Citi expects ‘short and shallow’ recession, followed by economic recovery in 2024
Citi’s chief investment strategist, Steven Wieting, expects the recession to be “short and shallow,” adding that the economy could recover in 2024.
When inflation decreases, some of the “burden of the economy.” [was] brought” was lost, Wieting told CNBC.
“With a possible recession in the US and elsewhere in 2023, growing uncertainty looks set to continue for now,” he wrote in a recent wealth report.
However, he believes that the economy will begin to see signs or conditions ahead of the economy even before the end of 2023, saying that corporate income will begin to undergo a “significant recovery” in 2024 and 2025.
— Lee Ying Shan
CNBC Pro: This global lithium stock is up 15% since its IPO — and one bank says it could jump nearly 600%
Shares in the UK-based lithium exploration and development company could rise by almost 600%, according to investment bank Canaccord Genuity.
Analysts at the bank said the stock had “flown under the radar” since the 2022 IPO despite the 2022 lithium carbonate battery price.
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— Ganesh Rao
Chinese authorities contacted Moderna, Pfizer over vaccines and medical pills
Moderna CEO Stephane Bancel said the company is discussing the vaccine with Chinese authorities.
“We are in discussions with the Chinese government and we have been for some time,” Bancel said.
“We are active in discussions. I hope that something will happen. But, of course, it is the decision of the Chinese government as to where the latter will sit,” he said in an interview with CNBC’s Sara Eisen and Meg Tirrell.
He added that there were no other developments to announce at this stage.
In a separate interview, Pfizer CEO Albert Bourla said the company is cooperating with the Chinese government “a lot” and sending its Covid pill, Paxlovid, as the country faces a wave of infections. .
“We’re trying to understand their politics and their needs,” Bourla told Tirrell. “So far they have shown great interest in Paxlovid.”
Pfizer’s CEO said it had sent a “very small message” to China since the drug was registered there last month, but is now sending more as cases rise.
Bourla added: “We are sending as much Paxlovid as possible. The production machinery is working to be able to supply them at this stage.”
— Jihye Lee, Sara Eisen, Meg Tirrell
South Korea’s budget swung from surplus to deficit for first time since August
South Korea’s current account balance slipped from surplus to deficit territory for the first time since August, government data showed. .
The balance of payments in the country reached $ 620 million in November, according to statistics from the Bank of Korea. South Korea has recorded a current account surplus for the past two months after posting a deficit of more than $3 billion in August.
The goods account recorded a deficit of $1.57 billion, a sharp decline from a surplus of $6.07 billion a year earlier. The service account recorded a loss of $270 million, a slight increase from the additional loss of $340 million seen a year ago.
— Jihye Lee
CNBC Pro: China’s opening has excited Wall Street. Here’s how the pros play it
Beijing’s sudden and swift dismantling of strict Covid-19 controls after nearly three years has raised hopes that its economy may follow suit just as quickly.
From hotels and airlines, to “less obvious beneficiaries”, Wall Street analysts are naming their Chinese and global stocks to play the reopening.
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— Zavier Ong
China’s technology sector will be more cautious about expansion, says Riedel Research Group
China’s tech sector will be more cautious about how fast it expands after the government’s “shot across the bow,” said David Riedel, founder of Riedel Research Group.
Beijing has “reminded” the tech companies where the real power lies in terms of communications by collecting consumer data, Riedel said on CNBC’s “Street Signs Asia” on Tuesday.
His comments came after Alibaba shares soared on Monday after it was announced that Ant Group founder Jack Ma was no longer in control of the company.
Jack Ma “has been fighting this situation for years on various fronts, and he’s a little battered and bruised,” Riedel said.
Consumer prices rose 4% in Tokyo, faster than expected
Japan saw core consumer prices in the capital rose 4% in December on a year-over-year basis, faster than expected and above the 2% rate of inflation in the Bank of Japan, according to government data.
Economists polled by Reuters had expected to see a 3.8% rise in the price of basic goods, excluding fresh food and fuel.
Tokyo’s inflation is seen as a measure of inflation across the country, which is scheduled to be released this month on January 20.
— Jihye Lee
Consumers see rising prices, spending next year, according to the New York Fed Survey
CNBC Pro: Platinum prices are on the rise. Stocks bought with upside can be a way to make money
Dow, S&P 500 closed lower while Nasdaq posted second day of gains
At the close of the market on Monday, the Dow SY S&P 500 has declined despite earlier sales growth.
The S&P 500 hovered around a flat line in the afternoon, closing up just 0.1%. The Dow ended up 0.3% as investors focused on growth names as inflation expectations rose.
But the Nasdaq Composite ended up 0.6%, helped by a nearly 6% rally in Tesla and a jump in other tech names.
Losses were concentrated in recent winners, such as health care, energy and aerospace and defense.
— Alex Harring, Scott Schnipper
Tesla jumped 7% as electric car prices hit 2 1/2-year lows
Tesla Investors rose more than 7% as the electric car maker pulled from a previous low not seen in two and a half years.
The stock rose more than 12% in 2022. This means that the first day of trading offered a break after falling 65% in 2022.
Tesla has struggled in recent months amid CEO Elon Musk’s tumultuous Twitter acquisition. Investors are watching Tesla and apple for an insight into the potential impact of some of the biggest tech names after the industry was disrupted last year.