Jackson Hole cancels morning session on HKEX typhoon warning

A Bank of Japan member says he wants to stick to a more relaxed policy

Bank of Japan member Toyogi Nakamura stressed the need to “patiently maintain” his stance on monetary easing, according to Reuters.

In a speech, he said tightening monetary policy when the output gap is negative will weigh heavily on households’ economic activity.

Japan keeps monetary policy very loose as other central banks raise rates aggressively. Inflation is above target in Japan, but inflation is not high in countries like the US and the UK

Nakamura said the gap between inflation in Japan and other economies is due to slower growth in wage growth.

He added that if China resumes restrictive Covid measures, it could prolong supply disruptions and affect Japan’s exports, manufacturing and capital spending.

– Jihye Lee

Buyback announcement, Qantas shares rise after earnings report

Shares of Australian Airlines Qantas The company rose as much as 10% after reporting earnings and announcing plans for a share buyback.

The company posted a pre-tax loss of 1.86 billion Australian dollars ($1.29 billion) for the 2022 financial year.

“While the first three quarters of the year were defined by waves of uncertainty caused by border closures and Covid variants, the fourth quarter saw the highest demand for travel since the pandemic began,” Qantas said in a statement.

It also announced a share buyback plan worth A$400 million, according to a filing.

“This is the first return to shareholders since 2019 and follows the $1.4 billion in equity raised at the start of the pandemic,” the company said.

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– Abigail Ng

CNBC Pro: Why Goldman Sachs thinks this FAANG stock is a selloff

FAANG stocks delivered a mixed bag of second-quarter earnings, but Goldman Sachs Holds its buy calls for almost the entire group.

According to the bank, only one share is being sold.

Pro subscribers can Read the story here.

– Javier Ong

HKEX delays morning session due to typhoon, resumes in afternoon

The windows of a restaurant at The Peak are taped off in Hong Kong on August 24, 2022, as the Hong Kong Observatory issued Typhoon Signal No. 8 released in the morning. HKEX canceled its morning session in line with the T8 release. (Photo by Isaac Lawrence/AFP) (Photo by Isaac Lawrence/AFP via Getty Images)

Isaac Lawrence | Afp | Good pictures

Typhoon signal no. 8, Hong Kong delayed its morning session due to exchange announced on its website. The session will resume in the afternoon as the signal is now reduced to T3.

“Morning trading sessions will be canceled for all markets if Typhoon Signal No. 8 or higher, or any announcement of extreme conditions is issued at 9:00 am,” it said.

HKEX’s session resumption guidance on its website states, “Trading will resume in the first half hour after the cessation of Typhoon Signal No. 8 or any severe conditions notification approximately two hours later.”

– Jihye Lee

Bank of Korea raises interest rates

The Bank of Korea raised the country’s key interest rate by 25 basis points to 2.50%.

The move was in line with a Reuters poll, where all but one of 36 economists had predicted the hike. One expected a 50 basis point rise.

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That’s a 50 basis point increase from July – the biggest increase since the Bank adopted monetary policy in 1999, with GDP growth expected to be “below the May forecast of 2.7%”.

Central Bank Governor Ri Sang-yong is expected to hold a press conference in the morning to explain today’s decision.

– Jihye Lee

CNBC Pro: Morgan Stanley Likes These ‘Cheap’ Stocks Even in UBS Recession

The risk of recession is growing Canaccord GenuityInspectors led by Tony Dwyer.

“As our indicators move into next year, especially if the Fed continues to raise rates, there is a growing possibility of a recession,” the Aug. 22 research note said.

But according to Morgan Stanley And UPSSome stocks still look cheap – even at depressed prices. Here are some of the stocks they love.

Pro subscribers can Read the story here.

– Javier Ong

Treasury yields rise on expectations of a hawkish Jackson Hole Fed meeting

On the assumption that the market outlook is more bleak than the central bank’s, Wyo

The three-day event begins Thursday, and the market is focused on Friday morning’s speech by Federal Reserve Chairman Jerome Powell.

A hawkish view of the federal market based on comments ahead of the meeting. For example, some central bank officials are pushing back on the market view that the central bank may cut interest rates after it finishes raising interest rates next year.

Yields, which move opposite prices, tend to move higher based on expectations that rates will be kept at high levels for a longer period of time, emphasizing an aggressive policy to fight inflation. The 10-year yield It hit 3.11% on Wednesday morning, the highest since late June.

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“I think the bond market is trying to understand Powell’s view of this policy reversal in 2023,” said Jim Caron of Morgan Stanley Investment Management.

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