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The call between the Chinese and American heads of state releases Bullish Signals, Trump: Will meet again soon at a specific location.
On the evening of June 5th, **** spoke on the phone with President Trump at Trump's request. Xi emphasized that after the Geneva talks, China has earnestly and seriously implemented the agreement. The US should realistically view the progress made and revoke the negative measures imposed on China. Both sides should enhance exchanges in diplomacy, economy and trade, military, law enforcement, and other fields, strengthen consensus, reduce misunderstandings, and strengthen cooperation.
Trump expressed great respect for **** and stated that the US welcomes China's strong economic growth and believes that US-China cooperation can yield many positive outcomes. The US will continue to adhere to the One China policy. The trade talks in Geneva between the two countries were very successful, resulting in a good agreement. The US side is willing to work together with China to implement the agreement and welcomes Chinese students to study in the US. Subsequently, Trump posted on a public platform that both teams will soon meet at a specific location.
Trump and Musk are in a tussle, causing Tesla's stock price to fall 14%, dragging the Index down.
On Thursday (June 5th), Elon Musk launched a full-scale attack on President Trump on the Social Media platform, stating, "Without me, Trump cannot win the election, the House will be controlled by Democrats, and the Republicans will only be 51 to 49 in the Senate," saying "(referring to Trump) he is truly ungrateful," and he also indicated that Trump's tariff policy will lead to an economic recession in the US in the second half of this year.
Trump stated that Musk is angry because of the bill reducing electric vehicle tax credits. He also expressed disappointment in Musk. As the conflict between Tesla CEO Musk and President Trump became public, that day... $Tesla (TSLA.US)$ The stock price fell by 14.26%, with a market cap evaporating by more than 150 billion dollars; $Trump Media & Technology (DJT.US)$ Also fell by more than 8%.
Federal Reserve Governor: There is an upward risk to inflation, and current interest rates should remain unchanged.
On Thursday, former U.S. Treasury Secretary Summers stated that the large tax and spending bill supported by Trump would increase the U.S. government's debt burden, ultimately undermining America's position as a global power. Summers pointed out that the U.S. accumulates debt faster than any other country, making it vulnerable and posing risks to its status as the world's strongest nation.
Summers claimed that there are three main reasons for the increasing U.S. debt burden. First, the rising elderly population over 65 requires more welfare spending. Second, there are increased project costs paid by the government, especially in Medical care. Third, the interest on national debt paid by the Treasury. He supports Trump's recent comments about abolishing the statutory debt ceiling.
Trump: It is difficult to achieve an immediate ceasefire between Russia and Ukraine in a short time.
On the 5th, U.S. President Trump said during a meeting with visiting German Chancellor Merz at the White House that it is comparatively difficult to bring about an immediate ceasefire between Russia and Ukraine in a short time. Trump emphasized multiple times during the meeting that the current grievances and hostility between both sides are deep, and Russia has clearly stated that it will retaliate strongly against Ukrainian attacks on its strategic air force bases, thus making it difficult to achieve an immediate ceasefire in a short time. Trump also compared himself to a referee in a hockey game, saying that when there is fighting on the field, he would let the players fight for a while before intervening.
Goldman Sachs has reduced its risk positions after the tariff war, preparing for more uncertainty.
Goldman Sachs President Waldron said in a podcast on Thursday: 'Since April 2, we have reduced our risk positions - I think this is a wise move for us to make.' 'We have absorbed a lot of risk from our clients. We want to continue to do this, but we will also reduce risk as much as possible.' He stated that Goldman Sachs is preparing for ongoing uncertainty in the coming months, which means maintaining a larger liquidity buffer. Waldron described the tariff measures as 'very, very destructive,' and some companies are now beginning to make business decisions based on the assumption that tariffs will increase by 10% to 15%.
The U.S. Secretary of Commerce: The U.S. strives to build an advanced chip factory within 18 months.
On Thursday local time, U.S. Secretary of Commerce Raimondo stated that President Trump wants to establish a complete chip supply chain in the U.S. Raimondo mentioned the goal of building advanced chip factories within 18 months, attempting to produce 5 million wafers during Trump's administration.
Post-Market Trading
U.S. stock market opened high but closed lower, with Tesla's plunge dragging down the index.
On Thursday, the U.S. stock market opened high but closed lower, with all three major indices collectively declining, and Tesla's stock price plummeting dragged down the Nasdaq and S&P 500 Index.
Most large tech stocks fell, with Apple down 1.08%, Microsoft up 0.82%, NVIDIA down 1.36%, Google up 0.10%, Amazon up 0.33%, Meta down 0.48%, and Tesla down 14.26%.
Popular Chinese concept stocks showed mixed performance, with the Nasdaq China Golden Dragon Index up 0.54%, Alibaba up 0.43%, JD.com down 0.72%, PDD Holdings down 0.32%, NIO down 3.47%, Xpeng down 1.91%, Li Auto down 0.64%, Bilibili up 1.15%, Baidu up 1.13%, NetEase up 1.11%, and Tencent Music up 0.45%.
The first stock of stablecoins surged on its first day of trading, with explosive demand, and the issuance scale was adjusted upwards on the eve of the listing.
The issuer of the world's second largest stablecoin, USDC. $Circle (CRCL.US)$On its first day of listing, it surged by 168.48%. In response to the market's extreme enthusiasm for crypto stablecoins, Circle decided to raise the IPO issuance scale for the third time to 34 million shares on the eve of the listing, setting the IPO price at 31 dollars, which exceeds both the issue price range and market expectations. This IPO raised nearly 1.1 billion dollars. By the close of trading on the first day, the trading volume for Circle was approximately 46 million shares, far exceeding the number of free-floating shares available in the market.
In the second quarter, Broadcom's revenue was 15.004 billion USD, with an adjusted EPS of 1.58 USD.
$Broadcom (AVGO.US)$ The company reported revenue of 15.004 billion dollars for the second fiscal quarter, a year-on-year increase of 20%; adjusted EPS was 1.58 dollars, compared to 1.1 dollars in the same period last year. Broadcom's semiconductor revenue for the second fiscal quarter was 8.408 billion dollars, a year-on-year increase of 17%; infrastructure software revenue was 6.596 billion dollars, a year-on-year increase of 25%.
After the Earnings Reports were released, Broadcom stated that major customers are increasing their spending on AI inference. Non-AI chip sales are near a trough but are expected to slowly recover. Due to customized AI chips, profit margins are narrowing. The deployment of customized AI chips in the fiscal year 2026, which is the next fiscal year, will exceed expectations. Comments suggest that Broadcom's guidance for this quarter appears relatively flat. After the Earnings Reports were released, Broadcom's stock price declined further in after-hours trading, dropping over 4%.
Lululemon's stock fell over 23% in after-hours trading due to tariff pressures and weak sales in the Americas, leading to a downgrade of its full-year performance guidance.
$Lululemon Athletica (LULU.US)$First quarter performance showed that the new round of tariff policies in the U.S. has brought risks, and sales in the Americas unexpectedly declined. Additionally, since the performance guidance was below expectations, Lululemon's stock price fell over 22% in after-hours trading.
The company stated in its quarterly Earnings Reports that the new tariffs implemented in April in the U.S. have increased operational costs, which may result in a "significant decline in profitability." For many years, high inflation, intensified industry competition, and promotional pressures have also been factors hindering the company's development. The Chief Financial Officer said in the conference call that the company plans to implement "strategic price increases" and will review product lines one by one to mitigate the impacts of tariffs.
Trump Media Technology Group plans to launch a Cryptocurrency ETF.
$Trump Media & Technology (DJT.US)$ On Thursday, it was stated that its Truth Social Bitcoin ETF will directly Hold Bitcoin, aiming to provide investors with Stocks that reflect the price performance of Bitcoin. According to documents from the U.S. Securities and Exchange Commission, Crypto.com will serve as the exclusive Bitcoin custodian, primary execution agent, and liquidity provider for this ETF. The company stated that it will raise approximately 2.5 billion USD from Institutions to purchase Bitcoin and plans to use these funds to create a vault for this Crypto.
The company's CEO Nunes previously stated, "We see Bitcoin as the ultimate tool for financial freedom, and now Trump's media will make Crypto an important component of our Assets."
The Apple Store ecosystem generated $1.3 trillion in revenue and sales last year, with over 90% not requiring any commission payment.
$Apple (AAPL.US)$ It was announced that a new study co-led by Professor Andrey Fradkin, an economist at Boston University’s Questrom School of Business, and Dr. Jessica Burley, an economic consultant at Analyzes International, shows that the global App Store will facilitate a total developer revenue and sales of 1.3 trillion USD in 2024. In the revenue and sales facilitated by the App Store ecosystem, over 90% is completely owned by developers without having to pay any commissions to Apple. The study found that in the past five years, the revenue and sales facilitated by the App Store ecosystem have more than doubled in the U.S., China, Europe, and other regions.
Musk: Tesla will launch the next-generation AI chip Dojo 2 later this year.
Musk stated that, $Tesla (TSLA.US)$ Dojo AI training Computer is making progress. The next-generation AI chip Dojo 2 will be launched later this year. A new technology needs to go through three major iterations to become a great technology. Dojo 2 is already good, but Dojo 3 will definitely be even better.
Top 20 trading volumes.
Hong Kong Market Outlook
Northern funds bought MEITUAN for nearly 1.1 billion Hong Kong dollars, sold XIAOMI for over 1.6 billion Hong Kong dollars, and sold TENCENT for over 1.4 billion Hong Kong dollars.
On June 5 (Thursday), southbound funds net bought Hong Kong stocks worth 0.741 billion Hong Kong dollars.
$MEITUAN-W (03690.HK)$、$BYD COMPANY (01211.HK)$、$LAOPU GOLD (06181.HK)$Net purchases of 1.075 billion HKD, 0.384 billion HKD, and 0.237 billion HKD were respectively achieved.
$XIAOMI-W (01810.HK)$、$TENCENT (00700.HK)$、$CHINA MOBILE (00941.HK)$Net sales amounted to 1.612 billion Hong Kong dollars, 1.454 billion Hong Kong dollars, and 0.442 billion Hong Kong dollars respectively.
KUAISHOU-W's Keling AI monthly payment amount has exceeded 0.1 billion yuan for two consecutive months.
On June 6, $KUAISHOU-W (01024.HK)$ its Keling AI celebrates its first anniversary. Information from the KUAISHOU-W official website shows that after ten months since its launch (in March this year), the annualized revenue run rate has exceeded 0.1 billion US dollars, and its monthly payment amounts in April and May this year both exceeded 0.1 billion yuan, with revenue growth rate and revenue level ranking among the top in global video generation large model products and independent AI products. In terms of revenue composition, currently, the Prosumers' paid subscription members contribute nearly 70% of Keling AI's operating revenue.
Youjia Innovation announces an important partnership with Chongqing Changan Automobile.
$MINIEYE (02431.HK)$ Announced an important cooperation with Chongqing Changan Automobile, obtaining a designated project for its new energy self-owned brand's main models. Youjia Innovation, as the selected supplier, will provide high-performance auxiliary driving domain controller products to jointly promote the scaling of full-scene auxiliary driving technology.
Today's focus.
Keywords: U.S. May unemployment rate, May seasonally adjusted non-farm employment population
On Friday, in terms of economic data, the U.S. May unemployment rate and May seasonally adjusted non-farm employment population will be announced.
In terms of financial events, Federal Reserve Governor Cook will give a speech at the New York Economic Club, and 2026 FOMC voting member, Philadelphia Fed President Harker will speak on the economic outlook.
Regarding new stocks, $Omada Health (OMDA.US)$ It will be listed.
Futubull Morning Reading:
Life is like a snowball; the important thing is to find wet snow and a long slope.
-- Warren Buffett
Editor/joryn
