[US stock index]
On Tuesday, November 12, US Eastern Time, the three major US stock indexes collectively closed down, with the S&P 500 index falling 0.29% to 5983.99 points. The Dow Jones index fell 0.86% to 43,910.98 points; The Nasdaq index fell 0.09% to 19,281.40.
American debt
On November 12th, the benchmark 10-year US bond yield was 4.43%, and the 2-year US bond yield, which is most sensitive to the Fed’s policy interest rate, was 4.34%.
[Hot American stocks]
Among the popular US stocks, NVIDIA rose 2.10%, Microsoft rose 1.20%, Google C rose 0.75%, Google A rose 0.70%, Amazon rose 1.02%, Meta rose 0.28%, Tesla fell 6.10%, TSMC fell 1.20%, AMD fell 2.53% and Intel fell 3.55%.
[global index]
[China index]
On November 12th, overnight Hang Seng Technology Index futures fell by 4.04%, Nasdaq China Jinlong Index fell by 4.45%, and FTSE China A50 Index fell by 1.06%.
[China Stock Exchange]
In terms of popular Chinese stocks, Tencent Holdings (Hong Kong stocks) fell by 2.27%, Alibaba by 3.82%, Pinduoduo by 2.86%, Netease by 1.11%, Ctrip by 3.99%, Baidu by 3.94%, LI by 7.09%, Xpeng Motors by 10.72% and Weilai by 9.39%.
[foreign exchange commodities]
[Global News]
The probability that the Fed will cut interest rates by 25 basis points in December is 62.1%.
According to CME’s "Fed Watch", the probability that the Fed will keep the current interest rate unchanged by December is 37.9%, and the cumulative probability of cutting interest rates by 25 basis points is 32.1%. The probability of keeping the current interest rate unchanged by January next year is 26.5%, the probability of cutting interest rates by 25 basis points is 54.9%, and the probability of cutting interest rates by 50 basis points is 18.6%.
Meta cut Facebook and Instagram subscription fees in the EU by 40%
Meta said that it will reduce the price of its monthly subscription service in the EU from 9.99 euros for desktop users to 5.99 euros, and from 12.99 euros for iOS and Android users to 7.99 euros.
Apple will launch AI-based smart home devices as soon as March.
According to informed sources, Apple will launch smart home devices based on artificial intelligence (AI) as soon as March. The device will have the functions of FaceTime, Siri and Apple Intelligence. The device will be connected to a camera, a doorbell and run a series of Apple APPs. The company hopes to compete with Amazon and Google in the field of smart home. (Cailian)
Eastman Group, the world’s largest listed hedge fund, plans to lay off employees.
Man Group is planning a round of layoffs, and the world’s largest listed hedge fund is evaluating its cost structure. According to people familiar with the matter, CEO Robyn Grew told employees that the company is evaluating its annual budget and talent demand. This assessment will lead to layoffs, with a low percentage of single digits. The layoffs will mainly focus on operations, middle desk and technical positions. The total number of full-time employees in Eastman Group has increased from 1,274 five years ago to 1,787. The company still expects to continue to increase the number of employees. (Cailian)
Richmond Fed President: The US economy is in good shape, and the Fed can meet the challenge calmly.
Thomas Barkin, president of the Federal Reserve Bank of Richmond, said that the US economy is in good condition, which enables the Fed to reduce borrowing costs. Barkin delivered a written speech at the Together Summit in Baltimore on Tuesday, saying, "Strong but more critical consumers, more productive and valuable labor force keep the economy in a good state. No matter how the economy develops, the Fed can respond appropriately. " The president of the Richmond Fed said that consumers who are increasingly sensitive to prices are helping to curb inflation. As companies retain talents, the labor market remains flexible. Part of the reason for the increase in productivity is that companies have invested in automation during the epidemic and have a more experienced workforce with a low turnover rate.
Federal Reserve Kashkali: If inflation unexpectedly rises before December, it may make the Fed suspend interest rate cuts.
Federal Reserve Kashkali said that considering the dynamics of the housing market, it may take one to two years for the inflation rate to drop to 2%; I don’t want to declare victory over inflation, but I have good reasons to maintain confidence. The strong labor market is "encouraging" and the economy looks strong. If inflation unexpectedly rises before December, it may make the Fed suspend interest rate cuts. In an environment with high productivity, the neutral interest rate is higher, which means that the Fed has less room to cut interest rates. The threshold for the Fed to stop shrinking its table is still quite high, and there is still a long way to go before it ends. The extent to which the Fed cuts interest rates will depend on the performance of the US economy.
European Central Bank official Ka zaks: US tariff measures are not good for Europe
Kazaks, an official of the European Central Bank, said that the US tariff measures were not good for Europe.
Amazon’s AWS negotiated an agreement to supply NVIDIA’s GPU to IBM.
AWS, a subsidiary of Amazon, negotiated an agreement to supply IBM with services related to GPUs in NVIDIA. The two sides are expected to reach an artificial intelligence (AI) cloud agreement worth 475 million US dollars. (Cailian)
Boeing says it will take several weeks to fully resume production after the strike.
On November 12, local time, Boeing Company of the United States said that it would take several weeks to fully resume the production of passenger planes because the factory workers returned to work after nearly two months of strike. A Boeing spokesman said that the delay in the resumption of work at factories in Washington and Oregon in the United States was due to the need to take multiple steps to resume production. Every employee will be informed of his responsibilities and safety requirements after returning to the company, and the company will ensure that the training certificate is up to date. It is reported that this strike is due to the breakdown of the negotiations between Boeing’s employers and employees to renew the contract. Boeing employees voted against the salary plan proposed by the management in mid-September, and then about 33,000 employees began to strike. Last week, employees voted to accept Boeing’s contract invitation and return to work before November 12. According to reports, the strike caused the production of Boeing 737 Max, 777 and 767 models to stop.
Boeing delivered 14 aircraft in October, a record low since November 2020.
Boeing delivered 14 aircraft in October, a record low since November 2020. (Cailian)