Bill Ackman says Hong Kong dollar peg will break
Billionaire hedge fund manager Bill Ackman questioned the sustainability of the Hong Kong dollar‘s peg to the greenback, adding that his firm Pershing Square has a significant short position on the currency.
“We have a large notional short position against the Hong Kong dollar through the ownership of put options,” the Pershing Square Holdings CEO said in a series of tweets.
“The peg no longer makes sense for Hong Kong and it is only a matter of time before it breaks,” Ackman wrote.
However, currency strategist at Bank of Singapore Sim Moh Siong said the peg will remain resilient as negative sentiment regarding China has recently “calmed down” with recent adjustments including China’s quarantine period for international travelers.
“The peg is likely to hold given that the fundamentals have continued to support the Fed,” he said. “I think things might [have] calmed down somewhat on the China front and that could in turn also add to the resilience of the Hong Kong dollar peg,” he said.
–Jihye Lee
Grab, Gojek respond to Singapore’s move to expand job protection for gig workers
Grab said it broadly supports Singapore’s latest announcement to expand 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, primarily affecting delivery and ride-hailing companies.
In response to CNBC’s request for comment, Grab said it is “broadly supportive” of the measures, adding the implementation needs to be “gradual,” citing current headwinds for the global economy, such as recession concerns.
“We will be guided by these considerations to ensure minimum impact on our partners’ earnings and consumer prices,” said Grab.
The company called for the measures to be also applied to all gig platforms citing fairness concerns.
Gojek said that the measures requiring companies to align the Central Provident Fund pension contribution rates with that of employers “will mean less take-home earnings” for the gig workers, and that the company already has similar policies.
“These recommendations will build on the existing safeguards 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 discussed hiking by 100 basis points, governor says
The Reserve Bank of New Zealand had considered an even bigger rate hike in making its latest official cash rate decision – despite its move to raise rates by 75 basis points already being its steepest ever.
“I would say we had more discussion around a 75 versus 100 than we had around a 50 versus a 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”
“Now we can say we’re unambiguously contractionary in our monetary position,” Orr said, “We need to be, given the compacity of the economy at present,” he said.
– Jihye Lee
Foxconn says new hires raised pay concerns, adds communication underway
Major Apple supplier Foxconn said that new recruits to its iPhone factory in Zhengzhou “appealed to the company” in regards to compensation, according to a statement on its website.
The statement comes after media reported a mass protest of hundreds of workers appeared to be triggered by a delay in bonus payment, with videos circulating on social media showing people smashing surveillance cameras and windows.
“The company has emphasized that the allowance has always been fulfilled based on contractual obligation and will continue to communicate with relevant colleagues,” Foxconn said in its statement, adding that reports of Covid-positive employees residing in the factory’s dormintories is “patently untrue.”
“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, the formal name of Foxconn, traded 0.5% lower in the early…