Japan Reuters Tankan, Japan Trading, Singapore NODX | Wilnesh News

According to reports, Japanese chip manufacturer Kioxia plans to conduct an initial public offering in 2024. According to the Nikkei newspaper.

According to the report, the company will be listed on the Tokyo Stock Exchange as soon as 2024 to “secure investment funds and meet the high demand for memory chips driven by the proliferation of artificial intelligence.”

Reuters, Bain Capital has proposed a listing as part of Kioxia’s plan to refinance a $5.8 billion loan due in June, people familiar with the matter said.

Kioxia, formerly known as Toshiba Memory, was acquired by a Bain-led group in an $18 billion spin-off in 2018.

— Lim Hui Jie

Ajay Rajadhyaksha, chairman of Barclays Global Research, expects the Fed to change its interest rate forecast and cut interest rates only once this year.

“The fact is that the inflation numbers have risen significantly over the past three months, which hits you hard,” he said, adding that this complicates the central bank’s calculations for rate cuts.

On Tuesday, Federal Reserve Chairman Jerome Powell emphasized that the U.S. economy has not yet seen inflation return to the central bank’s target, suggesting that a rate cut is unlikely anytime soon. Fed officials stuck to their plan for three interest rate cuts in 2024 in their latest update in March.

Rajadhyaksha said Powell clearly wants to cut rates, “but after the CPI in March, I think he’s going to be in trouble. I would be shocked if they don’t change their forecasts and call for a rate cut in 2024.”

— Sumati Bhalla

Rating agency Fitch Downgrade its outlook On the Long-Term Default Ratings of Chinese Tech Giants Alibaba and Tencent From “stable” to “negative”.

The agency said the move was consistent with a similarly sharp cut in its outlook for China on April 9.

Fitch writes that this “reflects our view that the underlying credit quality of these companies should not exceed sovereign credit quality given their predominantly domestic operations and the level of government regulation, oversight and intervention in their industries.”

However, the long-term default ratings on both companies’ senior debt were affirmed at “A+”.

Alibaba’s shares fell 1.31%, and Tencent’s shares fell 0.53%.

Exported from Japan The annual growth rate was 7.3% in March, slower than the 7.8% growth rate in February.

However, the figure was higher than the 7% increase expected by economists polled by Reuters.

The country’s imports fell 4.9% compared with the same period last year, contrary to February’s 0.5% increase.

As a result, Japan’s trade surplus climbed to 366.5 billion yen ($2.37 billion), compared with a Reuters forecast of 299.9 billion yen.

— Lim Hui Jie

A Reuters Tankan survey for April showed business optimism among Japan’s largest companies dimmed as a weak yen weighed on households.

The manufacturer sentiment index was +9, down from +10 last month. A positive number means there are more optimists than pessimists and vice versa.

Reuters said that despite gains among retailers, the services index fell to +25 from +32 last month.

The monthly Reuters Tankan Index is widely considered the leading indicator of the Bank of Japan’s quarterly Tankan survey.

— Lim Hui Jie

Against a backdrop of geopolitical risks, rising bond yields and macroeconomic uncertainty, investing in increasingly volatile markets is no easy task.

This unpredictability has led some analysts to reiterate recommendations to buy dividend stocks.

“The market has priced in expectations that the Federal Reserve will cut interest rates starting in March. The terms “unable to land” and “sticky inflation” have reared their heads again. These translate into higher UST bond yields, which is particularly beneficial for dividend stocks outperforming the market.

CNBC Pro subscribers can read more here.

— Amala Balakrishna

Investment bank Jefferies predicts that shares of cybersecurity companies will rise nearly 100% from current levels.

The stock appears to have momentum, with shares up 75% over the past year and more than doubling since hitting all-time lows in early 2023.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Federal Reserve Chairman Jerome Powell said on Tuesday that interest rates may need to remain higher for longer as the fight to curb inflation continues.

Powell told the panel that there has been little progress in lowering price growth this year. Therefore, he said monetary policy may need to remain unchanged.

“Recent data point to solid labor market growth and continued strength, but there is a lack of further progress so far this year toward returning to our 2% inflation goal,” the Fed chairman said.

“Recent data clearly do not give us greater confidence, but rather suggest that achieving that confidence may take longer than expected,” he said. “That said, we believe policy is adequate to address the risks we face.”

— Alex Harlin, Jeff Cox

Tom Donilon, national security adviser during the Obama administration, said Iran’s weekend air strikes on Israel increased long-term risks in the Middle East.

Crude prices have fallen over the past two sessions as fears of a wider war eased after Israel and its U.S.-led allies successfully repelled attacks. But Donilon said the current conflict cycle was not over yet and that Israel could respond to an attack.

Donilon, who is also chairman of the BlackRock Investment Institute, said Iran is now prepared to respond directly, in many cases from its own soil, to any Israeli attack on any Iranian interests or individuals.

“In the long term, this is a structural increase in the risk profile,” Donilon said. The former national security adviser said he was increasingly concerned about the risk of terrorist attacks in the West as Israel’s war with Hamas continues.

“The longer this goes on, the more worried I am about the ripple effects of terrorism in the United States and especially in Europe,” Donilon said. He said the number of potential threats and plots that have been foiled, particularly against Jews, is extraordinary. Institutional threats and conspiracies.

Donilon’s remarks were interrupted by protesters calling on Colombia to divest from fossil fuels.

— Spencer Kimball

Federal Reserve Governor Philip Jefferson said on Tuesday that he expected inflation to continue to fall as the central bank continues to implement restrictive policies.

“My baseline outlook remains that inflation will fall further, policy rates will stabilize at current levels, the labor market will remain strong, and labor demand and supply continue to rebalance,” Jefferson said in discussing how to achieve that goal. Over the years, policy has The formulation has changed.

“Of course, the outlook remains quite uncertain and if incoming data suggest that inflation is more persistent than I currently expect, then it would be appropriate to maintain the current restrictive policy stance for longer,” he added.

The market currently expects the Fed to keep interest rates unchanged until September and then slowly begin to cut interest rates.

— Jeff Cox