Fri, Aug 18 2023 3:44 AM EDT
Adani stocks soar after report on potential Taqa investment
Shares of Indian multinational holding company Adani Enterprises surged by as much as 7.21% earlier on Friday, leading gains on India’s Nifty 50 index, following an Economic Times report that said that UAE state energy company Abu Dhabi National Energy — also known as Taqa — is evaluating “a large exposure” in the Indian power business via Adani.
The UAE company is keen to deploy $1.5-2.5 billion in Adani Group firms or in a single entity, the Economic Times said, citing “people familiar with the matter”
Taqa and Adani Enterprises did not immediately respond to CNBC requests for comment.
The gains of Adani Enterprises have since pared down near 3%.
Adani subsidiaries Adani Green Energy and Adani Power reached respective highs near 9.66% and 10.88% earlier in the day.
Shares of Adani Energy Solutions rose as much as 8.18% on Friday.
— Lim Hui Jie
Fri, Aug 18 2023 2:06 AM EDT
Philippine’s central bank governor says there’s room for more rate hikes
There is room for more rate hikes without compromising economic growth, according to Philippine’s central bank chief.
“I think we have room to hike without contracting the economy,” Eli Remolona, governor of the Bangko Sentral ng Pilipinas, told CNBC’s “Street Signs.”
The Philippine central bank left its benchmark interest rates unchanged at 6.25% on Thursday.
Remolona added he expects to see “some recovery” in the country’s economy in the third quarter.
—Lee Ying Shan
Thu, Aug 17 2023 11:45 PM EDT
China’s embattled property giant Evergrande files for bankruptcy in U.S. court
China’s property giant Evergrande group filed for Chapter 15 bankruptcy protection in a U.S. court late Thursday.
The real estate developer referenced restructuring proceedings in Hong Kong, the Cayman Islands and the British Virgin Islands, in a filing to the Manhattan court.
In July, Evergrande posted a combined loss of $81 billion over the past two years, after struggling to complete projects and pay back its suppliers and lenders.
The news comes amid contagion fears that problems in China’s struggling real estate sector could spill over to other parts of the economy, even as growth stalls.
Read the full story here.
— Sumathi Bala
Thu, Aug 17 2023 8:20 PM EDT
Japan’s core inflation rate fell in July, headline inflation holds steady at 3.3%
Japan’s core inflation for July fell to 3.1% from June’s figure of 3.3%, in line with expectations from economists polled by Reuters.
Japan’s core inflation strips out prices of fresh food.
The headline inflation rate for July came in at 3.3%, unchanged from June’s figure.
The so called “core-core” inflation metric, which strips out prices of fresh food and energy and used by the Bank of Japan in its monetary policy considerations, came in at 4.2%, down from 4.3% in June.
— Lim Hui Jie
Thu, Aug 17 2023 8:38 PM EDT
CNBC Pro: S&P 500, Treasuries or Berkshire Hathaway? Here’s how value investor Guy Spier would invest
Investors are almost spoilt for choice between the safety of bonds and the potential upside from stocks.
On the one hand, the U.S. economy is showing signs of healthy growth, and some analysts expect stocks to continue soaring. At the same time, U.S. government bonds are offering more than 5% in risk-free yield.
Renowned value investor Guy Spier weighed in on CNBC’s Pro Talks on whether it’s better to invest in an S&P 500 index fund, U.S. Treasuries, or Berkshire Hathaway’s stock for the long run.
CNBC Pro subscribers can read his response here.
— Ganesh Rao
Thu, Aug 17 2023 3:35 PM EDT
Growing minority opinion that the Fed’s going to go once more by yearend
Few interest rate traders at the CME are saying the Federal Reserve will raise rates again in September (13.5% now vs 11% a week ago), but there’s a growing chorus that central bank policymakers may go another quarter point — to 5.50%-5.75% — at either the Nov. 1 meeting or at their last meeting of the year on Dec. 13.
Odds of another quarter point hike at the Nov. 1 Federal Open Market Committee meeting are up to 33.3% now from 27.8% a week ago, and 31.1% by the time of the December meeting versus 24.7% last week and just 20.9% one month ago.
Investors can forget about chances of a rate cut by yearend, according to the CME Fed Tracker tool. The chance of a quarter point reduction in the overnight fed funds rate by December was only 16.5% a month ago. Today the odds stand at 8.1%.
— Scott Schnipper
Thu, Aug 17 2023 8:37 PM EDT
CNBC Pro: These stocks pulled back in August but analysts expect them to bounce back — giving one 103% upside
August has been a rocky month for stocks so far.
For those looking for stocks that pulled back this month but still have upside potential, CNBC Pro screened the S&P 500 and the Vanguard FTSE All-World ex-U.S. index.
The resulting stocks have fallen into negative territory in August, but have average price target upside of at least 30%, and buy ratings from at least half of analysts covering them.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Thu, Aug 17 2023 11:04 AM EDT
Natural gas rises Thursday, but on pace for worst week since July
Natural gas spiked nearly 2.8% Thursday, but is still headed for its worst week since July. Thus far this week, it’s down about 4% as of Thursday, or its worst week since July 7 when natural gas lost 7.72%.
Meanwhile, the natural gas ETF (FCG) was up 2% on Thursday. It was led by gains in Chesapeake, which is higher by 5.9% after the S&P said it would join the S&P 400 Midcaps index before trading opens Monday.
— Gina Francolla, Sarah Min
Thu, Aug 17 2023 10:39 AM EDT
Bitcoin falls to lowest level in nearly two months
Cryptocurrencies were under pressure Thursday as investors grappled with renewed concerns about the U.S. economy.
Bitcoin was last lower by about 2% at $28,506.00, according to Coin Metrics. The slide began after the minutes of the Federal Reserve’s July policy meeting were released. Late Wednesday bitcoin dropped to as low as $28.335.42, its lowest level since late June.
Bitcoin’s correlation with stocks is at its lowest level in two years, according to Coin Metrics. In 2022 it shot to an all-time high as a result of the Fed’s rate hiking campaign to tame inflation.
For more, read the full story here.
— Tanaya Macheel
Thu, Aug 17 2023 9:13 AM EDT
10-yr yield hits highest level since October 2022
The 10-year U.S. Treasury yield note rose to its highest level since October 2022. It reached a high of 4.312%. That was the highest level since Oct. 21, 2022 when the 10-year yielded as high as 4.337%, according to Tradeweb.
Meanwhile, the dollar index hit session lows after falling to 103.067. This comes after hitting a high of 103.598, or the highest level since Jun 13th when the index hit a high of 103.624.
— Gina Francolla, Sarah Min