Breakfast | Stubborn inflation may lead to Fed rate hikes this year, Apple falls to four-week low, offshore renminbi rebounds by 900 points.
Arm confirms pricing at $51 and will debut tonight. Offshore renminbi has rebounded by 900 points, and the US unexpectedly recorded a budget surplus of $89 billion in August. The three major US automakers may go on strike simultaneously. The EU announced an anti-subsidy investigation into Chinese electric vehicles, causing NIO and Xiaopeng to plummet. Technology stocks have shown mixed performance, with Apple falling over 1%, Amazon rising 2.6%, and Netflix plunging 5%.
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Market: Overnight and this morning's market
The Dow Jones Industrial Average has fallen for two consecutive days, erasing most of the gains since last Friday. The S&P 500 and Nasdaq have slightly rebounded from the weekly lows, while small-cap stocks in the Russell 2000 index have stopped rising for two days, reaching the lowest level in nearly three weeks.
Technology stocks are generally rising, with Meta and Microsoft up over 1%, both approaching the highest level in a month and a half. Amazon rose 2.6% to its highest level since April last year, while Google Class A shares rose 1%, also approaching a 17-month high. Tesla rose 1.4% and approached a two-month high again. However, Apple fell over 1% to its lowest level in nearly four weeks the day after the conference, and Netflix, which admitted limited advertising revenue, fell over 5% to its lowest level in nearly three weeks.
Offshore RMB (CNH) against the US dollar was reported at 7.2719 yuan at 04:59 Beijing time, up 295 points from the New York closing on Tuesday. The overall trading range during the session was between 7.3145 and 7.2926 yuan, rebounding 928 points from the closing on September 8.
What happened to blue-chip stocks and hot stocks
Arm confirmed that its IPO issue price is set at $51 per share, with a total of 95.5 million ADS issued, raising $4.87 billion. Based on this IPO price, Arm is valued at approximately $54.5 billion. It is expected to start trading on the Nasdaq Global Select Market on Thursday with the code ARM.
Citi will dismantle two of its long-standing core operating divisions, one focusing on institutional clients and the other responsible for the company's consumer products. The CEO of the bank referred to this restructuring as the most important one in twenty years. These restructuring measures will result in a large number of layoffs.
Musk told the media that there may be some form of regulatory agency in the field of artificial intelligence. Chuck Schumer, the majority leader of the US Senate, stated that discussions have been held on establishing a new agency to regulate artificial intelligence issues.
President of the United Auto Workers: The union may have to take action and prepare for a strike.
There may be strikes at the three major automobile manufacturers simultaneously. If no agreement is reached, the union will announce the factories to go on strike at 10 p.m. on Thursday. Netflix CFO:
Netflix stated that it will participate in the gaming industry for the long term and has already released 70 games. It is difficult to see a return on investment in the billions of dollars spent on sports broadcasting. The threshold for acquiring distressed media assets is very high, and the company is more of a builder than a buyer.
According to insiders, CVC will select underwriting banks for the IPO of perfume retailer Douglas, hoping to achieve a valuation of $9 billion through the IPO.
Due to a slowdown in demand for recruiters, Google will lay off hundreds of people from its global recruiting team. Google refused to disclose the percentage of affected recruitment employees to Semafor, but stated that it plans to retain the majority.
Macro: Taking You Around the World
As the last major data before the Fed's interest rate meeting, the performance of inflation will have the greatest impact on the divided internal dynamics of the Fed. Barclays and Bank of America expect that the August CPI will increase by 0.6% MoM, far higher than July's 0.2%, and the YoY growth of CPI will reach 3.6-3.7%, compared to 3.2% in July.
97% Probability that the Fed will Keep Rates Unchanged in September
According to CME's "Fed Watch": There is a 97% probability that the Fed will keep rates unchanged at 5.25%-5.50% in September, and a 3% probability of a 25 basis point increase to the 5.50%-5.75% range. The probability of keeping rates unchanged in November is 50.8%, the probability of a cumulative 25 basis point increase is 47.7%, and the probability of a cumulative 50 basis point increase is 1.4%.
Unexpected $89 billion Budget Surplus in the US in August
The rejection of student loan forgiveness by the Supreme Court in July increased revenue by $319 billion. Last year, the Biden administration's student loan program increased the budget deficit, but the measures taken in August effectively reversed this situation.
Foreign Ministry: China has not issued any laws, regulations, or policy documents prohibiting the purchase and use of foreign brands such as Apple
Recently, it has indeed been noticed that there have been reports of security incidents related to Apple phones. The Chinese government attaches great importance to network and information security and treats domestic and foreign-funded enterprises equally and fairly.
EU Chamber of Commerce in China responds to the EU's latest investigation into electric vehicle subsidies: Highly concerned and opposed
On September 13, European Commission President Ursula von der Leyen announced an anti-subsidy investigation into Chinese electric vehicles. The EU Chamber of Commerce in China immediately expressed its high concern and opposition to the European Commission's decision, urging the EU to objectively view the development of China's electric vehicle industry. (Pengpai)