Breakfast | China and US CPI+ Powell's speech, TSMC reveals major positive news
TSMC's majority of customers have agreed to raise outsourcing prices in exchange for reliable supply. Mark Gurman: AI-powered version of Siri will be launched in iOS 18.4. US judges will make antitrust rulings against Google's dominant position in internet search in the coming months. XPeng's charging network has added 56 self-operated charging stations
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Overnight Morning Market
US stock index futures opened about 0.15% lower on Monday.
Important events and data this week: China and US CPI data, Powell's testimony on Capitol Hill
Monday: US New York Fed's 1-year inflation expectations.
Tuesday: China's M2 money supply annual rate for June; US NFIB Small Business Confidence Index for June. Fed Governor Bostic is invited to speak at an event hosted by the Fed; Fed Chair Powell delivers semiannual monetary policy testimony to the Senate Banking Committee.
Wednesday: China's CPI for June; US wholesale sales for May. Fed Governor Bowman speaks; Fed Chair Powell delivers semiannual monetary policy testimony to the House Financial Services Committee; OPEC releases its monthly oil market report.
Thursday: US CPI for June; US initial jobless claims for the week; US EIA natural gas inventories for the week. Fed Governors Quarles and Bostic speak; IEA releases its monthly oil market report.
Friday: China's trade balance for June; US PPI data for June; US 1-year inflation rate expectations for July; preliminary University of Michigan Consumer Confidence Index for July. FOMC voter for 2025 and St. Louis Fed President Mester speak on the economy.
Blue Chips and Hot Stocks
Mark Gurman: Apple will not launch a new AI-driven Siri this year, with plans to start testing the new Siri in January next year and release the official version in iOS 18.4.
Reports suggest that a US judge will make an antitrust ruling against Google's dominance in internet search in the coming months. One of Google's biggest risks is that the judge may require Google to terminate its cooperation with Apple on the default search engine for Safari browser.
Around 14:10, a United Airlines Boeing 737 flying from Guam to Narita Airport experienced a flaps malfunction and declared an emergency landing at Narita Airport.
XPeng's charging network added 56 self-operated charging stations and 48 third-party free stations, totaling 104 free charging stations for owners, covering 29 cities including Shenzhen, Nanjing, Xi'an, and Chongqing.
Sanofi-B: Investment funds are expected to incur significant losses.
Chips and Artificial Intelligence
Most of TSMC's customers have agreed to raise foundry prices in exchange for reliable supply. This will further drive up TSMC's gross margin. Analysts estimate that TSMC's gross margin will rise to 55.1% by 2025; approaching 60% in 2026, reaching 59.3%.
Startups and IPO Opportunities
Musk: Starship will undergo another test flight within 4 weeks.
Macro: A Global Perspective
A survey of Asian strategists and fund managers by the media shows that Chinese and Indian stocks are expected to outperform Asian stock markets in the second half of the year. Respondents favor Chinese stocks due to their lower valuations.
The "Biden dropout theory" is brewing, with the market betting on a "Trump landslide." Currently, traders are shifting funds to the US dollar, US Treasuries, and other assets that may be influenced by Trump's return to the White House - the "Trump trade" is making a comebackThe consensus on Wall Street is that Trump's re-election will stimulate inflation trades benefiting from loose fiscal policies and greater protectionism, such as the US dollar, US Treasury yields, and stocks in the banking, healthcare, and energy sectors.
The People's Bank of China paused its gold purchases for the second consecutive month