Hot news

• Foreign investors are ready to move! A large amount of money is flowing into overseas China ETF

Foreign investment is flocking to a series of China-focused ETF funds. In the past few weeks, some ETF, which focuses on the Chinese market, has seen a surge in call option activity. The size of 7.3 billion dollars$iShares MSCI China ETF (MCHI.US)$It rose by about 32% in November, with inflows of about $567 million. The size of 5.8 billion dollars$KraneShares CSI China Internet ETF (KWEB.US)$It has also risen 48 per cent in the past month, with subscriptions rising to their highest level since June. Although there have not been significant inflows into the ETF, call options have risen to their highest level since June.

• New Federal Reserve News Agency commented on non-farmers: the next time interest rates are raised by 50 basis points, but the risk of interest rates rising above 5% next year is prominent.

Wall Street Journal reporter Nick Timiraos, known as the New Federal Reserve News Agency, believes that with a strong jobs report in November, the Fed is expected to raise interest rates by 50 basis points at its meeting in two weeks' time, highlighting the risk that the Fed will raise interest rates above 5% in the first half of next year. The Fed is still avoiding wage and price increases at the same time, that is, the emergence of a "wage-price spiral."

• Wall Street's most prospective analyst: sell US stocks at high prices! The impact of unemployment next year is like an inflation accident this year.

Michael Hartnett, a strategist at Bank of America, believes that optimism among stock market investors about the cooling of the US labor market and the shift in Fed policy is overdone. It is recommended to sell when the stock market rises before the unemployment rate, which is likely to rise in 2023. Global equity funds have just seen their biggest weekly outflows in three months. People are selling risky assets at high prices.

• High house prices in the United States have made middle-class families miserable, with the worst key indicators ever recorded.

Since the beginning of this year, the Federal Reserve has raised interest rates many times, and interest-sensitive industries such as the real estate market have been greatly affected, causing US house prices to soar to a level that many Americans cannot afford. The indicator is the worst on record, according to the Federal Reserve Bank of Atlanta's home ownership affordability monitoring. The bank explained that it was mainly caused by the Fed's tightening of monetary policy and the sharp rise in mortgage rates. The housing ownership affordability monitoring mainly measures the income of the middle class and the affordability of owning medium-priced housing. In addition, the index takes 30% as the median.

Review of US stocks

• The three major stock indexes all recorded Lianyang on the weekly line, and the Jinlong index rose more than 22% last week.

The three major indexes of U. S. stocks closed mixed on Friday, with two consecutive gains on the weekly line. The Nasdaq fell 0.18%, up 2.09% last week, the S & P 500 fell 0.12%, rose 1.13% last week, and the Dow rose 0.1%, up 0.24% last week.

Chinese stocks rose as a whole, with the Nasdaq China Golden Dragon Index rising 5.39% and up more than 22% last week, the biggest weekly gain since mid-March.Most popular US-listed stocks closed higher, with Bilibili Inc. up more than 16%, XPeng Inc. nearly 15%, NIO Inc. more than 8%, Li Auto Inc. nearly 7%, JD.com 5%, BABA nearly 5%, and Pinduoduo over 3%.

• Guo Mingyi warmed up Apple Inc's XR to delay the launch, and the annual shipment volume will be less than 500000.

According to analyst Guo Mingyi$Apple (AAPL.US)$Production of hybrid reality headsets may be delayed until the second half of 2023, mainly because of "software-related issues". At present, it is entirely possible that Apple Inc will release this header display on WWDC 2023 in June next year, and will also bring a SDK for developers to develop AR / VR applications for it. Guo Mingyi believes that Apple Inc Touxian will be an expensive niche product and predicts that the company will ship fewer than 500000 units in 2023. This figure is below the consensus of other analysts (800000 to 1.2 million).

• Microsoft Corp will fight for the $69 billion Activision acquisition! Or face a potential antitrust lawsuit from FTC.

If the Federal Trade Commission (FTC) sues to try to stop it, the media reported on Saturday, citing people familiar with the matter.$Microsoft (MSFT.US)$Buy a game company for $69 billion$Activision Blizzard (ATVI.US)$Microsoft Corp will fight for the deal. However, it was previously reported that FTC may bring an antitrust lawsuit against Microsoft Corp to stop Microsoft Corp's acquisition of Activision Blizzard.

• make a hurried journey without stop! GM and LG invest an additional US $275 million to expand their North American electric plant

Ultium Cells, a battery joint venture between LG Energy Solution and $General Motors Co (GM.US) $, said it would invest an additional $275 million to expand its electric car battery plant in Tennessee, with the goal of increasing production by more than 40 per cent. The plant is scheduled to start production by the end of 2023, and the new investment is expected to increase the plant's capacity from 35 gigawatt hours to 50 gigawatt hours.

• It's cold on Wall Street! A number of investment banks plan to reduce bonus payments this year, up to 30%.

Across Wall Street, pessimistic expectations of bankers' bonuses are rapidly coming true, with shrinking investment banking activity bringing to an end the battle for talent and companies regaining the upper hand in fixed pay. A person familiar with the matter revealed that$JPMorgan (JPM.US)$、$Bank of America (BAC.US)$、 $Citigroup (C.US)$Are considering cutting investment bankers' bonus pools by as much as 30 per cent. Some companies plan not to pay bonuses at all to employees with poor performance. Sources say the proposals are still under discussion and may be adjusted in the coming weeks.

• Morgan Stanley: maintain Apple Inc's target price of $175and increase his rating.

According to Sensor Tower data, Morgan Stanley analyst Erik Woodring estimated that in November,$Apple (AAPL.US)$App Store net income fell 3 per cent year-on-year. He also said he was "encouraged" by the increase in downloads in the international market in November, despite the increase in prices. App Store's net revenue fell 3 per cent year-on-year at the end of November, below his expectation that it would remain unchanged for the full quarter, meaning App Store would need to grow 4 per cent year-on-year in December to meet his quarterly forecast, which he now considers "relatively conservative". The analyst still expects a shortfall of 6 million to 7 million units in iPhone production in the fourth quarter. He kept the target price of Apple Inc's share price at US $175 and rated Apple Inc's stock as overweight.

Last Friday, US stock turnover TOP20

The Prospect of Hong Kong City

• Beishui sold Li Ningchao 400 million Hong Kong dollars and bought Kuaishou Technology against the trend.

On Friday, southbound funds sold a net HK $1.253 billion of Hong Kong shares. Li Ning Co. Ltd., XIAOMI Group-W and China Shenhua Energy received a net sale of HK $447 million, HK $329 million and HK $294 million respectively, while Kuaishou Technology-W made a net purchase of HK $145 million against the trend.

Focus today

Keywords: final PMI value of Markit service industry in the United States in November, Sentix investor confidence index in euro zone in December; quarterly test results of Hang Seng Index effective

On Monday, in terms of economic dataInvestors can pay attention to important economic data such as the final PMI value of Markit services in the United States in November and the Sentix investor confidence index in December in the euro zone.

In terms of new sharesThe largest domestic participant in China's ophthalmic medical device market$GAUSH MEDITECH (02407.HK)$, Internet of things application provider$HOWKINGTECH (02440.HK)$The application will close on Monday.

Hong Kong stocksOn November 18, the Hang Seng Index announced the quarterly inspection results for the third quarter of 2022. Tingyi, China Resources Mixc Lifestyle Services and Haier Smart Home were included in the Hang Seng Index, and the number of constituent stocks will increase from 73 to 76.All changes will take effect on Monday (December 5).

Niuniu morning reading:

If you can fundamentally figure out what the problem is and think about it, you will never mess it up.

-- Buffett