Foxconn says new hires raised pay issues, ongoing communication adds
Apple major supplier foxcon said new hires at its iPhone factory in Zhengzhou “have appealed to the company” regarding compensation, according to a statement on its website.
The statement comes after the media reported a mass protest by hundreds of workers appears to have been sparked by a delay in bonus payments, with videos circulating on social media showing people smashing CCTV cameras and windows.
“The company emphasized that the severance has always been fulfilled on the basis of a contractual obligation and will continue to communicate with affected colleagues,” Foxconn said in its statement, adding that reports of Covid-positive employees residing in the factory dormitories are “obviously false”. “
“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 official name, traded down 0.5% at the start of Thursday’s session.
– Jihye Lee
Bank of Korea raises rates by 25 basis points and meets expectations
The Bank of Korea raised its benchmark interest rate down 25 basis points to 3.25%, a smaller rise than its previous move and largely 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 – well above the central bank’s 2% target.
BOK Governor Rhee Chang-yong is due to hold a press conference later today on the monetary decision.
– Jihye Lee
CNBC Pro: Asset manager says investors need to buy this large-cap stock now
There’s one large-cap stock investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.
He calls his CEO an “important visionary”.
Although Luna picked the only large-cap stock, he generally advised investors to reassign to smaller names, naming two stocks he called “best of breed.”
Stocks rise for second day as Wall Street applauds Fed signaling lower rate hikes ahead
Stocks rose on Wednesday and posted the second straight day of gains as investors cheered Federal Reserve minutes that signaled a slower pace of interest rate hikes 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 Stocks fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat earnings and sales expectations in its latest results, according to consensus expectations on Refinitiv. You’re here rose 7.82% after Citi upgraded the stock from sell to neutral. Deere jumped 5.03% on an earnings beat.
CNBC Pro: Betting against UK supermarket, short seller expects share price to crash nearly 50%
There is more pain ahead for investors in a UK supermarket business if a short seller prediction comes true.
The hedge fund currently holds a bear bet worth £32.6m and expects the grocer’s shares to fall 44%.
The fund’s chief investment officer also believes the supermarket will raise new capital by diluting shareholders year after year to stay afloat in a tough environment.
Fed minutes show lower rate hikes ahead, stocks gain
Shares rose on Wednesday afternoon after the release of the minutes of the November meeting of the Federal Reserve. The report showed that the central bank is seeing progress in its fight to reduce inflation and expects to slow the pace of interest rate hikes going forward.
“A substantial majority of participants felt that a slower pace of increase would likely soon be appropriate,” the minutes read. “Uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons given for the importance of such an assessment.”
This means the Fed will likely make a smaller rate hike in December and the early months of 2023.
Markets applauded 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%.