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• Fed Beige Book: Most regions see little change in overall economic activity, while inflation remains moderate.

The Fed's Beige Book released on Wednesday shows that since early September, overall economic activity in almost all regions has remained stable. Two regions reported moderate economic growth. Inflation remains moderate, with retail prices in most regions increasing at a slight to moderate pace. Over half of the regions recorded slight to moderate job growth. Layoffs in many regions have been limited, and labor mobility levels are low.

• Lagarde: Warns the winner of the US election to be cautious about harming trade.

European Central Bank President Lagarde once again defended the benefits of free trade, stating that whoever wins the US election should be careful not to harm global trade. When asked about the prospects of tariff increases at an event at the Atlantic Council on Wednesday, Lagarde said history shows the damage such measures could cause. "The era of restrictions and barriers is not a period of world prosperity and strong leadership, so I believe that whoever ultimately becomes the country's president should at least remember this," Lagarde said. "Just because we are going to increase tariffs, drawing the conclusion that the domestic economy will be better, I think it's a bit far-fetched."

• Bank of England Governor Bailey: Inflation cooling faster than expected, raising expectations of a rate cut in November.

Bank of England Governor Bailey said that the speed of the UK's inflation decline is faster than officials' expectations, which is the latest signal that the central bank will continue to cut interest rates next month. Bailey stated that inflation is lower than his expectations a year ago. He said at an event of the International Institute of Finance (IIF): "I believe the speed of inflation decline is faster than we expected, but we still have real doubts about whether the economy has undergone some structural changes."

• Buffett speaks out on the US election: Not endorsing any political candidate

Famous investor Warren Buffet stated two weeks before the American citizens went to the polling stations to elect the next president that he would not support any political candidate. The 94-year-old billionaire published a statement on the Berkshire Hathaway company website, hoping to put an end to rumors about Buffet's support for political candidates and investment products online.

• Musk holds a million-dollar 'big draw' for 'swing state' voters, US Department of Justice: may be illegal.

Sources say the US Department of Justice has informed Elon Musk, a well-known American entrepreneur, who established the 'America Political Action Committee,' that Musk's actions of offering a $1 million reward to registered voters in 'swing states' may violate federal law. Elon Musk, a well-known American entrepreneur, who fully supported the Republican presidential candidate, former President Donald Trump in this year's US presidential election, recently made a bold move in critical 'swing states' like Pennsylvania - randomly selecting one voter participating in his petition campaign each day, and giving away one million dollars for free.

• Compared to US Treasury bonds, Goldman Sachs and asset management giant Vanguard are more bullish on European government bonds.

Vanguard, Goldman Sachs, and other companies are betting that German bonds will outperform US bonds, and there is further room for this theme to develop. The driving force is that as the US labor market and consumers show remarkable resilience, the Federal Reserve is giving up on the idea of rapidly pushing for rate cuts. The European Central Bank, on the other hand, is maintaining a path of further rate cuts amid economic slowdown. 'We are positioning for US Treasury underperformance and European government bond outperformance,' said Roger Hallam, Global Rates Chief at Vanguard, managing nearly $10 trillion in assets. 'We are monitoring the relative growth differences between the US and Europe and believe that the prospects for the US are relatively optimistic, while the macro outlook for Europe looks weaker.'

Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.

• The three major indexes collectively declined, with technology stocks generally falling, and Nvidia dropping nearly 3%.

The US stock market opened and closed lower, with all three major stock indexes posting their largest declines in weeks. By the close, the Dow Jones Industrial Average fell by 0.96%, the S&P 500 Index fell by 0.92%, and the Nasdaq Index fell by 1.60%.

Large-cap tech stocks all fell, with Apple down 2.16%, Microsoft down 0.68%, Nvidia down 2.81%, Google down 1.43%, Amazon down 2.63%, Meta down 3.15%, Tesla down 1.98%.

Most popular China concept stocks declined, with the Nasdaq Golden Dragon Index down 1.20%, Alibaba down 2.45%, JD.com down 0.87%, PDD Holdings down 4.80%, Nio Inc down 0.76%, Xpeng up 1.09%, Li Auto Inc up 3.76%, Bilibili down 0.49%, Baidu down 2.21%, Netease down 1.22%, Tencent Music down 1.78%, iQiyi down 1.94%.

• Tesla's third-quarter EPS increased by 9%, and Cybertruck's first gross margin turned positive, rising more than 12% after hours.

$Tesla (TSLA.US)$ After hours, it rose by more than 12%. The third-quarter revenue increased by nearly 8% year-on-year, still lower than expected, but the profit was surprising, with the gross margin rising by 195 basis points to 19.8% compared to the same period last year. The gross margin of the automobile business exceeded expectations, rising to 17.1%; "carbon sold" revenue increased by over 30% year-on-year to a quarterly high; the gross margin of the energy storage business in the third quarter reached a record 30.5%. This year's deployment is expected to double compared to last year, and the Shanghai factory is expected to start delivering Megapacks in the first quarter of next year.

Production of more affordable models and new vehicles will begin in the first half of next year. It is expected that this year's car deliveries will slightly increase compared to last year. Musk mentioned a possible growth of 20%-30% next year, with the price of low-cost cars expected to be below 0.03 million USD. Cybercab will go into mass production in 2026, with a target annual output of 2 million vehicles. Tesla's AI training computing power in the third quarter increased by over 75%, with an expected 0.05 million NVIDIA H100 clusters at the Texas factory by the end of this month.

• Apple released the Apple Intelligence test version, but still closed down by 2.16%.

On Wednesday local time, $Apple (AAPL.US)$ Apple has released the developer beta version of Apple Intelligence, which includes a series of features, including the long-awaited ChatGPT integration. During the regular trading hours, Apple's stock price fell by over 3% in the US stock market. Apple stated that Apple Intelligence has already provided a preview version for developers and some users, but the official public version will be released as part of iOS 18.1 next week, when the highly anticipated generative AI tool will make its debut on the iPhone 15 Pro model and the all-new iPhone 16 series. The main features of iOS 18.1 include writing tools, image cleaning, notification summaries, and a redesigned typing input experience for Siri. At the close, Apple fell by 2.16%.

• Weak performance in consulting and infrastructure businesses in the third quarter led to IBM plunging over 8% after hours.

$IBM Corp (IBM.US)$ After-hours financial results were announced, with a drop of over 7%. IBM's quarterly report released after hours on Wednesday showed that the company's third-quarter revenue fell short of analysts' expectations, mainly due to poor performance in the consulting business. The company's stock price fell by 8% after hours. However, the company stated that the generative AI business has exceeded 3 billion US dollars in scale, growing by 1 billion US dollars compared to the second quarter.

• McDonald's fell over 5%, dragging down the Dow Jones Industrial Average, as severe E. coli infections occurred at multiple McDonald's locations in the USA.

mcdonald's (MCD.US) Fell by 5.12%, leading the Dow Jones component stocks. Multiple people in the USA ate at local fast food chainstores. mcdonald's (MCD.US) One person has died after feeling unwell from a hamburger. On October 22, local time, the Centers for Disease Control and Prevention in the USA stated that the incident involved food poisoning caused by E. coli. The Department of Agriculture in the USA stated that they will continue to verify the safety of the ground beef used, although onion slices may be the source of contamination. mcdonald's (MCD.US) The White House spokesperson stated that the Biden administration is closely monitoring the food safety incident at McDonald's outbreak, even though onion slices may be the source of contamination.

• Siemens is rumored to be acquiring the software manufacturer Altair Engineering.

According to insiders, $SIEMENS AG (SIEGY.US)$ is currently in the process of acquiring the software manufacturer$Altair Engineering (ALTR.US)$ Negotiations are underway for a potential deal, which would be one of the largest acquisitions in Siemens' history. Sources familiar with the matter said that the German engineering group is working with advisors to discuss the acquisition of Altair, headquartered in Troy, Michigan. Altair's stock price has risen 27% since the beginning of this year, bringing the company's market cap to $9.1 billion. Sources said the company is considering a sale. Reports this week also indicated that Altair is considering a sale. The stock closed up 3.54% as of Wednesday's close.

BeiShui crazily bought China Mobile for nearly HKD 1.8 billion and sold Tencent for about HKD 200 million. On Monday (June 3rd), Southbound funds net purchased HKD 3.4 billion of Hong Kong stocks.

• Beishui aggressively raised nearly HK$1.1 billion in China Resources Power, increased holdings in Tencent by over HK$0.6 billion, and sold over HK$0.3 billion in CNOOC.

On October 23 (Wednesday), southbound funds net purchased HK$9.399 billion of Hong Kong stocks.

$CHINA RES POWER (00836.HK)$,$TRACKER FUND OF HONG KONG (02800.HK)$,$TENCENT (00700.HK)$Received net purchases of 1.082 billion Hong Kong dollars, 0.951 billion Hong Kong dollars, 0.631 billion Hong Kong dollars respectively;

$CNOOC (00883.HK)$,$CHINA MOBILE (00941.HK)$,$SMIC (00981.HK)$Encountered net sales of 0.319 billion Hong Kong dollars, 0.198 billion Hong Kong dollars, 3.35 million Hong Kong dollars respectively.

• 金沙中国：第三季净收益总额同比减少1.0%至1.77 billion美元

$SANDS CHINA LTD (01928.HK)$ 发布公告，根据美国公认会计原则，金沙中国2024年第三季的净收益总额由2023年第三季减少1.0%至1.77 billion美元。金沙中国2024年第三季的净收入为0.268 billion美元，而2023年第三季为0.231 billion美元。

• 万科企业被摩根大通减持约0.128 billion港元

据港交所披露易数据，摩根大通10月18日减持约17.15 million股 $CHINA VANKE (02202.HK)$ ，按平均减持股价7.4891港元计，涉资约0.128 billion港元；所持多头仓位由此前的6.13%降至5.36%，持股数降为约0.13543 billion股。

• 中广核电力：第三季度归母净利约2.874 billion元，同比增长4.87%

$CGN POWER (01816.HK)$ Announced the business performance for the third quarter of 2024, with revenue of approximately 22.893 billion yuan, a year-on-year increase of 11.31%; net profit attributable to shareholders of the listed company of approximately 2.874 billion yuan, a year-on-year increase of 4.87%; non-GAAP net profit of approximately 2.778 billion yuan, a year-on-year increase of 2.97%; basic earnings per share of 0.0569 yuan.

The company's overall sales volume in 2023 was 18,000 kiloliters, with a year-on-year increase of 28.10%, indicating significant growth. In terms of product structure, the operating income of products worth 10-30 billion yuan were 401/1288/60 million yuan respectively.

Keywords: USA initial jobless claims, October manufacturing, service PMI; Federal Reserve releases Beige Book

On the economic data front, USA initial jobless claims will be announced at 20:30 Beijing time, and USA October S&P Global manufacturing and service PMI data will be announced at 21:45, both of which are important economic indicators for this week. At the same time, Eurozone October manufacturing PMI will also be revealed.

In terms of financial events, the Federal Reserve will release the Beige Book on the economic situation, and Bank of Japan Governor Haruhiko Kuroda will deliver a speech at the 'Governors' Talk' hosted by the IMF.

In terms of performance, in the US stock market$Barclays (BCS.US)$Please use your Futubull account to access the feature.$American Airlines (AAL.US)$ Will release financial report, hong kong stock market can pay attention to $SINOPEC SSC (01033.HK)$ Latest performance.

Futubull Morning News:

Investing in stocks, inevitably, there are some areas that rely on luck, but in the long run, good luck and bad luck will cancel each other out. To sustain success, one must rely on skill and apply good principles.

Philip Fisher

Editor/Rocky