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☆ China's economy is growing again. So why are investors dumping stocks?
▼ + stars: | 2023-05-19 | by ( Laura He | ) edition.cnn.com time to read: +7 min

Investors trimmed their exposure to China amid economic uncertainty in the country, rising geopolitical tensions and Beijing’s crackdown on international consulting firms. The Nasdaq Golden Dragon China Index has lost more than 5% since April 18. Another concern for global investors is the country’s “fundamental investability,” he said, referring to geopolitical and Chinese policy risks. Ontario Teachers’ Pension Plan, one of the world’s largest pension funds, has closed its Hong Kong-based China equity investment team. “The more cracks appear in Western economies,” the more global investors will need to put money into Chinese assets, he added.

☆ Flight attendants and pilots are anxiously gearing up for a potentially record-breaking summer of travel
▼ + stars: | 2023-05-19 | by ( Hannah Towey | ) www.businessinsider.com time to read: +7 min

"It's just a really precarious time of year for airline employees," Anthony Cataldo, a flight attendant for American Airlines with 33 years' experience, told Insider. Such predictions have left some airline workers anxious about carrying the industry through what could be a record-breaking travel season, four mainline pilots and flight attendants told Insider. Compared to last summer, airline staffing levels have largely improved, with Delta and United hiring thousands of new employees this year. The Southwest and American Airlines pilot unions both voted to authorize a strike this month. Air traffic control remains understaffedAs of April, the crowded airspace around New York City had 129 certified air traffic controllers — just over half of the staffing target of 226 — with 67 air traffic controllers in training, according to aviation firm Rinaldi Consultants.

Global supply chains grew overwhelmed as they struggled to deliver. But Prange said most of his supply chain had stabilized - meaning he was able to get most of what he needed - by the end of 2021. "One of the headwinds is inflation," said Kevin Austin, the supply chain chief for Toyota Motor North America. Meanwhile, the global supply chain snarls of the pandemic have diminished. The New York Fed's Global Supply Chain Pressure Index ticked down to a reading of -1.32 in April, compared to a revised -1.15 in March.

May 18 (Reuters) - Equity markets in North Asia will outperform the broader region this year, buoyed by China's reopening and a post-pandemic recovery-led earnings rebound, investors and strategists said. Liquidity from easing monetary and fiscal policy, along with Asian central banks' early victory on inflation, is expected to defend against an incoming downtrend, keeping North Asian equities resilient. Grace Tam, chief investment officer-Asia at BNP Paribas Wealth Management, expects North Asia to outperform this year following a strong 2022 from South Asian equities. Goldman Sachs sees the north versus south disparity in Asia as a top investment theme in 2023. "China's growth recovery and North Asia's earnings rebound in 2024 remain our key investment themes and overweight areas," it said in its second-quarter outlook.

☆ Morning Bid: Debt ceiling drama aside, world economy looks shaky
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Naomi RovnickRisk appetite has perked up on global markets thanks to optimism that U.S. Democrats and Republicans are nearing a deal to raise the debt ceiling and avoid an economically catastrophic default. But while a debt ceiling reprieve could boost markets in coming days, the backdrop of a lacklustre global economy is unchanged, with its twin engines, China and the United States, sputtering. Citi's China economic surprise index is at its lowest since January (.CESICNY), a further sign that the growth outlook has weakened. The S&P 500 is trading at a rich 18 times forecast earnings, buoyed by the tech mega-stocks that dominate the index. Developments that could affect markets on Thursday:* Economic events: U.S. initial jobless claims, U.S. existing home sales, Philly Fed business index.

☆ Pent-up demand, supply-chain restraints still affecting aviation industry, says analyst
▼ + stars: | 2023-05-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPent-up demand, supply-chain restraints still affecting aviation industry, says analystStephen Furlong from Davy Capital Markets discusses the latest in the aviation industry, easyJet earnings and the difficulties facing VistaJet.

☆ Fanatics' first big sports-betting acquisition could reignite M&A in the sector, as rumors fly and buyers 'smell blood in the water'
▼ + stars: | 2023-05-18 | by ( Ashley Rodriguez | ) www.businessinsider.com time to read: +7 min

Fanatics' first big sports-betting acquisition could be the spark that reignites M&A in the sector. Industry insiders speculate on what deals could come next. It's go time for M&A in sports betting as newcomer Fanatics makes its first big acquisition in the sector and rumors fly about who will be snapped up next. On Sunday, Australia's PointsBet announced it had agreed to sell its US operations to Fanatics' betting and gaming division for about $150 million in cash. "I think Fanatics smells blood in the water," said one industry consultant who had been following Fanatics closely.

☆ IMF's Gopinath sees 'sizeable' upside inflation risks, says markets too optimistic
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

2 official said on Wednesday she sees sizeable risks that inflation will remain high or accelerate in many emerging markets and urged central banks to keep monetary policies tight. IMF First Deputy Managing Director Gita Gopinath told a conference hosted by the Central Bank of Brazil that markets were probably "too optimistic" about what it would take to bring down inflation in emerging markets. "Despite encouraging signs, I am worried that price pressures seem entrenched in many economies and that upside inflation risks are sizeable," she said in remarks prepared for the event. That was a lesson learned from the high inflation period of the 1970s and it "very much applies today," Gopinath said. But these countries still faced "considerable downside risks" from monetary policy tightening in advanced economies, and conditions may get "significantly worse," she said.

☆ China's home prices rise at slower pace as demand ebbs
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

Summary April new home prices +0.4% m/m vs +0.5% m/m in MarchApril prices -0.2% y/y vs -0.8% y/y in MarchMore policy stimulus may be needed, analysts sayBEIJING, May 17 (Reuters) - China's new home prices rose for the fourth straight month in April but at a slower pace, heightening fears that pent-up demand after the country's economic reopening is fading. New home prices in April rose 0.4% month-on-month versus a 0.5% gain in March, according to Reuters calculations based on National Bureau of Statistics (NBS) data on Wednesday. Beijing's aggressive stimulus policies to the crisis-hit property sector since November have boosted sentiment over the past few months but homebuyers are increasingly worried about job security. Home prices in tier-two and three cities also rose at a slower pace in April. April money and credit data last week suggested growth of households' medium-to-long term loans, mostly mortgages, decelerated in April, in line with slower property transactions.

☆ This casino stock can jump 30% as Macao market recovers despite macro headwinds, Barclays says
▼ + stars: | 2023-05-17 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Wynn Resorts has more to gain as a recovery in its Macao properties continues, according to Barclays. It also hiked its price target on the stock to $135 from $120. Despite the already strong gain for the stock, analyst Brandt Montour thinks the casino operator remains "under appreciated by the market." And the company's Las Vegas business remains strong, Montour noted. CEO Craig Billings said during the company's first-quarter earnings call earlier this month that Wynn Las Vegas had a record adjusted net EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) of $232 million.

☆ Gold holds ground amid U.S. debt-ceiling jitters
▼ + stars: | 2023-05-17 | by ( ) www.cnbc.com time to read: +2 min

Gold prices steadied on Wednesday, as investors fretted over prolonged U.S. debt-limit negotiations, with a firmer dollar keeping prices in check. Spot gold ticked up 0.1% to $1,991.35 per ounce by 0455 GMT. Rival safe-haven dollar, meanwhile, held firm on the day, making gold less appealing for overseas buyers. "Any inflation-fighting rhetoric from Fed officials between now and the June meeting would hinder the gold price," Waterer further said, adding, the prevailing dollar strength was capping gold's upside for the time being. Spot silver rose 0.1% to $23.76 per ounce after hitting a six weeks low in the previous session.

☆ Boohoo targets 'step-change' in U.S. fortunes with new warehouse
▼ + stars: | 2023-05-16 | by ( James Davey | ) www.reuters.com time to read: +2 min

Currently, orders placed in the United States, Boohoo's largest overseas market, are picked and packed in the United Kingdom then sent by plane to the United States, with delivery taking eight to 10 days. The warehouse in Elizabethtown, Pennsylvania, will open in late northern hemisphere summer, with the PrettyLittleThing brand, Boohoo's most popular in the United States, the first to go live. Shares in Boohoo were up 9% in late morning trading, paring losses over the last year to 47%. Boohoo expects sales to fall by 10% to 15% in the first half, before a return to growth in the second half. He noted that 2020 and 2021 were COVID years with trade skewed to athleisure wear, while trade in 2022 was skewed to occasion wear with post-COVID pent-up demand for events such as weddings.

☆ China's economic data misses expectations as economy continues to show uneven recovery
▼ + stars: | 2023-05-16 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

YANGZHOU, CHINA - MAY 02: Aerial view of tourists visiting the Dongguan street during the May Day holiday on May 2, 2023. China's economic data for April broadly missed expectations as the economy continued to show an uneven path of recovery from the impact of its stringent Covid restrictions. Industrial production for April rose by 5.6% year-on-year, compared to the 10.9% expected by economists surveyed in a Reuters poll. "It's not good enough to meet with investors' expectations – that's a problem," Wu said, adding that the momentum from China's pent-up demand seems to be fading away. "The recovery of income, of job security, and confidence will take time," she said.

☆ Americans are spending less money even as the Chinese spend more. Take a look at the 5 major US companies winning on China's spending spree.
▼ + stars: | 2023-05-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +7 min

As people in China get out of their homes to travel and spend, retail sales have improved in China, rising almost 11% year-on-year in March. In comparison, China's core inflation rose just 0.7% in March from a year ago, according to official data from Beijing. All this means American companies facing a slowdown in US consumption are getting a boost from Chinese demand. He added the MGM China division posted a "swift return to profitability." Net revenues for the MGM China division were also 130% higher from a year ago "amid strong reopening trends," MGM said in its earnings release.

☆ Airbnb's CEO thinks your summer vacation will be cheaper this year
▼ + stars: | 2023-05-11 | by ( Dan Latu | ) www.businessinsider.com time to read: +4 min

Airbnb predicted nights booked and prices would drop compared to last year at this time. US travelers are "price-sensitive" and favor the cheapest accommodations possible, Chesky said. CEO Brian Chesky told analysts that he expects hosts could be motivated to reduce their nightly rates to stay booked. "Just like Amazon, the more affordable we are, with the wider selection, the more people will come to Airbnb," Chesky said in the earnings call. So I've gotta make sure I remember the 26-year-old me that didn't have a lot of money when I started the company," Chesky told Nilay Patel, editor-in-chief of technology news site The Verge, this week.

☆ Starbucks, Estée Lauder, Qualcomm: Global companies warn of slower-than-expected recovery in China
▼ + stars: | 2023-05-11 | by ( Michelle Toh | ) edition.cnn.com time to read: +6 min

Starbucks (SBUX) and Qualcomm (QCOM) have also flagged uncertainties related to the country, which is a top market for both. Beijing abandoned its zero-Covid policy in December and scrapped longstanding quarantine requirements for international arrivals in January, ending restrictions that had isolated its economy. The welcomed, if abrupt, policy U-turn led to hopes that China could help propel global growth as it had before the pandemic. The idea was that as soon as the zero-Covid policy would be over, the Chinese households and consumers would just go berserk. Starbucks warned last Tuesday that sales growth in China was starting to cool — and likely would continue that trajectory over the next six months.

☆ Airbnb drops on cautious outlook as CEO says customers want 'affordability'
▼ + stars: | 2023-05-10 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

(Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images)"With inflation, people are more focused than ever on affordability," he said. CEO Brian Chesky told CNBC's "Squawk on the Street" Wednesday that Airbnb is being cautious about its second quarter because of affordability pressure it is experiencing in North America. Shares of Airbnb tumbled 10% Wednesday, a day after the company released its first-quarter report that offered slightly weaker-than-expected guidance and a cautious outlook for the current quarter. In its first quarter, Airbnb beat analyst estimates on top and bottom lines, and total revenue rose 20% year over year. Analysts at Bernstein said the company posted a "solid enough" quarter despite the challenges it is anticipating in its second quarter.

☆ We remain constructive on China in the medium term, says Deutsche Bank
▼ + stars: | 2023-05-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe remain constructive on China in the medium term, says Deutsche BankStefanie Holtze-Jen of the investment bank says China's travel recovery is coming from more than just pent-up demand from the pandemic.

☆ Here’s the inflation breakdown for April 2023 — in one chart
▼ + stars: | 2023-05-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Where consumers saw prices fall in AprilConsumers saw average prices decline outright in April in certain categories. Housing — the largest component of the average household's budget — was the largest contributor to inflation in April, the BLS said. watch now"It looks like inflation in the [shelter] category has peaked," Andrew Hunter, senior U.S. economist at Capital Economics, said. Overall, households are faring much better than they were months ago relative to inflation in staples like food, energy and housing, according to Zandi at Moody's Analytics. Why inflation surged to multi-decade highsConsumer prices began rising rapidly in early 2021 as the U.S. economy started to reopen after the pandemic-related shutdown.

☆ New York Is Full of Empty Offices After Covid. Make Way for the Playground City. - The New York Times
▼ + stars: | 2023-05-10 | by ( Edward L. Glaeser | Carlo Ratti | ) www.nytimes.com time to read: +20 min

We are witnessing the dawn of a new kind of urban area: the Playground City. The transformation toward the Playground City will not happen on its own. To draw people into the Playground City, we need to show, not tell. 6.Engage citizensGovernments should empower citizens to participate directly in making the Playground City. The Playground City sees people as both a means and an end, and it should involve them in the process of its creation.

"We are looking into ways to express this (China recovery) theme in our portfolio rather than just say 'let's go long China equity'. "Given the higher risk premium of China stocks, the demand for 'shadowing' China will continue to be strong," Jefferies said. The relative cheapness of European stocks, at least at the start of this year, has also been important. Luxury stocks - less vulnerable to sanctions - have performed well, but geopolitical worries have bruised tech firms, and manufacturing difficulties have hurt commodity stocks. "What is doing extremely well this year is luxury; if you'd bought European miners hoping that China would stimulate, you'd have got it wrong."

☆ How a shockingly resilient jobs market saved the US from a recession
▼ + stars: | 2023-05-09 | by ( Madison Hoff | ) www.businessinsider.com time to read: +7 min

Several measures from Friday's jobs report show the labor market is stronger than it's been in decades. But Terrazas pointed to potential concerns in the labor market and for interest rates. "If it's the former, it's just a matter of time before gravity catches up with the labor market," Terrazas said. Overall though, the different robust labor market data suggests the US could maybe avoid a recession as has been the case so far in 2023. Despite potential risks in the job market, Pollak believes there's a possibility that the US continues to avoid a recession.

☆ Wynn Resorts delivers the quarter we've been waiting for, bolstered by China
▼ + stars: | 2023-05-09 | by ( Jeff Marks | ) www.cnbc.com time to read: +7 min

Wynn Resorts (WYNN) delivered a much better-than-expected first quarter Wednesday, with the casino. It appears the miss could be attributed to individual wealthy gamblers frequenting Wynn Palace at the expense of Wynn Macao, which historically is more exposed to groups and tours. Las Vegas Wynn Las Vegas continues to post big results, generating an all-time record adjusted EBITDAR of $231.6 million. There may be a lot of talk out there about a pullback in consumer spending, but it isn't showing up at Wynn Las Vegas. On a hold normalized basis, Wynn Las Vegas' EBITDAR margins expanded 300 basis points year-over-year and 1,400 basis points from the first quarter of 2019.

☆ Airbnb forecasts slower bookings in Q2, shares fall
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +2 min

May 9 (Reuters) - Airbnb Inc (ABNB.O) said on Tuesday it expects bookings growth and average daily rates to decline in the current quarter, signaling a reverse in demand trends and sending the vacation rental firm's shares down 9%. Revenue rose about 20% to $1.82 billion from a year earlier, compared with the average analyst estimate of $1.8 billion. The company said earlier this year that average daily rates (ADRs) will remain pressured as vacationers return to lower-cost urban rentals. Its first-quarter average daily rates (ADRs) remained flat at $168 compared with a year earlier. It forecast second-quarter revenue between $2.35 billion and $2.45 billion, largely in line with analysts' expectations.

☆ Airbnb drops 10% after earnings report offers cautious outlook for Q2
▼ + stars: | 2023-05-09 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Here's how the company did:EPS: 18 cents vs. 9 cents expected by analysts, according to Refinitiv. 18 cents vs. 9 cents expected by analysts, according to Refinitiv. Revenue: $1.82 billion vs. $1.79 billion expected by analysts, according to Refinitiv. Airbnb reported $117 million in net income for the quarter, up from a net loss of $19 million a year earlier. Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, totaled $20.4 billion in the first quarter.

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