Samsung earnings guidance, Japan services PMI, U.S. jobs data

Tesla cuts prices of some models in China, suppliers increase

Tesla slashed prices of some models in China for the second time in three months, the firm announced in a Weibo post.

The firm said its Model 3 and Model Y vehicles now cost 229,900 yuan and 259,900 yuan, respectively, in China.

That’s a decline from 6% to 13.5%, a separate calculation by Reuters showed.

Shenzhen-listed shares of Tesla’s Chinese suppliers rallied amid optimism a price cut could boost demand for the electric vehicle maker.

Shares of Anhui Shiny Electronic Technology rose 10% in Asia trade and Hengdian Group DMEGC Magnetics gained nearly 9%. Zhejiang Chint Electrics climbed nearly 10% and Shandong Jinjing Science & Tech climbed more than 7%.

– Jihye Li

More Chinese electronics companies set to snatch market share from Taiwanese companies like Foxconn: Investment Fund

More Chinese electronic component manufacturing companies set to chip away at market share like Taiwanese counterparts FoxconnKirk Yang, president and CEO of Kirkland Capital, told CNBC’s “Squawk Box Asia” on Friday.

Apple Supplier Foxconn is facing competition from Luxshare, which was awarded a contract to produce iPhones in China, even as Foxconn posted record revenue and its Zhengzhou plant after Covid restrictions and labor unrest returned to normal.

“Chinese companies are getting very competitive for iPhone assemblers. China is doing pretty well except for semiconductors,” Yang said.

Yang further said that with China-Taiwan geopolitical tensions, Taiwanese companies in China have seen a lot of pressure in the past five years. “A lot of them are going out of China,” Yang said.

That’s why Apple needs to diversify, he said, adding that the US-China tech war is also prompting companies to increasingly diversify away from China.

-Sheila Chiang

CLSA says Samsung Electronics may cut production in coming months

samsung electronics can follow your competitors micron technology And SK Hynix Production cuts in the later part of 2023, said Sanjeev Rana, senior analyst at CLSA.

“The company has no option but to cut production as the inventory is piling up,” Rana said on CNBC’s Squawk Box Asia on Friday.

“If they don’t cut production, the inventory could go up even more,” he said, noting that demand for IT products has slumped in recent months, causing sales of memory chips to fall.

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On the demand side, Rana said, the reopening of China could lead to double-digit growth in smartphone shipments to China on an annual basis.

Analysts say Samsung Electronics may cut production in coming months

Analysts say that oil prices will remain around $ 85 per barrel for the next five years.

Dan Pickering of Pickering Energy Partners said oil prices are expected to remain around $85 a barrel for the next five years as a result of “less investment on the supply side” and potentially rising demand.

This will support commodity prices, Pickering said, once China gets through its Covid wave that can expect “one million to two million barrels per day of incremental demand”.

There will be a price to be paid for further support once the world emerges from the global economic slowdown, he said.

Brent crude futures rose 1.12% to $79.57 a barrel. Similarly, US West Texas Intermediate rose 1.15% to $74.74 a barrel.

Overnight the US also reported low fuel inventories in the wake of the winter storm, adding to the pressure on supplies.

-Lee Ying Shan

China eases minimum rates on mortgage loans for first home buyers

The People’s Bank of China and the China Banking and Insurance Regulatory Commission have announced a reduction in mortgage rates for first-time home buyers if newly constructed home prices fall for three consecutive months, a notice said.

The latest measures show further support from the government for the property sector.

Housing sales in China fell more than 20% year-on-year for every month until November last year, FactSet data showed. Reuters reported that on a monthly basis, home prices fell for the fourth month in a row in November.

Hong Kong-listed property shares were mostly in the red, with Logan Group rising 5.48% and Sify Holdings rising 0.79%. Country Garden and Longfour Group were flat in the Friday morning session.

– Jihye Li

CNBC Pro: Veteran investor sees energy as the biggest winner in 2023 — and names the stocks to play it

After an extraordinary performance in 2022, energy stocks are off to a slow start to the year.

But veteran investor Louis Navalier is perplexed. He believes the sector is poised for another bumper year in 2023, and has several stock picks to play with.

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Pro subscribers can read more here.

Xavier Ong

Japan’s services sector grew for the fourth month in a row

Japan’s services sector activity showed a fourth consecutive month of growth in December as the country’s central bank maintains its ultra-dowish policy in contrast to its aggressive global peers.

The final AU Jibun Bank Japan Services Purchasing Managers’ Index rose to 51.1 in November compared with a sharp decline to 50.3 from October’s 53.2.

The 50 mark in the PMI reading separates contraction from expansion.

Japanese yen It strengthened marginally after the report and was last held at 133.38 against the greenback.

– Jihye Li

Samsung Electronics’ earnings guidance indicates a nearly 70% drop in quarterly profits

Samsung Electronics posted its worst quarterly profit in nearly 8 years, with its last quarter operating profit plunging nearly 70%, according to the company’s latest earnings guidance.

The tech giant estimated its profit to fall to 4.3 trillion won ($3.37 billion) in the October to December period due to weak global demand, after posting a profit of 13.87 trillion won ($10.92 billion) in the previous quarter.

Shares of the tech giant rose 0.17% shortly after the guidance was issued.

– Jihye Li

CNBC Pro: Citi’s Cronert Says Recession Is Near; Shares his ‘high confidence call’ for toughing it out

Citi’s Scott Kronert anticipates a mild recession in the first half of this year and reveals three strategy calls that could help investors trade the downturn.

He shared with CNBC three “top conviction calls” that can help investors navigate the macro environment.

CNBC Pro subscribers can read more here.

– Weizen Tan

St. Louis Fed President James Bullard says 2023 is poised to be a deflationary year

James Bullard, President of the St. Louis Federal Reserve Bank, in Thursday’s speech outlined several factors that could make 2023 a deflationary year.

He said GDP growth is likely to improve in the second half of 2022 and inflation has declined recently, even though it remains very high in absolute terms.

He said that although the current policy is not yet “restrictive enough”, it is getting closer and will reach that level this year. This signaled to markets that it could support a terminal rate higher than the 5% it sees the central bank reaching before pausing or pivoting on rate hikes, sending the stock to the day’s low.

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The strength of the labor market is unprecedented in the midst of a hiking cycle, he said.

-Carmen Renicke

CNBC Pro: Goldman Sachs reveals 7 under-the-radar global stocks to buy this year

Several under-the-radar stocks are key to the green energy transition, according to Goldman Sachs — and it expects them to take off in 2023.

A decade-long trend of investing in large clean energy stocks will change this year with a focus on smaller supply chain firms, the Wall Street bank said.

The investment bank identified seven stocks in the Europe, Middle East and Asia regions that will benefit from the new trend.

CNBC Pro subscribers can read more here.

Ganesh Rao

Big declines for Silvergate, Bed Bath & Beyond highlight midday movers

Here are some of the biggest stock moves during Thursday’s trading session:

silvergate — Shares of the crypto-focused bank plunged more than 42% after Silvergate disclosed massive customer withdrawals during the fourth quarter. The bank said it held $3.8 billion in assets from digital asset customers at the end of December, down more than 60% from three months earlier. The company also sold over $5 billion worth of debt securities to cover the withdrawals, resulting in a loss on sale of $718 million.

bed Bath and Beyond The home goods retailer plunged 24% after reporting it ran out of cash and is considering bankruptcy, citing weaker-than-expected sales. The company said it is exploring financial options, including restructuring, seeking additional capital or selling assets, in addition to possible bankruptcy.

Lamb Weston Holdings – The food processing company jumped 9% after breaking quarterly earnings and revenue estimates. Lamb Weston also raised its financial guidance for the full year.

See more movers here.

Jesse Pound

Continued decline in jobless claims, a sign of strength in the labor market

Initial jobless claims rose slightly to 225,000 in the week ending Dec. 24, according to the Labor Department. But ongoing claims – which count people who have been jobless for more than a week – fell.

Claims issued in the previous week fell by over 24,000 to 1,569,764. This is a sign that people are finding new jobs amid a strong labor market.

-Carmen Renicke

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