The Philippine central bank expects the economy to experience “low growth” next year, not a recession
Central Bank Governor Felipe Medalla of the Central Bank of the Philippines (BSP) said the economy is expected to see “low growth” of less than 5%, not a recession, next year.
Speaking to CNBC’s Sri Jegarajah, he said the central bank estimates the economy will grow by 6% next year, above the IMF’s forecast of 5%.
He added that these expectations may change by about 100 basis points depending on the deterioration of global financial conditions.
BSP Bank made its second rate hike by 75 basis points this year on Thursday, raising benchmark interest rates to 5%.
– Natalie Tham and Jee Lee
Shares of Tencent and NetEase rose after China approved game titles
Chinese technology stocks Tencent And the netease Hong Kong-listed stocks rose after the China National Press and Publication Administration granted gaming licenses.
Tencent shares were up 3% at the open, and NetEase shares were up more than 5%.
The regulator issued licenses for about 70 games for the month of November, including Tencent’s Metal Slug: Awakening and NetEase’s A Chinese Odyssey: Homecoming.
On Thursday, shares of NetEase fell more than 11% after the company announced that its license with Activision Blizzard will expire in January 2023.
– Jihe Lee
Core inflation in Japan rose 3.6%, higher than expected
Japan’s core CPI rose 3.6% in October year-on-year, beating expectations for a 3.5% rise and the fastest pace since February 1982.
The index, which does not include fresh foods but includes fuel costs, rose 3.0% in September compared to the same period last year.
The latest data marks the seventh consecutive month that the country has seen inflation levels above the BoJ’s target of 2%.
– Jihe Lee
CNBC Pro: JPMorgan says Asian travel stocks are poised to emerge
With travel resuming in Asia and continuing to gain momentum, especially after China’s recent announcement to reduce quarantine time for international travelers, JPMorgan says it remains optimistic about the region’s travel industry.
“Given the higher visibility of forward bookings and further upside arising from the final phase of reopening in parts of the region, we remain positive in the airline and airport sectors in Asia,” it said in a November 11 note.
CNBC Pro subscribers can click here to see which stocks investors should watch out for.
The S&P 500 and the Nasdaq Composite closed lower on Thursday
The Dow Jones Industrial Average closed near the flat line on Thursday despite falling as much as 314 points in the session. The S&P 500 fell 0.31%. The Nasdaq Composite fell 0.35%.
— Sarah Min
CNBC Pro: “The semi-halving bull case is convincing”: Bank of America picks the best chip stocks to buy
Chip stocks, once an investor favorite, have fared poorly this year.
But BofA says that although consumer demand remains under pressure, “the bullish case for semi-finals is also compelling.”
BofA expects semiconductor sales to rebound in the second half of 2023.
Here are some of the topics that chip stocks could ride on, says the bank, which also chooses which names to buy.
CNBC Pro subscribers can read more here.
– Wizen tan
The Fed’s Jefferson said that low inflation is the best path to prosperity
Federal Reserve Governor Philip Jefferson said Thursday that keeping inflation under control is the best way to ensure a strong economy for everyone.
“Low inflation is the key to achieving a long and sustainable expansion – an economy that works for everyone,” the central bank official said during an event in Minneapolis. Pursuing our dual mandate is the Fed’s best way to promote broad shared prosperity.
Jefferson offered no direct comments on where he sees policy direction as the Fed looks to achieve full employment and stable prices.
His comments follow a series of rhetoric from colleagues, who generally say the Fed will need to raise interest rates more to bring down inflation that is still hovering around its highest levels since the early 1980s.
– Jeff Cox
Federal Reserve Chairman Bullard says monetary policy isn’t ‘tight enough’ yet
St. Louis Fed President James Bullard said more central bank tightening may be needed to tame inflation.
He said on Thursday that inflation remains unacceptably high, suggesting that policy is not “enough restrictive” at current levels. The Federal Reserve raised interest rates from zero to a range of 4%-4.25% this year, as inflation in the United States rose to levels not seen in decades.
“So far, the change in monetary policy stance appears to have had only limited effects on observed inflation, but market rates indicate an expectation of subdued inflation in 2023,” Bullard said.
– Fred Imbert
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