Markets

Japan Inflation Data, Chinese Borrowing Rates

Bitcoin falls as Genesis files for Chapter 11 bankruptcy in New York

Bitcoin fell around 0.5% after Crypto firm Genesis filed Chapter 11 bankruptcy in New York.

The company listed 50-99 creditors in a “mega” bankruptcy filing, with total liabilities ranging from $1.2 billion to $11 billion, according to bankruptcy filings.

Genesis is in talks with creditors represented by law firms Kirkland & Ellis and Proskauer Rose, sources familiar with the matter told CNBC. The bankruptcy puts Genesis alongside other fallen crypto exchanges, including BlockFiFTX, Celsiusand Voyager.

The cryptocurrency last traded at $21,054.

—Rohan Goswami, MacKenzie Sigalos, Jihye Lee

China leaves 1-year, 5-year prime rates unchanged

The People’s Bank of China left 1- and 5-year lending rates unchanged, broadly in line with expectations.

The 1-year LPR remained at 3.65%, while the 5-year LPR remained at 4.3%, both unchanged since August 2022.

The offshore and onshore Chinese yuan were flat and last traded at 6.7679 and 6.7738 against the US dollar.

– Jihye Lee

Japan’s core inflation rises 4% in December, the highest since 1981

Japan’s core inflation rose to 4% last December on an annual basis, the highest since December 1981 and in line with expectations.

The reading was up from the 3.7% inflation print seen in November.

On a monthly basis, consumer prices rose by 0.2% in December, unchanged from the previous month.

The Japanese yen was trading 0.16% weaker against the US dollar at 128.63.

– Jihye Lee

Bitcoin trades higher as Jamie Dimon calls the digital currency a ‘hyped-up scam’

Bitcoin traded higher as JPMorgan CEO Jamie Dimon called the cryptocurrency a “hyped-up scam” in a interview with CNBC’s “Squawk Box” on the sidelines of the World Economic Forum in Davos, Switzerland.

Bitcoin rose 1.5% in the last 24 hours to last trade at $21,127, while Ethereum rose 1.81% to $1,556.72, according to CoinMetrics.

JPMorgan's Jamie Dimon: Bitcoin is a 'hyped-up scam'

— Jihye Lee, Jesse Pound

Fewer Americans are filing for unemployment than expected

There were about 190,000 initial U.S. jobless claims in the week ended Jan. 14, less than expected and underscoring the continued resilience of the labor market.

That’s below the 215,000 initial claims expected for the week by analysts polled by Dow Jones. It also marks a drop from the previous week’s 205,000 claims.

Market participants have been watching labor data for signs of cooling in the labor market. Labor is one area of ​​the economy that has remained robust, although other areas showed a decline following the Federal Reserve’s series of rate hikes.

– Alex Harring

Brainard sees rates remaining elevated despite cooling inflation

Federal Reserve Governor Lael Brainard said Thursday that she expects interest rates to remain high despite recent signs that inflation is easing.

IN a speech given at the Chicago Booth School of Business, the central bank official vowed to “stay the course” until inflation shows more signs of approaching the Fed’s 2% target.

“Even with the recent moderation, inflation remains high and policy will need to be sufficiently restrictive for some time to ensure that inflation returns to 2% on a sustained basis,” she said.

-Jeff Cox

CNBC Pro: A weaker dollar is good news for copper, says asset manager – and names 3 stocks to buy

The US dollar has fallen in recent months, and that’s good news for commodities, said Steven Glass of Pella Funds Management.

He is particularly bullish on copper and names three stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Fed’s Collins says future rate hikes may be ‘more measured’

Boston Federal Reserve President Susan Collins said Thursday that she believes the central bank may adopt smaller rate hikes after a series of aggressive moves last year.

“More measured interest rate adjustments at this stage will better enable us to manage the competing risks that monetary policy now faces – the risk that our actions may be insufficient to restore price stability versus the risk that our actions may cause unnecessary losses in real activity and employment,” she said in prepared remarks.

Collins did not specify where she thinks the policy should head next. But the Fed approved a 0.5 percentage point increase at its December meeting after four consecutive 0.75 point moves.

While most economists expect at least a mild recession this year, Collins said he is “reasonably optimistic that there is a path to reduce inflation without a significant economic downturn.”

-Jeff Cox

CNBC Pro: Morgan Stanley says China’s market will be the biggest winner in 2023 and these stocks stand out

Wall Street is positive about China’s reopening. But Morgan Stanley goes even further: It predicts that Chinese stocks will beat global markets this year.

The investment bank named its top stock picks, including a tech giant that offers about 30% upside potential.

Pro subscribers can read more here.

— Zavier Ong

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