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2023.11.20 23:43
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Breakfast | S&P 500 and NASDAQ Composite Index rise for five consecutive days, Microsoft CEO discusses the "reversal of power struggle" in OpenAI incident.

Market awaits Nvidia's earnings report and the minutes of the November FOMC meeting by the Federal Reserve on Tuesday. Microsoft and Nvidia hit new highs. PDD is rumored to double its transaction target for Temu next year. It's time for NIO-SW battery swapping to open up to the entire industry. SK Hynix and Nvidia are discussing the "disruptive" integration method of HBM4. ASML plans to invest 100 million euros annually in Berlin in the coming years. Tesla China will raise prices again for all models this week. Xiaomi's goal of mass production in the first half of next year remains unchanged. Citigroup undergoes its largest organizational restructuring in twenty years. SUNAC becomes the first large-scale real estate company to complete debt restructuring both domestically and internationally. Chinese financial regulatory authorities are reportedly planning to expand the whitelist for real estate companies.

Good morning! A wonderful day starts with making money.

Market: Overnight and this morning

US stock futures opened slightly lower, with all three major stock index futures trading near the flatline.

Microsoft and Nvidia hit new highs, Chinese tech index rose 4% at one point

The market is awaiting Nvidia's earnings report on Tuesday and the minutes of the November FOMC meeting by the Federal Reserve. The US stock and bond markets will be closed on Thursday for Thanksgiving, and both will close early on Friday.

At the close, the Dow rose for the sixth day in the past seven trading days, while the S&P and Nasdaq both rose for the fifth consecutive day. The Russell 2000 small-cap index reached its highest level in two months since September 20. The Nasdaq 100 surpassed 16,000 points, reaching a new high in nearly two years since January 2022.

Tech giants performed well. Meta rose 1.5% for the third consecutive day, Amazon rose 0.7%, Microsoft rose 2% to a new all-time closing high, Apple rose nearly 1% for the fifth consecutive day, Netflix rose nearly 2%, Google Class A rose 0.7%, and Tesla rose 0.6%. Broadcom and KLA Corporation also hit new all-time highs.

Chinese tech stocks outperformed the broader market., Baidu, and Pinduoduo all rose by about 3%. Alibaba rose over 1%, Tencent ADR rose 3%, and Bilibili rose over 4%. NIO rose 5.6%, XPeng rose 8.6%, and Li Auto rose 3.7%. Manbang Group rose over 15%. Xiaomi ADR rose over 2%, with third-quarter revenue and net profit exceeding expectations, and quarterly profit reaching a new high in nearly two years.

What happened to blue-chip stocks and hot stocks

Microsoft CEO: Regardless of where Ultraman ultimately goes, the governance of OpenAI needs to change. I will leave the choice of OpenAI's CEO to its board of directors.

Concerned about the risk of bankruptcy, OpenAI investors consider suing the company's board of directors

Some investors of OpenAI are seeking legal action against the company's board of directors. They are concerned that their hundreds of millions of dollars of investment may suffer catastrophic losses due to the possibility of OpenAI going bankrupt. OpenAI is controlled by its non-profit parent company, OpenAI Nonprofit.

Timeline of "palace struggle" in OpenAI:

Over 700 employees threatened to resign and join Microsoft, urging the board of directors to reinstate Ultraman and Brockman. Board member Sutskever has sided with Ultraman, and the CEO of Microsoft announced that Ultraman will join Microsoft, to which Ultraman responded that "the mission is still ongoing." OpenAI has appointed former Twitch executive Shear as CEO. After OpenAI's Chief Scientist Ilya Sutskever expressed regret for his involvement in the board's actions, OpenAI founder Sam Altman retweeted his statement and expressed support.

OpenAI customers considering switching to competitors Over the weekend, more than 100 OpenAI customers reached out to OpenAI's competitor, Anthropic. Anthropic has recently secured billions of dollars in funding from Amazon and Google.

NVIDIA: It is expected that Dell, Hewlett Packard Enterprise, and Lenovo will launch new systems with the complete NVIDIA AI technology stack in the first quarter of next year.

SK Hynix is reportedly in discussions with NVIDIA on the disruptive integration method of HBM4, which involves directly integrating it on the chip through 3D stacking.

Market news: Tesla China is set to raise prices again for its entire vehicle lineup this week.

Market news: laid off employees from multiple departments last week, citing poor performance and the need to cut costs.

Citigroup plans to cut over 300 senior management positions, marking the largest personnel adjustment in the past 20 years for the company. The laid-off employees account for approximately 10% of the total number of employees at that level. The downsizing initiative may continue into next year.

Dutch semiconductor company ASML plans to invest 100 million euros annually in Berlin, Germany in the coming years.

The company currently has 1,700 employees in Berlin and has hired an additional 600 people since the beginning of 2022. They plan to expand their workforce to 2,300 people in the next few years.

McDonald's Global will acquire a stake in Carlyle Group's McDonald's China business.

After the transaction is completed, McDonald's Global's ownership stake will increase from 20% to 48%.

Media: Pinduoduo's Temu aims to achieve a transaction volume target of $30 billion next year, doubling this year's figure.

Sunac China announced that all the conditions for its restructuring have been met, and the effective date of the restructuring is November 20th.

In this round of adjustments in the real estate industry, more than 50 listed real estate companies have undergone debt restructuring. Sunac is the first large-scale real estate company to complete the entire process of domestic and foreign debt restructuring, with a total restructuring scale of approximately 90 billion yuan.

Minmetals Resources plans to acquire all issued shares of CUPROUS S CAPITAL LID for $1.875 billion. The latter owns the Khoemacau copper mine in Botswana.

NIO Chairman and CEO, William Li: The time has come for battery swapping to be open to the entire industry.

The first car manufacturer to cooperate on battery swapping will be announced soon, with 4 to 5 more in talks.

Xiaomi Group releases its earnings report.

In the third quarter, revenue reached 70.89 billion yuan, a YoY increase of 0.6%; adjusted net profit was 5.99 billion yuan, a YoY growth of 182.9%; the group's overall gross profit margin reached 22.7%. The revenue from the smartphone business in the quarter was 41.6 billion yuan, a YoY decrease of 2%, with a gross profit margin of 16.6%. Xiaomi responded to the progress of Xiaomi's car project, stating that the production target for the first half of next year remains unchanged, and the second winter testing will be conducted.

Xiaomi conference call: AI technology applications will shorten the replacement cycle for smartphones, and the production target for Xiaomi's car project in the first half of next year remains unchanged.

IPO Opportunities

Guohong Hydrogen Energy is evaluating investor demand for its Hong Kong IPO, with Huatai International as the exclusive sponsor for this transaction.

Macro: Taking You Around the World

Optimization measures for position limits in the Hong Kong Exchange derivatives market will take effect on December 22nd

Among them, the stock options and futures market will implement a five-tier position limit system, with the position limit for stock options increasing to 250,000 contracts; the position limits for several RMB (Hong Kong) currency derivatives will also be raised.

BNP Paribas: S&P 500 Index expected to reach a new all-time high next year

The S&P 500 Index will rise to a new all-time high in early next year, then experience a mid-year pullback as a mild economic recession sets in, followed by a rebound towards the high. A 12% decline will mark a buying opportunity.

People's Daily: Being partners is the right choice for the future

China and the United States should not repeat the outdated history of confrontation between major powers. Being partners, respecting each other, living in peace, and achieving win-win cooperation is the right choice for the future. As the world's largest developing country and a developed country, China and the United States should handle their relationship well.

Media: China's financial regulatory authorities plan to expand the whitelist for real estate companies, with around 50 state-owned and private real estate companies expected to be included

During a financial institution symposium held last Friday, the financial regulatory authorities discussed several relaxed policies for real estate finance, including the "three not lower thans," which means that the growth rate of each bank's real estate loans should not be lower than the industry average growth rate of real estate loans, and so on. The meeting also proposed revisions to the methods for development loans, operational property loans, and personal housing loans.

Media: Binance may be required to pay over $4 billion to settle criminal charges by the United States

This would be one of the largest fines in the history of cryptocurrency criminal cases. According to an agreement, Binance's founder, Changpeng Zhao, may face criminal charges in the United States to resolve investigations related to alleged bank fraud and violations of sanctions, among other things.