Morgan Stanley: The electricity price results in Guangdong Province for 2025 are slightly below market expectations, maintaining a "Shareholding" rating for CGN POWER.
Morgan Stanley released a research report stating that after Jiangsu Province announced a comprehensive reduction in electricity prices next year, Guangdong Province also announced the results of the electricity market Trade for 2025, with the average electricity price decreasing by 7.4 cents per megawatt-hour, a year-on-year decline of 16%, slightly lower than market expectations, which may make the profitability of coal power enterprises more vulnerable. The bank also mentioned that the reduction in Nuclear Power prices in Guangdong Province for 2025 is limited, with market prices only decreasing by 4 cents, considering that the market's basic trading volume only accounts for about 30% of the Nuclear Power trading volume. It is believed that this reduction in electricity prices will only have about a 4% to 5% negative impact on CGN POWER (01816) profitability.
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Elon Musk's XAI Secures $6 Billion In Series C Funding To Expand Colossus Supercomputer, Attracts Investments From Nvidia And BlackRock
Elon Musk's AI startup xAI announced a list of some investors for its $6 billion financing.
Elon Musk's AI startup xAI posted on the social media platform X that a16z, Blackrock, and NVIDIA participated in the company's Series C funding. Other investors include Fidelity, Kingdom Holdings, and Morgan Stanley.
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Wall Street follows the guidance of the Federal Reserve, and major institutions predict a decline in US Treasury yields next year.
Wall Street is responding to messages from the Federal Reserve, predicting that even if Trump's trade and tax policies pose risks to the bond market, the short-term US Treasury yields will still decline by 2025. Strategists' forecasts are largely in agreement, believing that the 2-year Treasury yield, which is more sensitive to the Federal Reserve's interest rate policies, will decrease. They also expect that the yield will drop by at least 0.5 percentage points from its current level in 12 months. David Kelly and others from the Morgan Asset Management team stated, "Although investors might be myopically focused on the speed and extent of interest rate cuts next year, they should take a step back and consider the Federal Reserve in 2025."
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Morgan Stanley: Maintains CATHAY PAC AIR "In line with the market" rating, Target Price of 8.1 HKD.
Morgan Stanley released a research report stating that CATHAY PAC AIR (00293) saw a 25.8% year-on-year increase in revenue passenger kilometers for November, while available seat kilometers increased by 21.3% year-on-year, reaching 78% of the 2018 levels. Passenger demand remains strong, with a significant year-on-year growth in passenger load factors, and cargo transport continues to be robust. A Target Price of 8.1 HKD and a 'Market Perform' rating are maintained. The bank indicated that CATHAY PAC AIR expects strong performance in the second half of the year, mainly benefiting from strong cargo demand and lower RBOB Gasoline prices, but with the ongoing recovery of capacity, the normalization of passenger yield will partially offset this impact.
Morgan Stanley: Reiterates TENCENT's "Shareholding" rating with a Target Price of HKD 570.
Morgan Stanley released a research report stating that it reaffirms the "Shareholding" rating for TENCENT (00700), continuing to list it as a preferred stock, with a Target Price of 570 Hong Kong dollars. TENCENT's WeChat public e-commerce platform, WeChat Shop, has launched a gray testing of the "Gift Giving" function, allowing users to purchase commodities worth less than 0.01 million yuan as gifts and directly gift them to WeChat friends. The gift-giving function is similar to the format of WeChat red envelopes, which is believed to align with the development strategy of WeChat Shop, utilizing WeChat's ecosystem to build a unified and reliable e-commerce platform for users and providing indexed and standardized commodities. Morgan Stanley expects that after the new feature is fully launched, it will attract.
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