Citi expects a ‘short and shallow’ recession, followed by an economic recovery in 2024
Citi’s Chief Investment Strategist Steven Wieting expects a “short and shallow” recession to begin, adding that the economy could recover by 2024.
As inflation eases, some of the “burdens that the economy [was] brings” is gone, Wieting told CNBC.
“With a recession likely in the US and elsewhere in 2023, rising uncertainty looks set to continue for now,” he wrote in a recent wealth outlook report.
However, he thinks that the economy will begin to see signs or preconditions for recovery even before the end of 2023, citing that corporate income will begin to make a “big recovery” in 2024 and 2025.
— Lee Ying Shan
CNBC Pro: This global lithium stock is up 15% since its IPO — and one bank says it could jump nearly 600%
Shares of a UK-based lithium exploration and development firm could rise by almost 600%, according to investment bank Canaccord Genuity.
Analysts at the bank said the stock has been “flying under the radar” since its 2022 IPO despite rising lithium carbonate battery prices in 2022.
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— Ganesh Rao
Chinese authorities in contact with Moderna, Pfizer regarding vaccine and drug treatment
Moderna CEO Stephane Bancel said the company has discussed its vaccine with Chinese authorities.
“We are talking to the Chinese government and we have been for a long time,” Bancel said.
“We are active in the discussion. I hope that something will happen. But, of course, it is a decision of the Chinese government where it is in the end,” he said in an interview with CNBC’s Sara Eisen and Meg Tirrell.
He added that there are no further developments to announce at this stage.
In a separate interview, Pfizer CEO Albert Bourla said the company is working with the Chinese government “a lot” and is sending its Covid pill, Paxlovid, as the country faces a wave of infections.
“We try to understand what their policy is and their needs,” Bourla told Tirrell. “Right now, they’re showing a lot of interest in Paxlovid.”
The CEO said Pfizer had been shipping “very low volumes” to China since the drug was registered there months ago, but was now shipping more as cases surged.
Bourla added, “We are shipping as much Paxlovid as we can. Our manufacturing machines are working to supply them at this stage.”
— Jihye Lee, Sara Eisen, Meg Tirrell
South Korea’s budget swung from surplus to deficit for the first time since August
South Korea’s current account balance fell from surplus to deficit territory for the first time since August, government data showed.
The country’s balance of payments registered a deficit of $620 million for November, according to statistics from the Bank of Korea. South Korea has recorded a surplus in its current account balance for the past two months after recording a deficit of more than $3 billion in August.
The goods account recorded a deficit of $1.57 billion, a sharp decline from $6.07 billion more than a year ago. The services account recorded a deficit of $270 million, a slight increase from the additional deficit of $340 million seen a year ago.
— Jihye Lee
CNBC Pro: China’s reopening has Wall Street excited. Here’s how the pros play it
Beijing’s sudden and rapid dismantling of strict Covid-19 controls after nearly three years has raised hopes that its battered economy can follow a similarly rapid recovery.
From hotels and airlines, to “less obvious beneficiaries,” Wall Street analysts named their top Chinese and global stocks to play in the opening.
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— Zavier Ong
China’s technology sector may be more cautious about expansion, says Riedel Research Group
China’s technology sector will be more cautious about how fast it expands after the government “shoots the arrow,” Riedel Research Group founder David Riedel said.
Beijing is “reminding” tech companies where the real power lies in terms of the relationship with consumer data collection, Riedel said on CNBC’s “Street Signs Asia” on Tuesday.
His comments came after Alibaba shares rose on Monday after it was announced that Ant Group founder Jack Ma would no longer control the company.
Jack Ma “has been fighting this situation for years now on different fronts, and he’s pretty battered and bruised,” Riedel said.
Tokyo’s consumer price index rose 4%, faster than expected
Japan saw core consumer prices rise 4% in December on an annual basis, faster than expected and above the Bank of Japan’s inflation target of 2%, government data showed.
Economists polled by Reuters expected to see a 3.8% increase in prices for basic goods, excluding fresh food and including fuel.
Inflation in Tokyo is seen as a gauge for the nationwide inflation print, which is scheduled to be released later this month on January 20.
— Jihye Lee
Consumers see inflation, spending to slide next year, according to the New York Fed Survey
CNBC Pro: Platinum prices are rising. These purchases of stocks with upside can be a way to cash in
The Dow, S&P 500 closed higher while the Nasdaq posted a second day of gains
At the close of the market Monday, the Dow and S&P 500 traded lower despite both trading earlier in the day.
The S&P 500 edged flatline in the afternoon, closing up just 0.1%. The Dow ended up 0.3% as investors focused on growth names as hopes grew due to cooling inflation.
But the Nasdaq Composite ended up 0.6%, helped by a nearly 6% rally in Tesla and a jump in other technology names.
The losses were concentrated in recent winners, such as health care, energy and aerospace and defense.
— Alex Harring, Scott Schnipper
Tesla jumps 7% as electric vehicle stock rallies to 2-and-a-half-year low
Tesla rose more than 7% as investors pulled the electric vehicle maker to a level not seen in two and a half years.
The stock is up more than 12% in 2022. That means the first few trading days offer a respite after falling 65% in 2022.
Tesla has struggled in recent months amid CEO Elon Musk’s controversial purchase of Twitter. Investors are looking at Tesla and Apple for insights into how some of tech’s biggest names fared after the industry took a beating last year.
