Stock Market Calm, China Stimulus and Swiss Rates, Company News

Stock market news

• Small caps and Value were noticeably weak yesterday. Semiconductors are rising this morning after a good MU report, which is pulling up QQQ and the broader market. Asian stocks continue to rally strongly. Central bank monetary stimulus is keeping investors optimistic. The US dollar has regained its losses on Tuesday. As well as oil, it has given up Tuesday's gains.

• U.S. new home sales fell 4.7% m/m in August after rising sharply the previous month.

• The Swiss National Bank (SNB) was due to make a rate decision, as well as a series of speeches by officials from the Federal Reserve and the European Central Bank. The SNB is expected to cut rates by 25 basis points, the third rate cut in a row.

• Asian markets rose on Thursday despite overnight weakness on Wall Street as optimism about China's latest stimulus measures received a boost from news of a possible capital injection into the country's top banks. Authorities are considering a $142 billion bailout for major lenders, Bloomberg News reported, just two days after policymakers announced a raft of measures aimed at lifting the country out of its deflationary slump.

• YouTube Premium is raising its price by 50%, but only in Europe for now, - The Verge. In Belgium, Italy and the Netherlands, a family subscription will now cost €25.99 per month, while an individual subscription will cost €14. Prices have also jumped in Sweden and Switzerland. The changes will come into effect in November 2024.

• Hello Kitty has released a commemorative coin made of pure gold to celebrate its 50th anniversary. Only 500 coins were minted at $4,600 each. Fans have already filled online stores with pre-orders, hoping that the coin could grow significantly in the future.

• Warren Buffett's Berkshire Hathaway has been actively selling Bank of America shares for the fourth trading session in a row - the investor now owns only 10.4% of the top-3 US banks. Before Berkshire began selling in mid-July, it owned 13.2% of the shares.

• Google complains to EU over Microsoft cloud practices. US shoppers are expected to spend a record $18.5 billion in the final quarter of the year using buy now, pay later holiday shopping.

• Iron ore back to $100 a tonne after China's stimulus.

• Sales of foreign-brand smartphones, including Apple's iPhone, in China fell 12.7 percent year-on-year in August, compared with the same period last year, according to data released Wednesday by a government-affiliated research firm.

• Vanguard's new CEO plans to expand fixed-income offerings.

• The arbitration panel ruled in favor of Nippon Steel. The panel found that US Steel had complied with all of the terms of the succession clause in its basic labor agreement with the USW.

• Audible, Amazon’s audiobook service, continues to experiment with artificial intelligence to improve audiobook discovery and offer personalized recommendations. Recent tests include AI-powered tags that analyze user reviews to offer customized suggestions based on preferences.

• Coca-Cola Spiced to be discontinued after 7 months on the market. Coca-Cola Co. is discontinuing its new “permanent” flavor just over seven months after it was introduced. The beverage giant said Wednesday that Coca-Cola Spiced and Coca-Cola Spiced Zero Sugar will be phased out and replaced with the new flavor.

• Amazon, Google, Microsoft and OpenAI among first signatories to EU AI Pact, but Apple and Meta are missing
The European Commission has unveiled a list of the first 100-plus signatories to the AI ​​Pact, an initiative that aims to get companies to publish “voluntary commitments” on how they approach and deploy AI. Although a legally binding, risk-based AI rulebook (the AI ​​Act) came into force last month, it will be several years before all companies are using it in practice.

• US election risks affect companies' investment plans - survey. Nearly a third of company CFOs said risks related to the US presidential election on November 5 have caused them to delay or reduce investment plans, which could hurt economic growth, at least in the short term.

• Tesla's Potential 'Best Quarter' in China Raises Expectations With Tesla possibly eyeing its "best quarter" in China, Wall Street professionals are rushing to raise their forecasts for the electric car maker's quarterly sales.

• OpenAI CTO Mira Murati is leaving the company.

• Chief Scientific Officer Bob McGrew and Vice President of Research Barrett Zof will also leave the company.

• OpenAI transforms its status from non-profit to regular company to secure funding in an increasingly competitive environment.

• MU shares rise 15% after earnings report as company gives strong guidance for the current quarter.

• Demand for artificial intelligence “driven strong growth in our data center DRAM products and our industry-leading high-bandwidth memory.”

 Key events that could impact markets on Thursday:
- Swiss National Bank interest rate decision
- Speeches by Fed and ECB policymakers
- US weekly jobless claims

Fundamental news

• The US Congress passed a temporary bill to avoid a government shutdown. The budget decision for the next fiscal year (starts October 1, 2024) has been postponed until December. The budget will continue to operate according to the old plan. Only $231 million has been added for the Secret Service (to protect Trump?).
The next session of Congress will begin after the November US presidential election.

• Global economy shifts from inflation crisis to stable growth - Bloomberg The global economy is returning to stability as the stress from high inflation eases, allowing central banks to continue to ease policy cautiously, the OECD said.

• Economic growth has remained robust in recent months, inflation remains moderate and indicators point to continued momentum in the services sector, the organization said.

• China Announces Cash Payments for Poor - Bloomberg China said it would issue one-time cash payments to people in extreme poverty by Tuesday, in a rare announcement of direct aid just a day after unveiling a massive stimulus program.

• The Chinese army reported a successful test of an ICBM with a training warhead in the Pacific Ocean. The ICBM was launched from Hainan Island. After that, the missile traveled about 12 thousand km and, having flown near the US base on Guam, fell into the water in the South Pacific Ocean near French Polynesia.

• NATO prepares for large number of casualties in potential conflicts with Russia - Daily Mail. The alliance is developing strategies for mass evacuation and medical support for military personnel.

• The IMF has approved a $7 billion loan for Pakistan, which will receive $1 billion immediately.