China’s economic growth expected to be ‘slightly more’ than 5%: Reuters
China’s economy is expected to expand slightly more than 5% this year, according to an advisor to the People’s Bank of China. Wang Yiming, a member of the PBOC Monetary Policy Committee, said on Wednesday that China’s economic situation is very different from that of Japan in the 1990s and there is no basis for the feared “Japanification.” The term “Japanification” refers to the low growth that Japan faced after an asset bubble burst in the early 1990s, leading to two decades of sluggish activity, deflation, asset price declines, and financial stress. This statement comes just a day after HSBC lowered its growth forecast for China’s gross domestic product for this year from 5.3% to 4.9% and its 2024 GDP growth forecast from 4.9% to 4.6%.
China industrial profits see softer fall in August
China’s industrial profits for the first eight months of the year showed a slightly slower decline in August. Profits fell 11.7% year on year as of August, a smaller contraction than the 15.5% drop for the first seven months. The National Bureau of Statistics of China reported that the profits of industrial enterprises climbed 17.2% year on year in August, marking the first monthly growth since the second half of 2022.
Bank of Japan members split over when to raise interest rates in July meeting, minutes show
Minutes from the Bank of Japan’s monetary policy meeting in July revealed a split among board members over when to raise interest rates. The disagreement arose as inflation had been above the BOJ’s 2% target for 15 consecutive months. While one member believed that there was still a long way to go before revising the negative interest rate policy, another member expressed confidence in achieving the inflation target by January to March next year. The minutes reflect differing opinions on the sustainability and stability of Japan’s economic recovery.
British chip designer’s shares predicted to soar over 100%, says Jefferies
Investment bank Jefferies predicts that shares of a British chip designer will increase by over 100% over the next 12 months. Jefferies believes the company is designing chips for American Big Tech firms, which is expected to boost its profit margins. The chip stock is also seen as a key potential beneficiary of the growing trend in artificial intelligence applications.
Hong Kong trade sees smaller declines in August
Hong Kong’s trade decline in August was slower compared to the previous month. Imports and exports fell by 0.3% and 3.7% year on year, respectively, compared to July’s drops of 7.9% and 9.1%. Total trade for August amounted to 742.18 million Hong Kong dollars, showing a 2% fall year on year.
Portfolio manager sees ‘great value’ in another market despite bullish India outlook
While many investors and big-name banks have turned bullish on India’s growth prospects, portfolio manager Kamil Dimmich is avoiding investments in the country. Dimmich believes there is “great value” in another emerging market and shares two favorite stocks.
Bernstein analyst bullish on K-pop stock
Bokyung Suh, a director and senior research analyst at Bernstein, expressed optimism about a major agency in the K-pop industry. He shares a key reason behind his positive outlook on the stock.
Dow falls below key technical level
The Dow Jones Industrial Average closed below its 200-day moving average for the first time since May, indicating a potential decline in its long-term momentum. The sell-off on Tuesday contributed to the drop below this significant technical level.
S&P 500 dips below 4,300 for the first time since June 9
The S&P 500 fell to its lowest level since June 9, following disappointing economic data. August new home sales fell short of analyst expectations, and the Conference Board’s consumer confidence index also missed expectations. Jamie Dimon’s comments on potential rate increases added to the negative sentiment in the market.
Oil prices on track for best quarter in over a year
Oil prices are poised to have their best quarter in more than a year, with both West Texas Intermediate and Brent crude on track for straight monthly price gains. This marks an overall positive trend for the third quarter.
EU to probe Tesla and other carmakers over China exports
Tesla shares declined after it was revealed that the European Union plans to investigate the company, along with other European carmakers, over whether they receive unfair subsidies for exporting from China. The investigation is not limited to Chinese brands but also extends to other producers who receive subsidies.