US CPI, China CPI, China PPI

Apple supplier Foxconn is considering introducing a rotating CEO system to develop future talent, Reuters reports.

“The plan is in response to repeated calls from investors to strengthen corporate governance by separating the role of CEO from that of the chairman,” Reuters reported, citing people familiar with the matter. I told him.

Mr. Young Liu has been serving as both Chairman and CEO of the 50-year-old Taiwanese company since 2019. Liu succeeds founder Terry Gou, who served in both roles until his retirement in 2019.

— Reuters

Exports from the Philippines increased at the fastest rate since October 2022, increasing 15.7% year-on-year in February.

Imports increased by 6.3% year-on-year, reversing the revised 6.1% decline in January. As a result, the country’s trade deficit narrowed from $4.22 billion to $3.65 billion.

The Philippines’ total trade in February was $15.46 billion, an increase of 9.7% from the same period last year.

— Lim Huijie

The Japanese yen continued to fall against the US dollar late Wednesday, passing the 153 yen milestone and hitting a high of 153.17.

At this level, this was the weakest yen against the dollar since 1990. The yen subsequently recovered and was trading around 152.8 yen.

Reuters reports that early Thursday, Japan’s top currency diplomat Masato Kanda said recent movements in the yen have been “rapid” and that authorities intend to eliminate any measures to address excessive exchange rate fluctuations. He said no.

— Lim Huijie

Citi has identified digital advertising and marketing services companies as high-risk but potentially attractive investment opportunities.

Analysts at the investment bank said that while the short-term outlook remains uncertain, “there may still be much to look forward to in the medium term.”

Wall Street banks predict the “attractive” but “high-risk” stock could rise 280% over the next 12 months.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Attractive returns and breadth of opportunity are among the many reasons why the United States has historically held the top spot among investors.

While the global superpower still has “some areas that look good” in terms of value, Stephen Glass, investment analyst at Pella Funds Management, is looking at opportunities elsewhere. There is.

“There are still areas where it could be valuable, but generally outside the U.S.,” said Glass, a managing director at an investment firm, naming the markets and stocks he is currently betting on.

CNBC Pro subscribers can read more here.

— Amara Balakrishna

The dollar rose sharply on Wednesday after stronger-than-expected inflation in March, pushing the greenback to its highest level against the yen since the mid-1990s.

The dollar index, which measures the dollar’s value against six major currencies, rose 1.1% to 105.22. The dollar was last up 0.7% against the yen at 152.895 yen, its highest level since the mid-1990s.

— Ha-Kyung Kim, Reuters

The better-than-expected consumer price index in March has led some investors to take a more bearish stance on the Federal Reserve’s rate cut schedule. Some investors and strategists said companies’ first-quarter results will be a key indicator of the market’s direction after a strong rally over the past year.

Let’s see what some of them said.

• Seema Shah, Chief Global Strategist at Principal Asset Management, said: “Today’s important CPI result makes a rate cut very unlikely and likely seals the fate of the June FOMC meeting, even if inflation cools to a more comfortable reading next month. However, there is likely to be enough caution within the Fed right now to mean that a rate cut in July may not be possible, but at that point the U.S. election will likely interfere with the Fed’s decision-making. I’ll start. ”
• John Lynch, chief investment officer at Comerica Wealth Management, said: “Stock indexes have become increasingly reliant on the upcoming earnings season as companies have to deliver results to demonstrate higher valuations. If earnings disappoint, the S&P 500 index will fall between 5 and 6 in the near term. It is likely to be adjusted within a range of %.
• Sonu Varghese, Global Macro Strategist, Carson Group: “This will push back the timing of the first rate cut, as the labor market and economy are strong and there is now less urgency to cut rates.”
• Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, said: ”The world is clearly moving towards services, especially experiential consumption… The same dynamics are driving the incredible prices people are willing to pay to attend events and participate with others. You can see it. “Today’s data services inflation remains sticky,” he said, adding, “The important factor to understand here is that many of these areas are not very sensitive to interest rates, so the Fed is not pushing these prices through a blunt instrument.” “We have a very difficult task of lowering standards.” It is a policy interest rate instrument, and any rate cuts are likely to be delayed until the end of the year or beyond. ”

— Peer Singh

A key U.S. inflation measure was higher than expected, raising concerns that the Federal Reserve would not cut interest rates this year.

The consumer price index in March increased by 0.4% from the previous month. Compared to the same period last year, it increased by 3.5%. Economists polled by Dow Jones had forecast a 0.3% increase from the previous month and a 3.4% increase from a year earlier.

The CPI increase rate in March accelerated again from February’s 3.2% rise.

Core CPI, which excludes volatile food and energy prices, also rose more than expected last month.

— Fred Imbert