Hot news

• Inflation in the United States peaked? Us CPI rose 8.5% in July from a year earlier, and interest rate hikes are expected to cool down quickly

In the United States, non-quarterly CPI rose 8.5% in July from a year earlier, and is expected to grow by 8.7%, compared with 9.1% in the previous period. Unseasonally adjusted core CPI in the US rose 5.9 per cent in July from a year earlier and is expected to grow 6.1 per cent, compared with 5.9 per cent before. Market expectations for the extent of the Fed's rate hike in September fell to 58 basis points.

• Fed's most hawkish official: CPI data will not shake interest rate path, it is impractical to cut interest rates early next year

Neel Kashkari, president of the Minneapolis Fed, who has long been the biggest dove official of the Fed, is now the biggest hawk. Mr Kashkali, who is the most hawkish member of the federal open market committee on inflation, said he hoped to raise the benchmark interest rate to 3.9 per cent by the end of the year and 4.4 per cent by the end of 2023, according to a bitmap released by the fed in June. Mr Kashkari said the conclusion that the fed would start cutting interest rates early next year was unrealistic, when inflation was likely to well exceed its 2 per cent target.

• Fed Evans: the federal funds rate is expected to be in the range of 3.75% and 4% by the end of 2023.

Charles Evans, chairman of the veteran dove Chicago fed, says the federal funds rate is expected to be in the range of 3.75% and 4% by the end of 2023. It also said the Fed is in a strong position on interest rates and can shift to a more restrictive position if necessary, or not to raise interest rates so much.

• Economist: don't judge too early that the cooling of inflation will keep the Fed's suspense of raising interest rates until the last minute.

Economists are still divided over whether the slowdown in inflation in the United States in July means that the Federal Reserve may relax its plan to raise interest rates sharply. The market now prices that it is more likely to raise interest rates by 50 basis points in September than by 75 basis points, and the cumulative rate increases in the next two meetings will be less than 100 basis points. Bank of Nova Scotia economist Derek Holt said, "50 or 75 basis points will not be known until the last minute. For now, I more agree with the view that the job market is increasingly tight and that the tight labour market has raised fears that rising wages will further push up inflation, but it is too early to judge the policy decision in September." "

• 美Raimundo, China's Minister of Commerce: the United States has made great progress in getting rid of the shackles of the supply chain

Us Commerce Secretary Raimundo says there is a need to be cautious about positive CPI messages. The Biden administration will continue to try to solve the problem of high prices. The United States has made a lot of progress on shipping costs. The shortage of truck drivers in the United States has been largely alleviated.

• Another unexpected surge in crude oil stocks in the United States，Crude oil output hit a new high in more than two years，But gasoline demand and exports have picked up significantly.

The US Department of Energy announced that US EIA crude oil inventories increased by 5.457 million barrels month-on-month last week, and the market is expected to decline by 400000 barrels for the second week in a row. Crude oil production last week reached 12.2 million barrels per day, the highest since April 2020. Gasoline inventories fell by 4.978 million barrels, the biggest drop since October 15 last year, almost five times the decline expected by the market. Gasoline exports reached the highest level since December 2018.

• Drought in Europe lowers the water level of the Rhine, exacerbating the energy crisis

The Rhine, which flows through Switzerland, Germany, France and the Netherlands, is an important shipping channel in Europe, and tens of millions of tons of goods are transported between countries through the Rhine every year. The persistent drought and lack of rain in Europe this summer has led to a drop in the water level of the Rhine, which has seriously affected shipping and exacerbated the energy crisis in Europe.

Review of US stocks

• The Nasdaq rose nearly 3% to enter a technical bull market, technology stocks rose across the board, and Tesla, Inc. rose nearly 4%.

By the close, the Dow was up 1.63%, the S & P 500 was up 2.13%, and the NASDAQ was up 2.89%, rebounding more than 20% from its June low, entering a technical bull market with the NASDAQ 100. In addition, the Russell 2000 small-cap index rose nearly 3%, and the "panic index" VIX fell below 20:00 for the first time since April 21, indicating that investors have increased their bets on risky assets. Tesla, Inc. is up 3.89%, Apple Inc is up 2.62%, Microsoft Corp is up 2.43%, Alphabet Inc-CL C is up 2.68%, Amazon.Com Inc is up 3.53% and NVIDIA Corp is up 5.82%.

• Most of the hot Chinese stocks rose.

TAL Education Group rose 4.65%, NIO Inc. 4.59%, New Oriental Education & Technology Group 3.63%, Li Auto Inc. 2.11%, Baidu, Inc. 1.58% and BABA 1.36%.

• Musk sold another $6.9 billion of Tesla, Inc. shares, saying that he was really sold out this time and would buy again in the future.

Musk reduced his holdings of about 7.924 million shares from August 5 to August 9.$Tesla, Inc. (TSLA.US) $Stock, the reduction price range is $838.571 to $911.752, worth about $6.9 billion. With regard to this reduction, when netizens asked whether Musk had completed the reduction and whether he would buy back Tesla, Inc. shares if the deal with Twitter did not materialize, Musk replied yes. It is worth noting that in April this year, Musk had said that he had no plans to further reduce his stake in Tesla, Inc. after trading with Twitter and reducing his holdings by $8.5 billion.

• Guo Mingyi: the average price of the iPhone14 series has increased by 15%. The Pro is more expensive.

Well-known analyst Guo Mingyi tweeted on Wednesday$Apple Inc (AAPL.US) $The average price of the iPhone14 series will rise by 15% because the Pro model is more expensive. Guo Mingyi expects the average price of the iPhone14 series to rise by about 15% to $1000 to $1050 compared with the iPhone13, because the two iPhone14Pro models are more expensive.

• It's not enough to drop 10 million? Apple Inc increased podcast content investment and signed a contract with Futuro Studios

At a time when many technology companies are cutting back on content budgets.$Apple Inc (AAPL.US) $But actively layout in the field of podcast content. Apple Inc has so far spent as much as $10 million to promote cooperation with the studios, according to people familiar with the matter. Podcasts produced internally by Apple Inc are mainly used as a marketing tool for video series, or to measure audience interest in these content.

• Walt Disney Company's subscriber growth exceeded expectations, the company announced a new pricing structure, and its share price rose nearly 7% in after-hours trading.

Wednesday,$Walt Disney Company (DIS.US) $The company reported that the total number of Walt Disney Company + subscriptions rose to 152.1 million in the third quarter, higher than the 147 million forecast by analysts. At the end of the third quarter, Hulu had 46.2 million users, while ESPN+ had 22.8 million. The company's shares rose nearly 7% in after-hours trading.

• Softbank Corp. settled BABA's shares, which is expected to be worth US $34 billion, and his shareholding has dropped to 14.6%.

In the face of the epic "rout"$BABA (BABA.US) $It's done again.$Softbank Corp. (ADR) (SFTBY.US) $"lifesaver". According to announcements issued by Softbank Corp. Group and BABA Group, Softbank Corp. 's board of directors has approved the settlement of up to 242 million BABA ADR forward contracts ahead of schedule, with a total estimated transaction income of 4.6 trillion yen (about US $34 billion). When the settlement is completed, the proportion of shares held by Softbank Corp. Group in BABA Group will drop from 23.7% to about 14.6%.

• Ford CEO says the high price of battery materials is hard to fade, and LFP is still the medium-term "version answer".

Wednesday, local time (August 10)$Ford Motor (F.US) $CEO Jim Farley told the media that the pressure on the cost of raw materials is not expected to ease in the short term, especially the prices of lithium, cobalt and nickel. Farley said the company should bet on lithium iron phosphate (LFP) technology to allow consumers to buy cars at an acceptable price, which is why Ford plans to offer LFP battery pack options on vehicles such as the Fmuri 150 Lightning and the Mustang Mach-E.

• The European Union is expected to approve the COVID-19 vaccine developed by Pfizer Inc-BioNTech against O'Micron this autumn.

A spokesman for EU regulators said the European Drug Administration is expected to approve it this fall, Agence France-Presse reported.$Pfizer Inc (PFE.US) $-$BioNTech (BNTX.US) $The COVID-19 vaccine against O'Micron mutant was developed. In June, Pfizer Inc and BioNTech SE of Germany said that both COVID-19 vaccines developed for O'Micron had triggered a "high immune response". One is a fortified vaccine for O'Micron, and the other is a bivalent vaccine for the original virus and O'Micron.

• American biotechnology company Invitae soared 278.51%

American Biotechnology Company$Invitae (NVTA.US) $Volume rose by 278.51%. Before trading, the company reported second-quarter revenue up 17.5% from a year earlier, with a loss of $0.68 per share, better than the market's expected loss of $0.76. In addition, the total number of patients in the company is more than 3.1 million, of which nearly 62% can be used for data sharing. Invitae also announced that it would withdraw from non-core business areas, reducing the number of its markets from more than 100 to just four.

Yesterday's turnover of US stocks TOP20

The Prospect of Hong Kong City

• Beishuijing bought nearly HK $800,000,000 for China Mobile Limited, and Meituan was sold for another HK $400m

Southbound funds bought a net HK $1.28 billion of Hong Kong stocks on Wednesday. China Mobile Limited, Tencent and Tianqi Lithium received a net purchase of HK $791 million, HK $232 million and HK $180 million respectively, while Meituan-W, Kuaishou Technology-W, Wuxi Biologics and Geely Automobile received a net sale of HK $385 million, HK $353 million, HK $281 million and HK $153 million respectively.

Since July 29, southward funds have bought Tencent for nine consecutive trading days, totaling about HK $7.54071 billion.

• BABA-SW: Softbank Corp. 's board of directors agreed to settle a maximum of 242 million ADR forward contracts

$BABA-SW (09988.HK) $In the announcement of the Hong Kong Stock Exchange, the company's shareholder Softbank Corp. announced today that its board of directors has approved a number of prepaid forward contracts previously concluded by Softbank Corp. with counterparties of several financial institutions to raise funds using some of the company's shares held by Softbank Corp.. The prepaid forward contract to be settled in advance involves a maximum of approximately 242 million American depositary shares of the Company, accounting for approximately 9 per cent of the total number of shares issued by the Company.

• Longfor Group: all the company's overdue commercial bills have been paid, and there is no overdue payment.

$Longfor Group (00960.HK) $It is announced that the company's board of directors is aware of abnormal fluctuations in the company's share prices that deviate from the market today. The Board confirms that, after making all reasonable enquiries about the Company, the Board is not aware of any reason for the deviation of share prices from abnormal market fluctuations, nor is it aware of any inside information that must be disclosed to avoid false market information on the Company's securities or any inside information required to be disclosed under part XIVA of the Securities and Futures Ordinance, Chapter 571 of the laws of Hong Kong. The Board confirmed that the Group was operating normally and had sufficient cash reserves at its disposal. The company's unaudited operating data and new land reserves are released on a monthly basis through the Stock Exchange and the company's website, timely implementation of maturing debts and notes at home and abroad, and active repurchase of corporate bonds in the secondary market. All the company's overdue commercial bills have been paid, and there is no overdue payment.

• Lenovo Yang Yuanqing: it is estimated that the global demand for PC this year will reach about 300 million to 310 million units.

The slowdown in global demand for consumer electronics has been reflected in the corporate side. August 10th, in$Lenovo Group Limited (00992.HK) $Yang Yuanqing, chairman and CEO of Lenovo Group Limited, told reporters at the performance communication meeting held in the first quarter of 2023 fiscal year that the demand for PC this year is expected to reach about 300 million to 310 million units, which may be 10% lower than that before the outbreak, but will increase next year and the year after next, returning to 320 million-330 million units.

• Techtronic Industries: the net profit in the first half of the year increased by 10.4% to US $578 million, with an interim interest rate of HK95 cents.

$Techtronic Industries (00669.HK) $Announcing the results for the first half of 2022, the company achieved a turnover of US $7.034 billion, an increase of 10% over the same period last year, a profit attributable to shareholders of US $578 million, an increase of 10.4% over the same period last year, and a profit of 31.59 cents per share. The board meeting decided to pay an interim dividend of HK95.00 cents per share.

• DongFeng Motor Group: sales of new energy vehicles in July were 30977, up 116.3% from the same period last year.

$DongFeng Motor Group (00489.HK) $It was disclosed that KuaiBao produced and sold in July 2022, with a total monthly production of about 253102 vehicles and sales of about 238413 vehicles. Of these, 34399 new energy vehicles were produced in that month, and sales of new energy vehicles in the same month were 30977, an increase of 116.3% over the same period last year. The cumulative sales of new energy vehicles this year reached 159609, an increase of 169.1% over the same period last year.

Focus today

Keywords: us PPI in July, number of people claiming unemployment benefits that week, Minneapolis Fed Chairman Kashkari's speech, Semiconductor Manufacturing International Corporation / Li Ning Co. Ltd. Financial report

Economic data such as the July PPI and the number of initial jobless claims that week will be released on Thursday.

The number of US jobless claims in the week ended July 30 was 260000, close to the highest level since November, above the previous figure of 256000 and market expectations of 259000. As the epidemic continues to hit the economy, the number of initial claims for unemployment benefits in the United States in the week ending August 6 is expected to remain high.

Incident aspectIn 2023 FOMC voting committee, Minneapolis Federal Reserve Chairman Kashkari discussed inflation.

Financial report$Semiconductor Manufacturing International Corporation (00981.HK) $、$Hua Hong Semiconductor (01347.HK) $、$Li Ning Co. Ltd. (02331.HK) $、$Walt Disney Company (DIS.US) $And other companies will disclose their financial results.

Goldman Sachs Group pointed out that he is still optimistic about the long-term growth prospects driven by the growing demand of the company's local fabless semiconductor customers, but given the downward cycle of the industry and the slowdown in demand for smartphones and consumer electronics (accounting for about 50% of revenue), the bank believes that the company's profit growth has been slow in the near future, and forecasts that Semiconductor Manufacturing International Corporation's income growth will increase from + 40% to 29% in the second to third quarter of this year. It slowed to + 10% in the fourth quarter of this year and 6% in the second quarter of next year.

Niuniu morning reading:

Let time and money go to work, all you have to do is sit down and wait for the results.

-- Peter Lynch