Chinese manufacturing contracts in October added to momentum concerns
China’s manufacturing activity contracted in October, an official gauge showed, raising concerns about growth momentum in the world’s second-largest economy.
The official purchasing managers’ index for the manufacturing sector was 49.5 this month, compared to 50.2 in September. A value of 50 or more indicates an increase compared to the previous month.
China’s economy has suffered a disappointing recovery this year following the end of Covid-19 policies, as well as a slowdown in the economically crucial real estate sector.
Tuesday’s data reverses a shift toward expansion in September, which followed five straight months of contraction.
Samsung predicts an AI-driven recovery in the memory chip market
Samsung Electronics expects the memory market to rebound next year, predicting on Tuesday that artificial intelligence applications will boost demand for chips despite a slowdown in the global economy.
“In 2024, while macroeconomic uncertainties are likely to persist, memory market conditions are expected to recover,” the world’s largest memory chip maker said.
The upbeat outlook comes after the South Korean company reported third-quarter net profit of 5.8 trillion won ($4.3 billion), down 38 percent from a year earlier but much higher than the 2 .5 trillion Won by analysts polled by Bloomberg.
Operating losses from the semiconductor sector fell to 3.8 trillion won in the July-September quarter. That compared with a Won4.4 trillion loss in the previous three-month period.
Australian pension fund opposes takeover of Origin by Brookfield-led group
Australia’s largest pension fund has said it will vote against the Brookfield-led takeover of energy company Origin, after saying an $11.9 billion offer materially undervalues the company.
AustralianSuper owns a 13.7 percent stake in Origin, having increased its stake in recent weeks. The fund has joined a number of shareholders who argue that the offer for Origin made last November is too low.
The value of Origin’s stake in British Octopus has partly fueled demand for higher supply.
Toronto-based Brookfield teamed up with US investor EIG to take Origin private and break up the company. This requires 75 percent of shareholders to approve the offer.
Californian label Daou was sold to Australian Treasury Wine Estates for $900 million
Treasury Wine Estates, the Australian producer behind Penfolds, has agreed to pay $900 million for Californian luxury brand Daou Vineyards.
TWE is investing in the US as part of an asset restructuring since China – previously the largest market for Australian wine – imposed punitive tariffs in 2020.
A further $100 million earn-out has been included as part of the deal to acquire what TWE says is the fastest growing luxury wine brand in the US last year.
Shares in TWE were halted on Tuesday as part of a fundraising effort to finance the deal.
What to see in Asia today
Events: Many cities in Asia and the Pacific celebrate Halloween, but Seoul is cautiously marking the year since a wave of revelers resulted in 151 deaths and more than 80 injuries. Tokyo’s busy Shibuya district has instituted a policy against drinking alcohol on the streets, fearing a similar crush. Anime Tokyo Station opens in the Ikebukuro district of the Japanese capital. The Association of Japanese Animations and the Tokyo metropolitan government signed an agreement earlier this year to open a landmark building dedicated to Japanese visual arts.
Central banks: The Bank of Japan will conclude its two-day policy meeting and release new quarterly growth and inflation forecasts, while the Reserve Bank of New Zealand will issue an activity report.
Economic indicators: Japan releases unemployment figures for September. China releases official manufacturing purchasing manager index data for October. South Korea reports industrial production and retail sales for September. The ANZ New Zealand Business Confidence Index for October is available.
Operating results: Foxconn Industrial Internet and Yum China are among the companies reporting third-quarter data. Indian telecom company Bharti Airtel and Japan’s Daiichi Sankyo, Denso, Japan Tobacco, Mitsubishi Electric and Mitsui & Co announce second-quarter results.
SolarWinds sued by SEC after 2020 breach by Russian hackers
SolarWinds, the IT company that was hacked by Russian hackers in 2020 as part of an extensive espionage campaign, has been charged by the US Securities and Exchange Commission.
The SEC filed a complaint Monday accusing the company and chief information security officer Timothy Brown of misleading investors by failing to disclose “known risks” and accurately portraying cybersecurity measures.
“We allege that for years SolarWinds and Brown ignored repeated warning signs about SolarWinds’ cyber risks, which were known throughout the company and led one of Brown’s subordinates to conclude, ‘We are far from being a security-focused company. ‘” Gurbir Grewal, director of the SEC’s enforcement division, said in a statement.
S&P upgrades Ford as cost savings are expected to offset the new labor contract
S&P upgraded Ford to investment-grade territory, citing the automaker’s improving margins and expectations that its cost-cutting program would “more than offset higher labor costs.”
In a Monday update, the ratings agency moved Ford from double-B plus to triple-B minus.
Ford last week reached a tentative agreement with the United Auto Workers union that would increase members’ wages by 25 percent over four years, following a historic 40-day strike against the traditional Big Three domestic automakers.
S&P’s move comes after Fitch upgraded the company to investment grade status in September.
Moody’s moved the company to the top of junk territory in July.
The Bank of Canada’s rate-setting group has “not yet begun” discussing when to cut
A top Bank of Canada official has said the body that sets the central bank’s monetary policy has not yet discussed when to cut interest rates.
Once the bank is confident that inflation will fall and remain at that level, “we will start thinking about lowering rates, but we’re just not there yet,” Deputy Governor Carolyn Rogers told the House of Commons on Monday. country.
The “BoC board has not yet started talking about when we will cut rates,” she said.
The bank kept its key interest rate at 5 percent last week as officials want to give monetary policy time to cool the economy and ease price pressures, BoC Governor Tiff Macklem told lawmakers.
The S&P 500 posts its biggest gain in two months as the Fed meeting approaches
Stocks on Wall Street closed higher and oil prices fell at the start of a week of closely watched economic data, focused on the Federal Reserve’s upcoming interest rate decision.
The benchmark S&P 500 closed 1.2 percent higher, marking its biggest single-day gain since late August. The technology stock exchange Nasdaq Composite also gained 1.2 percent.
In government bond markets, government bond yields also rose slightly, signaling a decline in prices. Brent crude fell about 3 percent to remain below $90 a barrel.
Markets are currently pricing in the likelihood that the Fed will keep interest rates unchanged within a range of 5.25-5.5 percent when it announces its policy decision on Wednesday.