Pakistan pays price for climate crisis caused by other countries: minister
Pakistan is facing the worst consequences of the climate crisis, thanks in part to actions by the developed world, Finance Minister Miftah Ismail has said, as the country battles the worst floods in its history.
Ismail joins a chorus of supporters from the flooded country in saying that despite his low carbon footprint, he has borne the brunt of climate change.
“Pakistan is one of the countries most affected by climate change. We have, as you know, a very, very small carbon footprint, we don’t really produce carbon dioxide and other harmful gases,” Ismail told CNBC “Asia street signs“On Monday.
— Su-Lin Tan
The yen could exceed 150, 160 in the “coming months”, says Jesper Koll
The Japanese yen could weaken even further, Monex Group Director Jesper Koll told CNBC’s “Street Signs Asia.”
“I think the parabolic overshoot is still on track, so I think we’re going to see 150, 160 at some point in the next two months,” Koll said, pointing out that the country’s trade and current account deficit was “powerful”. factors that will weaken the yen.”
Japan’s trade increased deficit in July, fueled by a record amount of imports exceeding exports, according to official data last month.
–Jihye Lee, Charmaine Jacob
Goldman Sachs says ‘soft’ US-led regulations should boost China’s trade surplus
A “moderate level of controls” by the US government on exports to China is likely to encourage China rather than hurt the market, Hui Shan, Goldman Sachs chief China economist, told “Squawk Box Asia from CNBC.
Pointing to weaker import data as the driver of the country’s steady trade surplus, she said the latest U.S. regulations ordering Nvidia will restrict chip sales in China could instead function as an incentive.
“In some sense, this is going to incentivize China to produce more domestically, so the production aspect, especially the trade surplus aspect, could be boosted,” she said.
She added that the Chinese authorities are “playing down” its GDP growth target of 5.5% and no longer trying to prevent the Chinese yuan from hitting 7.
“Seven is just a number,” she said. “If you just look at the surface it doesn’t look that flattering, but I think the decision makers are delivering a message where they are trying to be pragmatic.”
– Jihye Lee
Barkin says he tends to ‘go faster’: FT
Richmond Fed President Thomas Barkin said in a interview with the Financial Times he has a penchant for “moving faster” rather than slow.
“I generally tend to go faster, rather than slower, as long as you don’t inadvertently break something along the way,” he told the newspaper, adding that makers will likely continue to increase. rates until they are “convinced”. that inflation is under control.
“The destination is real rates in positive territory and my intention would be to keep them there until we are really confident that we are putting inflation to bed,” he told the FT.
The probability of a 75 basis point hike at the September FOMC meeting rose to 74.0% early Wednesday morning US time, according to the CME Group’s FedWatch tool. The probability of a 50 basis point hike is now 26%, FedWatch showed.
– Jihye Lee
The Japanese yen weakens further, approaching 145
The Japanese yen weakened further to 144.35, the weakest since mid-1998 – as the US dollar index strengthened, reached a new high of 24 years against the Japanese currency.
The offshore Chinese yuan also weakened to 6.99, approaching the 7 mark, following weaker than expected trade data.
The South Korean won also weakened, surpassing the 1,380 level for the first time in more than 13 years.
Nomura cuts Chinese GDP forecast again
Nomura lowered its forecast for China’s full-year GDP to 2.7%, another downward revision from its previous estimate of 2.8% set in August.
The new outlook is based on Nomura’s analysis which found that 12% of China’s GDP is affected by Covid controls on a weighted basis, up from 5.3% last week.
Several cities, including tech hub Shenzhen, have tightened Covid controls in recent weeks after reporting new local infections. Chengdu also ordered people to stay at home while authorities conduct mass virus testing.
Read it full story here.
–Evelyne Cheng
China’s exports for the month of August are below forecasts; shows a trade surplus on low imports
China exports rose 7.1% in August compared to the same period a year ago, according to official data, estimates fell by 12.8% after an 18% rise in July.
Imports rose 0.3%, less than the 1.1% gain predicted in a Reuters poll and the 2.3% increase in July.
The country recorded a trade surplus of $79.39 billion in August, due to lower imports, after posting a record trade surplus of $101.26 billion in July.
–Jihye Lee
Oil prices fall on expectations of further rate hikes and weaker demand growth
Oil prices tear down on Wednesday following new Covid restrictions in China and expectations of further interest rate hikes around the world.
The United States West Texas Intermediate futures fell 1.45% to settle at $85.62 a barrel, while Crude Brent futures slid 1.14% to $91.77 a barrel, erasing earlier gains following the latest OPEC+ meeting and its decision to cut production.
A Reuters forecast expects WTI to extend its downtrend to $83.17 a barrel.
—Lee Ying Shan
CNBC Pro: Tensions between Russia and Europe could cause a ‘bullish shock’ in oil markets
Oil and gas inventories are expected to be boosted by heightened tensions surrounding Russian gas supplies to Europe, an analyst said.
Kenny Polcari, chief market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should focus on big U.S. energy names that are also good dividend payers.
One stock he named is up 125% this year, and he says there’s more “wiggle room.”
Pro subscribers can learn more here.
—Weizhen Tan
Australia’s economy grows 0.9% in the second quarter
Australia’s real GDP rose 0.9% in the second quarter after rising 0.7% in the previous period, official data showed.
The The Australian Bureau of Statistics said continued growth was supported by the first full quarter of border reopenings.
The data also showed that Australia’s economy grew by 3.6% over the past year. The ABS said strong domestic demand along with an increase in travel supported overall growth.
—Jihye Lee
CNBC Pro: This chip stock has convincingly beaten its peers this year — and analysts think it can go higher
After years of outperforming the market, semiconductor stocks have sold off strongly this year. But one stock emerged relatively unscathed from the market carnage. Not only did it outperform its peers, it beat the S&P 500 by a country mile.
And analysts believe that the title can still go up.
Pro subscribers can find out more here.
— Zavier Ong
US Treasury yields at highest since mid-June
A bond sell-off has propelled U.S. Treasury yields to their highest levels since mid-June as investors weigh what strong economic data means for future Federal Reserve rate hikes.
The 10-year US Treasury yield rose 3.353%, the highest level since June 16, when the yield hit 3.495%. Returns are inverse to prices.
The 30-year US Treasury yield hit a high of 3.484% and the 5-year US Treasury yield hit 3.334%, also the two highest levels seen since mid-June.
The 2-year yield also hit a daily high of 3.535%, but that’s only the highest yield for the note since Friday.
-Carmen Reinicke