percent. The Nikkei share average is trading at its lowest since December last year. The ASX 200 dipped 0.05 percent while the Kospi was marginally higher and trading 0.07 percent higher.

In mainland Chinese markets, the Shanghai Composite was down 0.38 percent and the Shenzhen Composite was lower by 0.325 percent. Hong Kong’s Hang Seng Index was in similar territory, declining by 0.31 percent.

Demand for safe-haven assets has surged in reaction to geopolitical uncertainty, with spot gold prices reaching their highest level since November 2016. Spot gold traded higher by 0.29 percent at USD 1,277.76 an ounce at 9:33 HK/SIN time.

“The global macro picture has been muddied by a rise in geopolitical tensions, economic data releases overnight have been largely ignored and safe haven assets have outperformed,” said National Australia Bank currency strategist Rodrigo Catril said in a Wednesday morning note.

Meanwhile, US 10-year Treasury yields traded at 2.28 percent, below the 2.3 percent lower range band it had been trading at since last December.

“Traders are eyeing … whether the US 10-year Treasury could close through 2.3 percent and the bottom of the multi-month trading range. That concern has materialized with the close at 2.29 percent, … one suspects a more convincing break here takes the yield down to 2 percent,” IG’s chief market strategist Chris Weston said in a note.

The flight to safety also saw the yen climb to its highest level in around 5 months. The dollar/yen traded at 109.65 at 9:35 HK/SIN time, after trading at the 111 level earlier in the week. The dollar was lower at 100.65 against a basket of currencies, off the 3-week high set on Monday, while the Aussie traded at USD 0.7488, its lowest level since mid-January this year.

In corporate news, troubled Japanese conglomerate Toshiba filed results on Tuesday without a sign-off from its auditors, after twice-delaying the release in previous months. Toshiba also warned that future survival of the company was in doubt. The company’s shares were down 2.19 percent.

On the energy front, oil prices were marginally higher after Saudi Arabia informed OPEC officials that it intends to continue output cuts for six more months, according to reports. Brent crude rose 0.34 percent to trade at USD 56.42 a barrel while US crude rose 0.36 percent to trade at USD 53.59.

The rise in oil prices also comes after the American Petroleum Institute estimated on Tuesday that crude inventories had fallen by 1.3 million barrels in the week ending April 7, compared to the 87,000 barrel increase expected by analysts.

Official data from the US Energy Information Administration (EIA) on Wednesday will be closely watched for confirmation, or divergence. Last week API reported a draw in crude stocks, while EIA reported a build.

Stateside, equities closed lower as investors continued to focus on geopolitical tensions in the Korean peninsula. The Dow Jones industrial average dipped 0.03 percent or 6.72 points to close at 20,651.3, the S&P 500 was lower by 0.14 percent or 3.38 points to finish at 2,353.78 and the Nasdaq declined 0.24 percent or 14.15 points to finish at 5,866.77.

China reported annual consumer prices rose 0.9 percent in March, a tick below the 1.0 percent gain seen. Singapore reports February retail sales figures later in the day.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares pressured by geopolitical risks; Nikkei down 0.25%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian equities eased on Tuesday morning, following a lower close on Wall Street as geopolitical tensions continued to weigh.

Australia’s benchmark ASX 200 index reversed earlier losses of 0.08 percent to bounce 0.59 percent. The National Australia Bank reported its measure of business confidence came in at +6 in March, a dip from +7 the previous month.

South Korea’s Kospi fell by 0.13 percent.

Concerns over geopolitical tensions continue to build on the Korean Peninsula after the US deployed a carrier strike group closer to the region, and as joint US-Korea military drills continue till the end of the month.

“(T)here is new focus on Korea, where the Korean won and Kospi have found sellers easy to come by of late on concern that North Korea could be a future US target,” said Chris Weston, chief market strategist at IG, in a Tuesday note.

Japan’s Nikkei 225 declined 0.25 percent after the dollar/yen slipped below the 111 handle.

In corporate news, Foxconn has offered a USD 27 billion bid for Toshiba’s memory chip unit, the Wall Street Journal reported. Toshiba put its NAND flash memory unit up for sale last month in a bid to cover billions in losses from its US nuclear energy unit Westinghouse.

The Japanese conglomerate may file twice-delayed earnings later in the day even if auditors do not sign off, Reuters reported. Toshiba shares tanked 5.35 percent following the news, having plunged 17.2 percent year-to-date.

Sharp shares were also in the red, selling off by 11.88 percent. Dow Jones reported that market talk suggests Sharp may lose the race to develop the next-generation OLED screen for smartphones to South Korea’s LG, citing Masayuki Kubota, chief strategist at online brokerage Rakuten Securities in Tokyo.

Taiwanese semiconductor manufacturer Foxconn acquired Sharp last year.

Mainland Chinese markets were marginally lower on Tuesday, with the Shanghai Composite down 0.13 percent and the Shenzhen Composite falling 0.13 percent. The Hang Seng Index was flat.

On the energy front, both Brent crude and US crude prices reached five-week highs earlier in the session. Brent rose by 0.18 percent to trade at USD 56.08 a barrel while US crude was higher by 0.13 percent at USD 53.15.

In currency news, the dollar traded at 101.010 against a basket of currencies at 9:40 am HK/SIN time, off the 3-week high set yesterday. Likewise, the dollar/yen traded lower at 110.82 compared to levels around 111 seen yesterday while the Aussie was higher at USD 0.7509 compared to the USD 0.74 level seen the session before. Against the greenback, the won was close to a one-month low at 1,142.80.

The dollar struggled due to “rising geopolitical tensions and uninspiring comments from Fed Chair Janet Yellen,” said BK Asset Management’s managing director of FX strategy Kathy Lien in a note, adding that the dollar will next focus on Friday retail sales reports.

Yellen said overnight that plans to raise US interest rates gradually are aimed at sustaining full employment and near-2-percent inflation without letting the economy overheat.

“I think we have a healthy economy now,” Yellen said at an event at the University of Michigan’s Ford School of Public Policy in Ann Arbor.

Yellen repeated earlier comments that the economy is expected to continue to grow at a moderate pace.

“Whereas before we had our foot pressed down on the gas pedal trying to give the economy all the oomph we possibly could, now allowing the economy to kind of coast and remain on an even keel — to give it some gas but not so much that we are pressing down hard on the accelerator — that’s a better stance of monetary policy,” she said. “We want to be ahead of the curve and not behind it.”

US equities closed marginally higher, with the S&P 500 gaining 0.07 percent to finish at 2,357.16 and the Nasdaq higher by 0.05 percent to end at 5,880.93.

The Dow Jones industrial average was effectively flat, trading higher by 0.01 percent to close at 20,658.02.

Gains in energy stocks following the surge in oil prices helped to offset losses made by financials ahead of earnings season, which begins later in the week.

“The financial sector is expected to post a double-digit earnings growth in Q1, the highest growth among all sectors. Given that the rally paused in recent weeks due to concerns about the US administration’s ability to deliver on tax reforms, it requires strong positive surprise to refuel buying momentum,” FXTM chief market strategist Hussein Sayed said in a note.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

There’s more than 60% chance of a global recession within the next 18 months, economist says

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global growth is expected to slow down significantly in the coming months as borrowing levels dominate in both China and Europe and “Trump-mania” is set to fade, a chief economist at Danish investment firm Saxo Bank told CNBC on Monday.

“Our main global macro outlook still maintains that recession is more likely than not in the near future (12 to 18 months) based on the global credit impulse having peaked simultaneously with global inflation,” Steen Jakobsen, chief economist at Saxo Bank, said.

In a recent note, Jakobsen explained that the biggest “perception-versus-reality gap” in the market currently remains this risk of recession. He added that his company is not predicting a recession, but that its economic model does indicate a significant slowdown as “the large credit impulse from China and Europe in the early part of 2016 has not reversed to negative”, which it says should make the market conservative, risk averse push investors into U.S. fixed income.

“While the market at large sees less than a 10 percent chance of recession, we at Saxo – together with our friends at South Africa’s Nedbank – see more than a 60 percent chance,” he added in the note.

Europe is seen as the main region driving global growth, according to Jakobsen, beating the U.S. in the second and third quarters of this year. Jakobsen is not alone in this thesis, with a number of investment houses recently upgrading their outlooks on European stocks as fears recede on the rise of populism and polls indicate that centrist candidate Emmanuel Macron is likely to do well at the upcoming French elections.

Mike Bell, global market strategist at JPMorgan Asset Management, told CNBC Monday that European stocks “look pretty cheap” compared to U.S. stocks. “What you’re starting to see now is that underperformance of earnings that you’ve seen since the financial crisis is disappearing,” he said. There’s been a fundamental acceleration in the euro zone economy, he also noted.

But, according to Jakobsen, Europe’s momentum is not followed in other parts of the globe.

“One thing is absolutely clear: Asia is not going to contribute anything in 2017 to growth. China is on total standstill,” Jakobsen said Monday.

“They don’t know what to do with (President Donald) Trump and I think Trump again showed his hand over the weekend that he is not to be relied on in terms of a set-out path for how they conducted themselves,” he added.

Trump and Chinese President Xi Jinping agreed during a summit last week to develop trade talks during the next 100 days to reduce the Chinese trade surplus with the U.S. They also agreed to increase cooperation to curb North Korea’s nuclear program.

Shortly after the meeting, Trump sent 100,000-ton USS Carl Vinson and U.S. Navy support ships to the Pacific as a show of force amid rising fears that North Korea will launch an intercontinental ballistic missile test in the coming days. Last week, Trump approved a missile strike on Syria, after an alleged chemical attack. Such a decision overshadowed the summit with his Chinese counterpart.

Furthermore, the main driver of U.S. equities seems to be hope, Jacobson added. The S&P 500 has reached historic highs since the new president took office on expectations that he will deliver massive tax cuts and infrastructure investments.

“A dominant part of the equity analysts sees a significantly higher S&P but it’s based on hope. Hope to me belongs in church on a Sunday,” Jakobsen said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian equities mixed with Nikkei posting gains despite regional tensions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian equities were mixed in Monday trade despite heightened geopolitical tensions after a missile strike on a Syrian airfield last Friday ordered by President Donald Trump and a move by the US military to send an aircraft carrier group near the Korean Peninsula in response to recent provocations by North Korea.

Trump said the strike targeted an airbase responsible for launching a chemical attack in northeast Syria earlier last week. The attack was launched while Trump was hosting Chinese President Xi Jinping at his Florida resort.

North Korea responded to the strike by stating that it was a justification for its own nuclear weapons program, adding that it had to protect itself against Washington’s “reckless moves for a war.” In turn, a US Navy strike group is expected to move near the western Pacific Ocean and close to the Korean peninsula following North Korea’s multiple nuclear missile test launches this month.

The news did not weigh on Japan’s benchmark Nikkei 225 index, which bounced 0.77 percent. The ASX 200 was higher by 0.58 percent, driven mostly by its utilities and energy sub-indexes.

The Kospi was down by 0.52 percent, with China-exposed stocks pressured following heightened tensions in the Korean peninsula. Shares for Lotte Shopping, the retail arm of conglomerate Lotte, fell by 1.59 percent, while shares of LG Electronics plunged 1.97 percent.

Shares of LG Display, LG Corporation’s LCD manufacturing arm, popped 1.17 percent at 30,200 won per share on a reported offer from Google to invest a minimum of USD 1 trillion won (USD 880.29 million) in screen production. The investment would assist in increasing the production of organic light-emitting diode (OLED) screens for Google’s Pixel line of smartphones, the Electronic Times said. LG Display did not respond to an email request for confirmation about the investment.

Mainland Chinese markets traded lower, with the Shanghai Composite declining 0.21 percent and the Shenzhen Composite 0.485 percent lower. Hong Kong’s Hang Seng Index dipped 0.15 percent.

The dollar was higher against a basket of currencies at 101.250 at 9:30 am HK/SIN time, its highest level in nearly 3 weeks. The dollar/yen traded at 111.41, higher compared to levels around 110.86 seen last week while the Aussie was softer at USD 0.7505, versus the USD 0.76 handle seen last week.

In corporate news, miner Rio Tinto reported paying USD 4 billion in taxes and royalties last year after it was ordered to pay an extra USD 284 million with interest due to its operations in tax-friendly destinations. The news comes as the Australian Taxation Office pays greater attention to the amount of taxes paid by multinational corporations based in Australia. Rio Tinto shares were up by 0.64 percent and trading at AUSD 60.395.

On the energy front, Brent crude was up 0.22 percent at USD 55.36 a barrel while US crude was higher by 0.34 percent to USD 52.42 a barrel.

In Japan, the February un-adjusted current account balance surplus jumped to the largest since March 2016 at 2.814 trillion yen, compared to 2.616 trillion yen seen.

Other economic data expected today includes Australia February home loans and outstanding loan growth for the month of March from China later in the day.

Stateside, US equities closed flat in reaction to the missile strike, with the S&P 500 shedding 0.08 percent to 2,355.54 points, the Dow Jones industrial average tracking lower by 0.03 percent to close at 20,656.10 and the Nasdaq down by 0.02 percent to finish at 5,877.81. This was also on the back of a mixed jobs report, which saw just 98,000 jobs added in March, below expectations of 180,000 new jobs.

“Now that the US nonfarm payroll is over, traders are going to put their focus back on the Fed, who have been talking about winding down their balance sheet. The Fed need to be very careful in their approach of conveying their message while they release their purchased bonds back on the market,” Think Markets chief market analyst Naeem Aslam said in a note.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

A ‘violation’ or ‘understandable’? World reacts as US launches strikes in Syria

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US President Donald Trump ordered the launch of 59 tomahawk cruise missiles against a Syria-government airfield on Thursday evening. In a statement, the Pentagon said the decision was “a proportional response” to an alleged chemical attack by the Bashar Assad regime.

CNBC takes a look at how the world reacted to the missile strikes:

Syria

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fear of retirement is ‘greatest problem’ in the US, says CEO of world’s largest money manager

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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While prolonged low interest rates have helped investors in the stock market, they’ve been devastating for retirees and Americans saving for retirement, BlackRock Chairman and CEO Larry Fink told CNBC on Thursday.

“I do believe low rates hurt savers worldwide,” Fink said, a concern he’s been talking about for years. The downside of the Federal Reserve’s easy monetary policies since the 2008 financial crisis has been ridiculously low rates on savings accounts and bond yields.

Retirees and those nearing retirement have been traditionally advised to reduce their exposure to riskier investments such as stocks in favor of bonds and cash. But in the current investing environment, stocks are being viewed as the only game in town for a decent return.

“Retirement and the fear of retirement is the greatest problem we have in this country,” Fink said on “Squawk Box.” “As people near retirement, they’re getting more frightened, ‘I don’t have enough savings.’ And the compounding effect with this low return is really having a severe impact.”

Many people are ill-prepared for the “long 40-year process” of socking away money for their golden years, he said.

The problem is exacerbated by human nature, he added. “People don’t really like savings. They like to consume.”

As a result, Americans are needed to work longer.

“You see that in the job market. Since the financial crisis, the component where the most jobs have been created for is men and women over 50 because they have to work longer because they don’t have the nest egg that they need to live retirement in dignity,” Fink said.

Fink said the solution is finding ways to boost economic growth and inflation. That, in turn, would lead the Fed to keep increasing interest rates, leading to a bump in what savers can earn on their money.

BlackRock has $5.1 trillion in assets under management.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Donald Trump explains why he launched missile attack on Syria

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US military has launched about 59 missiles aimed at Syria, and President Donald Trump said he was targeting the Syrian airfield from which an earlier chemical attack had been launched.

Here’s what the president had to say in a Thursday evening address:

On Tuesday, Syrian dictator Bashar al-Assad launched a horrible chemical weapons attack on innocent civilians. Using a deadly nerve agent, Assad choked out the lives of helpless men, women and children. It was a slow and brutal death for so many. Even beautiful babies were cruelly murdered in this very barbaric attack,” Trump said during his Thursday address.

No child of God should ever suffer such horror. Tonight, I ordered a targeted military strike on the airfield in Syria from where the chemical attack was launched. It is in this vital national security interest of the United States to prevent and deter the spread and use of deadly chemical weapons. There can be no dispute that Syria used banned chemical weapons, violated its obligations under the chemical weapons convention, and ignored the urging of the U.N. Security Council.

Years of previous attempts at changing Assad’s behavior have all failed, and failed very dramatically. As a result, the refugee crisis continues to deepen and region continues to destabilize, threatening the Unites States and its allies. Tonight I called on all civilized nations to join us in seeking to end the slaughter and bloodshed in Syria, and also to end terrorism of all kinds and all types.

We ask for God’s wisdom was we face the challenge of our very troubled world. We pray for the lives of the wounded and for the souls of those who have passed and we hope that as long as America stands for justice, then peace and harmony will in the end prevail. Goodnight and God bless America and the entire world.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow