Hot news

• Fed officials reiterated that fighting inflation is the most important, and the Kansas City Fed president is concerned about high savings.

"given the high inflation rate, restoring price stability remains a top priority for the Fed, and we are committed to using policy tools to keep inflation down towards the 2 per cent target," Cleveland Federal Reserve Bank President Mester said on Tuesday. She said there was still an imbalance between labour demand and supply, but there was no evidence that spiralling wages and prices could bring inflation to the severe levels of the 1970s.

On the same day, Kansas City Fed President George said that the distribution of US savings may affect the level at which the Fed sets the peak of interest rates. She says this is because wealthier households tend to spend a lower proportion of their wealth, although recent data show that the savings of low-income households are falling rapidly.

In addition, the minutes of the Fed's last monetary policy meeting will be released on Wednesday, which are expected to show that benchmark interest rates in the United States need to continue to rise to levels high enough to curb inflation.

• The inverted yield curve of US Treasuries is still likely to deepen.

The severe reversal of key parts of the Treasury yield curve is seen by investors as a sign of recession. The yield on the two-year note is as much as 76 basis points higher than the yield on the 10-year note, the biggest upside-down in 40 years. The co-chief investment officer of PGIM Fixed Income, based in Newark, said the upside-down could be in triple digits before the final pullback. The upside-down trend can be reversed only if the market believes that the Fed will turn to lower interest rates, or that the economy can withstand the pressure of rising interest rates relatively calmly and inflation begins to ease.

• The OECD expects global economic growth to slow further and inflation to turn around in mid-2023.

The Organization for Economic Cooperation and Development (OECD) released the latest Global Economic Outlook report.

The report shows that as the large-scale and historic energy shock caused by the conflict between Russia and Ukraine continues to stimulate inflationary pressures, weaken purchasing power and increase global risk, the global economy is expected to grow slightly by 3.1% in 2022, then slow to 2.2% and 2.7% in 2023 and 2024. The US, the world's largest economy, is expected to grow by 1.8 per cent in 2022, 0.5 per cent in 2023 and 1 per cent in 2024.

On the inflation side, the OECD expects headline inflation in member countries to be 9.4 per cent this year, falling to 6.6 per cent in 2023 and 5.1 per cent in 2024. In addition, the acting chief economist of the OECD said inflation in the world's richest economies should start to shift in the middle of next year.

• Goldman Sachs Group: the yield on 10-year US bonds will not be lower than 4% before the end of 2024.

Given the Fed's tightening measures, Goldman Sachs Group expects 10-year Treasury yields to remain at no less than 4 per cent until at least the end of 2024. "our forecast is based on the premise that the US economy is not in recession, and we believe that inflation will continue to be higher than the Fed's target," said Praveen Korapaty, chief interest rate strategist at Goldman Sachs Group. If there is no recession and inflation is above its target range, the Fed is unlikely to ease monetary policy as expected.

There have been 23 days of 10-year Treasury yields at or above 4% this year, all after the end of September. Before that, the yield had not reached this level since early 2010.

• 275 euros! The European Union finally introduced a natural gas price cap, but the trigger conditions are harsh.

After months of bickering and difficult negotiations, the European Commission has finally come up with a plan to limit natural gas prices. The European Commission's proposed cap on natural gas prices is 275 euros per megawatt hour, well above the current level of about 120 euros, but below the all-time high set in August (about 350 euros), according to the document.

For now. The gas price cap mechanism will only be activated if strict conditions are met, because the plan is widely divided within the EU, and some member states oppose any cap on market prices. because doing so may make it more difficult to obtain natural gas from new suppliers.

• Senior ECB official Fang Ying: interest rates will continue to rise "strongly" in December

In an interview with the media on Tuesday, Nagle, president of the European Central Bank and president of the Bundesbank, stressed that interest rates would rise again "strongly" next month, but he thought it was too early to determine its scale. The key depends on the inflation data and economic outlook ahead of the December 14 meeting, which will determine whether to raise interest rates by 75 basis points for the third time in a row.

Review of US stocks

• The three major indexes of US stocks all rose more than 1%, and the S & P 500 index rose back to 4000 points.

The market focused on the path of the fed to raise interest rates, and several retailers' earnings boosted sentiment. Us stocks rose in light pre-holiday trading, with the S & P 500 up 1.36%, closing above 4000 for the first time since September, and the Nasdaq up 1.36%. The Dow is up 1.18%.

Large technology stocks rose across the board, with Apple Inc, Alphabet Inc-CL C, Facebook and Microsoft Corp up more than 1 per cent. Chip stocks collectively rose, with the Philadelphia semiconductor index up more than 3 per cent and NVIDIA Corp up nearly 5 per cent. Energy stocks performed strongly, with western oil up more than 4 per cent and ConocoPhillips up more than 3 per cent.

Most of the hot Chinese stocks fell, iQIYI, Inc. fell more than 14%, Li Auto Inc. fell more than 4%, XPeng Inc. fell more than 3%.

• Musk's personal wealth has shrunk by nearly 1/3 in the past year, with an average daily loss of about $300m.

According to 9news.com, Elon Musk's personal wealth has shrunk rapidly over the past year, losing nearly 1/3, or an average of about $300m a day. The main reason for Musk's shrinking assets is$Tesla (TSLA.US)$The stock market is in turmoil. Shares in the new energy car company have fallen 56% in a year due to the economic downturn, and the company's market capitalization has fallen to its lowest level since November 2020.

But even so, Musk still tops the world's richest list with a net worth of $170 billion, nearly $13 billion ahead of the second French luxury giant LVMH president and CEO Bernard Arnault.

• Tesla, Inc. 's share price has halved, and the median price of analysts' target price is out of reach.

The huge gap between the stock price and the target price means$Tesla (TSLA.US)$The share price needs to soar 80% to reach the median price of analysts' targets. This gap ranks second in the Nasdaq 100 index. Shares in the Musk-led company have fallen nearly 52 per cent so far this year to $169.91, compared with analysts'12-month median target price of $302. The stock closed up 1.22% on Tuesday, ending a four-day decline.

• A spokesman for Meta denied that Zuckerberg would resign as CEO next year.

$Meta Platforms (META.US)$Andy Stone, a spokesman for the company, said on Twitter on November 22 that the news that Mark Zuckerberg would step down next year was "false". According to an earlier article on the whistleblowing website The Leak, Zuckerberg, CEO of Meta, has decided to resign next year, but his meta-universe project will not be affected.

• Buffett reduced his stake in BYD for the third time this month, reducing his holdings for a total of five times, cashing out more than HK $10 billion.

Buffett's Berkshire reduced its stake in 3.2255 million BYD H shares to an average price of HK $195.4212 per share, cashing out HK $630 million, according to the official website of the Hong Kong Stock Exchange on Tuesday. Buffett reduced his stake in BYD's H shares and cashed out a total of HK $10.898 billion. Buffett's latest reduction came the day after BYD announced that its 3 million new energy vehicles were off the line. On Tuesday, US stocks$BYD Company ADR (BYDDY.US)$It closed down nearly 4%.

• British regulatory authorities launch an antitrust investigation into Apple Inc and Alphabet Inc-CL C

On Tuesday, the American tech giant$Apple (AAPL.US)$和$Alphabet-C (GOOG.US)$Under scrutiny by UK regulators, the Competition and Markets Authority (CMA) has launched an antitrust investigation into the "effective duopoly" of the two tech giants in mobile browsers and cloud games.

• Q3 results exceeded expectations, Best Buy shares rose nearly 13%

Before Tuesday's trading, U.S. consumer electronics retailers$Best Buy (BBY.US)$The company reported better-than-expected revenue and profits for the third quarter, pushing its shares up nearly 13% at the close.

The company reported third-quarter revenue of $10.59 billion, better than market expectations of $10.31 billion, and third-quarter net profit of $277 million, compared with $499 million a year earlier. Adjusted earnings per share are $1.38 and the market is expected to be $1.03.

• Hewlett-Packard fourth-quarter net income of $14.8 billion, analysts expect $14.65 billion

$HP Inc (HPQ.US)$Fourth-quarter net income was $14.8 billion, with analysts expecting $14.65 billion; fourth-quarter adjusted earnings per share were 85 cents and analysts expected 84 cents. Adjusted earnings per share are expected to range from 70 cents to 80 cents in the next quarter, while analysts expect to cut 4000 to 6000 employees by the end of fiscal year 2025. The company is up more than 2% in after-hours trading.

• Manchester United surged nearly 15% and set a record, Ronaldo officially left.

November 22nd local time$Manchester United (MANU.US)$Portuguese star Cristiano Ronaldo has officially left the club after reaching an agreement with the club, the football club has announced. Manchester United officials also announced that the club thanked Cristiano Ronaldo for his contribution to the club during his two stints with Manchester United. Cristiano Ronaldo is currently with the Portuguese national team in preparation for the World Cup in Qatar. Manchester United closed up nearly 15 per cent on Tuesday, the biggest one-day gain since the company's US IPO, followed by a gain of more than 9 per cent.

• After another setback in the field of oncology drugs, GlaxoSmithKline PLC stopped selling the blood cancer drug Blenrep in the United States.

$GlaxoSmithKline (GSK.WI.US)$It will stop selling its blood cancer drug Blenrep in the United States, but will continue its trial program, and some patients will be able to sign up for the treatment, it said in a statement on Nov. 22. The company said this month that Blenrep failed to meet the main goal of a key study designed to prove that it is better than other treatments.

The drug was approved by the FDA in 2020 for patients with relapsed or refractory multiple myeloma who had received at least four previous treatments and generated global sales of 89 million pounds last year, of which about 2/3 came from the United States.

Yesterday's turnover of US stocks TOP20

The Prospect of Hong Kong City

• Beishui sold Meituan more than HK $1.7 billion and bought China Mobile Limited more than HK $500m

On Tuesday, southbound funds sold a net HK $5.815 billion. TRACKER FUND OF HONG KONG, Meituan-W and Hang Seng Chinese enterprises received a net sale of HK $3.51 billion, HK $1.732 billion and HK $801 million respectively, while China Mobile Limited received a net purchase of HK $548 million.

Focus today

Keywords: the number of US jobless claims this week, the initial PMI value of the US Markit service industry, the US weekly EIA crude oil inventory, XIAOMI Group / CSPC Pharmaceutical Financial report

On Wednesday, in terms of economic dataInvestors can pay attention to the number of jobless claims in the United States this week, the initial PMI value of the Markit service industry in the United States, the total annualized sales of new homes in the United States, the final value of the consumer confidence index of the University of Michigan in the United States, EIA crude oil inventory in the United States, and so on.

Financial reportHong Kong stock$XIAOMI-W (01810.HK)$、$CSPC PHARMA (01093.HK)$Results will be announced

According to Bloomberg analysts, XIAOMI Group's Q3 revenue in 2022 is 70.153 billion yuan, adjusted net profit is 1.984 billion yuan, and adjusted EPS is 0.083 yuan.

In addition, US stocks$HP Inc (HPQ.US)$Announce financial results after US stock market trading.$Deere (DE.US)$The financial results will be announced before trading.

In terms of new shares$LX TECHNOLOGY (02436.HK)$The winning result will be announced.

Niuniu morning reading:

It is foolish to own a stock and expect it to rise the next morning.

-- Buffett