Global Courant 2023-05-29 06:55:46
CNBC Pro: How much of AI is just hype? A bull and a bear share their tips on investing
Artificial intelligence has taken the investment world by storm since the beginning of this year, thanks in large part to the emergence of ChatGPT, which sparked a wave of purchases in AI-related stocks.
Is it here to stay or just hype?
A bull and bear faced off on CNBC’s “Street Signs Asia,” telling investors how to navigate the dilemma, and which stocks to play on the trend.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: TSMC or Samsung? One chipmaker is more responsive to AI, geopolitics and revenue, analyst says
Singapore’s Temasek cuts pay for senior management and investor team involved in FTX
Singaporean state investor Temasek cut the compensation of senior management and its investment team responsible for recommending to invest in failed cryptocurrency exchange FTX.
“While there was no misconduct by the investment team in reaching their investment recommendation, the investment team and senior management, who are ultimately responsible for the investment decisions made, have taken collective responsibility and reduced their compensation.” Chairman Lim Boon Heng said in a statement.
Temasek’s move comes after an internal review was launched to examine its investment in FTX, which resulted in a $275 million write-down.
Lim added that fraudulent behavior by FTX was “deliberately hidden from investors, including Temasek.” The statement did not specify how many staff were affected nor the severity of the pay cuts.
— Lim Hui Jie
Fri 26 May 202311:38 am EDT
Fed’s Loretta Mester expects interest rates to rise
Cleveland Federal Reserve President Loretta Mester told CNBC Friday that she expects more rate hikes will be needed as inflation remains high.
“When I look at the data and look at what’s happening with the inflation numbers, I think we’re going to have to tighten up a bit more,” Mester said in Squawk on the Street. “We’ve made progress. Now it’s this calibration exercise, and that’s what’s hard.”
Mester is a non-voting member of the rate-setting Federal Open Market Committee this year.
—Jeff Cox
Fri 26 May 20238:39 a.m. EDT
Preferred Fed inflation gauge rises more than expected
The core personal consumer spending index, the Fed’s preferred inflation measure, rose 0.4% in April. That’s more than economists polled by Dow Jones had expected. Year over year, core PCE rose 4.7%, also more than expected.
— Fred Imbert
Fri 26 May 20239:19 a.m. EDT
Markets are now expecting a rate hike by the Fed in June
Markets raised their bets on a June rate hike by the Federal Reserve after higher-than-expected inflation numbers Friday morning.
The odds of a quarter of a percentage point increase rose to 56%, according to data from the CME Group. That followed a report that showed personal consumption prices rose 0.4% in April and 4.7% from a year ago.
The probability of an increase was only 17% a week ago. The chance of an increase by July at the latest rose to 75%.
—Jeff Cox
Fri 26 May 202311:13 a.m. EDT
Consumer confidence slightly exceeds expectations
The final consumer confidence reading in May was slightly above expectations. The University of Michigan consumer confidence index came in at 59.2, while economists polled by Dow Jones had predicted a reading of 57.7.
Certainly, that level is well below April’s 63.5.
“Consumer confidence fell 7% on concerns about the economy’s performance, wiping out nearly half of the gains made since last June’s all-time low. This decline mirrors the debt ceiling crisis in 2011, in which sentiment also plummeted,” research says. of Consumers director Joanne Hsu wrote.
— Fred Imbert
