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2 Hours Ago

Shares of Tata Motors climb over 7% after news it will split commercial and passenger vehicle arms

Shares of Indian automaker Tata Motors climbed more than 7% on Tuesday, a day after the company announced it will separate its commercial vehicle and passenger vehicle units in a demerger.

Tata Motors said the split will be implemented through a scheme of arrangement, and all shareholders will continue to have identical shareholding in both the listed entities.

The move will “further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability,” the company said.

The demerger is expected to be completed in 12 to 15 months, subject to shareholder, creditor and regulatory approvals. It should not have an adverse impact on employees, customers, and our business partners, the company said.

4 Hours Ago

China defense stocks jump as country announces 7.2% rise in defense spending

The 46th fleet of the Chinese People’s Liberation Army Navy sets sail from a military port in Zhanjiang, south China’s Guangdong Province, Feb. 21, 2024. 

Xinhua News Agency | Xinhua News Agency | Getty Images

China is set to increase its defense spending by 7.2% in 2024, Reuters reported Tuesday, citing the official government release as the country’s annual parliamentary meetings started in Beijing.

This follows a 7.2% increase last year, a 7.1% spike in 2022, 6.8% increase in 2021, 6.6% growth in 2020 and 7.5% rise in 2019.

The CSI Defense index jumped 2.2% to its highest level since Jan.15. Shenzhen-listed Fujian Torch Electron rose 1.1%, Aerospace CH UAV added 3.7%, Avic Shenyang Aircraft Co gained 2% and Avic Aviation High Technology gained 1.3%.

— Shreyashi Sanyal

5 Hours Ago

China services activity expands at a slower pace in February: Caixin survey

China’s services sector expanded at a slower pace in February compared with January, with the Caixin services purchasing managers’ index slipping to 52.5 in February from 52.7 in the prior month.

The report noted that employment rose slightly for a second straight month, and companies were generally upbeat about the 12-month outlook for activity.

A PMI reading above 50 indicates expansion in the sector, while one below 50 indicates contraction.

— Lim Hui Jie

5 Hours Ago

Gold futures cross $2,100 to hit record levels, spot rates inch closer to all-time highs

Gold prices inched higher on Friday and were on track for their first weekly rise in three, as a broadly weaker U.S. dollar and growing tensions in the Middle East lifted bullion’s appeal.

Bloomberg Creative | Bloomberg Creative Photos | Getty Images

Spot gold prices hovered near record levels, while futures settled at an all-time high on Monday.

Traders bet the U.S. Federal Reserve will start cutting interest rates in the second half of the year, lifting prices of the precious metal.

The gold contract for April gained $30.60, or 1.46%, to settle at $2,126.30 per ounce, the highest level dating back to the contract’s creation in 1974.

Spot gold prices inched 0.16% lower on the day, trading at $2,111.69, just shy of a record high at 2,135.40 which it hit in December 2023.

— Shreyashi Sanyal, Spencer Kimball

6 Hours Ago

Australia’s current account surplus jumps in the fourth quarter

MELBOURNE, AUSTRALIA – JANUARY 31: People sit at an outdoor table near a cafe in the CBD on January 31, 2023 in Melbourne, Australia. On July 6, 2022 the Australian government lifted all COVID-19 requirements for locals and travelers ending a two-year long restriction period. (Photo by Alexi Rosenfeld/Getty Images)

Alexi Rosenfeld | Getty Images Entertainment | Getty Images

Australia’s current account surplus jumped in the fourth quarter to its widest since the first quarter, according to official data on Tuesday.

The current account surplus jumped to $11.8 billion Australian dollars ($7.68 billion) in the fourth quarter. The reading was much higher than a Reuters poll forecast of AU$5.6 billion surplus.

Iron ore and coal exports surged, according to data.

“The current account surplus reflected a higher trade surplus, driven by mining commodity exports. Meanwhile, the net primary income deficit narrowed,” Grace Kim, ABS head of international statistics, said.

— Shreyashi Sanyal

6 Hours Ago

Japan is not thinking of calling for an ‘end to deflation’: economy minister

Japan is not thinking of calling for an “end to deflation,” its economy minister said, according to a Reuters report.

Yoshitaka Shindo said during a news conference that “the government will strive to ensure Japan sees wage growth exceeding inflation, so that the economy would not revert to a period of prolonged price declines,” the Reuters report added.

The statement contradicted a report from Japanese media outlet Kyodo News over the weekend, saying the country was considering to announce an end to deflation based off the results of the spring wage negotiations.

Japan’s government had first acknowledged that the country was in a state of deflation in March 2001.

— Lim Hui Jie, Reuters

7 Hours Ago

South Korea GDP grows 0.6% in the fourth quarter

A customer pays his purchase at the Moraenae Market ahead of Lunar New Year in Jeonju, Jeollabuk Province, South Korea, on Thursday, Feb. 8, 2024. 

Bloomberg | Bloomberg | Getty Images

South Korea’s economy clocked a quarter-on-quarter growth of 0.6% during the fourth quarter, according to revised central bank data.

The number was unchanged from the central bank’s advance estimates.

South Korea’s GDP rose 2.2% in the fourth quarter on an annual basis, which was also in line with the advance estimate.

Stocks in the country dipped, with the Kospi down 0.2%.

— Shreyashi Sanyal

7 Hours Ago

CNBC Pro: We’re in a ‘boomer renaissance,’ top hedge fund manager says — naming sectors and stocks to play it

Top hedge fund manager David Neuhauser says the world is in a “boomer renaissance” and investors should be betting big on certain sectors that play the theme.

“I think the world is in this boomer renaissance now and there are some stocks that are seeing great moves,” he told CNBC Pro.

He added that the stocks “are not mega tech which shows you other areas tied to the wealth [effect] are helping broadening out gains.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

7 Hours Ago

Tokyo inflation accelerates in February, rebounds from 22-month low

Headline inflation in Japan’s capital city of Tokyo accelerated to 2.6% in February compared with the revised figure of 1.8% seen in January.

This is the first time that Tokyo’s inflation rate has risen in three months, rebounding off the 22-month low recorded in January.

Core inflation, which strips out prices of fresh food, came in at 2.5%, in line with expectations from a Reuters poll. The so called “core-core” inflation metric, which strips out prices of food and energy, held steady at 2.5%.

Tokyo’s inflation numbers are widely considered to be a leading indicator of nationwide trends in Japan.

— Lim Hui Jie

7 Hours Ago

CNBC Pro: Skip EV stocks like Tesla, says fund manager, naming a ‘phenomenal’ alternative

Competition is heating up in the electric vehicle industry, especially between investor favorite Tesla and Chinese automakers like the Warren Buffett-backed BYD.

However, one fund manager has some serious reservations about the sector.

“We don’t own any of the [EV] auto manufacturers and I think the arms race to develop EVs is going to be profitless for a lot of these businesses, including Tesla. So, I would avoid it all, I’m afraid,” he added.

The fund manager instead has his sights on what he calls “bigger integrated covers,” naming his favorite alternative stocks.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

10 Hours Ago

This bull market has elements of both post-recession bounce and a bubble, Deutsche Bank says

Deutsch Bank reported earnings for the third quarter.

Bloomberg | Bloomberg | Getty Images

Prior instances when U.S. stocks have risen this relentlessly (since World War II, anyway) have only come in the wake of either a recession or a “bubble scenario” — and the current market has elements of both, Deutsche Bank macro strategist Henry Allen wrote to clients Monday.

“It’s rare to see a rally this fast, and when they happen it’s usually because the economy is emerging from recession and the stock market has just been through a slump,” Allen wrote, noting that the S&P 500 slumped 19.4% in 2022, its fourth-worst annual performance since 1945. “The only time in post-war history that this wasn’t the case was during the dot com bubble.”

Historically, after strong rallies, what happens next is “the S&P 500 has actually continued to advance over the next 6 and 12 months on every occasion,” Deutsche Bank said. What’s different this time is that the economy never fell into a recession from which it had to recover, at the same as the stock market rally over the past year “has been unusually narrow by historical standards.”

Last year, for example, was the first time since 1998 that the market cap-weighted S&P 500 outdistanced the equal-weighted S&P 500 by more than 10 percentage points, the report noted. Whatever the impetus, with the S&P 500 having advanced in 16 out of the past 18 weeks since the October 2023 low, “it is rare to see such a sustained period of outperformance,” Allen wrote.

— Scott Schnipper

11 Hours Ago

UBS recommends investors diversify to take further advantage of tech rally

The tech-powered rally has propelled stocks to new heights this year, with all three major indexes notching new closing records in 2024.

UBS sees no end in sight yet for the tech rally — but believes investors would be best suited to diversify their assets.

“With generative AI looking set to be the growth theme of the decade and US large-cap tech companies leading the revolution, we continue to believe that US tech stocks should make up a substantial portion of investors’ equity allocations. This means building up a strategic US large-cap holding for those underinvested,” the bank wrote. “But investors with excessive exposure should consider diversification, in our view.”

To do so, UBS recommended investors consider emerging trends in the industry, so they can broaden their portfolios to “capture the next growth opportunities.”

“We think Asia is a compelling destination for tech diversification, and see further potential in AI customs chips and foundries,” the bank added.

— Lisa Kailai Han

11 Hours Ago

U.S. gold futures rise to their highest level ever

U.S. gold futures settled at a record high on Monday on the back of market rate cut expectations.

Gold prices typically have an inverse relationship with interest rates, meaning prices rise when rates fall. Gold prices began gaining after January inflation came in at the same level as expectations, with traders widely anticipating an initial rate cut in the second half of 2024.

April-dated gold contracts gained $30.60, or 1.46%, to settle at a record close of $2,126.30 on Monday.

See Chart…

Gold futures YTD chart

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