Samsung earnings guidance, Japan 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 Weibo post.

The company is now pricing its Model 3 and Model Y vehicles in China at 229,900 yuan and 259,900 yuan respectively.

It is a separate calculation from 6% to 13.5% Reuters showed.

Shenzhen-listed shares of Tesla’s Chinese suppliers rallied amid hopes that price cuts could boost demand for the electric vehicle maker.

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

– Jihye Lee

And many Chinese electronic component manufacturers are poised to take market share away from their Taiwanese counterparts. FoxconnKirk Yang, president and CEO of Kirkland Capital, told CNBC “Squawk Box Asia” Friday.

Apple Supplier Foxconn faces competition from Luxshare Contract awarded for iPhone production in ChinaEven as Foxconn posted record earnings, its Zhengzhou plant returned to normal following Covid restrictions and labor unrest.

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

Along with China-Taiwan geopolitical tensions, Taiwanese companies in China have seen more pressure over the past five years, Yang added. “Many of them are leaving China,” Yang said.

This is why Apple needs to diversify, he said, adding that the US-China tech war is driving companies out of China even faster.

– Sheila Chiang

Samsung Electronics May follow its competitors Micron technology And SK Hynix reducing production by late 2023, said Sanjeev Rana, senior analyst at CLSA.

Rana told CNBC that the company “has no choice but to reduce their production because inventories are building up quickly.” Squawk Box Asia On Friday.

“If they don’t cut production, inventories could go up even more,” he said, adding that demand for IT products has fallen in recent months, causing sales of memory chips to fall.

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

Oil prices are expected to hover around $85 a barrel for the next five years, a result of “underinvestment on the supply side” and rising demand, said Dan Pickering of Pickering Energy Partners.

Once China gets through its Covid wave, Pickering said, expect “demand to increase by one million to two million barrels per day”, which will support commodity prices.

He added that once the world emerges from the global economic recession, further support prices will be set.

Brent crude futures It added 1.12% to $79.57 a barrel. Similarly, the American West Texas Intermediate A barrel rose 1.15% to $74.74.

Overnight has also been reported in the US Low fuel reserve The aftermath of the winter storm added pressure on supplies.

– Lee Ying Shan

The People’s Bank of China And the China Banking and Insurance Regulatory Commission announced it would approve lower mortgage rates for first-time home buyers if the prices of newly built homes fell for three consecutive months.

Recent moves show further government support for the property sector.

Home sales in China fell more than 20% on an annualized basis in every month through November last year, Factset data showed. Home prices fell for a fourth consecutive month in November. Reuters reported.

Hong Kong-listed property stocks were mostly higher, with Logan Group up 5.48% and Cifi Holdings up 0.79%. Country Garden and Longfor Group were even in the Friday morning session.

– Jihye Lee

After a strong performance in 2022, energy stocks are off to a slow start to the year.

But veteran investor Louis Navallier isn’t worried. He believes the sector is set for another great year in 2023, and has plenty of stock picks to play it.

Pro subscribers can Read more here.

– Javier Ong

Japan’s services sector activity showed a fourth straight month of growth in December as the country’s central bank maintained its ultra-davish policy, in contrast to its more bearish global peers.

The final au Jibun Bank of Japan Services Purchasing Managers’ Index rose to 51.1, compared with a sharp fall to 50.3 in October from 53.2 in November.

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

The Japanese yen Traded somewhat stronger after the report and last traded at 133.38 against the greenback.

– Jihye Lee

Samsung Electronics Flagged worst quarter profit According to the company’s latest report, its last quarter’s operating profit has declined by around 70% in almost 8 years Revenue guidance.

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

Shares of the technology company rose 0.17% after the guidance release.

– Jihye Lee

Citi’s Scott Kroenert expects a mild slowdown in the first half of the year and reveals three strategic calls to help investors trade the downside.

He shared with CNBC three “best hope calls” to help investors navigate the macro environment.

CNBC Pro subscribers can read more here.

– Weissen Don

There are several factors that could make 2023 an inflationary year, according to St. Louis Federal Reserve Bank President James Bullard in a speech Thursday.

He noted that GDP growth is likely to improve in the second half of 2022 and that inflation has eased recently, albeit very high overall.

He said the current policy is still not “sufficiently restrictive” but is moving closer and will reach that point this year. That signaled to markets that he could push the terminal rate back above 5%, sending stocks to the day’s lows before the central bank pauses or triggers a rate hike.

The labor market strength seen in the midst of a hiking cycle is unprecedented, he said.

– Carmen Reinicke

According to Goldman Sachs, several under-the-radar stocks are key to the green energy transition — and it expects them to begin in 2023.

The Wall Street bank’s decade-long 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 the Europe, Middle East and Asia region 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:

Silvergate – Shares of the crypto-focused bank plunged more than 42% after Silvergate revealed that it had withdrawn large amounts of customer money in the fourth quarter. The bank said it had $3.8 billion in assets from digital asset clients at the end of December, down 60% from three months ago. The company sold $5 billion in debt securities to buy back, resulting in a loss on sales of $718 million.

Bed Bath & Beyond — The home goods retailer fell 24%, citing weaker-than-expected sales as it ran out of cash and was considering bankruptcy. In addition to bankruptcy, the company said it is exploring financing options, including restructuring, seeking additional capital or selling assets.

Lamb Weston Holdings – The food processor rose 9% after beating quarterly revenue and earnings estimates. Lamb Weston raised full-year financial guidance.

See more movers here.

– Jesse Pound

Initial jobless claims were 225,000 for the week ended Dec. 24, according to the Labor Department. But a series of claims – which count people who have been out of work for more than a week – were dropped.

Serial claims were down more than 24,000 from the previous week to 1,569,764. This indicates that people are finding new jobs amid a strong labor market.

– Carmen Reinicke