WORLDWIDE : HEADLINES
RBNZ core inflation at 1.7% in third quarter
SYDNEY – The Reserve Bank of New Zealand (RBNZ) said on Friday that its sectoral factor model of core inflation in the third quarter was 1.7%, unchanged versus the year-ago quarter.
The data release came after the country’s official statistics agency released figures showing the inflation rate rose 0.7% in the September-quarter as coronavirus curbs eased, but still falling short of expectations.
Both measures are closely watched by the RBNZ, which has spent almost a decade trying to get inflation above the middle of its 1%-3% target band.
Full coverage: REUTERS
SoftBank Group restarts dividend as finances stabilise
TOKYO – SoftBank Group Corp said on Friday it would pay an interim dividend of 22 yen per share, the same as the previous fiscal year, after a series of massive asset sales stabilised the group’s finances.
The dividend declaration is the latest sign the group, which was shaken by soured investments and the COVID-19 pandemic, is regaining its confidence, buoyed by deals including the $40 billion sale of chip designer Arm to Nvidia Corp.
Its year-end dividend forecast is yet to be determined. SoftBank did not offer a dividend forecast in May when it reported a record annual operating loss.
SoftBank also said it had completed the sale of U.S. cellphone distributor Brightstar as it cuts ties to the telecoms industry to focus on investing.
SoftBank’s shares were flat in line with the benchmark index. Its shares are trading near two decade highs.
Full coverage: REUTERS
Intel’s margins tumble as customers shift to cheaper chips, shares slide 10%
Intel Corp INTC.O on Thursday reported that margins tumbled in the latest quarter as consumers bought cheaper laptops and pandemic-stricken businesses and governments clamped down on data center spending, news that sent its shares down 10%.
Intel, the dominant provider of processor chips for PCs and data centers, has struggled with manufacturing delays. In July, it said its next generation of chipmaking technology was six months behind schedule.
Chip sales are booming, but customers want lower-priced chips rather than Intel’s pricier high-performance offerings, dragging down overall gross margins.
The pandemic has given Intel a boost in the form or surging laptop sales as employees and students work and learn from home. Sales in its PC group were $9.8 billion, beating analyst estimates $9.09 billion, according to FactSet.
But Intel sold a higher volume of less-profitable chips in its PC business, driving operating margins down to 36% in the third quarter from 44% a year earlier.
Full coverage: REUTERS
WORLDWIDE : FINANCE / MARKETS
U.S. stock futures dip, yen gains after final Trump-Biden debate
U.S. stock futures dipped and the Japanese yen ticked up on Friday after a final debate between U.S. President Donald Trump and Democratic challenger Joe Biden merely hardened investors’ caution heading into the election.
U.S. S&P 500 E-minis EScv1 were down 0.1% at 3,445.75 points at 0230 GMT. The S&P 500 index .SPX closed down 0.5% at 3,453.49 on Thursday.
The dollar =USD was a few pips higher, while the safe-haven yen JPY= was up 0.1% at 104.71 per dollar.
“It was a slightly more civilised debate this time around, but Trump failed to make up for lost ground from the first debate,” said Vasu Menon, a senior strategist at OCBC Wealth Management in Singapore.
“Biden came through better than Trump in this debate and this should help to cement his lead over Trump and may just help him to cross the final line with a win.”
The final debate in Nashville, Tennessee on Thursday follows over a week of choppy trade on Wall Street, with investors worried about whether Congress and Trump will approve another fiscal stimulus package before the election.
Full coverage: REUTERS
Oil steady as Russia holds out prospect of output cut extension
TOKYO – Oil prices held on to gains made on the previous session on Friday, after Russian President Vladimir Putin indicated he would be prepared to extend record supply cuts in the face of the COVID-19 pandemic.
Brent crude was off 1 cent at $42.45 a barrel by 0040 GMT having risen 1.7% on Thursday, while U.S. oil was 2 cents lower at $40.62, following a 1.5% gain in the previous session. Both contracts are heading for their first weekly loss in three.
Putin said on Thursday that Russia did not see a need for major oil producers to alter a deal on cutting global supply, but did not rule out extending oil cuts if market conditions warranted.
Full coverage: REUTERS
Dollar steadies ahead of debate but set for weekly loss on stimulus hopes
SINGAPORE – The dollar took stock at the end of a poor week on Friday, having shed about a cent against the euro and suffered its largest weekly drop against the yen in a month, as investors began to wager on a Biden presidency and big U.S. stimulus.
Daily moves were slight and mostly in the dollar’s favour early in the Asia session as traders awaited the final U.S. presidential debate, which begins at 0100 GMT.
Markets could be sensitive to any vote-shifting moments as campaigning hits fever pitch ahead of polling day on Nov. 3.
The dollar has lifted from Wednesday’s seven-week low against a basket of currencies, but still sits about 0.8% lower for the week and in the bottom half of a monthslong range.
Persistent hopes that Congress might pass a stimulus package before the election and confidence that spending follows anyway, no matter who gets elected, has driven a selloff in the bond market in anticipation of more government borrowing. [US/]
The dollar has been sold through the week because the prospect of stimulus has supported investors’ mood and their appetite for riskier currencies instead, while underlying caution has also given the safe-haven Japanese yen a boost.
Full coverage: REUTERS
