Economy

The PBOC left its one-year LPR at 3.45%, while the five-year LPR, which is used to determine mortgage rates, was left unchanged at 4.20% in the PBOC’s first rate decision of 2024.Both LPR rates were at historic lows after a series of cuts over the past four years, as the PBOC loosened monetary policy in the face of slowing economic growth.Monday’s move was largely in line with market expectations after the central bank unexpectedly kept its medium-term lending rates on hold earlier in January, although it also maintained its near record-high pace of liquidity injections.The LPR is determined by the PBOC based on considerations from 18 designated commercial banks, and is used as a benchmark for lending rates in the country.The PBOC had cut the rate further into record-low territory over the past two years, as it struggled to further stimulate Chinese lending conditions and support an economic rebound. But its measures have had little effect so far, with recent data confirming that a post-COVID economic rebound largely failed to materialize in 2023.China’s gross domestic product grew less than expected in the fourth quarter, and also barely edged past a 5% government target for the year, as weakening export demand added to economic pressure from sluggish domestic spending and investment.The PBOC has also repeatedly signaled reluctance towards cutting the LPR further, stating that such a move could cause more weakness in the yuan and also destabilize the banking sector.With the central bank’s liquidity measures providing little support to the economy, investors have ramped up calls for more targeted, fiscal measures from Beijing. But such measures also appear unlikely as China grapples with high levels of government debt.Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don’t forget to use the discount code when checking out! More

SYDNEY (Reuters) – Asian shares followed Tokyo higher on Monday as AI hype helped the tech sector ahead of a week brimming with central bank meetings, major economic data and corporate earnings. Chip stocks have been on a roll since Taiwan Semiconductor Manufacturing (TSMC) upgraded its profit outlook last week on booming demand for high-end chips used in AI applications, sending the Nikkei to a fresh 34-year peak. The index climbed another 0.8% early on Monday, to be up 8.3% so far in January.Chipmakers, including Nvidia (NASDAQ:NVDA) and Advanced MicroDevices, were among the beneficiaries of the AI-driven rally.That should sharpen attention on results from Intel (NASDAQ:INTC) and IBM (NYSE:IBM) this week, along with Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), Lockheed Martin (NYSE:LMT) and a host of others. S&P 500 futures edged up 0.1%, after notching a record close on Friday, while Nasdaq futures added 0.3%.MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.3%, after taking a drubbing last week. The index has been pressured by weakness in China’s markets, which hit five-year lows last week and sparked speculation state funds were having to support stocks.Beijing still seems reluctant to deliver aggressive stimulus and the central bank is expected to again skip on a rate cut in its market operations on Monday.The Bank of Japan is also expected to keep policy super-easyat a meeting on Tuesday, helped by a second month of slowdown in consumer prices. The general assumption among analysts is the central bank will want to see if the spring wage rounds deliver strong growth before deciding whether to nudge toward tightening.”Drawing on the first ‘shunto’ results released mid-March and the April branch managers’ meeting, the BoJ will be able to confirm the sustainability of wages and exit negative interest rate policy in April,” wrote analysts at Barclays in a note.”Thereafter, we expect gradual rate hikes from H2 24, but policy rates should remain well below neutral.” ECB IN NO RUSHThe European Central Bank (ECB) meets on Thursday and is considered certain to hold steady, given recent hawkish commentary from top officials.”A March cut still makes sense, but the push back from ECB officials has been potent in recent days, making a June cut more likely,” said Giovanni Zanni, an economist at NatWest Markets.”Data have continued to support our long-held view that the ECB probably went too far in its rate rising cycle,” he added. “We believe that a delay will likely imply the need for a bolder first move, with a 50bp cut more likely than a 25bp one.” Futures have priced in 40 basis points of easing by June, with a first cut in May implied at a 76% chance.Central banks in Canada and Norway also meet this week and no change to rates is expected.Hawkish talk has also seen markets scale back the probability of a March cut from the Federal Reserve to 49%, from around 75% a couple of weeks ago. Yet, a first easing of 25 basis points in May is more than fully priced.Fed officials are in blackout this week ahead of the next meeting on Jan. 30-31.Prospects for an early easing could be affected by data on U.S. economic growth and core inflation due later this week.Gross domestic product is seen running at an annualised 2% pace in the fourth quarter, while the core personal consumption price index is seen slowing to an annual 3.0% in December, down from 3.2% the previous month and the lowest since early 2021.Recent data has tended to surprise on the high side, one reason yields on 10-year Treasuries climbed almost 20 basis points last week to last stand at 4.13%.That shift underpinned the dollar, which hit a five-week high on a basket of currencies. It was up at 148.13 yen, having jumped 2.2% last week, while the euro was idling at $1.0893 after easing 0.5% for the week. All of this left non-yielding gold looking unattractive at $2,028 an ounce. In the oil market, worries about global demand has so far offset the threat to supply from tensions in the Middle East.Brent was off 23 cents at $78.33 a barrel, while U.S. crude for January eased 9 cents to $73.16 per barrel. More

Australia is the world’s fifth biggest producer of mined and refined nickel, with output led by BHP Group (NYSE:BHP).Following are moves by nickel producers and developers to cope with the slump:* Wyloo Metals, a private investment company owned by iron ore billionaire Andrew Forrest, said on Monday it will put its Australian Kambalda nickel operations on care and maintenance at the end of May as a result of low nickel prices.* Diversified miner South32 (OTC:SOUHY) said on Monday it had commenced a strategic review of its nickel operation Cerro Matoso in Colombia to evaluate options to improve its competitive position amid a sharp downturn in the nickel market.* BHP, the world’s biggest listed miner, said on Jan. 18 it was reevaluating its nickel business. Analysts said it may need to write down its $1.2 billion West Musgrave project and could potentially delay it. It will provide more detail at its half year earnings on Feb 20.BHP signed a deal to supply nickel to Tesla (NASDAQ:TSLA) in 2021. * Canada’s First Quantum Minerals (OTC:FQVLF) said on Jan. 15 it will cut jobs and production at its Ravensthorpe mine in Australia due to a “significant” downturn in prices that it expects to last three years.* Panoramic Resources went into voluntary administration in December. On Jan. 8, its administrators said operations at its Savannah nickel project would be suspended as the “prospect of achieving a near-term turnaround of operations and finances is low”. The project remains up for sale.* Battery materials producer IGO flagged in December it expects to book a further impairment to its Cosmos nickel project when it reports on Jan. 31, adding to an almost A$1 billion writedown in the 2023 financial year. More

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(Reuters) – A look at the day ahead in Asian markets.An interest rate decision in China kicks off the week in Asia on Monday with investors hoping – forlornly, perhaps – that the central bank will provide some much-needed relief for the country’s sluggish economy and creaking markets.This will be followed by the Bank of Japan’s policy decision and guidance the next day – an equally-anticipated event, but for different reasons – meaning trading activity and volume should start the week on a strong note.Especially in foreign exchange.The Chinese yuan and Japanese yen both go into their respective central bank meetings on the defensive against the dollar. The yuan last week touched a two-month low and the yen’s accumulated year-to-date losses reached 5%.Indeed, out of nine Asian currencies only the Indian rupee is up against the dollar this year. And even then, only by a whisker. The dollar is also up against every one of its rival G10 currencies even though the Fed is still expected to cut rates by more than any other major central bank in the world this year, despite the recent pullback.Asian stocks should have a decent spring in their step on Monday after the S&P 500 hit a new all-time high on Friday.The rise in global stocks was sparked by Taiwanese chipmaker Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker. On Thursday it projected more than 20% growth in 2024 revenue on booming demand for high-end chips used in AI. The MSCI Asia Pacific ex-Japan index rose more than 1% on Friday but still fell for a third consecutive week, and is down more than 5% year-to-date. Chinese stocks are languishing around five-year lows, foreigners are pulling money out of the country, and the yuan is falling. Beijing is under pressure to act, but is nervous about the debt and FX risks associated with more stimulus.The central bank on Monday is expected to leave the benchmark one- and five-year loan prime rates (LPR) unchanged at 3.45% and 4.20%, respectively. More disappointment for investors, or is it already priced into the currency and stocks?Meanwhile, the BOJ is also expected to leave policy unchanged on Tuesday, and with inflation continuing its downward slide towards the BOJ’s 2% target, the pressure to ‘normalize’ policy and reverse negative interest rates is easing.The yen is on the defensive and, despite an understandable wave of profit-taking after hitting 34-year highs, Japanese stocks could be set to rise again on Monday.Other key events on the Asia/Pacific economic and policy calendar this week include South Korean GDP, Tokyo inflation, an interest rate decision in Malaysia, and consumer inflation figures from New Zealand, Vietnam, Singapore, Hong Kong and Malaysia.Here are key developments that could provide more direction to markets on Monday: – China interest rate decision- Malaysia CPI inflation (December)- Hong Kong CPI inflation (December) (By Jamie McGeever; Editing by Deepa Babington) More

Nvidia Corporation (NASDAQ:NVDA), the behemoth in the accelerated computing and graphics processing unit (GPU) market, continues to make headlines on Wall Street with its strategic positioning and innovative product offerings. Known for its GPUs for gaming and professional markets, as well as system on chip units (SoCs) for mobile computing and automotive applications, Nvidia’s influence spans across various sectors including gaming, data centers, automotive, and cryptocurrency markets.Analysts have cast a favorable eye on Nvidia, with many maintaining a strong outlook on the company’s stock. The consensus among several top financial research firms is that Nvidia is poised for continued growth, with ratings ranging from “Outperform” to “Buy.” Notably, Nvidia has been included in BMO Capital Markets’ Top 15 List Member as a U.S. Large Cap Stock, reflecting confidence in its market dominance and financial health.Despite some firms holding a “Neutral” stance, citing concerns about overly optimistic future estimates and potential competition, the prevailing sentiment is bullish. Price targets set by these firms suggest substantial upside potential, with figures reaching as high as $750, indicating strong confidence in Nvidia’s growth trajectory.Nvidia’s financial health appears robust, with significant growth in its data center revenues, attributed to the H100-based HGX platforms. The company has reported a 41% increase quarter-over-quarter and a staggering 279% increase year-over-year, totaling $14.51 billion. This growth is a testament to Nvidia’s strong presence in the AI and data center space, with projections indicating continued revenue expansion across various segments.The competitive landscape for Nvidia remains favorable, with the company maintaining a dominant share of the discrete graphics market. Nvidia’s strategic moves to comply with U.S. government restrictions, such as developing DC AI chips for the Chinese market, have kept it resilient in the face of geopolitical tensions. The company’s upcoming product launches, including the highly anticipated X100 GPU and the development of Arm-based CPUs for Windows PCs, are expected to bolster its competitive edge further.While Nvidia’s performance is strong, external factors such as U.S.-China trade restrictions and the possibility of market saturation present potential risks. However, Nvidia’s ability to navigate regulatory challenges effectively and its leadership position in AI technology may mitigate these concerns. The company’s focus on energy-efficient solutions also aligns with environmental sustainability trends, which may provide additional tailwinds.While Nvidia’s current market position is robust, the bear case revolves around the sustainability of its growth. Analysts express concern over the intense competition from various processor companies and internal chip designs by internet giants. With substantial revenue derived from gaming and data center markets, Nvidia faces concentration risks. Additionally, its fabless business model’s reliance on third-party manufacturers like TSMC and Samsung (KS:005930), coupled with geographic exposure risks due to global operations, particularly in China, could pose challenges.Regulatory challenges, especially the U.S. government’s restrictions on shipments to China, could impact Nvidia’s long-term growth. While the company has shown adaptability by developing compliant alternatives, there is a bearish perspective that these restrictions could lead to a market digestion period where valuation might compress before presenting a buying opportunity.Nvidia’s stronghold in the AI and data center markets is expected to drive its future growth. Analysts are bullish about the company’s strong AI-related order momentum, particularly with products like the H100. With minimal competition expected for Nvidia in AI enterprise and sovereign investments in AI presenting a multi-billion dollar opportunity, the company’s growth prospects remain bright.New product launches are anticipated to maintain Nvidia’s market dominance. The launch of the X100 GPU and the introduction of Nvidia’s Grace CPU have garnered high interest from hyperscalers and enterprise customers. These innovations, along with Nvidia’s strategic production shifts to higher-margin products, are expected to drive revenue growth and expand its market share.Strengths:Weaknesses:Opportunities:Threats:This deep-dive analysis uses information from analyses dated from October 2023 to January 2024.Nvidia Corporation (NVDA) stands out in the technology sector with a series of positive indicators that may interest investors looking for growth and stability. According to the latest data from InvestingPro, Nvidia boasts a substantial market capitalization of $1.47 trillion, underscoring its heavyweight status in the industry.InvestingPro Tips highlight Nvidia’s perfect Piotroski Score of 9, which suggests that the company is financially healthy and has sound business operations. This is particularly noteworthy for investors who prioritize financial strength and stability in their investment choices. Additionally, analysts predict that Nvidia will experience net income growth this year, reinforcing the optimistic outlook on the company’s profitability.From a valuation perspective, Nvidia’s P/E ratio stands at 77.24, which, when paired with its PEG ratio of 0.35 for the last twelve months as of Q3 2024, indicates that the company may be trading at a low price relative to its near-term earnings growth. This metric could be appealing for value investors seeking growth at a reasonable price.For those interested in more detailed analysis and additional insights, InvestingPro offers an extensive list of tips, with 25 more available to subscribers. These tips can provide a deeper understanding of Nvidia’s stock performance and potential investment opportunities.InvestingPro subscription is now on a special New Year sale, with discounts of up to 50%. To get an additional 10% off a 2-year InvestingPro+ subscription, use coupon code SFY24, or use SFY241 for an additional 10% off a 1-year subscription.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Eli Lilly and Company (NYSE:LLY) has been a topic of interest among Wall Street analysts, with a focus on its biopharmaceutical offerings, particularly in the diabetes care and obesity treatment sectors. The company’s strategic positioning, product pipeline, and recent launches have painted a picture of a firm with strong growth prospects in a competitive landscape.Eli Lilly holds a notable presence in the healthcare sector, with its market capitalization reaching upwards of USD 587.194 billion as of early January 2024. Analysts have consistently given the stock an “Overweight” rating, indicating a bullish stance on the company’s performance and future prospects. The price target for Eli Lilly has been set at USD 630.00 by multiple firms, reflecting confidence in the company’s growth trajectory.Eli Lilly’s diabetes care products, particularly the GLP-1 class drugs like Mounjaro (tirzepatide) and the newly approved Zepbound, have been the stars of the show. Mounjaro has seen a consistent increase in total prescriptions (TRx), indicating strong uptake and market share gains. Zepbound, too, has shown an upward trend in prescriptions, signaling expanding reach and acceptance ahead of broader availability.The company’s strategic move to launch LillyDirect, a direct-to-consumer platform in partnership with Form Health, has been a significant development. This program is expected to drive uptake of Zepbound by lowering barriers for new patient starts and improving margins by cutting out intermediaries like PBMs and pharmacies.Analysts have projected substantial revenue and earnings per share (EPS) growth for Eli Lilly. For the fiscal year 2023, EPS estimates hover around 6.60, with a significant jump to 12.42 for FY2024. This growth is attributed to the strong performance of key products and the company’s robust pipeline. Eli Lilly also offers a dividend of $5.20, maintaining a yield of 0.8%, which adds to its attractiveness for investors seeking both growth and income.Eli Lilly faces competition from other pharmaceutical giants, particularly in the GLP-1 drug class. However, its products have outperformed competitors like Novo Nordisk (NYSE:NVO)’s Wegovy, which has faced supply challenges. Eli Lilly’s reliable supply and differentiated offerings in the metabolic space have provided it with a competitive edge.The company’s strategic investments in gene editing technology and partnerships, such as the acquisition of rights to VERV’s ASCVD programs from BEAM, showcase its commitment to expanding its cardiovascular drug portfolio. Eli Lilly’s resources and expertise in this domain are expected to aid in advancing these programs.While Eli Lilly has seen success with its diabetes and obesity drugs, the broader GLP-1 drug class has shown signs of a slowdown. This could indicate emerging competition or saturation in the market, which may challenge Eli Lilly’s ability to maintain its growth pace.The pharmaceutical industry is heavily regulated, and any potential regulatory hurdles could affect the approval or commercial success of Eli Lilly’s products. This risk is ever-present and could impact the company’s future performance.The launch of LillyDirect is expected to significantly boost Zepbound sales by making it easier for patients to access the medication. This innovative approach to drug distribution could set a new standard in the industry and drive Eli Lilly’s revenue growth.Eli Lilly’s promising pipeline, including upcoming submissions like the Alzheimer’s drug donanemab, positions the company for sustained growth. The anticipated approval and launch of these drugs could lead to significant market impact and further bolster the company’s financial stability.Strengths:Weaknesses:Opportunities:Threats:The analysis provided spans from January to October 2023, offering a comprehensive view of Eli Lilly’s position and prospects within the pharmaceutical industry.Eli Lilly and Company’s (NYSE:LLY) performance has drawn significant attention, with its stock trading near its 52-week high at 97.04% of the peak value. The company’s robust market capitalization of 565.29 billion USD underscores its significance in the pharmaceutical industry. Investors have taken note of Eli Lilly’s financial health, as indicated by its high Price / Book multiple of 50.35 as of the last twelve months ending Q3 2023, suggesting a premium valuation in the market.On the dividend front, Eli Lilly has demonstrated a strong commitment to its shareholders. It stands out with a track record of raising its dividend for 9 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This consistent performance is a testament to the company’s financial stability and its status as a prominent player in the Pharmaceuticals industry, which aligns with the company’s strategic positioning highlighted in the article.For investors looking for additional insights, the InvestingPro+ platform provides a comprehensive array of metrics and analysis. Currently, there are 17 additional “InvestingPro Tips” available for Eli Lilly, offering deeper dives into the company’s financials, market performance, and industry standing. Interested readers can explore these tips to inform their investment decisions, especially now that InvestingPro subscription is on a special New Year sale with a discount of up to 50%. Use coupon code “SFY24” to get an additional 10% off a 2-year InvestingPro+ subscription, or “SFY241” to get an additional 10% off a 1-year InvestingPro+ subscription, enhancing the value of this investment tool.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

In the rapidly evolving landscape of China’s technology sector, JD (NASDAQ:JD).com, Inc. stands out as a significant player. As an integral part of the Internet & Media sector, JD.com has recently been the subject of analyses that shed light on its current performance and future prospects. With the backdrop of a positive industry view, the company’s journey through competitive challenges and margin improvements offers a complex but intriguing picture for potential investors.Analysts have been closely monitoring JD.com’s financial health, particularly in light of its third-quarter results, which revealed revenue in line with expectations and margins that surpassed forecasts. This strong margin performance has been pivotal in maintaining a positive outlook on the company’s stock. The early trends for the fourth quarter also appear promising, suggesting a continuation of this robust performance.Despite facing stiff competition and the growing pains associated with reorganization and business transitions, JD.com’s valuation metrics have been compelling enough for analysts to retain an Overweight rating on the stock, with a price target of $45.00. This reflects confidence in the company’s ability to navigate the competitive waters of the China Technology market.JD.com’s strategic maneuvers, particularly its reorganization efforts, have been a double-edged sword. On one hand, they reflect the company’s agility in adapting to market demands; on the other, they have introduced challenges that have slightly dampened growth expectations. Nonetheless, the company’s valuation suggests an attractive entry point for investors, signaling potential for growth despite these headwinds.The competitive environment in which JD.com operates is intense, with numerous players vying for market share. However, the company’s ability to maintain an edge through efficient operations and strategic foresight has allowed it to remain a formidable contender in the market.Analysts have provided a market capitalization figure of approximately $39.9477 billion for JD.com, underlining the company’s substantial presence in the market. The estimated earnings per share (EPS) for the following fiscal years are 21.00 and 25.07, respectively, indicating expectations of profitability in the company’s operations moving forward.The bearish perspective on JD.com centers around the intense competition in the China Technology space. The company’s growth could be hindered by rivals that are also aggressively pursuing market share. Additionally, the timing of JD.com’s reorganization and business transition efforts could pose risks to its growth trajectory, as these internal changes may distract from its core competencies and market focus.The restructuring process is always fraught with uncertainty, and for JD.com, this internal shakeup comes at a time of fierce market competition. Investors may be concerned about the company’s ability to keep its footing while implementing significant organizational changes. If not managed carefully, these changes could lead to operational disruptions and a loss of strategic direction.Analysts see JD.com’s current valuation as an attractive proposition for investors. Despite the challenges, the company’s stock price appears to offer a good balance of risk and reward. The Overweight rating and a steady price target suggest that the company’s financials and market position may be undervalued, presenting a potential upside for investors.The recent quarter’s better-than-expected margin performance is a bullish signal for JD.com. If the company can sustain or improve these margins in the face of competition and internal restructuring, it could lead to increased profitability and a stronger financial position, further justifying the positive outlook held by analysts.Strengths:Weaknesses:Opportunities:Threats:In conclusion, the analysis of JD.com, Inc. spans from November 2023, providing a comprehensive view of the company’s position within the China Technology sector and its prospects for growth amidst the challenges it faces.In the fast-paced world of e-commerce, JD.com has been making headlines with its financial performance and strategic initiatives. A closer look at the company’s key metrics through InvestingPro’s real-time data reveals a nuanced picture that could influence investor sentiment.JD.com’s market capitalization stands at a robust $35.07 billion, indicating its significant footprint in the market. The company’s P/E ratio, a measure of its current share price relative to its per-share earnings, is 11.23, suggesting that the stock may be trading at a reasonable valuation compared to its earnings. Notably, the adjusted P/E ratio for the last twelve months as of Q3 2023 is even lower at 9.89, potentially signaling an attractive investment opportunity. Additionally, the company’s revenue has grown by 4.61% over the same period, a sign of its resilience and capacity for growth in a competitive landscape.InvestingPro Tips for JD.com highlight several key points for investors to consider. The company holds more cash than debt, providing financial stability and flexibility. This is particularly reassuring in an era of economic uncertainty. Moreover, analysts are optimistic about JD.com’s profitability, predicting net income growth this year. This anticipated increase in profitability, coupled with the company’s position as a prominent player in the Broadline Retail industry, could make JD.com an appealing option for investors looking for growth potential in their portfolios.For those seeking a deeper dive into JD.com’s financials and strategic analysis, InvestingPro offers a wealth of additional tips. There are 15 more InvestingPro Tips available for JD.com, covering various aspects such as stock performance, valuation multiples, and profitability forecasts.Investors interested in leveraging these insights can take advantage of the special New Year sale on InvestingPro subscriptions, now with discounts of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription. These offers could be particularly beneficial for those looking to make informed investment decisions based on comprehensive data and expert analysis.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More