Breakfast | NASDAQ Composite Index hits the largest decline in over four months, southbound funds are aggressively buying Hong Kong stocks at the bottom.

Good morning! A good day starts with making money. ### Market Panel * * Technology Giants' Financial Results "Open to Black", Nasdaq Drops More than 2%, Tesla Drops Nearly 10% * * During the official silence period before the Federal Reserve's resolution next week, the financial results will affect the market's nerves. Major U.S. stock indexes diverged, with the S.P. and Nasdaq ending a three-day rally and the Dow extending its week-long rally. Technology stocks have become the "culprit" dragging down the market, with the Nasdaq hitting its worst one-day performance in more than four months. The Nasdaq fell 2.05 percent, the S & P 500 fell 0.68 percent and the Dow rose 0.47 percent. The Russell 2000 fell 0.89 percent. Naifei fell 8.4 per cent, Meta fell nearly 4.3 per cent, Microsoft fell 2.3 per cent, Alphabet fell 2.3 per cent for four days and Apple fell 1 per cent. TSMC U.S. stocks, AMD, Applied Materials fell more than 5%, Anson Mei fell more than 4%, Nvidia, Intel fell more than 3%, Qualcomm fell nearly 3%. A number of AI concept stocks fell sharply across the board. By the end of the SoundHound, it was down nearly 12%,BigBear was down nearly 9%,Palantir was down more than 5%, C3 was down more than 4%, and Adobe was down nearly 2%. Most of the popular Chinese stocks fell back. Jinshan Cloud, Aiqiyi fell more than 5%, Weilai Auto fell 3 percent, Station B, Jingke Energy, Weibo fell more than 2 percent, Pinduoduo fell about 0.5 percent, Netease fell 0.4 percent, Alibaba fell 0.2 percent, Jingdong rose 0.7 percent, Xiaopeng Auto rose 0.4 percent, Ideal Auto rose nearly 0.2 percent. ### Head Stock * * Google's YouTube US Paid Package Increases for the First Time * * YouTube's US Paid Package Increases Monthly Fee by US $2 to US $13.99 and Annual Fee by US $20 to US $139.99. * * U.S. Federal Trade Commission (FTC): Withdrawal of Lawsuit to Block Microsoft-Activision Blizzard Acquisition Transaction * * * * OpenAI Releases New Function * * OpenAI has added a new function called Custom instructions to ChatGPT: Customize some instructions to chat robots at the system level, making robots more personalized and better close to users' needs. * * Apple's New Phone May Face Shortage ** Apple faces challenges in assembling the upcoming two new iPhone models, the iPhone 15 Pro and Pro Max, due to a new manufacturing process to reduce the width of the border, which may lead to a shortage of the two new models when they are released in September. * * Trembling Denies Application for Fund Sales License * * Sources say Trembling Joins Some Head Fund Companies to conduct fund sales-related tests. Shake said that he has not applied for a fund sales license and has not tested with fund companies. * * Baidu Mass Production Model to Be Listed * * Baidu's Apollo Intelligent Driving Company said that its first mass production model equipped with Apollo Highway Driving Pro system will be listed soon and will reconstruct the new experience of intelligent travel. Ant Group: Alipay has completed the service support for overseas users to use mobile payment in China Alipay has completed the service support for overseas users to use mobile payment in China. Athletes and tourists from all over the world can use Alipay to enjoy various services such as shopping, taking a taxi, taking the subway, and visiting scenic spots. * * WeChat Payment Fully Upgrades International Bank Card User Service * * Tencent Holdings has joined hands with Visa, Discover Global Network (including Diners Club), JCB, Mastercard and other international card organizations to deepen cooperation and fully and orderly open WeChat payment merchant networks in various cities in China. UK teens love to watch news on TikTok The Communications Authority reports that 28% of 12-to 15-year-olds get their news from TikTok, the most used single news source across all platforms. Twenty-five per cent each read the news on YouTube and Instagram. * * Several companies release results * * Blackstone Group's total revenue of $2.814 billion and net profit of $0.601 billion in the second quarter. As of the end of the second quarter, the group had assets under management of US $1.001 trillion, becoming the first private equity company with assets under management of US $1 trillion. Johnson & Johnson's second-quarter sales were $25.53 billion, up 6.3 percent from a year earlier, and adjusted EPS was $2.8, both exceeding expectations. The company raised its full-year sales forecast to $98.8 billion -99.8 billion. American Airlines' second-quarter revenue was $14.1 billion, a record high; net profit was $1.338 billion, compared with $0.476 billion in the same period last year; adjusted EPS was $1.92, with market expectations of $1.59. Nokia's net sales in the second quarter were 5.71 billion euros, down 3% year-on-year; adjusted operating profit was 0.626 billion euros, down 12%. Nokia said the worsening economic outlook and challenges posed by customers dealing with existing inventories intensified in the second quarter and will continue into the second half of the year. ### Macro: Take you to see the world * * The Federal Reserve will start its July interest rate meeting next week * * This may be the last interest rate hike in this cycle. The market expects the interest rate to remain until the first quarter of 2024 and is expected to cut interest rates after the second quarter. Former Federal Reserve Chairman Ben Bernanke: The Fed is expected to raise interest rates in July, possibly the last time in this tightening cycle Inflation could fall to 3-3.5 per cent more sustainably over the next six months as rent rises subside and car prices fall. It is expected to fall to a level of 3% and slightly more than 3% early next year. After that, he expects the Fed to try to get inflation down to its 2 percent target. Chinese leaders meet with former U.S. Secretary of State Kissinger The President emphasized that the world is currently undergoing major changes unseen in a century, and the international landscape has undergone major changes. China and the United States are once again at the crossroads of where to go, and both sides need to make a choice once again. Looking forward to the future, China and the United States can achieve mutual achievements and common prosperity. The key is to follow the three principles of mutual respect, peaceful coexistence, and win-win cooperation. On this basis, China is willing to explore with the United States the correct way for the two countries to get along and promote the steady progress of Sino-US relations, which is good for both sides and will also benefit the world. I hope that you and people of insight in the United States will continue to play a constructive role in pushing China-US relations back on the right track. U.S. stocks" meme "speculation has made a comeback, retail enthusiasm Recently, U.S. stocks "meme stocks" speculation has made a comeback, the bullish sentiment in the options market has reached a white-hot level. Upstart Holdings is up 353 per cent this year, Coinbase Global is up 228 per cent, Rivian is up 43 per cent and Carvana is up 1105 per cent. At the same time, options trading related to the shares of these companies hit a record high. Investors' return expectations for U.S. stocks hit the highest level since the 2022 bear market According to a Vanguard survey, investors in June said they expected U.S. stocks to return 5.5 percent over the next 12 months, the most bullish expectation since the 2022 bear market. Southbound funds to copy the bottom of Hong Kong stocks some star fund managers heavy position Some mainland star fund managers are quite popular with Hong Kong stocks, the second quarter heavy stocks are not lack of Hong Kong stocks. Qiu Dongrong's management of the China-Geng Hong Kong Stock Pass value 18 months closed the top ten heavy stocks all Hong Kong stocks. Some of the money is pouring into the Hong Kong stock market with the help of ETFs. U.S. Treasury Secretary Yellen supports Vietnam's growth and economic transformation U.S. Treasury Secretary Yellen said that Vietnam is a close economic partner, and bilateral trade between the United States and Vietnam reached a record high last year. Support Vietnam's growth and economic transformation, and look forward to discussing how the U.S. Treasury and the Central Bank of Vietnam can cooperate more closely on broader economic and financial issues in the future. [* * US President Biden will deliver a speech on the theme of artificial intelligence at 1:30 p. m. Eastern Time on the 21st (1:30 a.m. Singapore Time on the 22nd). **](https://longportapp.cn/zh-CN/news/93189955?Force = 1 & app_id = longbridge) * * UK Consumer Confidence Index Collapsed in July in a Flash * * Hit by rising borrowing costs and high prices, UK Gfk Consumer Confidence Index fell from -24 to -30 in July, the first decline since January and the biggest decline since April last year. China's central bank moves to stabilize exchange rate, cross-border financing macro-prudential adjustment parameters raised The People's Bank of China and the State Administration of Foreign Exchange have decided to raise the macro-prudential adjustment parameters for cross-border financing for enterprises and financial institutions from 1.25 to 1.5, to be implemented on July 20, 2023. The yuan rose more than 400 basis points in response.