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HSBC Holdings: Lowered its target price for NetEase (NTES.O) from $162 to $150.On July 23, STMicroelectronics (STM.N) stated in a press release that it expects revenue growth this quarter, driven by demand for AI-powered data centers. The company anticipates third-quarter revenue to reach approximately $3.7 billion in the mid-term guidance period, representing a 6.2% year-over-year increase, compared to the average analyst estimate of $3.79 billion. Gross margin for the quarter is expected to be approximately 37%, compared to analyst expectations of 36.76%. The continued expansion of AI infrastructure is driving demand for various data center chips, from Nvidias (NVDA.O) cutting-edge GPUs to STMicroelectronics semiconductors supporting power management and connectivity. This has significantly boosted the performance of the Franco-ST chipmaker. CEO Jean-Marc Cherry has been committed to expanding the business into high-growth areas beyond consumer electronics and the automotive industry. STMicroelectronics expects AI-powered data center revenue to exceed $1 billion in 2026, up from its previous forecast of approximately $1 billion; and to exceed $2 billion in 2027, also up from its previous forecast of approximately $2 billion.Hyundai Motor: Global auto sales guidance for 2026 may decline slightly.Hyundai Motors second-quarter profit missed analysts expectations, primarily due to declining global retail sales, US policy uncertainty, and increasingly fierce competition weakening market demand. The company said Thursday that operating profit for the three months ended June 30 was 2.85 trillion won (approximately $1.9 billion), down nearly 21% from the same period last year and below analysts forecasts of 3.1 trillion won. Revenue, however, rose about 2% to 49.2 trillion won, a record high for the quarter. The results highlight the challenges faced by Hyundai and other automakers in an increasingly uncertain business environment. Despite some sales growth in North America, the US withdrawal of support for electric vehicles has clouded the long-term prospects of the automaker and its subsidiary Kia Motors. Tariffs remain a major headwind, and Hyundai is gradually falling behind Chinese automakers in regions such as Europe and Asia. Furthermore, wage negotiations with unions remain deadlocked, with some strikes causing millions of dollars in losses per hour due to work stoppages.Baidu (09888.HK) surged more than 4% in the afternoon, but the gains have now narrowed to 2.59%.

The Devil Is In The Details: Gold Analysis - Federal Reserve Minutes

Larissa Barlow

Apr 07, 2022 10:33

Analyses of Federal Reserve Minutes 

While both the FOMC statement and Chairman Powell's press conference provide market participants with information about the FOMC's updated and revised monetary policy, it is the release of the minutes that provides investors with significantly greater clarity and understanding. The devil, as they say, is in the details.

 

The Federal Reserve issued the official minutes from its March FOMC meeting today, providing insight into the central bank's current plans to begin unwinding its balance sheet assets. Beginning in March 2020, the Federal Reserve will add around $4.6 trillion to its balance sheet by purchasing $120 billion monthly in mortgage-backed securities ($40 billion) and US Treasury securities ($80 billion), bringing their total to just over $9 trillion.

 

According to Federal Reserve Governor Lael Brainard, the Fed intends to employ a mix of interest rate rises and a quick run-off of the balance sheet to bring US monetary policy closer to neutral later this year.

 

However, the minutes released today imply that the Federal Reserve will unwind around $3 trillion over the next three years, reducing its $9 trillion balance sheet to $6 trillion. While the Fed appears to be indicating a quick runoff of its balance sheet, the reality is that the Federal Reserve's balance sheet will be nearly $2 trillion larger than it was prior to the epidemic.

 

"Participants continued their discussion on plans to reduce the size of the Federal Reserve's balance sheet in a manner consistent with the methodology outlined in the Committee's Principles for Reducing the Size of the Federal Reserve's Balance Sheet, announced following its January meeting."

 

Additionally, the minutes stated, "While no decision was made regarding the Committee's plan to reduce the Federal Reserve's balance sheet at this meeting, participants agreed that significant progress had been made on the plan and that the Committee was well positioned to begin the process of reducing the balance sheet's size as soon as after the conclusion of its upcoming May meeting."


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