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On September 8th, Daiwa issued a research report stating that Bilibili (09626.HK) issued US$700 million in zero-coupon convertible bonds maturing in 2031, while Tencent (00700.HK) completed the sale of its entire approximately 9.6% stake. The bank views this innovative win-win-win structure positively, believing it eliminates Tencents long-standing pressure to cash out, brings Bilibili approximately US$400 million in new funds, and limits equity dilution through the immediate US$300 million share buyback and cancellation. The report states that Bilibili has used US$300 million of the proceeds to buy back shares. Based on the initial conversion price of the convertible bonds (approximately 35.2 million shares), the total dilution is approximately 8.4%. However, after deducting the immediate cancellation of the repurchased shares, the net dilution is limited to approximately 3.5%. The bank reiterated its buy rating on Bilibili. The bank believes the benefits outweigh the drawbacks because it immediately eliminates Tencents selling pressure and raises long-term zero-coupon funds at a cost far lower than ordinary offshore bonds.Songyan Power: Officially launched Scalabot, a general-purpose embodied intelligence technology brand. Scalabot is dedicated to building the core capabilities of robots to understand the world, predict the future, and act autonomously, bringing intelligence from models to the real world.The Icelandic government summoned the U.S. ambassador to Iceland after Trump posted a map on social media that included Iceland within the U.S. territory.On September 8th, Citigroup issued a report stating that Nikes adjustment of its China distribution strategy starting in January 2027 is expected to negatively impact Topsports (06110.HK) business prospects for fiscal year 2028 (ending February 2028). Currently, the bank is not highly confident that Nike will continue to subsidize Topsports online distribution rights after the current fiscal year (ending February 2027). The bank lowered its net profit forecasts for Topsports for fiscal years 2027 to 2029 by 2%, 19%, and 18% respectively, while its sales forecasts were lowered by 1%, 5%, and 5% respectively. Based on an unchanged target P/E ratio of 11x for each historical year ending in 2027, the target price was lowered from HK$1.91 to HK$1.7. The bank maintains its "Buy" rating, considering the stocks double-digit dividend yield. The relative preference order for the Chinese sportswear sector remains unchanged: Anta (02020.HK) > Li Ning (02331.HK) > Topsports, all with "Buy" ratings.On September 8th, Futures News reported that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman reaffirmed their commitment to maintaining market stability, deciding to keep their daily crude oil production quotas for October at the same level determined in September 2026. OPEC+ will continue to hold monthly meetings to monitor market dynamics, with the next meeting scheduled for October 4th, 2026. Previously, the production quotas of these seven OPEC+ countries had increased for six consecutive months, and member countries are still working to determine new production quotas. During these six months, the organization gradually lifted production cuts, and the market still has sufficient capacity to absorb the increased oil supply. However, despite the significant increase in production quotas, the Strait of Hormuz is blocked due to the war between the US and Iran, and Russian crude oil exports are also restricted due to Western sanctions. In other words, since these seven countries crude oil is mainly for export, the increased quotas are meaningless given the export restrictions.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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