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Daily News – 10May’24

  1. Asian Stocks Rally as US Shares Near Fresh Record: Markets Wrap

    (Bloomberg) — Shares in Asia rose Friday after an upbeat day on Wall Street following jobs data that supported the case for US rate cuts. Equities in Japan, South Korea and Australia climbed alongside futures for Hong Kong. US contracts also drifted higher after the S&P 500 index gained 0.5% to trade less than 1% away from its all-time high on Thursday.

  2. Biden Poised to Impose Tariffs on China EVs, Strategic Sectors

    (Bloomberg) — President Joe Biden’s administration is poised to unveil a sweeping decision on China tariffs as soon as next week, one that’s expected to target key strategic sectors with new levies while rejecting the kind of across-the-board hikes sought by Donald Trump, people familiar with the matter said.

  3. Snapchat Is Focused on Making App Safe, Spiegel Says

    (Bloomberg) — Snapchat owner Snap Inc. wants to “take responsibility” for users’ experience on its app, including ensuring child safety, co-founder and Chief Executive Officer Evan Spiegel said Thursday at the Bloomberg Technology Summit. Snap and other social networks including Meta Platforms Inc., X Corp., Discord and TikTok have faced scrutiny from lawmakers and parents.

  4. Baidu Executive Quits After Reviving Toxic Work Culture Debate

    (Bloomberg) — Baidu Inc.’s media relations chief has resigned after posting a string of videos endorsing 24-7 work and making light of staff wellbeing, reigniting a furor over the tech industry’s relentless “996” culture. Qu Jing stepped down on Thursday, according to people familiar with the matter.

  5. Netanyahu Vows Israel Will Fight Alone Even Without US Help

    (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu struck a defiant tone against President Joe Biden after the US withheld a shipment of bombs as a warning to its top Mideast ally not to invade the southern Gaza city of Rafah. In a first, punchy clip on the social media site X, Netanyahu said: “If we have to stand alone, we will stand alone”.

  6. Xi Wins Orban’s Support in Fight Against ‘Overcapacity’ Claims

    (Bloomberg) — President Xi Jinping pledged more rail and energy investments in Hungary to serve as China’s gateway into the European Union as he secured backup from Prime Minister Viktor Orban for Beijing’s pushback against the “overcapacity” accusations by the West. Xi, in Budapest Thursday after stops in France and Serbia, brought pledges to build infrastructure.


  7. Australia Will Only Cut Rates in Late 2025, Ex-RBA Official Says

    (Bloomberg) — Australia’s interest-rate settings are “a bit too low” to rapidly stamp out inflation and as a result, policy easing is only likely to begin in the second half of 2025, according to former senior Reserve Bank official Jonathan Kearns.

  8. Senate Passes Sweeping Aviation Bill With Additional DCA Flights

    (Bloomberg Government) — The Senate passed sweeping bipartisan legislation that would set aviation policy for the coming years, with provisions aiming to alleviate flight disruptions, staff up on air traffic controllers, and advance new technology. The chamber voted 88-4 to approve the measure.

  9. Vanguard Joins Pimco in Seeing More BOJ Rate Hikes Than Market

    (Bloomberg) — Vanguard Group Inc.’s Ales Koutny says the market is underestimating just how hawkish the Bank of Japan will need to be this year to boost the beleaguered yen. The asset manager’s head of international rates sees the central bank’s benchmark reaching 0.75% by year-end, from a range of 0% to 0.1% now, with a quarter-point hike as soon as June.

  10. Private Equity’s $3 Trillion Burden Sparks Hunt for Exit Options

    (Bloomberg) — As the market for initial public offerings bounces back after two lifeless years, investors who’ve been impatiently waiting for their payoff are finally getting some returns. But the revival hasn’t come fast enough: Behind the scenes, the private equity shops saddled with bulging portfolios.

  11. Portfolio Adviser: AQR rolls out multi-strategy alternatives fund

    US asset manager AQR Capital Management has launched a multi-strategy alternatives Ucits fund. The AQR Apex Ucits fund seeks to build a diversified portfolio by investing in a wide range of lowly correlated sub-strategies. The strategy was created through an enhancement and re-naming of the $344m (£275.2m) AQR Systematic Total Return Ucits fund. “Apex utilises the culmination of our research insights.

  12. Geely’s EV Maker Zeekr Said to Raise $441 Million in US IPO

    (Bloomberg) — Zeekr Intelligent Technology Holding Ltd., the high-end electric car brand under Zhejiang Geely Holding Group Co., sold shares in an expanded initial public offering at the top of a marketed range to fetch about $441 million, according to people familiar with the matter. In the biggest US IPO by a China-based company since 2021, Zeekr sold 21 million American.

  13. ARM Holdings shares fell 2.3% as its full-year revenue forecast came in below expectations.

    The UK chip designer said it expects full-year revenue between $3.8 billion and $4.1 billion, with a midpoint of $3.95 billion (vs consensus estimates of $3.99 billion).

  14. Roblox shares slumped 22.1% after the video-gaming platform cut its annual bookings forecast, in a sign that people were dialling back spending amid an uncertain economic outlook and elevated levels of inflation.

    Revenue estimates came in between $4 billion and $4.10 billion, down from its earlier view of $4.14 billion to $4.28 billion.

  15. The closing of Equinix’s investigation into its accounting practices overshadowed mixed results and a cut to its full-year revenue forecast. Shares surged 11.5%. “But key questions still remain” for the data-centre REIT, analysts write.

    FIRST QUARTER RESULTS: Adjusted Ebitda $992.0 million, estimate $976.9 million. Adjusted Ebitda margin 47%, estimate 45.7%. Revenue $2.13 billion, estimate $2.14 billion. FFO per share $5.81, estimate $5.96. SECOND QUARTER FORECAST: Sees adjusted Ebitda $1.02 billion to $1.04 billion, estimate $1.02 billion. Sees revenue $2.15 billion to $2.17 billion, estimate $2.18 billion. YEAR FORECAST: Sees revenue $8.69 billion to $8.79 billion, saw $8.79 billion to $8.89 billion, estimate $8.86 billion. Sees adjusted Ebitda $4.04 billion to $4.12 billion, saw $4.09 billion to $4.17 billion, estimate $4.13 billion. Sees AFFO/share $34.45 to $35.29, saw $34.58 to $35.31, estimate $35.02.

  16. Airbnb shares fell 6.9% after the home-rental company’s second-quarter revenue forecast trailed the average analyst estimate, ahead of the peak summer season. Last week, rival Booking Holdings issued weaker-than-expected guidance and Expedia Group lowered its full-year forecast.

    FIRST QUARTER RESULTS: Revenue $2.14 billion, +18% y/y, estimate $2.06 billion. Gross booking value $22.9 billion, +12% y/y, estimate $22.32 billion. Adjusted Ebitda $424 million, +62% y/y, estimate $326.3 million. Adjusted Ebitda margin 20% vs. 33% q/q, estimate 15.9%. EPS 41c vs. 18c y/y, estimate 30c. Nights and experiences booked 132.6 million, +9.5% y/y, estimate 131.81 million.

  17. The closing of Equinix’s investigation into its accounting practices overshadowed mixed results and a cut to its full-year revenue forecast. Shares surged 11.5%. “But key questions still remain” for the data-centre REIT, analysts write.

    FIRST QUARTER RESULTS: Adjusted Ebitda $992.0 million, estimate $976.9 million. Adjusted Ebitda margin 47%, estimate 45.7%. Revenue $2.13 billion, estimate $2.14 billion. FFO per share $5.81, estimate $5.96. SECOND QUARTER FORECAST: Sees adjusted Ebitda $1.02 billion to $1.04 billion, estimate $1.02 billion. Sees revenue $2.15 billion to $2.17 billion, estimate $2.18 billion.

  18. Tapestry shares rose 3.6%, erasing an earlier drop, as investors digest the company’s fiscal third-quarter earnings release. Quarterly EPS topped expectations while the company maintained its year bottom-line forecast. Sales were slightly shy of the consensus, though CFRA analyst Zachary Warring called out “stable” results in the Coach unit, Tapestry’s largest brand, as a positive.

    THIRD-QUARTER RESULTS: Adjusted EPS 81c, estimate 67c. Net sales $1.48 billion, estimate $1.5 billion. Gross margin 74.7%, estimate 73.7%. Inventory $824.1 million, estimate $874.3 million.


  19. SolarEdge shares fell 8.5% after the solar power company reported a wider-than-expected 1Q loss and provided guidance for 2Q that came in below even the most pessimistic forecasts. Elevated inventory levels and weak demand are heightening attention on its ability to generate cash later this year ahead of debt maturing.

    FIRST QUARTER RESULTS: Adjusted loss per share $1.90 vs. EPS $2.90 y/y, estimate loss/shr $1.58. Revenue $204.4 million, -78% y/y, estimate $196.6 million. Gross margin -12.8% vs. 31.8% y/y. Adjusted net loss $108.6 million vs. profit $174.5 million y/y, estimate loss $90.2 million. SECOND QUARTER FORECAST: Sees revenue $250 million to $280 million, estimate $309.3 million. Sees adjusted gross margin -4% to 0%.

  20. The U.S. is now Germany’s biggest trading partner — taking over from China

    After years of China being Germany’s main trading partner, the U.S. looks like it’s quietly taking that top spot as the year progresses. Combined exports and imports between Germany and the U.S. totalled 63 billion euros ($68 billion) between January and March on 2024, while trade with China came to just below 60 billion euros. German has adapted its China strategy, urging companies to “de-risk” from the country last year.

  21. India’s near 8% GDP growth isn’t transforming into stock market returns.

    Warren Buffett once bet that an investment in an S&P 500 tracker would outperform most hedge funds. Yet, that wager by the “Oracle of Omaha,” who held Berkshire Hathaway’s annual shareholder meeting over the weekend, would have also outperformed many other indexes too, including the BSE India Sensex and the Nifty 50. For local investors, Indian stocks would have underperformed the U.S. benchmark by more than 45 percentage points since Buffett’s 2008 bet. For foreign investors, returns would have been worse in U.S. dollar terms with a 280-percentage point gap between the two indexes.

  22. China’s biggest chipmaker SMIC warns of ‘fierce’ competition as it misses quarterly profit expectations

    SMIC on Friday warned of intense competition as its net income plunged 68.9% from a year earlier to $71.79 million. Gross margin slid to 13.7% in the quarter – the lowest the firm has ever recorded since nearly 12 years – according to LSEG data. “Competition in the industry has been increasingly fierce and the pricing for commodity products basically follows the market trends,” SMIC said on Friday during the firm’s earnings call.

  23. Sinclair explores selling roughly 30% of its broadcast stations, sources say

    Sinclair is looking to sell more than 30% of its 185 owned or operated broadcast stations, according to people familiar with the matter. The media company has hired Moelis as an investment bank to assess possible asset sales, including the stations and the Tennis Channel, the people said. Sinclair recently settled litigation with subsidiary Diamond Sports Group, which owns the largest portfolio of regional sports networks and is under bankruptcy protection. Last year, Sinclair rebranded and restructured, separating the company into two operating units, the broadcast business and Sinclair Ventures, which includes non-media holdings.

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