Fed minutes, Bank of Korea decision, Sri Lanka

New Zealand’s central bank discussed a 100 basis point increase, the governor says

We are unequivocally shrinking in our monetary position, says RBNZ

The Reserve Bank of New Zealand had considered an even bigger rate hike when making its latest official decision on spot rates – despite the move to raise rates by 75 basis points already being the steepest ever.

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

“Now we can say that we are unequivocally shrinking in our monetary position,” Orr said, “we must be, given the compactness of today’s economy,” he said.

– Jihy Lee

Foxconn says new hires have raised concerns about pay, adds Communications

Major Apple supplier Foxconn said new recruits for the Zhengzhou iPhone factory have “appealed to the company” regarding compensation, according to a statement on its website.

The statement comes after media reported that a mass protest by hundreds of workers appeared to be triggered by a delay in bonus payments, with videos circulating on social media showing people smashing security cameras and windows.

“The company has emphasized that the allowance has always been honored based on contractual obligations and will continue to communicate with relevant colleagues,” Foxconn said in its statement, adding that reports of Covid-positive workers staying in the factory’s dormitories are “glaringly obvious.” not be true. “

“With regard to 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, the formal name of Foxconn, were down 0.5% in early Thursday’s session.

– Jihy Lee

Bank of Korea raises interest rate by 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 its previous step and broadly in line with expectations.

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

According to the latest figures released earlier this month, the country’s inflation rate stood at 5.7% in October – well above the central bank’s target of 2%.

BOK Governor Rhee Chang-yong will hold a press conference on the monetary decision later today.

– Jihy Lee

CNBC Pro: Wealth manager says investors should buy this large-cap stock now

According to Rob Luna, chief investment strategist at asset manager Surevest, there is one large-cap stock that investors should buy into right now.

He calls the CEO a “significant visionary.”

While Luna has chosen the one large-cap stock, he generally advised investors to redistribute into smaller names, citing two stocks that he called “best-in-class.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks rise for second day as Wall Street cheers Fed signaling smaller rate hikes ahead

Stocks rallied on Wednesday, posting gains for the second day in a row as investors spent minutes applauding the Federal Reserve signaling a slower pace of 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.

Shares of Nordstrom fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat earnings and sales expectations in its latest results, according to Refinitiv consensus expectations. Tesla rose 7.82% after Citi upgraded the stock from selling to neutral. Deere rose 5.03% on a profit swing.

—Carmen Reinicke

CNBC Pro: Betting against a UK supermarket, short-seller expects near 50% share price collapse

Investors in a British supermarket company are hurt even more when a short-seller forecast comes true.

The hedge fund currently has a bearish bet of £32.6m and expects shares of the grocer to drop 44%.

The fund’s chief investment officer also believes the supermarket will raise fresh capital by diluting shareholders year-over-year to sustain itself in a challenging environment.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Fed Minutes Show Smaller Rate Hikes, Stocks Rise

Shares rose Wednesday afternoon after the release of minutes from the November Federal Reserve meeting. The report showed that the central bank sees progress in its fight to lower inflation and expects to slow the pace of rate hikes going forward.

“A substantial majority of participants judged that a slowdown in the rate of growth would likely be appropriate soon,” the minutes said. “The uncertain delays and magnitude associated with the effects of monetary policy measures on economic activity and inflation were some of the reasons cited for why such an assessment was important.”

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

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

—Carmen Reinicke

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