1.China Stocks Poised to Extend Rally into Third Day: Markets Wrap
(Bloomberg) — China-related stocks are poised to extend a two-day rally after policy makers announced further measures to support the economy. US tech shares gained ahead of closely watched earnings reports. Futures for benchmarks in Hong Kong and China pointed to gains and a gauge of US-listed Chinese companies advanced almost 2% Wednesday after the People’s Bank of China said it would cut the reserve requirement ratio for banks and hinted at more. Shares slipped in South Korea and were steady in Japan.
2.Fed Raises Rate on Emergency Loan Program to Stop Arbitrage
(Bloomberg) — The Federal Reserve raised the rate on loans to banks issued under an emergency lending program launched last year, after borrowing surged in recent weeks as institutions took advantage of the attractive financing terms. The Fed’s Bank Term Funding Program, unveiled during the regional banking crisis to ease stress in the financial system, will not be extended beyond its March 11 deadline, top officials had signalled earlier this month.
3.Boeing Halted from Further Max Production Increases by FAA
(Bloomberg) — US aviation regulators ordered Boeing Co. to halt further production-rate increases for its 737 Max aircraft even as they cleared the way for a version of the jet involved in a near-calamity to return to the skies. The US Federal Aviation Administration said it informed Boeing that the agency wouldn’t allow any further output increases, according to a statement late Wednesday.
4.US GDP Data Will Feature Consumer Set to Power Growth in ’24
(Bloomberg) — Forecasters who follow the US economy found themselves in a familiar place after a recent retail sales report: revising up their estimates for GDP. Quarterly data on gross domestic product due Thursday from the Bureau of Economic Analysis is expected to show the economy expanded at a 2% annual rate in the final three months of 2023, fuelled by 2.5% growth in household spending.
5.Israel Orders Evacuations from Packed Area With 2 Gaza Hospitals
Hundreds of thousands of people, most of them already displaced by the war, are in the evacuation zone, part of the city of Khan Younis, the United Nations said. Thousands of people were trapped at a hospital by heavy fighting in southern Gaza, and Israeli forces on Wednesday had surrounded a second hospital where displaced people were sheltering, aid agencies said, after Israel’s military ordered evacuations for that part of the city of Khan Younis.
6.Nasdaq 100 Gains for Fifth Day; Treasuries Decline: Markets Wrap
(Bloomberg) — US stock indexes ended Wednesday off session highs, after earnings-related optimism fuelled by Netflix Inc. moderated and investors geared up for another batch of key quarterly results. The S&P 500 was little changed when markets closed while the tech-heavy Nasdaq 100 jumped 0.5%. US Treasury yields rose, with the 30-year rate climbing to its highest level so far this year. The Bloomberg Dollar Spot Index trimmed earlier declines.
7.Paramount M&A Speculation Swirls as Bonds Much Wider Than Peers
(Bloomberg Intelligence) — News reports have been published over the past two months about a potential purchase of Paramount or its controlling shareholder National Amusements. Apollo Global, Skydance and Warner Bros. Discovery have reportedly shown various levels of interest in a potential transaction. Paramount’s bonds could tighten on a deal given the potential for enhanced liquidity or possible cost synergies.
8.Hedge Funds Play a Dangerous Game on Japan and China: Shuli Ren
(Bloomberg Opinion) — A macro hedge fund’s closure has sent shockwaves across Asia’s asset-management world. Singapore-based Asia Genesis Asset Management Pte is shutting down its macro fund after losing 18.8% in the first weeks of January from a wrong-way bet on Japan and China. Chief Investment Officer Chua Soon Hock was bearish on Japanese equities and bullish on Chinese stocks, and he was caught out by a sharp selloff in the Hang Seng Index and an equally impressive rally in the Nikkei 225 Stock Average.
9.Tesla Inc’s shares fell 0.63% after the electric vehicle maker’s 2024 delivery guidance failed to ease concerns about a slowing demand.
The company reported 4Q23 adjusted earnings per share of $0.71, missing estimates of $0.73, and 4Q23 revenue of $25.17 billion, missing estimates of $25.87 billion. The management expects 2024 vehicle volume growth to be notably lower than 2023, but sees its energy-storage division to be the growth engine for rate of deployments and revenue in 2024.
10.SK Hynix Inc’s shares rose 1.45% after reporting a surprise operating profit boosted by strong sales of high-end memory chips used to power artificial intelligence applications.
The world’s second largest maker of memory chips reported a 4Q23 operating profit of 346 billion won, beating estimates of a loss of 169 billion won. The management announced that it will boost capital spending in 2024 while aiming to minimize disruptions to the demand-supply balance. The upbeat earnings come after Taiwan Semiconductor Manufacturing Co and ASML Holding NV’s strong performance last week, highlighting chipmakers optimism about a sector recovery.