Hot Topics
The United States and China will hold the first meeting of the economic and trade consultation mechanism in London today.
U.S. President Trump posted on social media, revealing that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will arrive in London today to hold trade negotiations with the Chinese delegation. Trump stated that the negotiations are expected to proceed smoothly.
A spokesperson for the Ministry of Foreign Affairs announced: At the invitation of the UK government, He Lifeng, a member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, will visit the United Kingdom from June 8 to 13. During this period, he will hold the first meeting of the Sino-US economic and trade consultation mechanism with the US side.
The Ministry of Commerce answers reporters' questions about the export control measures for heavy rare earths.
Question: Recently, many countries have expressed concern about China's export control measures for rare earths. What measures will the Chinese side take to respond to these concerns?
Answer: The items related to rare earth have dual-use properties for military and civilian purposes; thus, implementing export controls aligns with international practices. China implements export controls on these rare earth items in accordance with the law, aiming to better protect National Security and interests, fulfill international obligations related to non-proliferation, and uphold a consistent stance of maintaining world peace and regional stability.
Trump is considering candidates for the next chair of the Federal Reserve and will make an announcement "very soon".
After repeatedly urging the Federal Reserve to cut interest rates but returning empty-handed, U.S. President Trump may be considering replacing Federal Reserve Chairman Powell or establishing a 'shadow Federal Reserve Chairman' to undermine Powell.
On June 6, Friday, Eastern Time, Trump stated that he is considering candidates for the next Federal Reserve Chairman, which 'will be announced soon.' Trump did not disclose the range of candidates but mentioned that he has almost decided who to choose, someone who is widely respected, adding that a good Federal Reserve Chairman would cut interest rates. He reiterated that Powell should lower rates.
When asked about former Federal Reserve Governor Warsh, who is viewed by the public as a possible successor to Powell, Trump replied, 'He is highly respected.'
The immigration conflict in Los Angeles, USA has raised concerns, with the Governor of California angrily criticizing the White House for inciting tension.
Conflicts erupted between the federal government and protesters in Los Angeles, California. The White House issued an order from Trump on Saturday evening, deploying 2,000 National Guard soldiers to respond to the immigration protests in Los Angeles.
Previously, conflicts and confrontations between Los Angeles demonstrators and federal agents in Los Angeles had led to over 100 arrests. White House Press Secretary Karoline Leavitt stated that Trump is federalizing part of the California National Guard; otherwise, these troops would only report to Governor Newsom. The President has certain authority to handle such matters.
Newsom expressed strong criticism, believing that the White House's actions were deliberately inciting and would escalate tensions. He emphasized that Los Angeles authorities can gain law enforcement assistance at any time, and the state government is coordinating with various counties and cities, with no unanswered situations currently.
The supersonic passenger aircraft is making a comeback, and Trump has ended the 52-year flight ban.
According to CCTV News, on the 6th local time, the White House stated that President Trump signed multiple executive orders, including one aimed at promoting supersonic aviation in the United States. The order directs the Federal Aviation Administration (FAA) to repeal the ban on land-based supersonic flights, create temporary noise-based certification standards, and eliminate other regulations that hinder supersonic flight.
Michael Kratsios, Director of the White House Office of Science and Technology Policy, stated, "Americans should be able to fly from New York to Los Angeles in four hours."
Blake Scholl, CEO of the American supersonic startup Boom, stated, "Boooooom! The sound barrier has never been a physical obstacle, but rather a regulatory issue. With the legalization of supersonic flight, the return of supersonic passenger aviation is only a matter of time."
The dispute between Musk and Trump has eased slightly, but Silicon Valley is hesitant about future actions.
The social media battle between President Trump and Musk has temporarily cooled down. Currently, Musk has deleted several accusatory posts against Trump, including claims that Trump was involved in the Epstein sexual assault case. However, White House officials believe the relationship between the two remains fraught with uncertainty. An official revealed that while they have stopped posting, it does not mean they are pleased, and the future relationship between them is completely unpredictable.
However, White House officials believe that although Musk once called for Trump's impeachment and Trump threatened to cut all federal contracts for Musk's companies, in reality, neither wants to escalate to that level.
Currently, the Trump administration is fully promoting a crucial piece of legislation—the Beautiful Act, which Musk referred to as the "disgusting mountain of pork," and the quarrel between the two has raised further doubts about this legislation.
The dispute between Musk and Trump has raised concerns in the tech industry about alliances with right-wing governments. Sequoia Capital Chairman Michael Moritz warned that Silicon Valley individuals might just be cannon fodder for the White House.
There are no signs of weakening in American consumption, with a surge in consumer credit in April, particularly in student loans, which are of most concern to the market.
The Federal Reserve's G98 report shows that American consumers are borrowing and spending at an astonishing rate: consumer credit in April doubled to $17.9 billion, with student loans skyrocketing to a historic high of $1.8 trillion, while millions of borrowers face a significant risk of mass defaults.
Analysts say this data contradicts media narratives about 'American consumers cutting back on spending due to recession fears.' In fact, American consumers are doing what they do best: consuming.
Post-Market Trading
The US stock market closed higher, with May non-farm data exceeding expectations.
Last Friday, the three major US stock indices collectively rose by over 1%, with May non-farm payrolls adding 139,000, the lowest since February, while data for the previous two months were significantly revised down by 95,000 and the unemployment rate stands at 4.2%.
Most large technology stocks rose, with Tesla up 3.67%, Alphabet-A up 3.25%, Amazon up 2.72%, Meta up 1.91%, Apple up 1.64%, NVIDIA up 1.24%, and Microsoft up 0.58%.
Popular Chinese concept stocks mixed, with the Nasdaq China Golden Dragon Index falling slightly by 0.06%, Legend Biotech rising by 11.18%, ZAI LAB rising by 4.30%, Pony.ai up 3.43%, Bawang Chaji up 2.91%, Pinduoduo up 1.28%, Kingsoft Cloud down 3.23%, Xiaopeng Motors down 2.40%, and Alibaba down 0.48%.
The "first stock" of stablecoins, Circle, saw another surge the day after its listing, exhibiting a "crazy" performance with a dramatic increase of 168% on the first day.
On June 6, the issuer of the world's second-largest stablecoin USDC.$Circle (CRCL.US)$After continuing to rise on the second day post-listing, closing up 29.4% at $107.7, with a total market capitalization of approximately $23.968 billion. On June 5, the company officially landed on the New York Stock Exchange, with the first-day trading performance described as "crazy," its stock price soaring more than twice within a few minutes, leading to three temporary suspensions by the exchange, ultimately closing with a gain of as high as 168%. This impressive performance is broadly regarded by the market as a symbolic event marking the "return of the crypto boom." It is reported that Circle's USDC holds about 27% share in the stablecoin market, ranking second, only behind Tether USDT, which occupies 67% of the market.
Apple's WWDC 2025 is about to open. What potential hotspots are there for this year's conference?
$Apple (AAPL.US)$ The annual developer conference (WWDC 2025) will kick off next Monday at 1 PM Eastern Time (1 AM Beijing time on the 10th).
Compared to the extremely high expectations in the Capital Markets for Vision Pro and "Apple AI" over the past two years, the level of interest this year has undoubtedly cooled considerably. That said, Apple's annual software updates and technological advancements remain noteworthy events in the Consumer Electronics market.
According to reports, the operating systems in the Apple ecosystem will undergo a disruptive design change, with a series of new systems debuting this year that will borrow elements from Apple's headset system visionOS, completely updating the style of icons, menus, applications, windows, and system buttons. AirPods will introduce a real-time translation feature that will be used in conjunction with iPhone upgraded to iOS 26.
Browsers are becoming the core entry point for AI, as Google, Perplexity, TENCENT, and Alibaba all compete for dominance.
Perplexity is developing an AI browser called Comet, which is expected to be released in the coming months. $Alphabet-A (GOOGL.US)$Integrating its Gemini AI assistant into Chrome, OpenAI is considering developing a browser. $TENCENT (00700.HK)$The QQ browser is collaborating with$Alibaba (BABA.US)$The Quark browser has also integrated AI features.
Tesla's "RoboTaxi" was released on June 12, with intense debate: bulls see key progress while bears question the scalability path.
Bulls focus on Tesla's rapid iteration of technology and the key moats in data and computing, while bears question the scalability path; for instance, in terms of infrastructure and relationships with municipal authorities, Tesla lacks core competitiveness, and there are doubts about data quality. Barclays believes that the Robotaxi launch event may not meet expectations, and the issues of weak fundamentals have not been adequately addressed, but in the long run, the market's perception of the value of Tesla's autonomous driving/AI will not change because of this.
Meta plans to invest over $10 billion in Scale AI, setting a new record for private company financing.
According to Bloomberg, the social media giant.$Meta Platforms (META.US)$is in deep negotiations with the AI startup Scale AI, planning a potential investment worth over 10 billion dollars. If the trade is completed, this would become one of the largest private company financing deals in history.
Informed sources reveal that the terms of the Trade have not yet been finalized and remain uncertain. If successful, this will be Meta's largest external AI investment to date and marks a significant shift in its strategy—previously, Meta primarily relied on internal research and open-source strategy to advance artificial intelligence.
Scale AI was co-founded by CEO Alexandr Wang in 2016, and its core Business is providing high-quality data annotation services to help clients train machine learning models. Its core value lies in solving the 'AI fuel' problem—by employing a large number of contractors to organize, label images, text, and other data, ensuring the quality of AI model training. The company has become an important beneficiary of the generative AI wave, with clients including giants like Microsoft and OpenAI.
Top 20 trading volumes.
Hong Kong Market Outlook
Northern funds aggressively purchased Hong Kong stocks exceeding 6.7 billion Hong Kong dollars, buying BYD for nearly 2.6 billion Hong Kong dollars and selling TENCENT for nearly 1.4 billion Hong Kong dollars.
On June 6 (Friday), southern funds net bought Hong Kong stocks for 6.766 billion Hong Kong dollars today.
$BYD COMPANY (01211.HK)$、$MEITUAN-W (03690.HK)$、$China Construction Bank Corporation (601939.SH)$Net purchases of 2.595 billion HKD, 0.995 billion HKD, and 0.695 billion HKD were respectively obtained;
$TENCENT (00700.HK)$、$LI AUTO-W (02015.HK)$、$SMIC (00981.HK)$A net sell-off of 1.39 billion HKD, 0.275 billion HKD, and 0.253 billion HKD occurred.
BYD responds to issues regarding "normal pressure fuel tank" and "Evergrande in the automotive circle".
Li Yunfei, General Manager of BYD Brand and Public Relations Department, stated on Weibo on June 8 that recently, under the influence of certain peers, we have been deeply mired in a public opinion storm. The following is an explanation on the topics of 'normal pressure fuel tanks' and 'Evergrande in the automotive industry':
Regarding the 'atmospheric pressure fuel tank,' the atmospheric pressure fuel tank scheme we adopted from 2021 to 2023 complies with regulatory requirements. Later, some customers provided feedback that the engine start-up experience was not satisfactory, so we switched entirely to a high-pressure fuel tank scheme.
Regarding 'Automotive circle Evergrande', here is more information: since the second half of last year, a certain auto company in Hebei has continually initiated Topics in the automotive industry such as 'high debt ratio,' 'financial fraud,' 'financial audit,' and 'Automotive circle Evergrande,' inciting public opinion and fanning the flames. At the end of last year, this auto company maliciously reported BYD to the Shenzhen Stock Exchange, Hong Kong Stock Exchange, and relevant national financial regulatory agencies. After detailed investigations by the securities exchange and relevant national regulatory departments, it was confirmed that we had no issues.
Christopher Hui from the Hong Kong Financial Secretary's Office: Stablecoins can be used for payment functions through blockchain and other technologies.
On June 6, the Hong Kong SAR government published the "Stable Coin Ordinance (Date of Effect) Announcement" in the Gazette, stating that August 1, 2025, is the implementation date for the "Stable Coin Ordinance" (Chapter 656). On June 7, the Secretary for Financial Services and the Treasury, Christopher Hui, stated in a radio program that the underlying asset of stablecoins is fiat currency, which can later be used in electronic asset form for payment functions through blockchain and other technologies.
When discussing potential applications for stable coins, Christopher Hui provided an example. As stable coins have payment characteristics, when services or projects are conducted in the CSI One Belt & One Road Index regions, and the local currency's exchange rates are volatile or the financial system is not very mature, using local currency for payments may pose certain risks. In such cases, the other party can use stable coins for payment, thereby overcoming the bottlenecks currently faced in cross-border payments.
The results of the Hang Seng Index quarterly review and adjustments to the Hong Kong Stock Connect symbols take effect today, with BYD Company added to the technology index, and Guming Holdings, Mixue, and Bloks Group included in the Hong Kong Stock Connect.
According to the previous quarterly review results released by the Hang Seng Index Company,$Hang Seng Index (800000.HK)$added$MIDEA GROUP (00300.HK)$、$ZTO EXPRESS-W (02057.HK)$；$Hang Seng TECH Index (800700.HK)$added$BYD COMPANY (01211.HK)$and exclusion$CHINA LIT (00772.HK)$. In addition, according to the announcement from the Exchange,$BLOKS (00325.HK)$、$GUMING (01364.HK)$、$MIXUE GROUP (02097.HK)$Inclusion in the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect symbols list.
The above changes will take effect from Monday, June 9.
Today's focus.
Keywords: First meeting of China-US economic and trade consultation mechanism, China's May CPI, Japan's trade balance, US April wholesale sales month-on-month.
On Monday, in terms of economic data, China's CPI and PPI for May; the US wholesale sales month-on-month for April and the New York Fed's one-year inflation expectations for May will be announced.
In terms of financial events, He Lifeng, a member of the Central Committee of the Communist Party of China and Vice Premier of the State Council, will visit the United Kingdom from June 8 to 13. During that period, the first meeting of the China-US economic and trade consultation mechanism will be held with the US side; the US government needs to respond to the ruling of the Federal Circuit Court of Appeals (CAFC) from which CAFC will decide whether to continue to "suspend" the ruling of the International Trade Court (CIT) regarding the illegality of Trump tariffs to maintain tariffs until the appeal is completed.
In terms of market closures, the Australian stock market will be closed for a day due to the king's birthday.
Futubull Morning Reading:
I have no understanding of the overall economy, and I cannot predict the Exchange Rates and interest rates at all. Fortunately, when analyzing and choosing investment symbols, I do not consider them at all.
-- Warren Buffett
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