LB Morning Call | Tesla may consider repurchasing, On to Friday's Jobs Report

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Asia Pacific

Overnight, the three major U.S. stock indexes closed mixed, the Dow fell 0.26% to 32,726.82 points, the S & P 500 index fell 0.08% to 4151.94 points, and the Nasdaq rose 0.41% to 12,720.58 points.

Walmart fell 3.72% and Chevron fell 2.73%, leading the Dow lower. Big tech stocks mostly rose, with Apple down 0.19%, Amazon up 2.19%, Netflix up 1.4%, Google up 0.09%, Facebook up 1.05% and Microsoft up 0.42%. Tesla rose 0.4%.

Energy stocks fell across the board, with Exxon Mobil down 4.19%, Chevron down 2.73%, ConocoPhillips down 1.58%, Schlumberger down 4.5% and Occidental down 5.71%.

Most of the popular Chinese concept stocks rose, the onion rose 90.6%, Missfresh rose 51.69%, JD.com rose 3.63%, and the number of stocks fell 27.27%.

US Stock News

1. The Tesla shareholder meeting approved the stock split transaction plan of 1 share for 3 shares. Musk said that Tesla AI Day is still expected to be held on September 30 as planned. Tesla will launch a beta version of its fully autonomous driving (FSD) software in 2022, and the Model Y is expected to become Tesla's best-selling model in 2023; annual production is expected to reach 2 million by the end of this year; Tesla may Another factory site will be announced in 2022, and Tesla is expected to eventually have 10-12 Gigafactories. Stock buybacks are possible, but don't want to commit to them.

2. Meta plans to issue bonds for the first time, ready to raise $10 billion.

3. TSMC denied the rumor that "the 3-nanometer production capacity outsourced by Intel to TSMC has been delayed, and the original 3-nanometer production capacity booked in 2023 is almost completely cancelled", saying that the production capacity expansion project is proceeding as planned.

4. Samsung SDI will continue to expand spending on battery capacity this year, which is expected to reach 3 trillion won, while focusing on cylindrical batteries.

5. Intel is about to reach an investment deal with the Italian government to build an advanced semiconductor packaging and assembly plant in Italy, with an initial investment of $5 billion, people familiar with the matter said.

6. Recently, the Singapore authorities announced the revocation of Glencore's marine fuel sales license. Earlier this year, the fuel supply to ships at the port of Singapore was contaminated. The investigation found that the affected fuel was supplied by Glencore.

7. Goldman Sachs pointed out that they are once again seeing hyperscale call option buying, and its prosperity is even approaching the level of the 2021 retail player stock boom.

8. BlackRock, the world's largest asset management company, clearly warned the market that there may be some misunderstandings in the market about the Fed's policy outlook. The Fed will not appear dovish in the near future, and it still needs to be ready for the roller coaster of U.S. stocks in the next few months. ready.

Singapore News

1. The first Green Singapore Government Infrastructure Bond (Green SGS (Infra) issued by the Monetary Authority of Singapore received an enthusiastic response from institutional investors. The subscription amount received exceeded 5.3 billion yuan, and the subscription rate more than doubled.

2. Jiedi Group's revenue for the six months ended June 30, 2022 was approximately 2 million Singapore dollars, an increase of 7.2% year over year; net loss was approximately 533,000 Singapore dollars, a decrease of 54.1% year over year; loss per share was 0.03 Singapore cents.

3. DBS Group's total revenue increased by 6% to $3.7 billion 90 million in the second quarter. Net interest yield (NIM) rose 13 basis points to 1.58%. Net profit rose 7% year over year to $1.8 billion 20 million, the second highest on record. The board of directors announced a dividend of 36 cents per share for the second quarter, to be paid on August 26.

4. Manulife US REIT's distributable income and net real estate income both rose 6.9% and 2.8% year over year in the first half of the year. Dividend per unit (DPS) fell 3.3% year over year to 2.61 cents (3.6 new cents).

5. Prime US Reit's dividend payout rose 5.7% year over year to 3.52 cents per unit in the first half of the fiscal year. Distributable income and net real estate income rose 16.7% and 9.7% year over year, respectively, to $41.3 million and $50.8 million. Dividend date is September 26.

6. Wilmar International's net profit surged 55.1% year over year to US $1.1 billion 64.98 million (S $1.6 billion 6 million) in the first half of the year, and earnings per share surged 55.6% year over year to 18.5 cents, at the end of June. Net assets per share were worth US $3.16. The board of directors recommended an interim dividend of S $6 per share, which would be the group's highest interim dividend since its listing.

7. Starhub's total revenue in the first half of this year increased by 8.7% year over year to 1 billion 58.6 million yuan, net profit fell by 10.3% year over year to 60.9 million yuan, and earnings per share fell by 10.9% to 3.3 points, slightly lower than 3.7 points in the same period last year. Net asset value per share was 33.7 cents, down from 34.1 cents at the end of December last year. The group will pay an interim dividend of 2.5 cents per share.

Macroeconomy

1. The Bank of England raised interest rates by 50 basis points to 1.75%, the sharpest rate hike since 1995 and the highest rate since December 2008. The UK economy will contract from the fourth quarter of this year and throughout 2023, making it the longest recession since the financial crisis.

2. Fed Mester said that it is not unreasonable that the Fed may raise interest rates by 75 basis points in September; but it is likely to be 50 basis points. Interest rates should be just above 4%, and the Fed will cut rates once inflation falls back to its target of close to 2%.

Reminders

9:30, RBA Monetary Policy Statement

20:30, U.S. non-farm payrolls after July seasonally adjusted