45 minutes ago
Reduction in activities at Chinese factories becomes even more serious in December
China’s manufacturing activity contracted further in December 2023, indicating that economic recovery is likely to require further policy support.
Official data released over the weekend showed China’s Manufacturing Purchasing Managers’ Business Conditions Index stood at 49 in December, the third straight month of decline and above the 49.5 expected in a Reuters poll.
A PMI reading below 50 means the economy is contracting.
The manufacturing PMI in December was also the sharpest decline since June 2023, falling further from November’s 49.40.
The Caixin Manufacturing Business Index for December will be released later this day.
— Shreyashi Sanyal
56 minutes ago
Australian factory activity shrinks at fastest pace since May 2020: Judo Bank
Australian factory activity in December was the sharpest contraction since May 2020, according to a private survey by Judo Bank.
The country’s manufacturing Purchasing Managers’ Index was 47.6 in December, down from 47.7 in November, marking the 10th consecutive month of negative figures.
The bank said in a release that this was primarily due to a further deterioration in demand for Australian manufacturing, with new orders for Australian manufactured goods declining for the 13th consecutive month.
This was due to pressure from weak economic conditions and high interest rates, and external demand was also weak, the central bank added.
— Lim Huijie
1 hour ago
CNBC Pro: Is it time to invest in alternative assets? Pros aren’t so sure
From family offices to financial advisors, interest in alternative assets appears to be on the rise, but there seems to be controversy over whether individual investors should invest in them.
Caesar Sengupta, CEO of financial services firm Alta Finance, argues that there is “incredible value in the private market” and that this asset should not be overlooked.
Saxo’s chief investment officer Steen Jacobsen has argued elsewhere that retail investors need to be cautious when dabbling in alternative investments.
“I think you need more knowledge than an individual individual investor to get into these. My advice is not to buy, even if it’s priced perfectly,” he said, adding that he doesn’t know which assets he wants to buy in 2024. He added that he was bullish about the class.
CNBC Pro subscribers can read more here.
— Amara Balakrishna
1 hour ago
CNBC Pro: Goldman Sachs says these three big oil companies are ‘reviewed as attractive’, giving one company 33% upside potential
Energy stocks may have had a tough year, but Goldman Sachs sees a future in big European oil, naming integrated oil stocks as its theme for the new year.
“We’re at a tipping point, with major European oil companies starting to outperform major U.S. oil companies and potentially closing the 40% valuation gap with their U.S. peers,” said an analyst at the investment bank.
That’s why investment banks have given a positive outlook for Big Oil, even as oil prices have risen as major shipping lines and oil carriers halted sailings through the Red Sea. The oil outlook for 2024 is also disappointing, with the International Energy Agency expecting the economic slowdown to continue next year.
Still, Goldman points out that “the major EU oil companies are now being screened as attractive thanks to their enhanced buyback programs, leading to double-digit cash returns for shareholders.” I mentioned it.
CNBC Pro subscribers can read more here.
— Amara Balakrishna