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U.S. Treasury Secretary Yellen: Willing to extend the tariff suspension period for countries that sincerely participate in trade negotiations.
U.S. Treasury Secretary Scott Bencet stated on Wednesday at a House fundraising committee hearing in Washington that there are 18 'important trading partners' and that the Trump administration is 'committed to reaching agreements with these countries.' 'For those countries and trade groups (like the EU) that genuinely engage in negotiations,' Bencet said, 'the United States is highly likely to postpone the tariff effective date to continue sincere negotiations.' He told the House committee responsible for tax legislation, 'If certain countries do not engage in negotiations, we will not extend the suspension period.'
Trump: A letter will be sent to trade partners to set unilateral tariff rates in the next one to two weeks.
U.S. President Trump stated that he plans to send letters to trading partners in the next one to two weeks to set unilateral tariff rates before the deadline for tariff suspension arrives on July 9. Trump told reporters on Wednesday, "At a certain point, we will send the letters." "I think you all understand, this is the agreement, you can accept it or not." It is still unclear whether Trump will follow through on this promise; he often sets two-week deadlines for action, but then delays or takes no action at all. On Wednesday, when asked whether he would extend the deadline for countries to reach an agreement with the U.S. government, Trump said he is open to it, but added that he does not believe it is necessary.
Trump and Vance have teamed up to pressure the Federal Reserve to cut interest rates, with Trump stating: reduce the rate by one percentage point!
After the CPI report was released in the U.S. on Wednesday, Trump stated that the latest data for the U.S. Consumer Price Index (CPI) performed well, calling for the Federal Reserve to cut interest rates by one percentage point. Trump said that this would save the U.S. a significant amount of expenditure on maturing debt interest. He emphasized, "This is very important." Vance stated that the Fed's refusal to lower rates is a dereliction of monetary policy.
'The horse' mutual tearing backtrack: media reports that Musk publicly regretted after privately calling Trump late at night, Vance is the key driver for reconciliation.
This Wednesday, media reports revealed that Trump received a call from Musk late at night last Monday. This call prompted Musk to publicly express regret on Wednesday morning for attacking Trump last week. The media learned that before contacting Trump, Musk privately discussed routes for a "ceasefire" between himself and Trump with Vice President Pence and White House Chief of Staff Wiles last Friday. Earlier on Wednesday, other media reported that Pence and Wiles played a key role in pushing Musk to repair his relationship with Trump. The media cited informed sources saying that during a call last Friday, Pence and Wiles urged Musk to end his feud with Trump.
U.S. Treasury Secretary Basant responded to whether he is willing to be the Chairman of the Federal Reserve: hopes to continue until 2029.
On the East Coast time of June 11, Wednesday, at a hearing of the U.S. House of Representatives fundraising committee, a member asked Bessent whether he preferred to be the Federal Reserve Chairman or the Secretary of the Treasury. Bessent smiled and reiterated that he had the best job in Washington and enjoyed following Trump's directives. He then stated that he hoped to continue as Secretary of the Treasury until 2029 in order to complete Trump's agenda. In addition, Bessent attributed the slowdown in U.S. inflation to Trump's policies, calling the inflation data "very good," and stated that the grand bill regarding tax cuts and spending could bring manufacturing back to the U.S., with the sector receiving "unprecedented" investments. The 899th clause in the bill prevents hundreds of billions of dollars in corporate revenue from flowing abroad.
The AH Premium Index hit a five-year low.
June 11, $Hang Seng Stock Connect China AH Premium Index (800911.HK)$ The index has reached a new low in five years, dropping to 127.85 points. This level represents a decline of over 10% compared to the end of 2024. The Hang Seng Stock Connect China AH Premium Index reflects the price differences of stocks listed simultaneously in mainland China and Hong Kong. The decline in the AH Premium Index indicates that H Stocks are trading at a discount compared to A Stocks, primarily due to the better performance of H Stocks relative to A Stocks. "Now, Hong Kong stocks are leading, and Hong Kong has positioned itself as a bridgehead for the future competition of the renminbi for Global currency discourse." Liu Yuhui, chief economist at Huayuan Securities, stated on Social Media that this year the Hong Kong Stock Exchange will be the most popular financing market globally, and a bull market for the Hang Seng Index and the Hang Seng Tech Index in the second half of the year is highly probable.
U.S. Stock Market Review
All three major indices closed lower, with the S&P 500 and Nasdaq ending a three-day winning streak.
On Wednesday (June 11), US Stocks opened high and then fell, with all three major indices declining, and both the S&P 500 and Nasdaq ended their three-day winning streak. By the close, the Dow Jones Industrial Average slipped by 1.1 points to 42,865.77; the S&P 500 Index fell by 0.27% to 6,022.24; the Nasdaq Composite Index decreased by 0.5% to 19,615.88.
Most large Tech stocks declined, (according to market capitalization) Microsoft rose by 0.36%, reclaiming its title as the world's largest company, NVIDIA fell by 0.78%; Apple dropped by 1.92%, with its total market value falling below 3 trillion dollars; Amazon decreased by 2.03%, Google C fell by 0.68%, Meta dropped by 1.18%, while Tesla gained 0.1%.
Popular US-listed Chinese stocks had mixed results, with Bilibili rising by 8.28%, Tencent Music increasing by 1.31%, Li Auto up by 1.12%, PDD Holdings climbing by 0.75%, and Baidu gaining 0.07%; meanwhile, XPeng fell by 3.21%, NIO decreased by 1.84%, Alibaba dropped by 1.27%, and New Oriental lost 1.11%.
Jensen Huang mentioned during his speech in Paris that 'quantum computing is reaching a turning point', igniting interest in quantum computing concept stocks, with QUBT soaring by 25%, LAES jumping by 12%, and RGTI increasing by 11%.
Oklo's stock price surged by 30%, hitting a new high, as the fast reactor nuclear energy project finally received approval from the US military.
On Wednesday (June 11) local time, the American nuclear energy company $Oklo Inc (OKLO.US)$ It was announced on the official website that it was selected as a potential power supplier for Eielson Air Force Base in Alaska, USA. Specifically, Oklo stated that it has received a 'Notice of Intent to Award' from the Defense Logistics Agency of the United States (DLA Energy): the U.S. Air Force and the Department of Defense plan to select Oklo's Aurora power plant to provide electricity for its air force facilities. Although Oklo anticipated reaching an agreement, previous progress has been repeatedly hindered. The company explained in its latest statement that the previous award decision was 'rescinded due to protests from other bidders.' As of closing, Oklo's shares rose over 29%, reaching a record high.
Independent power producer Talen Energy rose over 7% as it expands its nuclear power agreement with Amazon.
$Talen Energy (TLN.US)$ Rose over 7%. In terms of news, Talen Energy announced an expansion of its nuclear power agreement with Amazon AWS, providing carbon-free energy from its Susquehanna nuclear power plant. According to the new Power Purchase Agreement (PPA), Talen will supply electricity to Amazon, supporting the AI and cloud technology operations of Amazon's data center campus near Susquehanna, and may deliver electricity to other locations in Pennsylvania.
Oracle rose over 7% in post-market trading! Fourth-quarter earnings exceeded expectations, and it is expected that revenue from cloud infrastructure in the new fiscal year will increase by more than 70%.
$Oracle (ORCL.US)$ The earnings report released after the market closed on Wednesday showed that the company's performance in the fourth fiscal quarter exceeded expectations. Although cloud infrastructure was slightly below forecasts, management expects cloud infrastructure revenue to grow by more than 70% in fiscal 2026. Meanwhile, capital expenditure is expected to continue increasing to $25 billion in the new fiscal year after tripling last year. Oracle's stock price initially fell about 3% after the market closed, but then turned to rise by 7%.
GameStop fell nearly 12% in post-market trading, planning to issue $1.75 billion in convertible bonds.
Video game retail company $GameStop (GME.US)$ In Post-Market Trading, it dropped nearly 12%, and the company plans to issue convertible bonds worth 1.75 billion USD. This is expected to become the largest convertible bond supply in the U.S. market in 2025 so far.
With support from NASA Orders, the American aerospace and defense company Voyager surged over 80% on its first day of trading.
U.S. aerospace and military enterprise $Voyager Technologies (VOYG.US)$ On its first day of trading, the stock price surged. By the close, Voyager's stock price was reported at 56.48 USD, up 82.19% from its IPO pricing of 31 USD, with a total market capitalization exceeding 3.1 billion USD based on the number of outstanding shares. During trading, the stock once rose to 73.95 USD, with the maximum increase exceeding 138%. It is understood that Voyager was founded in 2019 and was recently known as "Voyager Space." According to the prospectus, the company's clients include government and commercial sectors, with business areas encompassing National Security, advanced technology, and space infrastructure. Currently, Voyager is collaborating with NASA and has received a research and development grant worth 0.2175 billion USD to design the "Starlab" commercial space station, expected to replace the soon-to-be-retired International Space Station by 2030.
Meta has launched the world model V-JEPA 2, which features advanced visual understanding and predictive capabilities.
On Wednesday, Eastern Time, $Meta Platforms (META.US)$ A new open-source model V-JEPA 2 has been launched, which enables artificial intelligence to better understand 3D environments and infer the workings of the physical world. Meta claims that V-JEPA 2 is a world model that can help robots and other artificial intelligence entities understand the physical world and predict how it will respond to their actions. It is reported that this system, known as a world model, draws inspiration from the logic of the physical world and constructs internal virtual environments according to the rules of the real world, allowing artificial intelligence to learn, plan, and make decisions in a way that is closer to human-like.
Disney and Universal Pictures have filed a copyright lawsuit against an AI company.
$Disney (DIS.US)$ On June 11, local time, Universal Pictures filed a copyright lawsuit against the artificial intelligence company Midjourney, accusing Midjourney of pirating the copyright libraries of these two Hollywood film companies to generate and distribute "countless unauthorized copies" of their famous characters.
Starbucks has risen more than 4%, with the CEO stating that there are potential buyers interested in acquiring a share of its business in China.
$Starbucks (SBUX.US)$ CEO Brian Niccol mentioned that the company plans to sell a portion of its shares in its China business, with several potential buyers expressing interest. Niccol pointed out that the market recognizes the value of the Starbucks brand, including a growth in coffee category sales, and believes potential buyers are willing to collaborate to explore how to increase the number of Starbucks locations from 8,000 to 0.02 million. Additionally, Starbucks plans to promote a generative AI assistant developed in collaboration with Microsoft's Azure OpenAI platform in 35 stores this month, as part of its strategy to simplify barista tasks and enhance service speed. By the close of trading, Starbucks shares rose over 4%.
Top 20 by trading volume in the US stock market.
Hong Kong Market Outlook
Investors increased their holdings in China Construction Bank Corporation by over 0.7 billion HKD, sold Xiaomi for over 1.8 billion HKD, and reduced their stake in TENCENT by over 1.2 billion HKD.
On June 11 (Wednesday), net inflow of funds from the south bought 1.376 billion HKD of Hong Kong stocks.
$China Construction Bank Corporation (601939.SH)$、$MEITUAN-W (03690.HK)$、$INNOVENT BIO (01801.HK)$Net purchases of 0.707 billion HKD, 0.37 billion HKD, and 0.216 billion HKD were made respectively.
$XIAOMI-W (01810.HK)$、$TENCENT (00700.HK)$、$BABA-W (09988.HK)$There were net sells of 1.832 billion HKD, 1.256 billion HKD, and 0.782 billion HKD respectively.
Cai Chongxin: After DeepSeek made a breakthrough, Alibaba engineers worked tirelessly during the Spring Festival to catch up with the AI wave.
June 11, $BABA-W (09988.HK)$ Chairman Cai Chongxin stated at the VivaTech conference held in Paris that after the launch of DeepSeek's R1 model, Alibaba realized it was falling behind in the field of artificial intelligence. After the low-cost, powerful AI model launched by DeepSeek in January shocked the global technology industry, engineers at Alibaba Group canceled their vacations and continued to work during the Spring Festival holiday to catch up. He illustrated the intensity of competition in China's technology industry. "Our engineering director decided, they said 'cancel the Spring Festival holiday. Everyone stays in the company. Sleep in the office. We need to speed up development,'" he said. "Within weeks, we launched our own version, the Qwen series model. It is very competitive."
Insiders say that POP MART had expanded its production capacity at the beginning of the year, but demand far exceeds the supply chain response speed.
According to The Paper, informed sources indicated that as the popularity of IP continues to rise, $POP MART (09992.HK)$ As the Spring Festival begins, there is an urgent need to find workers to resume operations and expand capacity to meet the continuously increasing consumer demand. This person believes that for brands, when market demand far exceeds the supply chain's response speed, it is actually a very painful thing, "a sweet trouble, even with sewing machines smoking, they can't keep up with demand." The reporter noticed that the management of POP MART had previously stated multiple times that the soaring capacity curve put tremendous pressure on the internal team.
Today's focus.
Keywords: US May PPI, core PPI, initial jobless claims for the week, 10-year Treasury auction, Adobe's earnings, EIA natural gas inventory.
On Thursday, regarding economic data, the U.S. initial jobless claims for the week ending June 7, May PPI year-on-year, PPI month-on-month, the 10-year U.S. Treasury auction bidding rate and bid-to-cover ratio as of June 11, and the EIA natural gas inventory for the week will be released.
In terms of Earnings Reports, $Adobe (ADBE.US)$Earnings will be announced after hours, with a live broadcast at 5:00 AM on June 13, Beijing time.
Futubull Morning Reading:
When a strong large company encounters a huge but manageable crisis, a great investment opportunity quietly arises.
——Warren Buffett
Editor/Rocky
