Fed Minutes, Bank of Korea Decision, Sri Lanka

New Zealand’s central bank has been discussing a 100 basis point hike, the governor says

The Reserve Bank of New Zealand had been considering an even bigger rate hike in making its latest official cash rate decision, despite its move to hike rates by 75 basis points was already its steepest ever.

“I would say we’ve had more of a 75 to 100 than a 50 to 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”

“We can now say that we are unequivocally opposed in our monetary stance,” Orr said. “We have to be, given the tightness of the economy at the moment,” he said.

– Jihye Lee

Foxconn says new hires have raised pay issues, the ongoing communication adds

Main Apple supplier Foxconn it said that new recruits at its iPhone factory in Zhengzhou “appealed to the company” regarding compensation, according to a statement on its website.

The statement comes after media reports that a mass protest by hundreds of workers appeared to have been triggered by a delay in bonus payments, with videos circulating on social media showing people breaking surveillance cameras and windows.

“The company emphasized that the indemnity has always been met according to contractual obligations and will continue to communicate with affected colleagues,” Foxconn said in its statement, adding that reports of Covid-positive employees residing in factory dormitories are “patently false”. ”

“As regards any violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again.”

Taiwan-listed shares of Hon Hai Technology Group, the formal name of Foxconn, traded 0.5% lower early Thursday’s session.

– Jihye Lee

Bank of Korea hikes rates 25 basis points, meets expectations

The Bank of Korea raised its key interest rate by 25 basis points to 3.25%, a smaller increase than the previous move and broadly in line with expectations.

A Reuters poll of economists had forecast the move amid signs of slowing domestic growth.

The nation’s inflation rate for October was 5.7%, according to the latest data released earlier this month, much higher than the central bank’s 2% target.

BOK Governor Rhee Chang-yong is expected to hold a press conference later in the day on the monetary decision.

– Jihye Lee

CNBC Pro: Asset manager says investors need to buy this large-cap stock right now

There’s a large-cap stock that investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.

It calls its CEO a “significant visionary.”

While Luna picked the only large-cap stock, he advised investors at large to reallocate into smaller names, naming two stocks he called “best of the breed.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks climb for a second day as Wall Street applauds the Fed which signals smaller rate hikes ahead

Shares soared Wednesday and marked a second straight day of gains as investors cheered minutes from the Federal Reserve that signaled a slower pace of interest rate hikes ahead.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26 and the Nasdaq Composite was up 0.99% to 11,285.32.

Shares of Nordstrom fell 4.24% after the department store chain confirmed its predictions. However, Nordstrom beat profit and sales expectations in its latest results, according to consensus expectations on Refinitiv. Tesla rose 7.82% after Citi upgraded shares to neutral since the sale. Deere rose 5.03% on a beat of earnings.

—Carmen Reinicke

CNBC Pro: Betting against a UK supermarket, short seller predicts nearly 50% plunge in stock price

There is more pain to come for investors in a British supermarket company if a short seller’s prediction comes true.

The hedge fund currently holds a bearish bet worth £32.6m and expects shares of the grocer to fall 44%.

The fund’s chief investment officer also believes the supermarket will raise fresh capital by diluting shareholders year on year to keep afloat in a challenging environment.

CNBC Pro subscribers can read more here.

—GaneshRao

Fed minutes show minor rate hikes ahead, stocks gain

Shares rallied Wednesday afternoon after the release of the Federal Reserve’s November meeting minutes. The report showed that the central bank sees progress in its fight to lower inflation and expects to slow the pace of interest rate hikes in the future.

“A substantial majority of participants believed that a slowdown in the pace of growth would soon be appropriate,” the minutes said. “The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited regarding the importance of such an assessment.”

This means that the Fed will likely make a smaller rate hike in December and early 2023.

Markets cheered the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 gained 0.70% and the Nasdaq Composite 1.10%.

—Carmen Reinicke

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