Samsung earnings guide, Japanese services PMI, US jobs data

Tesla has cut prices for some models in China for the second time in three months, the company announced in A Post Weibo.

The company said its Model 3 and Model Y cars in China are now priced at 229,900 yuan and 259,900 yuan, respectively.

This is a decrease of 6% to 13.5%, a separate account by Reuters show up.

Shares in Shenzhen’s list of Chinese Tesla suppliers rose on optimism that the price cut could boost demand for the electric car maker.

Shares of Anhui Shiny Electronic Technology rose as much as 10% in Asian trade and Hengdian Group DMEGC Magnetics rose nearly 9%. Zhejiang Chint Electrics rose nearly 10%, and Shandong Jinjing Science & Tech shares rose more than 7%.

– Jihe Lee

More Chinese electronic component manufacturers are set to take market share from their Taiwanese counterparts such as FoxconnKirk Yang, Chairman and CEO of Kirkland Capital, told CNBC.Squawk Box Asia” Friday.

an Apple Supplier Foxconn faces competition from Luxshare, which was I got a contract to produce the iPhone in Chinaeven as Foxconn reported record revenue and its Zhengzhou factory returned to normal life after Covid restrictions and labor unrest.

“Chinese companies are becoming very competitive for iPhone aggregators. China is doing well in almost everything, except for semiconductors,” Yang said.

Yang added that with the geopolitical tensions between China and Taiwan, Taiwanese companies in China have, in the past five years, experienced a lot of pressure. “A lot of them are leaving China,” Yang said.

That’s why Apple has to diversify, he said, adding that the technology war between the US and China is also causing companies to move faster outside of China to diversify.

– Sheila Chiang

Samsung Electronics may follow its competitors micron technology And the SK Hynix production cuts in the latter part of 2023, said Sanjeev Rana, senior analyst at CLSA.

Rana said on CNBC that the company “has no other choice but to reduce its production because stocks are building up quickly.” Squawk Box Asia Friday.

“If they don’t cut production, inventories may rise further,” he said, adding that demand for IT products has fallen in recent months, which has also caused a decline in the sale of memory chips.

On the demand side, Rana said China’s reopening could lead to double-digit growth in smartphone shipments to China on an annual basis.

Dan Pickering of Pickering Energy Partners said oil prices are expected to hover around $85 a barrel over the next five years as a result of a “lack of investment on the supply side” and potentially rising demand.

Pickering said that once China passes the Covid wave, it can be expected that “demand will increase from 1 to 2 million barrels per day,” adding that this will be supportive of commodity prices.

He added that more support will be priced in once the world emerges from the global economic downturn.

Brent Crude Futures It added 1.12%, to stand at $79.57 a barrel. Likewise, the West Texas Intermediate USA It rose 1.15%, to $74.74 a barrel.

Also reported overnight in the US Low fuel stocks in the aftermath of a winter storm, which added pressure on supplies.

– Lee Ying Chan

the People’s Bank of China The China Banking and Insurance Regulatory Commission announced approval of lower mortgage rates for first-time homebuyers if newly constructed homes have fallen in price for three consecutive months, a notice said.

Recent measures show more support from the government for the real estate sector.

Facttest data showed that home sales in China fell more than 20% year-on-year each month from last year through November. Home prices fell for the fourth consecutive month in November on a month over month basis, Reuters reported.

Hong Kong-listed real estate shares were mostly higher, with Logan Group up 5.48% and Cifi Holdings up 0.79%. The Country Garden and Longfor Group were steady in the Friday morning session.

– Jihe Lee

After an outstanding performance in 2022, energy stocks are seeing a slow start to the year.

But veteran investor Louis Navillier is unfazed. He believes the sector is poised for another boom year in 2023, and he has a number of stock picks to power it through.

Professional subscribers can Read more here.

– Xavier Ong

Japan’s services sector activity showed growth for the fourth consecutive month in December, as the Bank of Japan maintains its ultra-cautious policy, in contrast to its hawkish global counterparts.

Japan’s au Jibun Bank’s latest Services Purchasing Managers’ Index rose to 51.1, compared with the sharp decline in November’s reading of 50.3 from 53.2 in October.

The 50-point mark in PMI readings separates contraction from expansion.

the Japanese Yen It traded marginally stronger after the report and last settled at 133.38 per dollar.

– Jihe Lee

Samsung Electronics Mark the worst quarterly profit In nearly 8 years with a nearly 70% drop in operating profit last quarter, according to the latest company news Dividend Orientation.

The tech giant estimated its profit fell to 4.3 trillion won ($3.37 billion) in the October-December period due to weak global demand, after reporting a profit of 13.87 trillion won ($10.92 billion) in the previous quarter.

Shares of the tech giant rose 0.17% shortly after the guidance was issued.

– Jihe Lee

Citi’s Scott Kronert predicts a mild recession in the first half of this year and revealed three strategy calls that could help investors trade the downturn.

He shared three “higher conviction calls” with CNBC that can help investors navigate the macro environment.

CNBC Pro subscribers can read more here.

– Wizen tan

A number of factors could make 2023 a anti-inflationary year, according to St. Louis Federal Reserve Bank President James Bullard in a speech Thursday.

He noted that GDP growth likely improved in the second half of 2022 and that inflation has eased recently, although it remains very high overall.

He added that while the current policy is not “restrictive enough” it is getting close and will reach that level this year. This signaled to markets that it could retreat from the more than 5% final interest rate it sees the central bank hit before pausing or triggering interest rate increases, sending stocks off today’s lows.

He said the labor market strength seen in the midst of the hitchhiking cycle is unprecedented.

– Carmen Renick

Several under-the-radar stocks are key to the green energy transition, according to Goldman Sachs — and it expects them to take off in 2023.

The Wall Street bank said the decade-old trend of investing in large clean energy stocks will change this year, with the focus shifting to smaller supply chain companies.

The investment bank has identified seven stocks in Europe, the Middle East and Asia that will benefit from the new trend.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Here are some of the biggest stock moves during Thursday’s trading session:

Silverjet Shares of the cryptocurrency-focused bank fell more than 42% after Silvergate disclosed massive customer withdrawals during the fourth quarter. The bank said its assets from digital asset clients amounted to $3.8 billion at the end of December, down more than 60% from the previous three months. The company also sold more than $5 billion in debt securities to cover withdrawals, resulting in a loss on those sales of $718 million.

bed bath behind Retail sales of household goods fell 24% after it reported it was running out of cash and considering bankruptcy, citing weaker-than-expected sales. The company said it is exploring financial options including restructuring, seeking additional capital or selling assets, as well as the possibility of bankruptcy.

Lamb Weston Holdings The food processing company jumped 9% after it smashed its earnings and quarterly revenue estimates. Lamb Weston also raised its financial guidance for the full year.

Check out more movers here.

– Jesse Pound

Initial jobless claims rose slightly to 225,000 in the week ending Dec. 24, according to the Labor Department. But continuing claims — which counts those who have been unemployed for more than a week — are down.

Continuing claims fell by more than 24,000 to 1,569,764 in the previous week. This indicates that people are looking for new jobs amidst a strong job market.

– Carmen Renick