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On August 18th, it was reported that Alphabet, Googles parent company, is offering Australian dollar bonds with four maturities, one of which is as long as 20 years. Sources previously revealed that Google plans to raise approximately A$5 billion (about US$3.6 billion) in this round of financing. Last month, Alphabet raised its capital expenditure forecast for this year to as high as US$205 billion, reigniting concerns about how large tech companies will recoup profits from their trillions of dollars in artificial intelligence investments. Currently, among large US companies, Alphabet ranks second only to Amazon in utilizing the global debt market to finance its AI projects. In addition to the US market, Alphabet also plans to issue bonds in currencies such as the Swiss franc, British pound, euro, Canadian dollar, and Japanese yen in 2026.On August 18th, according to US media reports on the 17th, Jared Kushner, US President Trumps son-in-law, who is currently visiting the Middle East, stated that the "demilitarization" process in the Gaza Strip could begin within 30 days. Kushner made these remarks during an interview with Fox News after meeting with Israeli Prime Minister Benjamin Netanyahu in Jerusalem. He said, "We could see progress as early as 30 days, hopefully starting to clear some weapons and filling in some tunnels within the next 60 to 90 days." He also threatened that if Hamas fails to fulfill its promises, "Israel will receive stronger support from the United States and other parties." Kushner further stated that the US will not allow reconstruction in the Gaza Strip before demilitarization is achieved. Furthermore, the US "will not restrict Israels right to self-defense" should an imminent threat be faced.On August 18th, Wang Qing, chief macro analyst at Golden Credit Rating, stated that the recent zero volume of 7-day reverse repurchase operations, coupled with the overnight reverse repurchase operation conducted in mid-August, indicates that the Peoples Bank of China (PBOC) is now more precise in its control of market interest rates. This suggests that market interest rates will operate more smoothly in the future. Furthermore, it implies that overnight reverse repos may gradually replace 7-day reverse repos, becoming the PBOCs core policy tool for short-term liquidity adjustment.August 18th - BHP Billitons annual profit rose by nearly a third, driven by higher commodity prices, and for the first time, its copper revenue surpassed its iron ore revenue. BHP Billiton announced on Tuesday that its underlying profit for the fiscal year ending in June reached $13.2 billion, a 30% increase year-on-year, exceeding analysts expectations. The company also announced a final dividend of 99 cents, equivalent to a 72% payout ratio. Copper prices surged to record highs during the past fiscal year, and iron ore, another core product of BHP Billiton, continued its strong performance. BHP Billiton expects global copper demand to increase from approximately 34 million tons currently to 50 million tons per year by 2050. However, with declining grades and aging mines, BHP Billitons copper production at its Chilean mines is currently declining, prompting the company to invest billions just to maintain production.[Compiled by: Daily Tech News Roundup (August 18)] Artificial Intelligence: 1. Anthropics annualized revenue surpassed $65 billion before its IPO. 2. ByteDance signed an agreement with the Motion Picture Association of America to strengthen copyright protection for its AI models. 3. Nvidia partnered with SB Energy to develop an 8-gigawatt hyperscale AI data center in Ohio, USA, and invested $1.5 billion in SB Energy. 4. Nvidia: OpenAI pledged to deploy Nvidias AI infrastructure on a large scale by 2030, corresponding to a computing business scale of approximately $600 billion. Other: 1. Metas exorbitant lawsuit will begin its trial on Tuesday. 2. Jiuguang released a humanoid robot capable of lifting a 50-kilogram barbell. 3. CITIC Capitals acquisition of Alibabas Lingxi Interactive Entertainment has officially taken effect. 4. Xiaomi Auto: Xiaomi SU7 series deliveries surpassed 500,000 units in 28.5 months. 5. Unitree Robotics achieved a 2-meter high jump and a top speed of 12.66 m/s, surpassing the world records for both standing high jump and running speed.

Oil Gains 1% As Bulls Await China's Reopening

Skylar Williams

Jan 10, 2023 10:53

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After the worst week in a month to start the new year, crude prices rose just 1% on Monday as market bulls bet that China's reopening from tough COVID controls will stimulate oil consumption.


West Texas Intermediate, or WTI, crude finished up 86 cents, or 1.2%, at $74.63 a barrel on the New York Mercantile Exchange in the opening session of the second week of January.


Last week's drop in U.S. crude was the greatest since December 2. WTI had its worst first two trading days of any year since 1991.


Brent crude in London rose $1.08, or 1.4%, to $79.65 a barrel after touching $78.42. Brent, like WTI, fell more than 8% last week.


China reopened its borders to international trade on Monday, erasing the last signs of COVID restrictions that restricted most of its social programs for three years.


China's oil demand usually rises after the Lunar New Year, which is in January. Beijing's change from COVID-zero to "COVID-anything" makes oil demand prediction unachievable. Chinese industrial production fell for the seventh straight month in December as coronavirus incidence rose.


Officials forecast around 2 billion domestic travels during the Lunar New Year season, about double the amount from last year and 70% of 2019 levels.


In oil-specific news, China released a second batch of crude import licenses for 2023, raising the amount by 20% compared to last year.


"Oil's downward trend was nearing crucial support, therefore energy traders were eager to re-enter the oil market," said OANDA analyst Ed Moya. "Chinese hopes for COVID reopening could raise oil prices"