Hot News

• The Central Economic Work Conference has set the tone! Next year, the fiscal deficit ratio is to be increased.

The Central Economic Work Conference was held from December 11 to 12 in Peking. General Secretary of the Communist Party and **** attended the meeting and delivered an important speech. The meeting requested that next year, we should adhere to seeking progress while maintaining stability, promote stability through progress, uphold integrity while innovating, establish before breaking, integrate systems, and cooperate effectively. It is necessary to implement a more proactive fiscal policy, increase the fiscal deficit ratio, issue long-term special bonds, enhance the issuance and use of local government special bonds, optimize the structure of fiscal expenditures, and ensure a solid bottom line for grassroots three guarantees. The meeting also mentioned the implementation of a moderately loose monetary policy, timely reductions in the reserve requirement ratio and interest rates, and maintaining ample liquidity; vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand; comprehensively rectifying 'involution-type' competition, standardizing the behavior of local governments and businesses; and continuously pushing to stabilize and recover the real estate market.

• Trump rings the opening bell for the NYSE: The stock market is everything, and significant actions will be taken regarding Cryptos.

On Thursday, Donald Trump rang the opening bell at the NYSE. He emphasized the importance of the stock market, stating that the stock market is everything, and plans to take significant actions regarding Cryptos, lower the corporate tax rate to 15%, and increase Petroleum Extraction to alleviate the current inflationary pressures.

• Unexpected acceleration in inflation! The USA's November PPI month-on-month growth rate recorded the largest increase since June.

With the rise in food costs, inflation in the USA unexpectedly accelerated in November. The PPI increased by 3% year-on-year, exceeding expectations, marking the largest increase since February 2023, and a month-on-month increase of 0.4%, the highest since June. The significant rise in egg prices overshadowed more moderate cost increases in other areas. The relatively mild increases in other categories suggest that the price indicators favored by the Federal Reserve will also see mild growth. Economists generally believe that this week's CPI and PPI inflation data are basically benign, still pointing to sufficient cooling of inflation.

• World Gold Council: Growth in the gold market may slow in 2025, but there remains room for growth.

The World Gold Council pointed out that as of November this year, gold prices have risen by 28%, likely achieving the best annual performance in over a decade, with central bank purchases being the main driver of demand growth, especially the accelerated purchases in October. However, the market may face uncertainty in 2025, with the USA's economy and Trump's policies becoming significant variables, particularly potential trade wars and inflationary pressures. The Council expects gold market growth to slow down in 2025, but geopolitical issues, worsening financial environment, and stronger-than-expected central bank demand may still push gold prices higher.

Review of the U.S. stock market.

• The Nasdaq has fallen from historic highs, and the Dow Jones has declined for the sixth consecutive day.

On Thursday Eastern Time, the three major indexes of the USA stock market closed lower collectively, with the Nasdaq retreating from historic highs, and the Dow Jones falling for the sixth consecutive day. Before the Federal Reserve's policy meeting next week, some investors opted to take profits.

At the close, the S&P 500 Index fell by 0.54%, closing at 6051.25 points; the Nasdaq fell by 0.66%, closing at 19902.84 points; the Dow Jones fell by 0.53%, closing at 43914.12 points.

Most large technology stocks declined, with Google dropping 1.76%, NVIDIA down 1.41%, Tesla falling 1.57%, Amazon decreasing 0.56%, Meta declining 0.3%, Apple rising 0.6%, and Microsoft increasing 0.13%.

The Nasdaq Golden Dragon China Index closed up 0.18%, with China Concept Stocks showing mixed results; Tencent Music rose over 2%, while PDD Holdings and Baidu increased by over 1%. On the downside, iQIYI and Youdao dropped over 2%, while NIO fell by more than 1%.

• Broadcom soared over 15% after hours! Q4 profits exceeded expectations, with total AI revenue doubling and skyrocketing by 220% for the full year.

$Broadcom (AVGO.US)$ The company released its fourth quarter Earnings Reports as of November 3, reporting that the recently concluded fiscal year's AI revenue grew by 220% to reach 12.2 billion USD, and the revenue guidance for the next fiscal quarter meets expectations. Its CEO emphasized during the Analyst conference call that "there are significant opportunities for AI chips in the next three years," and forecasted that the company's "AI semiconductor business (which brings revenue) will surpass other businesses," after which Broadcom quickly surged over 15% in after-hours trading.

• The AI transformation is bumpy! Adobe's performance guidance fell short of expectations, dropping over 13% after the report.

Thursday $Adobe (ADBE.US)$ Falling over 13%, once again becoming a "victim stock" of the AI era. Although the company's fourth quarter report was better than expected, the guidance for the next fiscal year was below expectations. The company expects adjusted EPS to be between 20.20 and 20.50 USD, with a midpoint of 20.35 USD, lower than the market consensus of 20.52 USD, while revenue is expected to be between 23.3 billion USD and 23.55 billion USD, below the expectation of 23.8 billion USD.

• AI is driving up the demand for Electrical Utilities! According to Morgan Stanley, the market has underestimated niche areas such as Fuel Cell Energy and Bitcoin mining sites.

Morgan Stanley's Stephen C Byrd analyst team released a 2025 Global Energy outlook for generative AI, citing the International Energy Agency (IEA) predicting that by 2026, the power consumption of datacenters, AI, and Cryptos industries may double, with datacenters’ power consumption potentially exceeding 1,000 TWh, equivalent to Japan's annual power consumption. In this major trend, certain sub-sectors are being underestimated by the market. According to Morgan Stanley's report, this includes Fuel Cell Energy, Bitcoin mining, power transmission, and grid enhancement technologies.

• Wall Street is hot on quantum computing stocks, but Google's quantum chip does not actually possess computing power.

$Alphabet-C (GOOG.US)$ This Tuesday, the new "quantum chip" named Willow was announced. According to Google, this chip "can reduce errors exponentially with the increase in the number of qubits" and its performance greatly exceeds that of the previous product launched in 2019, claiming this is a significant breakthrough in the field of quantum computing. This news has led to a significant surge in Google and related stocks this week, but analysts indicate that quantum computing is still a long way from any commercial use, reminding investors not to get too excited due to the recent surge.

• Google is collaborating with Samsung to develop headset devices, with the first product expected to launch next year.

On Thursday, Eastern Time, the technology giant $Alphabet-C (GOOG.US)$ A new version of the Android XR operating system has been released, designed to provide multiple natural interaction methods for headsets and smart glasses, enhancing user experiences in virtual reality (VR) and augmented reality (AR). It is reported that Android XR is a new operating system built specifically for next-generation computing, developed jointly by Alphabet-C and Samsung, which will allow users to interact with VR applications and the real world through voice, motion control, and eye tracking. The first headset device based on the Android XR operating system is codenamed Project Moohan, derived from the Korean word for 'infinity,' manufactured by Samsung, with a design resembling a hybrid of Apple Vision Pro and Meta Quest 3S.

• Is Broadcom about to lose a big order? It is reported that Apple will switch to self-developed Wi-Fi chips for iPhone and home products starting next year.

$Apple (AAPL.US)$ New progress has been reported in chip development, and as early as next year, we might see the iPhone with Apple’s self-developed Wi-Fi chip. Media reports suggest that Apple plans to integrate its self-developed Wi-Fi and Bluetooth chips in the new iPhone, Apple TV, and HomePod mini next year, and for iPad and Mac in 2026. One-fifth of Broadcom's fiscal revenue comes from Apple, making it Apple's largest supplier of Wi-Fi/Bluetooth chips.

Top 20 by trading volume

Hong Kong market outlook

• Northern funds purchased over 1 billion HKD of Alibaba, bought 0.15 billion HKD of XIAOMI-W, and sold over 4.1 billion HKD of TRACKER FUND OF HONG KONG.

On December 12 (Thursday), southbound funds net sold Hong Kong stocks for 2.928 billion HKD.

$BABA-W (09988.HK)$、$XIAOMI-W (01810.HK)$、$CHINA MOBILE (00941.HK)$Net purchases of 1.035 billion Hong Kong dollars, 0.15 billion Hong Kong dollars, and 0.1 billion Hong Kong dollars were received respectively.

$TRACKER FUND OF HONG KONG (02800.HK)$、$TENCENT (00700.HK)$、$Hang Seng H-Share Index ETF (02828.HK)$Net sell-offs amounted to 4.116 billion Hong Kong dollars, 0.96 billion Hong Kong dollars, and 0.732 billion Hong Kong dollars respectively.

Today's focus

Keywords: Federal Reserve account funding flows for the third quarter of 2024.

On Friday, in terms of financial events, the Federal Reserve will announce the account funding flows for the third quarter of 2024.

Futubull Morning News:

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