Hot news

• Federal Reserve Kashkari: us inflation has not peaked and the Fed will not stop raising interest rates

Fed Kashkari: the Fed knows its responsibility and will bring inflation down to 2%. The current situation feels like stagflation, but it is more like a transitional period, and we are confident that we can get through it. There are no signs of potential inflation, and we still have a long way to go to stop raising interest rates.

• Fed Mestre: the Fed is not expected to cut interest rates next year

Fed official Mestre said the Fed should consider selling mortgage-backed securities at some point; the Fed will use its own tools to meet inflation targets without tightening fiscal policy; and the Fed is not expected to cut interest rates next year.

• Fed Waller: non-farmers will not change the Fed's view of reducing inflation

Fed governor Waller said Friday's jobs report may not change the view that the Fed should focus 100% on reducing inflation. The market expects real interest rates to be positive and continue to rise next year.

• Us Treasury Secretary: the Federal Reserve has "primary responsibility" in fighting inflation

On October 6 local time, US Treasury Secretary Yellen said that the top priority for countries facing high inflation is to restore price stability. The Fed has "primary responsibility" for fighting inflation, and monetary tightening in rich countries could have international spillover effects.

Yellen said that overcoming high inflation is a top priority for the United States and other countries facing sharp price spikes, but it cannot be ignored that higher interest rates will affect the rest of the world, and higher interest rates in the United States and Europe have put more pressure on developing countries.

• The president of IMF warns that economic risks will only rise, and plans to lower the global GDP forecast for next year.

International Monetary Fund (IMF) Managing Director Georgiyeva said Thursday that the risk of a global recession is rising. Mr Georgiyeva said the global economy was at increasing risk of recession and could lose as much as $4,000bn in GDP by 2026, equivalent to Germany's economic output for a whole year. IMF's latest forecasts show that it expects the global economy to grow at just 3.2 per cent this year and slow further to 2.9 per cent next year. Georgiyeva revealed that 2.9% of the growth rate will be cut again next week.

• Hungarian Prime Minister: EU sanctions against Russia cause Energy prices to soar

On October 6, local time, Hungarian Prime Minister Orban posted on social media that EU sanctions on Russia have caused a surge in natural gas and electricity prices, which is a serious problem facing the whole of Europe. it will exacerbate inflation, destroy businesses and threaten jobs. Orban stressed: "now is the time to correct the mistakes of Brussels!" "

• Bank of America: the release of strategic oil reserves by the United States will only be in the hands of OPEC +.

Francisco Blanch, global head of commodities and derivatives research at BofA, said that after OPEC + decided to cut production by 2 million barrels per day, the White House had few options left to curb higher oil prices and their impact on consumers. He warned that one of the options-selling or lending more strategic reserve oil-could be counterproductive to the US in the long run. Given the extremely tense geopolitical situation in the world today, this is not a good idea. As the United States consumes its oil reserves, it will put more of its fate in the hands of OPEC +, and eventually "will only hand over more and more market control".

Review of US stocks

• As non-farmers approached, US stocks fell again on Thursday, with the Dow and S & P 500 down more than 1%.

U. S. stocks fell significantly on Thursday, with all three major indexes closing lower. Expectations of aggressive interest rate hikes by the Federal Reserve and fears of a recession in the United States continue to weigh on financial markets. The Dow fell 1.15%, the S & P 500 fell 1.03%, and the Nasdaq fell 0.67%.

• Hot Chinese stocks vary: Li Auto Inc. fell more than 12%, Yingxi Group rose more than 28%

The Nasdaq Golden Dragon China Index closed down 2.79%. Li Auto Inc. fell by more than 12%, youdao by more than 9%, NIO Inc. by more than 7%, Bilibili Inc. by more than 4%, Niu Technologies, XPeng Inc. and KE Holdings Inc. by more than 3%.

Yingxi Group rose by more than 28%, education by more than 6%, Missfresh Limited by more than 4%, and Sohu.com Ltd by more than 1%.

• Twitter gave Musk an ultimatum: the merger and acquisition should be completed on October 10

October 6th local time$Twitter (TWTR.US)$Mr Musk should (now) arrange for the acquisition to be completed on October 10, it said. But Mr Musk refused to commit to any potential date for closing the deal. One bank said Mr Musk had not yet disclosed to them the date on which he would complete the deal. Musk "can and should" close the deal next week. The company opposes Musk's motion to ask the Delaware Court of Chancery to stop hearing mergers and acquisitions.

• A US judge has suspended Musk's lawsuit over his $44 billion acquisition of Twitter

Judge Catherine McCormick of the Delaware Court of Chancery has reportedly suspended the decision$Tesla (TSLA.US)$CEO Musk's lawsuit to buy Twitter for $44 billion allowed the two sides to complete the deal by 17:00 local time on Oct. 28. The judge said in an order that if the deal was not completed by then, she would set a trial date in November.

It is worth noting that October 28 was the deadline promised by the Musk team to prepare adequate financing for the acquisition of Twitter. Some market analysts believe that the judge's decision means that Musk's team won a small victory before the trial and is expected to push for Twitter to be taken back.

• Alphabet Inc-CL C released a new Pixel phone and watch Watch, which is cheaper than Apple Inc and Samsung products.

$Alphabet-A (GOOGL.US)$It was announced that the first smartwatch, the Google Pixel Watch, and a new generation of smartphones, Pixel 7 and Pixel 7 Pro, will be available on October 13. From now on, you can make a reservation in advance. Mobile phones are priced at $599 and $899, respectively. The Bluetooth / Wi-Fi version of the watch starts at $349.99, which is lower than the starting price of the latest generation of Apple Inc watches.

• PC market weakness superimposed destocking, AMD Q3 revenue preliminary data is far below the guidance

$Advanced Micro Devices (AMD.US)$Preliminary results for the third quarter were released on Thursday, with revenues of about $5.6 billion, compared with previous guidelines of $65 to $6.9 billion; adjusted gross margins are expected to be around 50 per cent, compared with nearly 54 per cent. AMD said the decline was due to "weaker-than-expected PC markets and significant inventory corrections across the PC supply chain". According to AMD, revenue from the individual user division was about $1 billion, down 40% from a year earlier; revenue from the gaming division was about $1.6 billion, up 14% from a year earlier; revenue from the data center business was about $1.6 billion, up 45% from a year earlier; and revenue from the embedded business rose to about $1.3 billion, mainly from the acquisition of Cyrus earlier this year.

• Credit Suisse self-help: selling its hotels, considering introducing outside investors and spinning off its business

On Thursday, 6th local time, it was reported that$Credit Suisse (CS.US)$It is studying the sale of its hotel Mandarin Oriental Savoy Zurich and is working with consultants to attract the interest of buyers. The hotel, which has been in operation for nearly 200 years, may be worth about 400 million Swiss francs.

Since then, Credit Suisse spokesman Simone Meier confirmed the sale of the hotel, saying "Credit Suisse regularly reviews its real estate portfolio as part of its global real estate strategy." In the process, Credit Suisse decided to start the sales process of the Hotel Savoy building. We will carefully evaluate all bids and potential investors and disclose the relevant decisions in due course. "

• Compass is up 16%. Compass Vista Equity Partners plans to privatize it.

$Compass (COMP.US)$It closed up 16.08% at $2.96. Earlier, it was reported that Vista Equity Partners was studying a deal to take the real estate company private.

Yesterday's turnover of US stocks TOP20

The Prospect of Hong Kong City

• Standard Chartered: the Hang Seng Index fluctuates from 16250 to 19000.

The Hang Seng Index rebounded sharply by more than 1,000 points yesterday, and Zheng Zifeng, investment director of Standard Chartered in North Asia, believes that the risk to Hong Kong stocks mainly comes from lower corporate earnings forecasts rather than shrinking valuations. Zheng Zifeng said that the price-to-earnings ratio of the Hang Seng Index is at an all-time low and it is believed that there is not much room for valuation contraction. However, there is still room for the Hang Seng Index to forecast a 10 per cent year-on-year increase in corporate earnings next year. He pointed out that corporate profits will depend on the timing of customs clearance in the mainland and when interest rates peak. He expects the Hang Seng Index to fluctuate between 16250 and 19000. The United States continues to raise interest rates, and Hong Kong banks finally raised the best lending rate (P) last month. Zheng Zifeng pointed out that P still has upside risks, coupled with reduced demand due to increased supply and declining population in the property market, so he is cautious about local property stocks and property prices.

• HKU expects Hong Kong's GDP to rise 1.8% in the fourth quarter and fall 0.6% for the whole year.

The Asia-Pacific Economic Cooperation Research Project of the Hong Kong Institute of Economics and Business Strategy of the University of Hong Kong expects Hong Kong's GDP to grow by 1.8% in real terms in the fourth quarter of 2022, with the economy falling by 0.6% for the whole of 2022. At the same time, Hong Kong's economy fell 2.6 per cent in the first half of this year under the influence of the fifth wave of COVID-19 epidemic. Thanks to the second phase of the government consumption voucher scheme and the relaxation of social distance measures, real GDP in the third quarter of this year is expected to grow by 0.7% compared with the same period last year.

• Tencent bought back shares for 33 consecutive trading days, spending a total of HK $11.6 billion

$TENCENT (00700.HK)$1.27 million shares were repurchased on October 6 at a repurchase price of HK $275.2-HK $282.4, at a total cost of about HK $353 million. Since August 19, 2022, Tencent has bought back a total of 38.85 million shares for 33 consecutive trading days, at a cost of HK $11.609 billion. Tencent has made a total of 70 buybacks during the year, with a repurchase amount of HK $21.622 billion.

• XIAOMI Group-W spent about HK $24.445 million on October 6 to buy back 2.6 million shares

$XIAOMI-W (01810.HK)$It issued an announcement to repurchase 2.6 million shares at a repurchase price of HK $9.36-HK $9.46 per share at a cost of about HK $24.445 million on October 6, 2022.

• Standard Chartered PLC spent about 12.5339 million pounds to buy back about 2.165 million shares on October 5.

$STANCHART (02888.HK)$An announcement was made to buy back about 2.165 million shares at the London Stock Exchange on October 5, 2022 at a repurchase price of 5.696-5.868 pounds per share.

• China Information and Communication Technology Group increases its stake in Semiconductor Manufacturing International Corporation H shares by 4 million shares

According to HKEx filings, China ICT Group Co., Ltd. bought at an average price of HK $16.2344 per share on September 29th.$SMIC (00981.HK)$4 million shares, with a cumulative investment of about HK $64.9376 million, rising from 14.96 per cent to 15.01 per cent.

• Hang Seng Bank will pay the third interim dividend of HK $0.70 per share in 2022 on November 8.

$HANG SENG BANK (00011.HK)$It is announced that the third interim dividend of HK $0.7 per share for 2022 will be paid on November 8, 2022.

Focus today

Key words: China's foreign exchange reserves; US non-agriculture and unemployment rate; Jianshi Science and Technology announced the winning results

On Friday, in terms of financial dataChina and Hong Kong, China will announce their foreign exchange reserves.

After the quarterly adjustment in the United States, non-farm payrolls and the unemployment rate are announced. at present, the market is expected to increase by 250000, lower than the previous value of 315000. Investors can take this opportunity to know whether the Fed's aggressive interest rate hike has begun to curb economic growth.

In August, the United States added 315000 non-farm payrolls, and the three-month moving average still added 378000 jobs. On the other hand, the slight rebound in the unemployment rate may be related to the rebound in the labour force participation rate, but it remains relatively low.

Niuniu morning reading:

We can succeed not because we are good at solving problems, but because we are good at staying away from problems.

-Charlie Munger.