LB Morning Call | Apple Reportedly Increases iPhone 14 Shipment Expectation

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Asia Pacific

This morning, U.S. stock futures opened slightly higher, with S & P 500 futures up 0.15%, while Nasdaq futures and Dow futures rose 0.13%.

Overnight, the three major U.S. stock indexes closed mixed, the Dow rose 0.09% to 32,832.54 points, the S & P 500 fell 0.12% to 4140.06 points, and the Nasdaq fell 0.1% to 12,644.46 points.

Disney rose 2.32% and Dow rose 1.3%, leading the Dow. Most of the big tech stocks fell, with Apple down 0.29%, Nvidia down more than 6%, Amazon down 0.99%, Netflix up 2.96%, Google down 0.07%, Facebook up 1.88% and Microsoft down 0.92%. Tesla rose 0.78%.

Popular Chinese concept stock Zhifu Financing rose more than 20%. The company closed up 2,325.00% on the first day of its IPO last Friday, and the intraday gain once reached 5,262%. Zhongyang Financial rose 102.66%, Shangyongsuke fell 43%, New Oriental fell 8.61%, and Pinduoduo fell 5.13%. Luckin's pink list rose nearly 12%. JD.com fell nearly 5%. Tiger Securities and Alibaba fell nearly 2%.

Singapore News

1. Frasers Property achieved pre-sale revenue of $2.3 billion in Singapore, Australia, China and Thailand in the first nine months of fiscal 2022. At the end of June, the Group's net debt was $13.2 billion, down 2.4% from the end of September 2021.

2. Keppel Infrastructure Trust (KIT), Keppel Infrastructure Holdings (KIH) and Keppel Asia Infrastructure Fund (KAIF) jointly invested 626.1 billion won (about 600 million 66.1 million Singapore dollars) to acquire the entire stake in Eco Management Korea Holdings (EMK), a Korean waste management company. Keppel Infrastructure Trust will hold a 52% stake in the special purpose company, while Keppel Asia Infrastructure Fund and Keppel Infrastructure Holdings will hold 30% and 18% respectively.

US Stock News

1. Qualcomm agreed to purchase an additional $4.2 billion worth of semiconductor chips from semiconductor foundry company GlobalFoundries' New York facility, bringing its total purchases to $7.4 billion by 2028. The two companies will collaborate to produce chips for 5G transceivers, WiFi, automotive and IoT connectivity.

2. Apple has recently bucked the trend and expanded the initial stock of iPhone 14 series new machines, exploring the 95 million department at a high standard, an increase of about 5% from previous expectations. It is reported that iPhone 14 may be listed on September 23, and the Pro version has a high probability of rising to 8,999 yuan.

3. Boeing has submitted the first 787 Dreamliner to the FAA after the FAA signed off on a modification and inspection plan, sources said.

4. Tesla is lobbying the Ontario government to build a new factory in Canada.

5. Pfizer will acquire Global Blood Therapeutics for $68.50 per share for a total purchase price of $5.4 billion.

6. Amazon is considering taking a 51% stake in delivery company Ecom Express for $5- $600 million. The potential deal means Warburg Pincus, which holds a 52.2% stake, could take the opportunity to exit.

7. Luckin Coffee's total net revenue in the second quarter was 3.2987 billion yuan, an increase of 72.4% year over year; the adjusted net profit was 267.5 million yuan, compared with 92 million yuan in the same period last year.

8. SoftBank Group will sell some or all of its holdings in Sofi Technologies. SoftBank currently has a shareholding ratio of 9%.

9. Nvidia issued a warning, saying that due to the sluggish game business, revenue in the second quarter will fall by 19% month-on-month. Revenue in the second quarter is expected to be $6.7 billion, down 19% month-on-month and up 3% year over year, lower than Nvidia's previous forecast of $8.1 billion and analysts' average forecast of $8.1 billion.

10 . Apple has slowed the pace of mergers and acquisitions significantly over the past two years. Acquisition-related expenses in fiscal 2021 were only $33 million, compared with $169 million in the first nine months of this fiscal year (through the end of June 2022). By comparison, Apple's related expenses in fiscal 2020 were as high as $1.5 billion. Previously, Apple acquired a startup every 3-4 weeks. This year, Apple has made only two acquisitions.

11. Novavax's second-quarter earnings per share - $6.53, expected to be $5.44. Revenue is $186 million, expected to be $1.017 billion. Net profit - $510 million, expected to be $457 million. Novavax lowered its full-year revenue guidance due to slowing vaccine sales. Full-year revenue is expected to be $20- $2.3 billion, analysts expected $4.18 billion, and the company had previously estimated $40- $5 billion. Novavax's U.S. stock tumbled more than 32% after hours.

12. Morgan Stanley and Goldman Sachs said the bleak earnings outlook was a clear departure from the recent stock market rally. Given continued cost pressures, profit margins of US listed companies will shrink next year. The "best part" of this rally in US stocks is over.

13. Alibaba announced that the voluntary conversion to dual primary listing on the Hong Kong Stock Exchange has received confirmation of receipt of the application for conversion to primary listing issued by the Hong Kong Stock Exchange in accordance with the guidance letter on the change of listing status. The effective date of the company's major conversion is expected to be before the end of 2022.

Macroeconomy

1. Hong Kong announced the launch of the "3 + 4" plan from August 12, that is, from the mandatory quarantine arrangement for arrivals from overseas regions to 3-day hotel quarantine plus 4-day home medical monitoring. The "Travel with Peace of Mind" mobile app will be implemented in conjunction with the "red and yellow codes" under the "3 + 4" plan.

2. The Ministry of Transport of China plans to make service specification requirements for autonomous vehicles including buses, taxis, road passenger transport, and road freight. The opinion draft proposes to encourage the use of autonomous buses for closed BRTs; use autonomous taxis in scenarios with simple traffic conditions and relatively controllable conditions; and prudently use autonomous cars for road passenger transport.

3. According to Gartner's latest forecast, global semiconductor revenue is expected to grow by 7.4% in 2022, down from the 13.6% forecast in the previous quarter. The automotive electronics segment will continue to experience double-digit growth over the next three years, with semiconductor content per vehicle expected to increase from $712 in 2022 to $931 in 2025.

4. The Hong Kong Monetary Authority buys 2.975 billion Hong Kong dollars to defend the linked exchange rate system.

Reminders

16:00, China July M2, new social financing scale, new RMB loans (may be released)