CNBC Pro: How much AI is just noise? The bull and the bear share tips about easy methods to invest
AI has taken the investor world by storm since the start of this 12 months, thanks largely to the emergence of ChatGPT, which has sparked a wave of shopping for AI stocks.
Is it alleged to stay here or simply hype?
The bull and the bear squared off on CNBC’s “Street Signs Asia”, telling investors how they’ll cope with the dilemma in addition to what stocks to trade within the trend.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: TSMC or Samsung? One chip maker is a greater game in AI, geopolitics and earnings, says analyst
Singapore’s Temasek is cutting the pay of senior executives and the team of investors involved in FTX
Singaporean state-owned investor Temasek has cut the salaries of senior management and its investment team accountable for recommending investing in failed cryptocurrency exchange FTX.
“Although the investment team didn’t misconduct in implementing the investment advice, the investment team and senior management, who’re ultimately accountable for the investment decisions made, took collective responsibility and their remuneration was reduced” President Lim Boon Heng he said in a press release.
Temasek’s move followed an internal review to look at its investment in FTX, which resulted in a write-down of $275 million.
Lim added that there was fraudulent conduct by FTX “deliberately hidden from investors, including Temask.” The statement didn’t specify what number of staff were affected or the severity of the pay cuts.
– Lim Hui Jie
Fed’s Loretta Mester expects rates of interest to rise
![Inflation is still too high and slow progress is worrisome, says Cleveland Fed chairman](https://image.cnbcfm.com/api/v1/image/107247308-16851154241685115420-29621846646-1080pnbcnews.jpg?v=1685116988&w=750&h=422&vtcrop=y)
Cleveland Federal Reserve Chairman Loretta Mester told CNBC on Friday that he expects further rate of interest hikes as inflation stays elevated.
“Once I look at the info and look at what is going on on with the inflation numbers, I believe we will must tighten up a bit more,” Mester told Squawk on the Street. “We now have made progress. Now it is a calibration exercise and it’s hard.”
Mester is a non-voting member of the Federal Open Market Committee, which sets rates of interest, this 12 months.
—Jeff Cox
The Fed’s preferred inflation rate is rising greater than expected
The headline indicator of private consumption spending, the Fed’s preferred measure of inflation, rose 0.4% in April. That is greater than economists polled by Dow Jones had expected. Yr-on-year core PCE increased by 4.7%, also greater than expected.
— Fred Imbert
Markets are actually expecting a Fed rate hike in June
Markets raised their bets on the Federal Reserve’s June rate hike after better-than-expected inflation data on Friday morning.
The percentages of a quarter-percentage point increase rose to 56%, in response to CME Group data. This followed a report showing that the costs of private consumption expenditures rose by 0.4% in April and by 4.7% in comparison with the previous 12 months.
The percentages of growth were just 17% per week ago. The probability of a rate hike no later than in July increased to 75%.
—Jeff Cox
Consumer sentiment barely higher than expected
The ultimate reading of consumer sentiment in May was barely above expectations. University of Michigan consumer sentiment index was 59.2, while economists polled by Dow Jones had forecast a reading of 57.7.
Actually, this level is far lower than April’s level of 63.5.
“Consumer sentiment fell 7% amid concerns in regards to the economy, wiping out almost half of the gains made after last June’s record low. This decline reflects the 2011 debt ceiling crisis, during which sentiment also declined,” Surveys of Consumers director Joanne Hsu wrote.
— Fred Imbert