Hot news

• Biden advisors support the Federal Reserve: fighting inflation requires enough space and independence

With U.S. inflation still at a 40-year high, President Joe Biden and the Federal Reserve seem determined to make "reducing inflation" a top priority. Markets are worried that a sharp rise in interest rates could lead to very serious potential consequences. Brian Deese, a senior White House economic adviser, said for the Fed platform that the Fed needs space to finish its work, but he did not rule out a recession in the United States. Its representationThe Fed needs to be given enough space and independence to control inflation, and it says reducing the federal deficit will also help reduce price pressures in the economy.

• Federal Reserve Brad urges accelerated rate hikes: interest rates can be cut next year if they are raised this year

On Friday, U.S. Eastern time, St. Louis Federal Reserve Bank President Bullard said the central bank should implement a series of aggressive interest rate hikes ahead of schedule, pushing them up to 3.5% by the end of the year. If successful, it will effectively depress inflation and interest rates may be cut in 2023 or 2024.

• Wooden sister is "bullish" on the global economy: with the blessing of AGI, GDP is expected to grow by 50% within a decade.

Universal artificial intelligence (AGI) technology could mean unprecedented economic growth in as little as six years or so, ARK Invest founder "wooden Sister" Cathie Wood said on Twitter. "ARK Invest must share more about our research on universal artificial intelligence (AGI) technology and how it will change the way the world works in the future," it wrote on Twitter. "in the next 6-12 years, our breakthrough in general artificial intelligence technology can increase the annual growth rate of GDP from about 3-5 per cent to 30-50 per cent. New DNA will win! "

• Wall Street investment banks have joined the ranks of pessimists: convinced that the US economy is heading for recession

Wall Street is increasingly convinced that the Fed's measures to fight inflation have dragged the US economy into recession. Bank of America Corporation, Deutsche Bank, Wells Fargo & Co and Goldman Sachs Group are among the most famous companies predicting a possible downturn over the next two years, with the Fed actively tightening monetary policy to cool consumer demand and expect inflation to fall back to 2 per cent. While recessions are notoriously unpredictable, there are growing signs that the banks are likely to be right. GDP shrank in the first quarter, and economic growth in the United States has slowed.

• Us companies set off a wave of buybacks again, can US stocks return to the moment of glory?

After Apple Inc announced an additional $90 billion to buy back shares at the end of last month, industry giants such as Caterpillar Inc and Vale SA also recently announced stock buyback plans. In a recent report, Goldman Sachs Group raised his forecast for US stock buybacks in 2022 to a record $1,000bn. As U. S. stocks fell and investor sentiment weakened, U. S. listed companies chose to buy back shares to boost confidence, analysts said. However, considering the dual pressure of liquidity and declining corporate profits in the US stock market, it is difficult for US stocks to stop falling in the short term.

• The probability of the Fed raising interest rates by 50 basis points in June is 97.5%.
  

According to CME Fed Watch, the probability of the Fed raising interest rates by 25 basis points by June is 0%, the probability of raising interest rates by 50 basis points is 97.5%, and the probability of raising interest rates by 75 basis points is 2.5%. By July, the probability of raising interest rates by 25, 50 and 75 basis points is 0%, the probability of raising interest rates by 100bp is 96.1%, and the probability of raising interest rates by 125bp is 3.9%.

Review of US stocks

• At one point on Friday, S & P fell into a bear market and narrowly closed, with the Dow making the longest consecutive decline in nearly a century.

On Friday, U. S. stocks rose rapidly in late trading, and the three major indexes closed mixed. The Nasdaq fell 0.3%, the S & P 500 rose 0.01%, and the Dow rose 0.03%.

Large-scale technology stocks are mixed. Tesla, Inc. fell more than 6%, Alphabet Inc-CL C fell more than 1%, Amazon.Com Inc and Apple Inc rose slightly; some US-listed stocks fell, Pinduoduo fell nearly 3%, XPeng Inc. fell more than 1%, and BABA fell more than 1%.

• Tesla, Inc. fell more than 6% on Friday, wiping out $44 billion in market value overnight.

On Friday, $Tesla, Inc. (TSLA.US) $closed down more than 6%, wiping out about $44 billion (280 billion yuan) in market value, the lowest level since August last year. According to reports, Tesla, Inc. is no longer the largest position in the "wooden Sister" flagship fund. As of Thursday's close, ARK held $703 million worth of Tesla, Inc. shares, while Roku held $717 million, according to data collected by Bloomberg's ARK investment management company.

• beyond all expectations! Tesla, Inc. 's big move in Shanghai, the "Chinese version" is about to come out?

$Tesla, Inc. (TSLA.US) $Announced that a large number of R & D personnel will be recruited in Shanghai! Tesla, Inc. officially announced the recruitment information on May 22nd, including a large number of "hot positions" of Tesla, Inc. China R & D and Innovation Center, covering vehicle software, hardware design engineering, power & energy engineering and other fields. the main place of work is Lingang, Shanghai. Tesla, Inc., a relevant person in China, confirmed the fact that a large number of R & D personnel were recruited by reporters from the Shanghai Securities News. In this regard, industry experts pointed out that the Shanghai base is expected to become the second global headquarters of Tesla, Inc., and the Chinese version of Tesla, Inc. 's new model is expected to be born in the future.

• Apple Inc WWDC 2022 Prospect: iOS 16, M2 chip, VR head show are coming?

The annual $Apple Inc (AAPL.US) $developer Conference WWDC 2022 has been scheduled for June 6-10. Affected by the epidemic, this developer conference will continue to be held online, and any developer can participate free of charge.Although this is a press conference with the theme of system and software development, it is reported that at this conference, new computers including M2 chips will be released, and Apple Inc's first VR headset is also likely to be unveiled.

• Stocks related to monkeypox soared, with multiple cases of infection in Europe and the United States

There have been multiple cases of monkeypox infection in Europe and the United States. after there were several cases of monkeypox infection in Europe and the United States, biopharmaceutical US stocks that developed treatments and vaccines for smallpox rose sharply, with $SIGA Technologies (SIGA.US) $up more than 43% and $Tonix Pharmaceuticals (TNXP.US) $up nearly 15%.

• Wedbush:iPhone supply chain is "amazingly resilient"

Dan Ives, an analyst at Wedbush, said in a research report that although $Apple Inc (AAPL.US) $was affected by the epidemic, the bank's investigation showed that the iPhone supply chain was still "surprisingly resilient". At present, the analyst maintains Apple Inc's "overweight" rating, with a target price of $200. It said the combination of Apple Inc's hardware business and its services business, which the analyst thought was worth more than $1,000bn, helped to make the stock's risk / return at its current level "very attractive".

Last Friday, US stock turnover TOP20

The Prospect of Hong Kong City

• Last Friday, Beishui sold Kuaishou Technology more than HK $400m, and increased its positions in CNOOC and Wuxi Biologics.

On May 20th, southbound funds bought a net HK $223 million, the 10th consecutive net purchase. CNOOC Limited, Wuxi Biologics and Jinke Services received a net purchase of HK $341 million, HK $192 million and HK $106 million respectively. Kuaishou Technology, Tencent and XIAOMI received a net sale of HK $414 million, HK $163 million and HK $142 million respectively.

It is worth mentioning that the southward capital sold a net HK $196 million of Meituan on Friday, ending the previous 27-day net purchase (accumulative total of about HK $20.999 billion).

• COSCO Shipping Holdings: the controlling shareholder plans to increase the holding of A shares and H shares of the company by 1.5 billion yuan to 3 billion yuan

$COSCO Shipping Holdings (01919.HK) $According to the announcement, COSCO Shipping Group, the controlling shareholder, increased its A shares by 500000 shares on May 20, and increased its H shares by a total of 3.0255 million shares from May 19 to May 20. In addition, the controlling shareholder COSCO Shipping Group or its wholly-owned subsidiary intends to increase its holdings of A shares and H shares within 12 months from the date of this increase, with a total amount of not less than 1.5 billion yuan and no more than 3 billion yuan.

• China Merchants Bank: the board of directors approved the full redemption of 1 billion US dollars of overseas preferred shares.

$China Merchants Bank (03968.HK) $It was announced that the 41st meeting of the 11th session of the board of directors of the company adopted a resolution on the full redemption of US $1 billion of overseas preferred shares of China Merchants Bank Co., Ltd., agreeing that the company meets the prerequisite for full redemption of overseas preferred shares and can redeem the company's overseas preferred shares in full and pay the outstanding dividends at the same time.

• Credit Suisse: lowered Tencent's target price from HK $524 to HK $474, outperforming the market.

Credit Suisse issued a report that$Tencent (00700.HK) $Revenue in the first quarter of this year was flat at 136 billion yuan, 4% lower than expected, among which gaming and cloud business performance was lower than expected. As for the adjusted net profit of 25.5 billion yuan, it fell by 23% year-on-year, also lower than expected. Looking ahead, the bank said that local games in the group's game business have stabilized, while overseas games are expected to benefit from foreign exchange factors, and the business is expected to record low-unit growth this year. As for the advertising business, it is estimated that it will still be affected by macro challenges and cuts in sales and promotion spending by advertisers. Credit Suisse lowered its earnings per share forecast for this year and next year by 9% and 10% respectively. The bank expects Tencent's weak earnings outlook to be a drag on its share price performance.

Focus today

Key words: DiDi Global Inc. US stock delisting vote, XPeng Inc. / Niu Technologies / So-young International Inc financial report

On Monday, May 23, investors need to pay attention to economic data.IFO Business sentiment Index for May in GermanyIs expected to continue to pick up.
German business confidence rose unexpectedly as German companies overcame the impact of the escalation of the conflict between Russia and Ukraine.

TodayDiDi Global Inc. will hold an interim shareholders' meeting to vote on voluntary delisting from the United States.

Earlier, DiDi Global Inc. announced on the 16th that an interim shareholders' meeting would be held at 7: 00 p.m. on May 23, Beijing time. The shareholders' meeting voted on the voluntary delisting of DiDi Global Inc. 's American depositary shares on the New York Stock Exchange. In order to better cooperate with the network security audit and rectification measures, the Company will not apply for its shares to be listed on any other stock exchange until the delisting is completed.

In terms of financial statements, China-listed stocks$XPeng Inc. (XPEV.US) $、$Niu Technologies (NIU.US) $, and$So-young International Inc (SY.US) $The latest results will be released before Monday's trading.

Niuniu morning reading:

The best investment in high inflation is to invest in yourself.

-- Buffett