Japanese power stocks soar on reports of restarting nuclear reactors
Despite HSBC pressure, Ping An co-CEO says ‘not an activist investor’
Ping An Insurance Group, which is not an activist investor, co-CEO Jessica Tan told CNBC’s “Squawk Box Asia” when asked about the company’s call for HSBC to spin off its Asian operations.
“We support any proposal that really enhances long-term shareholder value,” she said. “We’re not activist investors, but we do care a lot about long-term value.”
Ping An Asset Management is the largest shareholder of HSBC Holdings, holding an 8.3% stake in HSBC, according to Refinitiv data.
On Tuesday, Ping An reported a 3.9% rise in first-half profit from the same period in 2021. Hong Kong-listed shares of Ping An rose more than 2 percent, while the broader Hang Seng index fell 1.1 percent. %.
India’s NDTV shares soar as Adani announces takeover bid
New Delhi Television’s shares surged as high as 4.99% at the open on Sensex, a 12-year high after announcing that India’s richest man was seeking a majority stake in the company.
A unit of the Adani Group used financial rights to acquire a 29.18% stake in NDTV, the company said, adding that it had also proposed to acquire another 26% stake in the media company.
NDTV said in a filing that the move was “without any consent from its founders.”
NDTV is considered one of the few media groups that are often critical of the ruling government’s policies. It operates three national channels: English NDTV 24×7, Hindi NDTV India and Business News Channel.
Adani said its subsequent public offering would be 294 Indian rupees ($3.68) per NDTV, valued at 4.93 billion rupees ($86 million).
– Charmaine Jacobs
Chinese EV makers slip in Hong Kong trade, Xpeng hits new low after missing expectations
Shares in the Hong Kong-listed electric car maker tumbled after Xpeng Motors reported a quarterly loss of 2.7 billion yuan ($394 million) that beat analysts’ expectations.
The figure was also worse than the 1.19 billion yuan loss reported in the second quarter of 2021.
Xpeng shares plunged more than 13 percent, hitting a new low since listing in Hong Kong last year. Its U.S.-listed shares fell 10 percent in intraday trading on Tuesday.
Li Auto’s shares fell 6.6 percent in Hong Kong, while NIO dropped 5.19 percent. Geely Auto fell more than 4%, and BYD also fell 5.49%. NIO will report earnings later in the day, while Li Auto will report earnings in early August.
Singapore’s travel stocks fall after announcement that unvaccinated travelers can skip quarantine
South Korean automakers lower after U.S. recalls more than 280,000 vehicles over fire risk
Shares in South Korean automakers were lower after the U.S. government recalled more than 280,000 Hyundai and Kia vehicles.
The National Highway Traffic Safety Administration cited fire risks and advised drivers to “park outside and away from home.”
Hyundai Motor was down 1.3% in early trade and Kia was down 1.4%. Shares of Hyundai Mobis also fell 3.08%.
The agency issued a “stop-of-sale” notice overnight, saying the electrical short “could cause the vehicle to catch fire while being driven or parked and turned off.”
However, the agency added that there are currently no confirmed fires, crashes or injuries associated with these risks.
– Wisdom Lee
IPEF’s first in-person ministerial meeting will be held in Los Angeles next month
The United States will host its first in-person ministerial meeting on September 8-9 in Los Angeles for its new Indo-Pacific Economic Framework.
U.S. Trade Representative Kathryn Day and U.S. Commerce Secretary Gina Raimondo will co-chair the meeting.
“The first in-person ministerial meeting builds on constructive virtual meetings with 13 Indo-Pacific partners before and after President Biden’s official launch of IPEF this year to develop a high-standard and inclusive economic framework,… …benefiting workers and consumers across the region,” the pair said in a statement on Monday.
Previous virtual meetings have been held in May, June and July.
Discussions next month will revolve around IPEF’s four pillars, which include trade and supply chains, the statement said.
The framework is not a trade deal, but a fulcrum for America’s return to the Asia-Pacific region. It is also seen as a means to counter China’s economic rise.
The IPEF is largely seen as symbolic and consists of Australia, Brunei, Fiji, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, Vietnam, Japan and the United States
— Su-Lin Tan
AUD, JPY weaken against USD after overnight moves
The Australian dollar was weaker in early Asian trade, having risen sharply overnight on a weaker dollar.
The Australian dollar was trading at $0.6910 after breaking $0.6950.
“A weaker U.S. dollar and higher commodity prices may have driven the Australian dollar higher,” Carol Kong, senior associate for international economic and currency strategy at Commonwealth Bank, wrote in a note.
The U.S. dollar index fell after the S&P Global Purchasing Managers Index fell below expectations in early August and was last at 108.695.
The yen traded at 136.87 against the dollar after rising to 135.93 overnight.
The “smart” electric vehicle industry is the next big thing in tech, according to Morgan Stanley.Here are its top picks
Morgan Stanley says the tech supply chain is about to experience growth in the next big thing: smart tech features — from electric car batteries to chips and self-driving technology.
The investment bank named its picks as stocks that will benefit from this trend.
Professional subscribers can read the story here.
— Weizhen Tan
Fed’s Kashkari says his biggest concern is that inflation will be more persistent or hotter than expected
Minneapolis Fed President Neil Kashkari said his biggest concern is that markets are underestimating how high or persistent inflation is, adding that the Fed may need to be more aggressive than expected.
“My biggest worry is that if we’re wrong, the market is wrong, and this inflation is much higher than we appreciate or the market appreciates,” he said, commenting on the market. Inflation expectations fall back over the next two years to 2%.
“Then we’re going to have to be more aggressive than I expected, probably longer, to bring inflation back down,” he said at a University of Pennsylvania event.
Kashkari also noted that supply-side shocks have driven “one-half to two-thirds” of the country’s high inflation.
“The more help we get from the supply side and the less the Fed has to do, the more we can avoid a hard landing,” he said. However, he did add that there is some evidence that supply chains are starting to normalize.
Kashkari, already considered the most hawkish of the U.S. central bank’s 19 policymakers, expects the Fed will need to raise policy rates — currently in a target range of 2.25% to 2.5% — before the end of next year. two percentage points.
– Wisdom Lee
CNBC Pro: Citi names energy stocks ‘strongest on balance sheet’
The energy sector has been a big winner in a volatile stock market this year.
But Citi said one stock still stands out for its “strongest balance sheet.” It also delivered a string of second-quarter earnings that handily beat its major publicly traded peers.
Professional subscribers can read the story here.
— Xavier Ong