Hot news
Pre-market trading on Monday, the three major US equity index futures all fell.
As of press time, Dow Jones futures down 0.15%, S&P 500 index futures down 0.24%, Nasdaq futures down 0.39%.
Large-cap technology stocks mostly fell pre-market, with Nvidia and Taiwan Semiconductor down more than 2%, while Micron Technology rose over 1%.
China concept stocks surged again pre-market! KE Holdings and Nio Inc. soared over 14%, Miniso rose over 10%, Bilibili, Xiaopeng, and Li Auto surged over 8%.
China concept ETF continues to skyrocket, $VanEck ChiNext ETF (CNXT.US)$ surged over 15%.
Nio Inc. in China receives 3.3 billion yuan in capital increase from state-owned shareholders.
On September 29, $NIO Inc (NIO.US)$ The company announced the signing of a strategic investment agreement with three existing shareholders of Nio Inc. in China (referred to as 'Nio China') - Hefei Jianheng New Energy Automobile Investment Fund Partnership Enterprise (Limited Partnership), Anhui Province High-tech Industry Investment Co., Ltd., and Guotou Merchants Investment Management Co., Ltd. According to the agreement, the above-mentioned strategic investors will subscribe to the new shares issued by Nio China with 3.3 billion yuan in cash, and Nio Inc. will also invest 10 billion yuan in cash to subscribe to the new shares issued by Nio China.
jd.com invests 1.5 billion yuan in Hong Kong market layout, with no upper limit in the long term.
On September 30, $JD.com (JD.US)$ It announced further investment in the Hong Kong market, with an initial investment of 1.5 billion yuan, unlimited in the long term. The funds will be mainly used for product price subsidies, logistics subsidies, and service optimization. At the same time, JD.com will also introduce self-operated free door-to-door delivery service (free shipping for orders over 299 yuan, up to 10 kg) for users in Hong Kong, covering electronic products, home appliances, furniture, clothing, beauty products, pet supplies, and other JD.com self-operated product categories.
Boeing's union said negotiations have been suspended, with differences between the two sides on retirement funds and salary demands.
$Boeing (BA.US)$ The largest company union stated that negotiations with the aircraft manufacturer have been interrupted because the two sides failed to reach an agreement that could potentially resolve the strike issue. No progress has been made on the retirement fund issue, and the company will not engage in substantive contact on issues such as increasing wages and accelerating wage growth, according to the International Association of Machinists and Aerospace Workers announcement. The association stated that there are currently no further talks scheduled. There are disagreements between the two sides on the wages and other demands of approximately 33,000 union members. Workers have been on strike since September 13, causing a halt at the Boeing factory near Seattle.
British regulators have given the green light to the major investment deal between Amazon and the rival Anthropic of OpenAI.
The United Kingdom's Competition and Markets Authority (CMA) announced on Friday, September 27, that it will not conduct a thorough investigation into the collaboration with the artificial intelligence (AI) startup company Anthropic, stating that the collaboration does not comply with British $Amazon (AMZN.US)$ competition and market regulations.MergerAnthropic's revenue in the UK did not meet the threshold for triggering an investigation under the relevant legal conditions. The market share in the UK is not large enough.
Stellantis lowered its full-year profit margin guidance, raised cash consumption expectations, and plummeted 12% in pre-market trading.
$Stellantis NV (STLA.US)$ On Monday, it significantly lowered its annual profit expectations and indicated that it would spend more cash than expected due to deteriorating industry trends, rising operating costs for its U.S. business transformation, and competition from Chinese electric vehicle sector. Stellantis stated that it is reducing its expectations for the positive.free cash flowIt is currently expected to consume 5 to 10 billion euros (5.58 to 11.17 billion U.S. dollars) in cash this year, with the business profit margin guidance already lowered.
Apollo acquires a 50% stake in SRT tools related to $3 billion debt of Deutsche Bank.
$Apollo Global Management (APO.US)$ Apollo Global Management and $Deutsche Bank (DB.US)$ Major risk transfer (SRT) transactions related to a $3 billion leveraged debt investment portfolio have been undertaken by the global management company. Insiders said that this alternative asset management company acquired over 50% of the shares of the SRT transaction. SRT was issued by Deutsche Bank's Loft project.
Global macro
Powell brings the Non-Farm "Bombshell"! The soaring U.S. stocks face a huge test.
The market's expectations for a second significant 50 basis point rate cut by the Fed are largely dependent on Powell's policy stance in his speech, non-farm payroll dataPowell's tone on the outlook for the U.S. economy and the Fed's policy prospects, as well as the "hawkish or dovish" policy stance, combined with the latest non-farm data, suggest that the U.S. economy is more likely to succeed.But after the bursting of the internet bubble and the Fed's rate cut in 2001, the ROI dropped by more than 10%.The probability of a significant increase in economic recession is still high, and the strength of non-farm data is also very important for whether the Federal Reserve can continue to cut interest rates by 50 basis points in November.
Goldman Sachs: As the economic situation normalizes, the premium of high-quality U.S. stocks is decreasing.
The Wall Street giant emphasized that currently the premium on 'quality' stocks is at historically high levels, reflecting strong demand in the market for companies with excellent performance in terms of capital return, profit margins, and balance sheet. The widening profit gap among companies in the S&P 500 index has been a key driving factor for this valuation premium.
Goldman Sachs stated that the current profit gap, especially the gap between the stocks with the highest and lowest ROE (Return on Equity), has reached 45 percentage points, approaching the largest gap since the 1980s.
Dock workers in the USA will go on strike, causing concerns in the industry about worsening inflation.
The International Longshoremen's Association recently announced that if both labor and management cannot reach a new agreement before the contract expires on September 30, tens of thousands of workers at more than 30 ports along the U.S. East Coast and the Gulf of Mexico will go on strike. The industry is concerned that the strike will have a severe impact on the U.S. consumer, export, and job markets, as well as exacerbate inflation.
The Bank of Japan cuts Q4 Japan government bonds purchases.
The Bank of Japan announced on Monday that it will further reduce its monthly purchases of Japanese government bonds in the fourth quarter, as part of its plan to proceed with the plan of reducing a huge amount of bonds. According to the latest quarterly purchase plan, the Bank of Japan will cut the monthly government bond purchase amount by another 400 billion yen ($2.81 billion), reducing the total monthly purchases in October to December to approximately 4.9 trillion yen. The Bank of Japan is currently the largest buyer in the bond market. The Bank of Japan aims to reduce its total monthly bond purchases by about half to around 3 trillion yen in the first quarter of 2026, gradually reducing by about 400 billion yen each quarter.
In September, the People's Bank of China conducted open market operations for government bonds, with a net purchase value of 200 billion yuan for the month.
The People's Bank of China announced that to increase the intensity of counter-cyclical adjustments in monetary policy, and to maintain reasonable and adequate liquidity in the banking system, the People's Bank of China conducted open market operations for government bonds in September 2024, with a net purchase value of 200 billion yuan for the month.
In September, manufacturing activity in China accelerated, with the PMI rising and the business climate improving.
On Monday, September 30, the National Bureau of Statistics of China released data showing that in September, the manufacturing purchasing managers' index (PMI) was 49.8%, marking the fifth consecutive month below the boom-bust line, but a significant increase of 0.7 percentage points from the previous month. The non-manufacturing business activity index was 50.0%, a decrease of 0.3 percentage points from the previous month; the comprehensive PMI output index was 50.4%, an increase of 0.3 percentage points from the previous month, indicating an overall improvement in the economic situation in China.
Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.
Reminder for US Macro Events
(All in Peking Time)
21:45 USA September Chicago PMI
22:30 USA September Dallas Fed Business Activity Index
01:00 the next day, Federal Reserve Chairman Powell delivers a speech
Editor/Rocky