Grab, Gojek respond to Singapore’s move to expand job protection for gig workers
Grab said it broadly supports Singapore’s latest announcement to extend job protection and benefits for gig workers from 2024.
The decision includes guaranteeing injury compensation and pension payments as part of new standards for the gig economy, which mainly affects delivery and ride-hailing companies.
In response to CNBC’s request for comment, Grab said it “broadly supports” the measures, adding that implementation should be “gradual,” citing current headwinds for the global economy, such as recessionary concerns.
“We will be guided by these considerations to ensure the minimum impact on the income of our partners and prices for consumers,” said Grab.
The company called for the measures to be implemented across all gig platforms citing fairness concerns.
Gojek said measures requiring companies to match pension contribution rates to the Central Provident Fund with employers’ contribution rates “will mean less take-home income” for gig workers. , and that the company has similar policies.
“These recommendations will build on the existing protections we have in place for our driver partners, offered through our driver benefits program,” Gojek told CNBC.
– JP Ong, Sheila Chiang
New Zealand’s central bank is discussing hiking by 100 basis points, the governor said
The Reserve Bank of New Zealand is considering a bigger rate hike in its latest official cash rate decision – despite its move to raise rates by 75 basis points has become the highest ever.
“I would say we have more discussion around a 75 versus 100 than a 50 versus a 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”
“Right now we can say that there is no obvious contraction in our monetary position,” Orr said, “We should, given the economics right now,” he said.
– Jihye Lee
Foxconn says new hires raise salary concerns, adds communication continues
Apple’s main supplier Foxconn said new recruits at its iPhone factory in Zhengzhou “appealed to the company” about the compensation, according to a statement on its website.
The statement comes after the media reported a mass protest by hundreds of workers that appeared to be triggered by a delay in bonus payments, with videos circulating on social media showing people crushing the surveillance cameras and windows.
“The company emphasizes that the allowance has always been fulfilled based on the contractual obligation and will continue to communicate with the relevant partners,” Foxconn said in its statement, adding that reports of Covid-positive employees living in factory dormitories “unreal.”
“Regarding any violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again.”
Taiwan-listed shares of Hon Hai Technology Group, Foxconn’s formal name, traded 0.5% lower in Thursday’s early session.
– Jihye Lee
The Bank of Korea raised rates by 25 basis points, meeting expectations
The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.25%, a smaller increase than the previous move and broadly in line with expectations.
A Reuters poll of economists expected the move amid signs of slowing domestic growth.
The country’s inflation rate for October was 5.7%, according to the latest figures released earlier this month – higher than the central bank’s target of 2%.
BOK Governor Rhee Chang-yong is scheduled to hold a press conference later in the day regarding the currency decision.
– Jihye Lee
CNBC Pro: Asset manager says investors should buy this big-cap stock now
There is one large-cap stock that investors should buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.
He called its CEO an “important visionary.”
While Luna chose a large-cap stock, he advised investors to generally relocate to smaller names, naming two stocks he called “best of breed.”
CNBC Pro subscribers can read more here.
— Weizhen Tan
Stocks rose for a second day as Wall Street cheered the Fed’s announcement of smaller rate hikes ahead.
Stocks rose on Wednesday and recorded a second straight day of gains as investors cheered minutes from the Federal Reserve that signaled a slow interest rate hike ahead.
The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26 and the Nasdaq Composite rose 0.99% to 11,285.32.
Nordstrom shares fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat profit and sales expectations in its latest results, according to Refinitiv’s consensus estimate. Tesla rose 7.82% after Citi upgraded the shares to neutral from sell. Deere rose by 5.03% on a beat in earnings.
CNBC Pro: Betting against a British supermarket, short seller expects nearly 50% collapse in share price
There is more pain to come for investors in a British supermarket company when a short seller forecast comes through.
The hedge fund currently holds a bearish bet worth £32.6 million and expects the grocer’s shares to fall by 44%.
The fund’s chief investment officer also believes the supermarket will raise new capital by diluting shareholders every year to keep itself afloat in a challenging environment.
CNBC Pro subscribers can read more here.
— Ganesh Rao
The feeding minutes showed a smaller increase in the forward rate, the stocks gained
Stocks rose on Wednesday afternoon following the release of minutes from the Federal Reserve’s November meeting. The report indicated that the central bank is seeing progress in its fight to lower inflation and is expected to slow the pace of interest rate hikes in the future.
“A large majority of the participants decided that a slowdown in the rate of increase is probably soon appropriate,” the minutes said. “The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation are among the reasons discussed why such an assessment is important.”
That means the Fed will likely offer a small rate hike in December and the first months of 2023.
Markets cheered the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 gained 0.70% and the Nasdaq Composite rose 1.10%.