Asia Pacific markets fall as Japan’s core inflation holds steady

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CNBC Pro: Bank of America or Citi? Analysts say a stock is set to rise 50 percent

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Business leaders should not leave all decisions to artificial intelligence: Oracle

Tools powered by artificial intelligence can help business decisions, but executives should still have decision-making power, an Oracle executive said.

“We think the AI ​​tool will be a help for business leaders and decision makers. I don’t think the approach of reversing all your decisions is wise,” Jason Maynard, executive vice president of software firm Oracle, said on CNBC’s “Squawk Box Asia” on Friday.

He added that he would be “very cautious” about any business out there completely replacing decision makers with a robot.

“I think it’s a trust, but verify the information coming from the systems. But I don’t think it’s going to replace the ultimate decision makers in these organizations,” Maynard said.

– Sheila Chiang

3 hours ago

Japan’s central bank is open to adjusting yield curve controls this year: Reuters

Japan’s central bank is “warming to the idea” of making changes to its yield curve management policy later this year, but is likely to keep it unchanged at next week’s meeting, Reuters reported.

Bank of Japan chief Kazuo Ueda will chair his first policy meeting since becoming governor next week.

Reuters cited sources “familiar with the BOJ’s thinking” as saying the bank’s approach would be to stay the course and not make any major immediate changes to the YCC and its dovish policy guidance.

However, the sources also added that there could be a more “lively debate on the fate of the YCC” when the BOJ meets in June and July. There may also be room to discuss a tweak in the future, given that major firms have offered big pay increases in annual spring pay talks, the sources said.

— Lim Hui Jie

4 hours ago

Japan’s factory activity continues to slow in April, but is offset by a strong services sector

Japan’s manufacturing purchasing managers’ index rose to 49.5 in April from 49.2 in March, marking the lowest decline in the sector in six months. This is according to flash estimates from au Jibun Bank.

PMI measures factory and manufacturing activity, as viewed by purchasing managers. A number above 50 indicates expansion compared to the previous month, while one below 50 indicates contraction.

The flash services PMI in April was little changed at 54.9 compared to a reading of 55 in March, and is the second highest since October 2013.

“Japan’s private sector continued to expand solidly at the start of Q2 … with a resurgent service economy helping to offset weak manufacturing sector performance,” said Annabel Fiddes, chief economist at S&P Global Market Intelligence.

The flash composite index reading fell marginally to 52.5 in April from 52.9 in March.

– Yeo Boon Ping

4 hours ago

Australia’s service activity expands further in April: Juno Bank

Australia’s services sector expanded in April, hitting a 10-month high on the PMI.

The country’s PMI for services was 52.6 compared with March’s figure of 48.6, according to a private survey by Juno Bank.

The manufacturing PMI fell to 48.1 in April from 49.1 in March, signaling another consecutive monthly deterioration in business conditions in manufacturing.

A PMI reading above 50 indicates expansion in the sector, while a reading below 50 signals contraction.

— Lim Hui Jie

4 hours ago

Infosys founder says he’s not worried about ChatGPT replacing humans

Nothing can beat the human mind – don’t worry too much about ChatGPT for now, says Narayana Murthy, founder of top Indian IT company Infosys.

ChatGPT, an artificial intelligence-powered chatbot, has taken the world by storm as it has been designated to perform a variety of tasks including essay writing, coding and holding human-like conversations.

“If it’s a competition between you and me, you’ll use the ChatGPT output as your base, and then you’ll add your own differentiation, your own smarts, your own customization,” Murthy told The CNBC Conversation.

“That’s why I’m not too worried about ChatGPT,” Murthy said. “At the end of the day, I’m a big believer in the theory that the human mind is the most powerful imagination, the machine. There’s nothing that can beat the human mind.”

Read the whole story here.

– Sheila Chiang

5 hours ago

Japan’s March core inflation steady at 3.1%

Japan’s inflation rate came in at 3.2% in March, slightly lower than February’s figure of 3.3%.

This is the second straight month of slowing inflation after Japan’s headline inflation hit a 41-year high of 4.3% in January.

Core inflation, which strips out both food and energy costs, remained stable at 3.1% from February.

— Lim Hui Jie

5 hours ago

CNBC Pro: Want to invest in the AI ​​boom? Veteran tech fund manager names 4 stocks to own

Artificial intelligence is no longer a futuristic fantasy, but a reality that is changing many industries. From chatbots to content creation, AI is making its presence felt in the digital space and beyond.

Ben Rogoff, portfolio manager at Polar Capital, told CNBC that the current investment environment seemed like the sector’s “iPhone moment for artificial intelligence technology.”

The tech fund manager also told CNBC’s Pro Talks that four major stocks are driving some of the biggest and most tangible advances in artificial intelligence.

CNBC Pro subscribers can read more here.

– Ganesh Rao

5 hours ago

CNBC Pro: UBS Says This Semiconductor Stock Is a ‘Buy’ – And Doubles Its Price Target

TSMC may be an obvious choice for investors looking for exposure to Asia’s semiconductor industry, but UBS likes one of its lesser-known rivals.

Pro subscribers can read more here.

— Zavier Ong

12 hours ago

Scorecard for the first quarter

The earnings season for the first quarter has started in high gear. Of the 81 companies in the S&P 500 that have reported earnings year to date, 76.5% reported above analysts’ expectations, according to Refinitiv.

Expectations are low for corporate America with stubborn inflation and recession fears. S&P 500 companies are expected to post a 6.8% decline in earnings this quarter, which would mark the biggest decline in earnings since the second quarter of 2020, according to FactSet.

– Yun Li

13 hours ago

The Fed’s Master indicates that higher interest rates are likely in the future

Cleveland Federal Reserve President Loretta Mester indicated Thursday that interest rates may have a little longer to rise this year and stay for a while.

“I expect that monetary policy will have to move somewhat further into restrictive territory this year, with the Fed Funds rate moving above 5% and the real Fed Funds rate remaining in positive territory for some time,” she said during a speech in Akron . Ohio.

– Exactly how much higher the interest rate for federal funds must go from here and how long the policy must remain restrictive will depend on economic and financial developments, Mester added.

With the benchmark federal funds rate currently targeted between 4.75%-5%, Mester’s comments indicate another hike could be on the horizon. That is consistent with market prices, which give an 83% probability of an increase of 25 basis points in May. However, markets also believe the Fed will cut by the end of the year as the economy slows.

Mester added that she has seen progress on inflation, but that it “remains too high.”

“We are much closer to the end of the tightening journey than the beginning, and how much further tightening is needed will depend on economic and financial developments and progress on our monetary policy objectives,” she added.

-Jeff Cox

14 hours ago

Tesla records the worst postal income since 2019

Tesla stock opened Thursday about 8% lower as investors analyzed the earnings report that came after hours on Wednesday. It is the worst postal income opened for the electric car manufacturer since the pandemic began, according to data from Bespoke Investment Group.

The stock hasn’t seen an open post-earnings drop this big since the stock was down 11.9% on July 24, 2019, data from the firm shows.

The company delivered a modest hit to revenues, while earnings per share were in line with analysts’ expectations. But both net income and GAAP income fell more than 20% from last year.

Thursday’s opening also stands in stark contrast to the last time the company reported earnings. Shares opened up 10.8% on Jan. 25, which was the trading session following Tesla’s fourth-quarter report.

– Alex Harring

18 hours ago

Fed’s Williams says inflation remains a problem

New York Fed President John Williams said on Wednesday that inflation remains a problem for the US economy, although he did not provide details on where he thinks policy should go.

“Inflation remains too high and we will use our monetary policy tools to restore price stability,” Williams said in a speech at New York University, according to Reuters. Markets widely expect the Fed to raise interest rates another quarter of a percentage point at its next meeting, and Williams did not refute that view.

Along with his comments on inflation, Williams noted that the banking system has “stabilized” after the turmoil in March, and said he does not expect the economy to tip into recession.

-Jeff Cox

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