• 2024-08-14
  • 162 comments

US Futures Down, Chinese Stocks Fall; Google Faces Breakup; Arcadium Lithium Jumps on Rio Tinto Deal

Here is the translation of the provided text into English:

1. **Three major futures decline, popular Chinese concept stocks generally fall** As of press time, Dow futures fell 0.22%, S&P 500 index futures fell 0.21%, and Nasdaq futures fell 0.27%. Popular Chinese concept stocks generally fell, as of press time, JD.com fell 4.2%, Alibaba fell 3.25%, Pinduoduo fell 4.05%.

2. **US Department of Justice considers breaking up Google** As of press time, Alphabet, Google's parent company, fell 1.35% before the market. In terms of news, a proposal submitted by the US Department of Justice on Tuesday shows that the agency is considering requiring Google to sell some of its businesses to mitigate the damage caused by monopolizing the online search market.

3. **Morgan Stanley: TSMC may maintain revenue growth momentum in the next five years** Morgan Stanley analysts said in a research report that driven by the demand for AI chips and outsourcing by integrated device manufacturers, TSMC's revenue may continue to achieve a compound annual growth rate of 15% to 20% in the next five years. They said that driven by strong demand for AI chips and further increase in Apple's 3nm chip production, TSMC's gross margin in the fourth quarter may slightly increase from 55% in the third quarter to 55.5%.

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4. **Boeing fell more than 1.5% before the market, and was put on the negative watch list by S&P** As of press time, Boeing fell 1.71% before the market. In terms of news, S&P put Boeing on the negative watch list, which may downgrade its rating to "junk" level. Boeing's current rating is BBB-, with a negative outlook. S&P estimates that the strike causes Boeing to lose $1 billion per month, assuming the strike ends in the fourth quarter, the company is expected to burn $10 billion in cash in 2024.

5. **Goldman Sachs: Geopolitical risk premium indicator for oil prices has declined slightly, oil prices are expected to stabilize this quarter** Goldman Sachs said in a report released on Tuesday that the geopolitical risk premium indicator for the oil market fell slightly this week, and in the absence of significant disruptions, oil prices may stabilize near the current level this quarter.

6. **Arcadium Lithium rose more than 31% before the market, Rio Tinto will acquire at a premium of $6.7 billion** As of press time, US lithium miner Arcadium Lithium rose 31.25% before the market. In terms of news, Rio Tinto's acquisition of Arcadium Lithium for $6.7 billion in cash was approved by the board of directors, which will help the world's second-largest mining company become a major producer of key battery materials. Rio Tinto said in a statement on Wednesday that it will acquire Arcadium Lithium at a price of $5.85 per share. This all-cash offer is 90% higher than Arcadium Lithium's closing price on October 4.

7. **AI chip startup Cerebras Systems may delay IPO** Cerebras Systems, an artificial intelligence chip startup based in California, USA, may delay its initial public offering (IPO) due to national security reviews of the minority investment in the company by the UAE's artificial intelligence company G42.

8. **Citi: The possibility of the Fed skipping rate cuts in November is not high** Citi analysts said in a report on Tuesday that although recent labor market data may have led some market participants to reconsider their expectations for Fed rate cuts, the possibility of the Fed skipping rate cuts during the November meeting is not high.

9. **Oppenheimer downgrades Microsoft rating to "in line with the market"** Investment bank Oppenheimer downgraded its rating for Microsoft from "outperforming the market" to "in line with the market". The main reasons for the downgrade include the expected significant losses of Microsoft's partner OpenAI in the field of artificial intelligence, and the slow adoption of AI technology by enterprises, which may lead to related revenues being lower than expected.

10. At 20:00 Beijing time, the 2024 FOMC voter and Atlanta Fed President Bostic will give a speech; the 2026 FOMC voter and Dallas Fed President Logan will give a speech on the current economic situation.