Breakfast | S&P 500 breaches the key level of 4500 points, Tencent WeChat Pay officially launches
Market believes that the probability of the Federal Reserve not raising interest rates in September is as high as 93%. Popular Chinese concept stocks are down, with Xpeng Motors falling by about 6% and Luckin Coffee rising by 5%. WeChat Pay has launched in Guangdong convenience stores. SoftBank's subsidiary, Arm, has extended its partnership with Apple until 2040, and its IPO has attracted the majority of its top investors. Baidu Intelligent Cloud has released "AI Native Application Family". Mercedes-Benz and BMW have made a major announcement on electric vehicles. Qualcomm is betting on in-car AI and supplying BMW and Mercedes-Benz, while collaborating with Amazon Web Services to develop automotive software.
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Market: Overnight and this morning's market
US stock futures opened slightly lower, with Nasdaq futures down 0.16%, S&P 500 futures down 0.07%, and Dow futures mostly unchanged.
The market believes that there is a 93% probability that the Federal Reserve will not raise interest rates in September, which is a "done deal." The Dow, S&P 500, and Russell small-cap stocks all hit one-week lows, with the S&P 500 falling 0.42%, the Dow falling 0.56%, the Nasdaq falling 0.08%, and the Russell 2000 small-cap stock index falling 2.10%.
Leading technology stocks rose across the board, with only Amazon down 0.6%. Meta rose over 1%, Apple rose 0.3%, Tesla rose 4.7%, Netflix rose 2%, Microsoft rose 1.5%, and Google A rose slightly. Intel rose 0.3%, AMD rose over 1%, and Nvidia rose slightly.
Popular Chinese concept stocks declined, with JD.com up 0.5%, Baidu and Pinduoduo down over 2%, Alibaba down 0.4%, Tencent ADR down 1%, Bilibili down over 2%, NIO down 1.7%, Li Auto down about 6%, and XPeng Auto up 0.2%.
Luckin Coffee closed up 5%, rebounding over 3400% from its historical low in the US pink sheet market, approaching a market capitalization of nearly $10 billion.
What happened to blue-chip stocks and hot stocks
Currently, WeChat Palm Pay requires users to go to the store and activate the service on the WeChat Palm Pay device. Users cannot bind the service themselves for the time being. After activation, users only need to place their palm on the dedicated device with a circular ring logo to complete the payment, without the need to carry a mobile phone.
Hong Kong Exchanges and Clearing Limited (HKEX) will continue to optimize the mutual market access mechanism
Continuously attracting special-purpose technology companies to list in Hong Kong and improving market liquidity. It is reported that HKEX will launch a brand-new initial public offering (IPO) settlement platform called FINI in October, shortening the time between IPO pricing and the start of trading from T+5 to T+2.
SoftBank extends its partnership with Apple's subsidiary, Arm, until after 2040
Arm has reached a new long-term agreement with Apple, extending their partnership until after 2040, allowing Apple to continue using the Arm architecture.
C&S in talks with SoftBank to acquire Kroger-Albertsons' potential store salesMedia reports indicate that C&S Wholesale Grocers is in talks to acquire the grocery stores being sold by Kroger Co. and Albertsons Cos. C&S is partnering with SoftBank Group on this transaction, and the deal could be announced as early as this week.
Taking on Tesla! Mercedes-Benz and BMW Unveil Electric "Killer Moves"
At this week's Munich Motor Show (IAA), both BMW and Mercedes-Benz have unveiled their new concept electric vehicles, marking the most proactive attempts by these two long-established German automakers in the field of electrification.
Qualcomm will provide chips to BMW and will also supply chips for the Mercedes-Benz E-Class model, which is set to launch in the United States next year. Qualcomm and Amazon AWS will provide comprehensive development infrastructure and tools to accelerate the transformation of autonomous driving and software-defined cars.
Baidu Intelligent Cloud Launches "AI Native Application Family," Qianfan Big Model Platform 2.0 Upgraded and Released
All United Airlines Flights Grounded Nationwide Due to Computer Issues
U.S. FTC Plans to File Antitrust Lawsuit Against Amazon This Month, Failed Settlement
Amazon did not make concessions to the U.S. Federal Trade Commission (FTC) during the process of seeking a settlement on antitrust charges, paving the way for the regulatory agency to file a lawsuit later this month.
Intel Reaches New Foundry Agreement with Israeli Chip Manufacturer Tower Semiconductor
Tower Semiconductor will invest $300 million in Intel's Rio Rancho factory in New Mexico, acquiring and gaining access to the equipment and other fixed assets to be installed at the facility.
Hong Kong Government to Issue New Batch of Green Retail Bonds
The issuance size will be HKD 15-20 billion, with a subscription period from September 18th to September 28th, and the bonds will be issued on October 10th.
IPO Opportunities
SoftBank Group holds a stake of 90.6% in ARM, and the cornerstone investors of ARM are mostly major clients, including Apple, NVIDIA, Qualcomm, Google, and Intel, all of whom have expressed their intention to purchase up to $735 million worth of ADS.
Macro: Taking You Around the World
No Rate Hike in September? Hawkish Fed Officials Support Maintaining Rates
Christopher Waller, a member of the Federal Reserve Board, stated that given recent data showing a continued slowdown in inflation, it is prudent to "proceed with caution" regarding interest rate hikes. He supports keeping rates unchanged at the September FOMC meeting and waiting for more data in the future.
If interest rates rise by 1%, the US real GDP will be about 5% lower twelve years later compared to not raising rates. This impact is greater and lasts longer than what the market expects.
Reserve Bank of Australia Pauses Rate Hikes for the Third Consecutive Time
The benchmark interest rate is maintained at 4.1%, which is at a high level since 2012, in line with market expectations.
Will Gas Prices Soar Again? Australian LNG Union Plans Comprehensive Strike in Mid-September
The Offshore Alliance, an Australian union organization, announced on Tuesday that workers at Chevron's Wheatstone and Gorgon liquefied natural gas projects plan to hold a two-week comprehensive strike starting from September 14th, following partial strikes that began on September 7th.
SEMI: Semiconductor Industry Expected to Recover in the Second Quarter of Next Year
The Semiconductor Equipment and Materials International (SEMI) predicts that the global semiconductor industry has bottomed out in the second quarter of this year, but overall visibility remains low. The second quarter of next year will be the starting point for recovery.
China Banking and Insurance Regulatory Commission: Conducting Pilot Programs for Deferred Tax-Deferred Pension Insurance and Personal Pension Integration in an Orderly Manner, with the aim of completing all tasks by the end of 2023.