LB Morning Call | Twitter Stock Acquisition By Elon Musk is reported In Jeopardy

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Asia Pacific

This morning, the U.S. stock futures index opened slightly lower, with the Nasdaq futures down 0.18%, the S & P 500 futures down 0.15%, and the Dow futures down 0.13%.

Overnight, the three major U.S. stock indexes closed up across the board, with the Dow up 1.12% to 31,384.55 points, the S & P 500 up 1.5% to 3,902.62 points, and the Nasdaq up 2.28% to 11,621.35 points.

Caterpillar rose 4.93%, Nike rose 3.74%, leading the Dow. Big tech stocks were higher across the board, with Apple up 2.4%, Amazon up 1.75%, Netflix up 2.83%, Google up 3.68%, Facebook up 1.43%, Microsoft up 0.82%. Tesla up 5.53%.

Energy stocks generally rose, with ExxonMobil up 3.24%, Chevron up 1.89%, ConocoPhillips up 3.6%, Schlumberger up 5.1% and Occidental up 3.89%.

Most of the popular Chinese stocks rose, with Yibang Communications up 24.69%, Daqo New Energy up 14.94%, JinkoSolar up 13.64%, and Mist Core Technology up 12.37%. Baidu up 3.7%, JD.com up over 2%, Pinduoduo up 0.9%, and NetEase down 0.7%. Canaan Technology rose more than 10 %, Ctrip up nearly 7%, B station up over 6%, iQIYI, Douyu, Xunlei, and Vipshop up over 5%. Alibaba, Tencent Music, Manbang rose more than 2%, New Oriental, Good Future, Huya, Weibo rose more than 1%.

Zhongqi New Energy Automobile shares rose collectively, NIO rose 8.07%, Xiaopeng Motors rose 5.63%, and Li Auto Inc. rose 1.76%.

IPO

Longhu Intelligent Creative Life Co., Ltd. disclosed its prospectus on the Hong Kong Stock Exchange and plans to list on the main board market. CCB International, CICC, HSBC and JPMorgan Chase are joint sponsors. The company is a property management and business operations service provider under Longhu Group.

New Shares Listed

Xuanwu Cloud, Lushang Services, and Runmed-B are listed in Hong Kong.

US Stock News

1. According to the statistics of the three major exchanges in the United States, there were 122 IPOs in the US stock market in the first half of the year, a decrease of 78.63% year over year, with an average of only 20 IPOs per month and an average of 95 IPOs in the same period last year. The total amount of financing is 16.5 billion US dollars, a decrease of 91.45% year over year. Nasdaq is still the main IPO market, accounting for 78% of the total amount raised. In addition, in the first half of the year, only 4 IPOs were listed in the United States.

2, Twitter shares fell 7% after the market; market sources said that Musk's plan to acquire Twitter was in serious crisis because Musk's team concluded that the data of the Twitter email spam account could not be verified. Twitter intends to complete the transaction with Musk in accordance with the agreed terms.

3. Amazon is speeding up its plans to enter the QVC-style LIVE shopping market. Some brokerage companies say that Amazon offers huge bonuses to top Internet celebrities, and will provide them with thousands of dollars in additional rewards if these hosts choose to live on Amazon instead of other platforms.

4. GlaxoSmithKline shareholders with 99.8% of the voters approved the resolution of splitting its consumer health products business, the business brand covers Comfort, Ritalin, Billiton, Advil, Cancun, Calci, etc., and will set up an independent company Halon, which is expected to be valued at up to £45 billion and is expected to start trading on the London Stock Exchange on July 18.

5. It is said that Buffett's Berkshire Hathaway increased its holdings of Western Petroleum.

Hong Kong News

1. On July 5, Jinli Permanent Magnet obtained Suzaku Fund Management Co., Ltd. to increase its holdings of 531,200 shares of H-share at an average price of HK $30.85 per share, involving about HK $16.3875 million. After the increase, Suzaku Fund Management Co., Ltd.'s latest holding number was 10.3614 million shares, and the holding ratio increased from 7.83% to 8.26%.

2. On July 5, Hebo Pharmaceutical was reduced by American Capital Group at an average price of HK $4.184 per share for 279,000 shares, involving about HK $1.1673 million. After the reduction, the latest number of long positions held by American Capital Group was 38.1172 million shares, and the proportion of long positions was reduced from 5% to 4.96%.

3. On July 4, ZTE was reduced by BlackRock 433,600 shares of H-share at an average price of HK $17.9572 per share, involving about HK $7.7862 million. After the reduction, BlackRock's latest long position was 82.9711 million shares, and the proportion of long positions was reduced from 11.04% to 10.98%.

4. After Goldman Sachs and JPMorgan Chase, many international investment banks, including Citi, UBS, Bank of America and DBS, have been unanimously optimistic about Chinese stocks this week. Citi upgraded China stocks to "overweight", Bank of America advised investors to "view short-term adjustments as buying opportunities", and UBS expects Chinese stocks to continue to outperform global stocks in the coming months.

5. Xiaomi autonomous car was exposed for the first time. The photo shows that the Xiaomi autonomous driving test car is equipped with lidar on the roof.

6. The Hong Kong Securities Supervision Commission has announced that Chief Executive Officer Ashley Alder will step down and take up the post of Chairperson of the UK Financial Market Conduct Authority in January 2023. Alder joined the Securities Supervision Commission on October 1, 2011, and his current term will expire on September 30, 2023.

Singapore News

1. According to the Global Technology Trends Survey released by US data center company Equinix on Thursday (July 7), 66% of Singaporean companies surveyed plan to expand into new markets in the next 12 months.

2. LEGION CONSO announces that on July 7, the buyer (Rejoice Container Services (Pte) Ltd., a wholly-owned subsidiary of the company) intends to purchase 70% of the shares of the target company (Resolute Solutions Pte Ltd.) from the seller (Mr. Goh Xiujun, Andy) at a total price of 2.1 million Singapore dollars.

3. Singapore Press Holdings Real Estate Investment Trust (SPH REIT) in the third quarter of fiscal 2022, the dividend per unit (DPU) increased by 5.1% to 1.45 cents year over year, and the annualized dividend yield was 5.81%.

Macroeconomy

1. Bullard said the 75 basis point rate hike in July was "significant"; continued to advocate raising the federal funds rate to 3.5% this year; recession forecasts were unreliable; and some mistakenly saw slower growth as an increased chance of a recession.

2. In response to reports that the United States intends to launch a new round of industrial subsidy investigation against China, the spokesperson of the Ministry of Commerce, Zhu Jueting, said that China has complied with its obligations under the WTO Agreement on Subsidies and Countervailing Measures and has completely cancelled the prohibited subsidies under the agreement. For other subsidies allowed under WTO rules, China's subsidy levels and methods are in line with WTO rules.

3, UMC announced that it will build a factory in Singapore with a total investment of 5 billion US dollars. The first phase of the new factory has a monthly production capacity of 30,000 pieces and is expected to be mass-produced by the end of 2024, with 22nm and 28nm processes as the main force, mainly targeting the needs of 5G, Internet of Things and automotive electronics.

4. The United States and its allies are discussing limiting the price of Russian oil to between $40 and $60 a barrel, which is estimated to be around $80 a barrel, to hit Russian revenues, according to people familiar with the matter.

Reminders

20:30, US non-farm payrolls adjusted for June quarter.

At 23:00, FOMC permanent vote committee and New York Fed President Williams delivered a speech on the economic outlook and monetary policy.