hot news

• The Fed’s “third-in-command” said it would quickly raise interest rates to a more normal level, and selling MBS is one of the future options

On Monday (May 16) local time, New York Fed President Williams said that the Fed will quickly raise interest rates to more normal levels, and selling mortgage-backed bonds (MBS) may be one of the options the bank will consider next. The Fed’s goal is to bring the economy back into balance, Williams said. “It’s a challenging task, but we’re committed to doing that. And the number one issue is inflation, which is too high and has been in this way.”

• More and more ‘old Fed leaders’ think Powell is wrong, this time ex-Fed chairman Bernanke

In his latest interview with CNBC, Bernanke called the delay in Fed action a “mistake.” Bernanke said that inflation has become one of the most serious threats to the economy. “I think they (the Fed) agreed that it was a mistake.” As for why the move was delayed last year, Bernanke said one of the reasons was that Powell didn’t want to shock the market.

• U.S. assets suffered a big sell-off in March: overseas record sell-off of U.S. stocks, the two major “creditors” China, Japan, and U.S. bond holdings hit record lows

Official data from the United States shows that overseas investors sold US stocks of US$94.3 billion in March, 3.7 times the amount sold in February; overseas officials such as the central bank sold US bonds of US$32.4 billion, a two-year high; Japan’s US bond holdings hit a new low in more than two years; China has reduced its holdings for four consecutive months, and its holdings have hit a new low in more than 11 years.

• Goldman Sachs: Downgrades U.S. economic growth forecast, stocks are short-term bearish and long-term bullish

Goldman Sachs chief U.S. stock strategist David Kostin said for the first time that the S&P 500 may fall below 3,600; Goldman Sachs chief economist Jan Hatzius lowered his forecast for U.S. GDP growth this year to 2.4%, and GDP growth in 2023 to 1.6%.

• Morgan Stanley suddenly “bulls” Chinese stocks, and the world’s largest hedge fund, Bridgewater, also aggressively hunts for dips

After an epic sell-off, foreign institutions are re-examining the investment value of Chinese Internet technology companies. On May 16, JP Morgan suddenly became “overall bullish” on China’s Internet technology stocks, and collectively raised the rating and target price of China’s Internet technology stocks. It pointed out that the short-term and long-term fundamental prospects are being re-examined, the Chinese Internet industry is getting rid of various uncertainties, and the stock prices of leading companies may rise more than expected in the future. Secondly, Wall Street’s “top stream” institutions have already spent real money to buy Chinese stocks. Among them, JPMorgan Chase’s flagship China fund increased its positions in JD.com in the first quarter, with an increase of 1,253%; Bridgewater Fund and Fuda International also increased their holdings in Tencent, Alibaba, Meituan, Pinduoduo, Baidu, etc. Chinese internet technology stocks.

• Hillhouse HHLR overweighted some heavy positions in the first quarter, Vipshop doubled its holdings, JD.com’s holdings rose to second, and Ideal Cars cut in half

On May 17, Beijing time, the website of the U.S. Securities and Exchange Commission (SEC) showed that HHLR Advisors released the latest data on U.S. stock holdings. As of the end of the first quarter, HHLR held 64 stocks in the U.S. stock market, 12 fewer than in the fourth quarter of 2021. In addition, due to the reduction and clearance of many heavy-weight stocks, the overall size of HHLR’s holdings has also decreased accordingly. On the other hand, HHLR has increased holdings and new purchases of 8 Chinese concept stocks, including JD.com, Vipshop, Manbang, Futu and other Chinese concept stocks, indicating that it is still optimistic about Chinese assets . HHLR’s latest top ten stocks are BeiGene, JD.com, Salesforce, Legend Bio, Onangpao, Vipshop, iQiyi, SEA, Mondelez International, and DoorDash.

• Berkshire builds positions in Occidental Petroleum and Citi in Q1, overweights Apple, Chevron, General Motors

Buffett’s Berkshire Hathaway’s 13F position report submitted to the US Securities and Exchange Commission (SEC) on Monday showed that the company had long positions in 8 stocks including Citi and Paramount in the first quarter, and increased its holdings of Apple and Chevron. , Activision Blizzard and other 7 stocks, and liquidated 3 stocks of Wells Fargo, AbbVie and Bristol-Myers Squibb. The latest data shows that the total market value of Berkshire’s holdings in the first quarter increased to $363.554 billion, from $330.953 billion in the previous quarter.

• U.S. banking sector lending rises to highest level since March 2021

Weekly Federal Reserve data showed a key measure of the size of U.S. banks’ loans rose and the share of safe assets fell. The data showed that in the week ended May 4, the U.S. banking industry’s loans and leases accounted for 49.18% of total assets, up from 49.03% in the previous quarter. Highlights of the report include: total assets fell from $22.69 trillion to $22.65 trillion, and the share of safe assets (nearly risk-free investments such as cash, U.S. Treasuries, and securities actually guaranteed by the U.S. government) fell from 48.2% fell to 48.1%, and loans and leasing as a percentage of deposits rose from 61.3% to 61.5%.

• U.S. to extend COVID-19 public health emergency beyond July

The U.S. government has extended the new coronavirus public health emergency beyond mid-July, a move to continue policies during the new crown pandemic as the nearly two-and-a-half-year outbreak continues,media reported. Since its implementation in January 2020, the U.S. Department of Health and Human Services (HHS) has extended the state of emergency several times. The move enables the U.S. to urgently authorize drugs, vaccines and other medical countermeasures, and enables millions of Americans to access Medicare and other benefits through Medicaid. On April 16, HHS extended the public health emergency by 90 days, a decision that a person familiar with the matter said would extend beyond mid-July.

• EU officials: EU foreign ministers fail to reach consensus on new round of sanctions against Russia

On May 16, local time, the EU foreign ministers’ meeting was held in Brussels. The meeting failed to agree on a sixth round of sanctions proposals, including an oil embargo on Russia, due to objections from Hungary. Borrell, the EU’s high representative for foreign affairs and security policy, said that the foreign ministers of EU member states continued to negotiate a new round of sanctions against Russia, including an oil embargo, but there were differences and no consensus could be reached. Next, the ambassadors of the 27 member states to the EU will continue discussions on the issue, Borrell said.

• For the first time since the outbreak of the Russia-Ukraine conflict: Russia’s oil production increased in May

Before Russian media released May data, the International Energy Agency said last week that Russian crude oil production fell 9% in April, and exports rebounded to near pre-Russian-Ukrainian levels after falling in March; Russia lost 90 percent of supplies in April due to sanctions 10,000 barrels per day, losses could expand to 3 million barrels per day in July.

• Central Bank of Russia: Raises the limit of foreign remittances from Russian bank accounts to $50,000 per month

On May 16, local time, the Central Bank of Russia said that it will increase the limit of remittances from Russian bank accounts to $50,000 per month from the original $10,000 per month.

US stocks resume trading

• Technology stocks dragged the Nasdaq down more than 1%, international oil prices rose above $114, and energy stocks rose collectively

On Monday, the S&P turned lower in late trading and approached a bear market, the Dow barely closed up, and most of the popular ones outperformed the broader market. China Prospective ETF KWEB rose 0.2%, Baidu rose 0.7%, Pinduoduo rose 0.3%, and NetEase rose 0.9%.

WTI June crude oil futures closed up $3.71, or 3.36%, at $114.20 a barrel as the demand outlook improved. Brent crude oil futures for July ended up $2.69, or 2.41%, at $114.24 a barrel. Energy stocks rose collectively, Occidental Oil rose more than 6%, Chevron, ConocoPhillips, Schlumberger rose more than 4%, and Exxon Mobil rose more than 3%.

• Will there still be a Twitter deal? Musk hinted that there may be, but it needs to be lower!

Tesla Chief Executive Elon Musk has sparked speculation that he may seek to renegotiate the acquisition of social media platform Twitter, saying he would not rule out a cheaper bid for the company. At a tech conference in Miami on Monday, Musk said it was not “impossible” to get a workable deal at a lower price. The stock has been falling on fears that Musk might walk away from a $44 billion takeover of Twitter. Those concerns have grown over the past week as Musk questioned Twitter’s publicly disclosed data about the percentage of spam and fake accounts on its social media service.

• U.S. regulatory documents revealed: Trump will be severely restricted even if he returns to Twitter for business

During the pull of Musk’s acquisition of Twitter, the discussion about “unblocking Trump” has aroused great enthusiasm from the outside world. But even if Trump were willing to return, his restrictions on business obligations would make a return to Twitter almost pointless, according to regulatory filings updated early on May 16. In addition to a royalty-free agreement with Trump to authorize the use of the former U.S. president’s name, Digital World Acquisition, a “blank check” company, said in a Form S-4 filed Monday morning that it also reached an exclusivity agreement with Trump. social media launch agreement. That is, Trump needs to give priority to his speech on the company’s social media, and he can still use other platforms in the future, but he needs to release the same content six hours apart.

• The big technology company’s battle for people is heating up! Microsoft plans to nearly double employee payroll budget

Microsoft CEO Satya Nadella said on Monday local time that considering the current labor market and rising inflation, Microsoft will increase employee pay by increasing stock awards and performance awards starting September 1. . A Microsoft spokesperson said in an email: “As the annual total award process draws near, we will make significant additional investments this year to compensate employees around the world. We have nearly doubled our salary budget, annual stock awards Increase by at least 25%, mainly for early to mid-career employees.”

• Tencent Music Q1 earnings report: Online music paying users reach 80.2 million, a new high

In the first quarter of 2022, Tencent Music Entertainment Group’s overall performance was stable. The company’s adjusted net profit and other core data met market expectations. The number of online music paying users reached a new milestone of 80.2 million, and the payment rate exceeded 13%. Bright breakthrough. In the first quarter of 2022, Tencent Music Entertainment Group’s total revenue was RMB 6.64 billion (US$ 1.05 billion), and non-IFRS net profit was RMB 939 million (US$ 148 million), compared with the previous quarter. Up 7.6%; online music subscription revenue increased by 17.8% year-on-year to RMB 1.99 billion (314 million US dollars), and online music paying users reached 80.2 million, a year-on-year increase of 31.7%, of which the net increase was 4 million month-on-month; payment rate reached 13.3%, This is up from 9.9% a year earlier and 12.4% in the fourth quarter of 2021.

Top 20 U.S. stock market turnover on Monday

Hong Kong City Prospects

• Beishui increased its position in Meituan for the 24th consecutive day and sold Tencent for HK$311 million

On Monday, May 16, Nanxia Fund bought a net 1.932 billion Hong Kong dollars today, the 6th consecutive day of net buying. CNOOC, Meituan-W and Great Wall Motor received net purchases of HK$548 million, HK$471 million and HK$281 million respectively. Tencent Holdings ranked first in net sales, with an amount of 311 million Hong Kong dollars, ending the previous 4 consecutive trading days of net purchases (a total of about 3.869 billion Hong Kong dollars).

Note: Since March 28, Nanxia Fund has bought Meituan on a net basis for 24 consecutive trading days, with a total of approximately HK$18.565 billion.

• $Country Garden(02007.HK)$ : It is planned to issue corporate bonds of no more than 500 million yuan, and the issuance is still only in the planning stage

Country Garden issued an announcement on unusual stock price fluctuations on the Hong Kong Stock Exchange, confirming that it was not aware of any reasons for the increase in shares, or any information that must be announced to avoid a false market in the company’s securities and any inside information that needs to be disclosed. According to relevant media reports, the Group will issue RMB bonds. The company stated that it plans to publicly issue domestic corporate bonds with a face value of not more than 500 million yuan to professional investors in the short term. The issuance of corporate bonds is still only in the planning stage.

• $ Simcere Pharma (02096.HK)$ : The new crown oral drug SIM0417 has been approved for clinical trials

Simcere Pharma announced that on May 13, 2022, SIM0417, the anti-new coronavirus drug candidate SIM0417, which is a collaboration between the Group, the Shanghai Institute of Materia Medica, the Chinese Academy of Sciences, and the Wuhan Institute of Virology, has obtained a drug clinical trial approval notice issued by the State Drug Administration. The book is intended to be used for post-exposure prophylaxis in close contacts of people who have been exposed to positive COVID-19 infections.

• $China Shenhua(01088.HK)$ : The total electricity sales in April was 12.03 billion kWh, a year-on-year increase of 5.2%

China Shenhua announced the main operating data for April 2022. The company’s commercial coal production in that month was 26.8 million tons, a year-on-year increase of 6.3%; coal sales reached 36.8 million tons; total power generation was 12.83 billion kWh, a year-on-year increase of 5.6%; 100 million kWh, a year-on-year increase of 5.2%.

• $ Junshi Bio (01877.HK)$ : Toripalimab approved for the fifth indication in China

On May 13, according to the latest announcement on the official website of the China National Medical Products Administration (NMPA), the new indication for the new indication of Toripalimab (Tuoyi), a PD-1 inhibitor developed by Junshi Biotechnology, has been approved. This is also the fifth indication for toripalimab approved in China, specifically: combined with platinum-containing chemotherapy for the first-line treatment of locally advanced or metastatic esophageal squamous cell carcinoma.

• $China Pacific Insurance (02601.HK)$ : The original premium income in the first four months was 173.23 billion yuan, a year-on-year increase of 6.23%

China Pacific Insurance announced that from January to April 2022, the company’s subsidiary China Pacific Life Insurance Co., Ltd. accumulated original insurance business revenue of RMB 111.579 billion, a year-on-year increase of 4.0%. The company’s subsidiary China Pacific Property Insurance Co., Ltd. Insurance business income was RMB 61.651 billion, a year-on-year increase of 10.6%; the total was RMB 173.230 billion, a year-on-year increase of 6.23%.

Follow today

Key words: JD.com/Sea/Home Depot/Walmart financial report, Li Auto’s annual general meeting, Federal Reserve voting committee Bullard speech

On Tuesday, on the economic data front, the U.S. will release the monthly rate of U.S. retail sales in April.

The Hong Kong stock market has begun to usher in heavy financial reports. The financial reports released on Tuesday include: $JD Group-SW(09618.HK)$ and $JD Logistics(02618.HK)$ .

According to Bloomberg analysts’ expectations, JD.com will achieve revenue of 236.768 billion yuan in Q1 2022; adjusted net profit of 2.59 billion yuan. China Merchants Securities believes that the company will still achieve significantly better performance than the industry in the first quarter, relying on its strong management and control under the self-operated model.

In terms of new shares in Hong Kong stocks, Yunkang Group (02325.HK)$ , the fifth largest domestic medical operation service company and nucleic acid testing institution, will announce the results of the lottery.

For U.S. stocks, note:

• $Sea(SE.US)$ , $Home Depot(HD.US)$ , $Walmart(WMT.US)$ , $Huya(HUYA.US)$ and other pre-market earnings reports. Generally speaking, the retail giants at the end of the commodity supply chain may have a better experience of rising inflation in the United States. Investors may be able to get a glimpse of prices from their first quarterly report-related data.

• In 2022, FOMC votes, St. Louis Fed President Bullard will speak on the economic outlook.

• It is worth noting that, according to reports, Fed Chairman Powell will also be interviewed by the Wall Street Journal on Tuesday afternoon local time. This week, the U.S. Senate confirmed Powell for re-election as Fed chairman. Powell said in an interview that the Fed has tools to bring inflation down to 2% and keep inflation under control, although the process will be painful. He also said that rate hikes would be larger or smaller depending on the economic situation, and that a soft landing could depend on factors beyond the Fed’s control.

In addition, Li Auto (LI.US) will hold its annual general meeting.

Niu Niu Chen read:

When buying a stock, don’t buy it because it’s cheap, but see if you understand it!

– Peter Lynch

This article is reprinted from: https://news.futunn.com/post/15595267?src=3&report_type=market&report_id=205789&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.