Kaohoon Morning Brief – 20 January 2023

1) KSS says strong US job market could pressure Fed to continue rate hikes

Krungsri Securities (KSS) expected Thailand’s SET Index to move within the range of 1,680-1,695 points, even with continuous inflows that should be positive to the index, but concerns over strong job market that could le to Fed’s pressing on with rate hikes still weigh on the market. Meanwhile, a technical selloff could cause the market to fluctuate, KSS recommended a selective buy plays on stocks with individual positive factors.


2) Netflix adds subscribers more than expected in 4Q22, CEO stepping down

Netflix added 7.66 million paid subscribers during the fourth quarter of 2022, way higher than an addition of 4.57 million forecast by analysts. Revenue was in line with expectations by Refinitiv at $7.85 billion, but earnings per share was 12 cents, compared to 45 cents expected. The company said that EPS missing expectations was due to a loss related to euro-denominated debt.

4Q22 is the first quarter that Netflix’s new ad-supported service is included in its financial statement.

In addition, Netflix reaffirmed that going forward it will no longer give subscriber guidance, but will still report those numbers in earnings reports.

Meanwhile, Netflix’s co-CEO and co-founder Reed Hastings announced that he would step down from his role.


3) Fed’s Williams urges to continue hiking rates

Federal Reserve Bank of New York President John Williams said that the U.S. needs more rate hikes as inflation is still high.

“Restoring price stability is essential to achieving maximum employment and stable prices over the longer term, and it is critical that we stay the course until the job is done,” he said.

Still, Williams did not specify the size of rate hikes he would like to see in this upcoming meeting.


4) Japan’s inflation hits 4% in December

Japan’s core consumer prices in December rose 4.0% from the same period last year, hitting a fresh 41-year high.

An increase in inflation raised hopes in the market that Japan’s central bank will finally move past its ultra-low rates at some point in this year to ease prices to the 2% target range.