3 hours ago
Alibaba’s reform could be followed by tech peers: KraneShares
According to KraneShares CIO Brendan Ahearn, Alibaba’s major shake-up could follow its Chinese counterparts in the tech space.
“I think investors are saying what we’ve seen at Alibaba, the really leading Chinese tech company, that their plans may be used by others,” said Ahern, referring to the ADR moves seen in Tencent, JD.com and Baidu overnight.
Tencent shares rose 2.5%, Meituan shares rose 4.6%, Baidu shares rose about 2%, and Kuaishou shares rose 3.8% in Hong Kong morning trading.
He added that the company’s announcement showed that Alibaba’s founder, Jack Ma, who was recently seen in China after spending months abroad, was involved in the process.
“It’s very clearly played a role in this new structure that’s really about what the company said in the press release, it’s about unlocking shareholder value,” Ahern said.
– Jihe Lee
3 hours ago
Alibaba’s move is seen as China’s government’s support for the private sector: Kingston Securities
Dickie Wong, CEO of Kingston Securities, said the latest business reform announced by tech giant Alibaba is seen as a move by the Chinese government to increase support for its private sector.
“The Chinese economy is back in growth mode. The Chinese government has to do something, it has introduced a lot of new policies to support the private sector…especially the technology sector,” he said on CNBC’s Street Signs Asia.
He added that the government is being incentivized to meet the economic growth target of around 5% by creating new jobs in the technology sector – and reforming Alibaba is seen as part of those efforts.
“Creating new jobs is one of the most important jobs[s] that [the] The Chinese government needs to do this,” Wong said, adding that he expects to see jobs created in cybersecurity or online gaming.
– Jihe Lee
3 hours ago
Higher oil prices due to stabilizing banking turmoil, says S&P’s Yergin
S&P Vice President Dan Yergin said oil prices are seeing a boost as the situation stabilizes after the recent banking turmoil.
“What we’ve seen in the last few days is a sense that the situation has stabilized … and that in turn has led to some increase in oil prices,” Squawk Box said on CNBC.
Benchmark Oil traded higher after emerging from a volatile trading week. Brent crude futures rose 0.25% to $78.85 a barrel, while US Brent crude futures rose 0.6% to $73.96 a barrel.
When asked if it would be difficult for oil prices to reach $100 a barrel, Yergin certainly agreed, “unless something dramatic happens,” adding that air travel in China has yet to recover to its 2019 highs.
– Lee Ying Chan
5 hours ago
Hong Kong-listed Alibaba shares open up 15% after announcing a major reshuffle
6 hours ago
The pace of inflation in Australia slowed more than expected to 6.8% in February
The pace of monthly inflation in Australia for February came in at a slower pace at 6.8% compared to the same period last year.
This is lower than January’s figure of 7.4%, and also lower than economists’ forecasts of 7.1%.
Data from the country’s bureau of statistics revealed that the most significant price hikes were in housing, followed by food and non-alcoholic beverages, and then in transportation.
Inflation data, as well as retail sales data released on Tuesday, will be key to the RBA’s April decision to raise interest rates.
– Lim Hwi Ji
15 hours ago
Alibaba jumps 11% after the technology company announced the split
Alibaba shares jumped more than 11 percent during midday trading on Tuesday after the e-commerce giant said it would split its company into six business groups.
It is the most significant restructuring in Alibaba’s history, with each of the six companies set to be run by its own chief executive officer and board of directors.
The company said in a statement that this step “aims to unleash shareholder value and enhance competitiveness in the market.”
Separately, Morgan Stanley called it a research tactic after the announcement, saying that “the share price will rise in absolute terms over the next 60 days.”
Alibaba shares for a day
– Arjun Kharpal, Sarah Maine
13 hours ago
Bank stocks crash the market after a Senate hearing
Banks led the stock market lower on Tuesday afternoon, after a hearing in which three regulators said they favor tougher regulations at smaller institutions.
Fed Vice Chairman Michael Barr, FDIC Chairman Martin Greenberg and Neely Liang, Undersecretary of the Treasury for Domestic Finance, said they would support tougher requirements for banks with more than $100 billion in assets.
The remarks came during a Senate Banking Committee hearing on the recent failures of three regional banks. Sen. Elizabeth Warren (D-Massachusetts) asked each of them if they favored tougher rules for banks beyond those identified as systemically important and whether they would support reversing the regulatory changes made in 2018.
“I certainly think it’s appropriate for us to go back and review those procedures in light of the most recent episode and consider what changes need to be made,” Gruenberg said.
SPDR Regional Banking and SPDR Bank ETFs were down more than 1% each in the afternoon.
– Jeff Cox
7 hours ago
CNBC Pro: As volatility continues, here’s what investors can expect in the second quarter — according to history
Equity markets have been on an upward trend in the first quarter of 2023, with the S&P 500 and MSCI World Index on track to post more than 4% of total gains.
This is especially noticeable after a year of negative returns.
Here, CNBC Pro subscribers can read about how markets have performed in similar conditions historically.
– Ganesh Rao
15 hours ago
Regulators speak in favor of stricter rules for regional banks
The three regulators said in testimony before the Senate Banking Committee on Tuesday that rules need to be tightened for regional banks.
“I foresee the need to strengthen capital and liquidity standards for companies worth more than $100 billion,” said Michael Barr, the Federal Reserve’s vice chair of oversight, in response to questions from Sen. Elizabeth Warren (D).
His fellow powers-that-be echoed his sentiments when speaking of the recent failures of Silicon Valley Bank, Signature Bank and Silvergate Bank.
Martin Gruenberg, FDIC Chairman, noted that he voted against the deregulation moves in 2018 and said, “My views have not changed.”
Nellie Liang, the local undersecretary for finance, said she agrees “we need to prevent these kinds of bank failures”.
Bank stocks rose slightly after the stock exchange.
– Jeff Cox
3 hours ago
CNBC Pro: Here’s where to invest $10,000 right now, according to the pro
Markets have been volatile over the past month which has some retail investors wondering where to park their money.
If you have $10,000 to invest, where should you put it amid the uncertainty, and how much should you allocate to each asset class? CNBC Pro speaks to portfolio managers and investors to find out.
CNBC Pro subscribers can read more here.
– Wizen tan
17 hours ago
Consumer Confidence Index rises more than expected
Consumer expectations improved slightly in March, despite the crisis in banks, according to a Conference Board index released on Tuesday.
The Board’s Consumer Confidence Index rose to 104.2, from 103.4 in February and ahead of the 100.7 Dow Jones estimate.
In addition, the Expectations Index, which measures expectations in the short term, rose to 73 from 70.4. However, the index remains below the 80 level that corresponds to recessionary periods. The inflation index also remained elevated, at 6.3% for the forecast over the next 12 months.
– Jeff Cox
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