Hot News

• The highlights of the Federal Reserve this week: there is no doubt about the interest rate cut in December, the uncertainty lies in January.

Earlier this month, the Federal Reserve's dovish stance, along with remarks from next year's voting committee member and Chicago Fed President Goolsbee suggesting a potential slowdown in interest rate cuts next year, led to a tightening of market expectations for rate cuts. Morgan Stanley believes that the market's expectations for a rate cut in January next year are overly conservative, as Goolsbee's comments came before the release of the November inflation data. A continued slowdown in inflation, particularly in housing, would encourage the Fed to cut rates in both December and January meetings.

• The last 'super central bank week' of the year is coming! More than 20 countries' central banks will hold monetary policy meetings.

This week, the Federal Reserve, Bank of Japan, Bank of England, and other major central banks will hold their last monetary policy meetings of the year. Analysts believe the Federal Reserve will continue to cut rates, the Bank of Japan may pause its rate hike, and the Bank of England is likely to remain unchanged. However, many European and Asian central banks are expected to follow the Fed's rate cuts. According to rough statistics, at least 22 central banks worldwide will announce their interest rate decisions this week, collectively accounting for two-fifths of the global economy.

• Trump wants to eliminate banking regulators? Yellen: Don't mess around.

Recently, U.S. media reported that President-elect Trump's transition team is considering eliminating some banking regulatory agencies, such as the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve, which has sparked a public relations crisis within the U.S. industry. On December 14, local time, Reuters reported that U.S. Treasury Secretary Yellen urged the incoming Trump administration not to interfere with appropriate oversight of U.S. banks' capital levels, liquidity, and risk-taking, as this regulation is crucial for ensuring the health of the banking system.

• In the past nine weeks, the U.S. stock market has recorded a record inflow worth $186 billion.

According to data provided by the London Stock Exchange (LSEG), net inflows into US stock funds reached 6.36 billion USD in the past week. At the same time, after a significant purchase of 121.33 billion USD in the previous week, Money Market Funds saw a net outflow of 2.67 billion USD. Over the past nine weeks, the US stock market recorded a record inflow of 186 billion USD. The head of UBS Global Wealth Management's Americas Asset Allocation believes that since November, the market has shaken off numerous unpredictable political and geopolitical events, "Before President Trump assumes office on January 20, there are relatively few identifiable risk events, and unexpected events cannot be defined, thus the rebound can easily continue into the first quarter."

• "AI God" gives a powerful speech: the era of 'pre-training,' driven by computing power, will end, the next generation will belong to 'inference.'

Ilya Sutskever, former co-founder of OpenAI and founder of SSI, stated during his speech that the pre-training phase of AI model development is coming to an end. The future development of AI will focus on Asia Vets, synthetic data, and reasoning time computation. He elaborated on the immense potential of these three directions, for instance, synthetic data can overcome the limitations of real data volume, while reasoning time computation can enhance the efficiency and controllability of AI.

Review of the U.S. stock market.

• The Dow fell for the seventh consecutive day, Broadcom rose over 24%, and its market cap first surpassed 1 trillion USD; the China Concept Index fell 1.13%.

Last Friday, US stocks closed mixed. The Dow fell 0.20%, marking a seventh consecutive trading day of decline; the Nasdaq rose 0.12%, and the S&P 500 Index closed flat. For the week, the Dow fell a cumulative 1.82%, the S&P 500 Index fell 0.64%, and the Nasdaq rose 0.34%.

Broadcom rose over 24%, its market cap first breaking the 1 trillion USD mark. Marvell Technology rose nearly 11%, reaching a new historical high. Taiwan Semiconductor rose 5%. Tesla rose over 4%, also reaching a new historical high.

The Nasdaq China Golden Dragon Index fell 1.13%, while accumulating a rise of 2.07% last week. Xpeng Motors fell over 3%, Li Auto, PDD Holdings, Bilibili, and JD.com all fell over 2%, Alibaba and NIO fell over 1%.

• From OpenAI, Meta, Amazon to Apple, the tech giants in Silicon Valley are busy showing allegiance to Trump.

Trump has long accused large tech companies of various abuses, including censorship of conservative media. After winning the election in November, the executives of large tech companies rushed to congratulate Trump, in stark contrast to their more cautious attitude during his first term. OpenAI CEO Altman and another AI company Perplexity plan to donate 1 million dollars to Trump’s team. $Amazon (AMZN.US)$ Founder Bezos, $Meta Platforms (META.US)$ Leader Zuckerberg, $Apple (AAPL.US)$ and CEO Cook are all seeking to engage with Trump. Analysts believe that this indicates tech companies are trying to reduce pressure on issues such as antitrust, trade, and AI.

• Tesla rises over 4% to reach a new high, reports indicate that Trump’s team seeks to abolish the requirement for accident reports on autonomous vehicles.

Reports suggest that Trump's transition team recommends abolishing the order on reporting autonomous vehicle accident incidents. The proposal has received support from Tesla and Musk, and if the reporting is cancelled, $Tesla (TSLA.US)$ it will be a big winner. Many experts and regulatory agencies have expressed concerns because accident reports are used for safety assessments. Some experts say that cancelling this requirement could slow down the enhanced transparency in the industry, which in turn may affect consumer acceptance of autonomous technologies. Last Friday, Tesla's stock rose over 4% to reach a new high.

• Price increased by $5,000! Tesla Model S price hike.

On December 13 Eastern Time, Tesla's official website in the USA showed that Tesla increased the price of the Model S to $79,990 from $74,990 in the US market, while the price of the Model S Plaid model was raised to $94,990 from $89,990, with a price increase of $5,000 in both cases. Tesla did not provide specific explanations for this price change. Market analysts believe that as electric vehicle technology continues to advance and market competition intensifies, Tesla needs to constantly adjust its product strategy to maintain its competitive edge.

• NASDAQ 100 component stock adjustments announced! Popular stocks Palantir, MicroStrategy added.

On Saturday,$NASDAQ 100 Index (.NDX.US)$The annual adjustment results for the constituent stocks have been announced, which will add three companies, respectively. $Palantir (PLTR.US)$、 $MicroStrategy (MSTR.US)$、 $Axon Enterprise (AXON.US)$ .Illumina $Illumina (ILMN.US)$ 、$Super Micro Computer (SMCI.US)$Moderna $Moderna (MRNA.US)$ These three companies will be removed. The results will take effect before the market opens on Monday, December 23.

• Musk suddenly announced! SpaceX headquarters will officially relocate to Texas, USA, and build a new 'Starbase.'

On December 13 local time, the world's richest person, American entrepreneur Elon Musk announced on the social media platform X that the headquarters of Space Exploration Technologies Corp (SpaceX) will officially relocate to Texas, USA, and a new 'Starbase' will be built. Starbase is located in Cameron County, South Texas, and is used to build and launch the heavy Launch Vehicle 'Starship.'

• Latest research confirms: Novo-Nordisk A/S Ozempic is associated with a rare risk of vision loss.

一项最新研究证实，丹麦制药巨头 $Novo-Nordisk A/S (NVO.US)$ 的明星药物Ozempic与一种罕见的视力丧失疾病风险增加有关。今年7月，哈佛大学医学院附属麻省眼耳医院发布研究称，诺和诺德Ozempic和Wegovy可能与患上罕见视觉功能丧失的风险上升有关。针对病历的研究结果显示，相比那些使用其他减肥药的人，使用诺和诺德减肥药来减肥的患者们患上非动脉性前部缺血性视神经病变（NAION）的可能性要高出六倍以上。

Top 20 by trading volume

Hong Kong market outlook

• Northbound funds heavily bought Hong Kong stocks for 14.3 billion Hong Kong dollars! They bought Alibaba for over 1.7 billion Hong Kong dollars and sold MEITUAN-W for nearly 0.5 billion Hong Kong dollars.

On December 13 (Friday), southbound funds net purchased Hong Kong stocks for 14.306 billion Hong Kong dollars.

$TRACKER FUND OF HONG KONG (02800.HK)$、$BABA-W (09988.HK)$、$Hang Seng H-Share Index ETF (02828.HK)$They net bought 3.026 billion Hong Kong dollars, 1.711 billion Hong Kong dollars, and 1.207 billion Hong Kong dollars respectively.

$MEITUAN-W (03690.HK)$、$XIAOMI-W (01810.HK)$、$CNOOC (00883.HK)$A net sell-off of 0.496 billion HKD, 0.208 billion HKD, and 56.13 million HKD was recorded separately.

• Global electric vehicle sales have reached a historic high for three consecutive months, with a 32% year-on-year increase in November, and the China market accounting for 70%.

The performance of the China market is impressive, with sales in November growing by 50% year-on-year to reach 1.27 million vehicles, accounting for about 70% of Global total sales. Overall Auto sales in China for November increased by 16.6% compared to the previous year, marking the highest growth rate since January this year. BYD is expected to exceed the annual Global sales target and surpass Ford and Honda.

• Xiaomi's stock price has surged 101% this year, approaching historical highs, with electric SUVs potentially becoming key to future growth.

According to Bloomberg, $XIAOMI-W (01810.HK)$ The reason for this year's stock price performance outpacing other global electric vehicle companies is due to the unexpectedly rapid rise of the electric vehicle market in China, challenging industry leaders like BYD and Tesla. Investors hope to see Xiaomi achieve a similar growth trajectory as it did with smartphones; after launching its first smart phone in 2011, Xiaomi grew in a few years to compete with Apple and Samsung. The first SUV YU7 that Xiaomi plans to launch next summer is expected to trigger the next wave of stock price increases.

Today's focus

Keywords: China's November economic data; USA's December New York Fed Manufacturing Index, S&P Global Manufacturing PMI

On Monday, in terms of economic data, China’s National Bureau of Statistics will release November's national Real Estate Development, Consumer retail, and 70 city housing price data; in terms of Europe and the USA, the USA's December New York Fed Manufacturing Index, the USA's December S&P Global Manufacturing PMI, and the Eurozone's December Manufacturing PMI will be announced successively.

In terms of financial events, the State Council Information Office will hold a press conference regarding the operation of the national economy, and ECB President Lagarde will give a speech.

Regarding new stocks, the Hong Kong stock market $HERBS GROUP (02593.HK)$ The IPO Subscription has ended.

Futubull Morning News:

The first step to solving any problem is not to ask yourself how to succeed, but to consider how to avoid failure.
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