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Weekly News Recap 10 – 17 May 2024
News for 10 May 2024
Gold quickly draws strong above the resistance level.
On May 9, the price of gold rose to close at 2,346$/oz after the number of weekly US welfare claims came out higher than expected in the past 6 months at the level of 231k, causing the dollar to weaken as support. Gold prices rose stronglyใ
On May 10 at 9:00 p.m., there was an announcement of the US Michigan Consumer Confidence Index. Predicted at level 76.3ใ
If considering the trend of numbers in the labor sector, most contraction is lower than expected. This indicates that the US economy is starting to weaken. which is a supporting factor for gold prices
Non-Farm business sector lays off employees causing employment to shrink
Hope for a gradual recovery in May – June.
From the news on May 3, there was an announcement of numbers from the labor sector of the United States. The numbers of non-agricultural employment and the unemployment rate came out to shrink lower than expected and the previous time at the level of 175k and 3.9%, respectively. This is due to the private sector gradually reducing employees continuously, as can be observed from the Challenger Job Cuts or the Private Sector Job Cuts Trend Index by 3 months. Historically, companies in the United States have laid off 240,000 jobs, or an average of 80,000 jobs per month +3%YoY. It is expected that the trend of job losses in the next 3 months may decrease to 60,000 – 75,000 positions, with hope for a slight recovery.
Berkshire Hathaway profits up 39%
Foreign news agencies report that Berkshire Hathaway, with Warren Buffett as CEO, reported 1Q24 operating results with profits increasing 39%, mostly due to support from ***Insurance business group and higher interest rates
News for 13 May 2024
Gold does not break support, gradually accumulating.
At the end of last week, the price of gold rose to close at 2,360$/oz. This was due to the Michigan Consumer Confidence Index contracting lower than expected at 67.4. Economic contraction numbers supported safe asset prices to rise.
TSMC reveals April sales. Increased 60%YoY
TSMC Company reports that sales in April 2024 jumped 60% to NT$236 billion ($7.3 billion), driven by continued AI demand After the consumer electronics sector began to recover
TSMC expects sales to increase by about one-third in the current quarter. After revenue expansion increased 34.3% in March, including in the fiercely competitive Chinese market. This could help bolster TSMC’s traditional core mobile chip orders.
News for 14 May 2024
Gold has rebounding power on the defensive end.
On May 13, the price of gold weakened, closing at 2,336$/oz. The reason was that most investors began to gradually reduce their positions before the announcement of the US April inflation index numbers tomorrow. To prevent gold price fluctuations.
On May 14 at 7:30 p.m., there was an announcement of the PPI producer inflation index of the United States, expected to be 0.3%. Later, at 9:00 p.m., there was a statement from Powell.
At the current price, gold is stable above the support level. Therefore, it is seen that the price of gold may sideways within a narrow range, waiting for the announcement of the CPI numbers on May 15.
Assessing the US inflation trend with the direction of the stock index
On May 15 at 7:30 p.m., there will be an announcement of the April 2024 inflation index numbers for the United States, expected to be 3.4%, while March inflation is 3.5%. However, we must evaluate the direction and trend of inflation in the next period. Expected inflation in the US will come out of 2 options.
Option 1: US inflation came out to be 3.5%, which is higher than expected but the same as last month. This may cause the stock index in the United States to be under a little pressure. View support for the Dowjone at 38,750 points, the S&P500 at 5,120 points, and the Nasdaq at 17,500 points. Weakness is limited. This is because the market expects the Fed to cut interest rates 1 time this year.
Option 2: US inflation came out equal to the forecast at 3.4%, viewed as a positive factor for the index. This is because the US labor sector contracted in April, shrinking lower than expected. If inflation shows signs of slowing down This may cause the Fed to consider cutting interest rates more than once this year.
ARM plans to launch AI chips within the next year
Nikkei News Agency reports that ARM in the SoftBank Group is planning to launch an artificial intelligence chip within the next year. SoftBank is in discussions with contract manufacturers such as TSMC, the world’s largest chipmaker from Taiwan, to produce AI chips for Arm, with mass production of AI chips likely to begin this summer. Autumn 2025
In the past, ARM designed the basic architecture used to build chips. It then sells licenses to use those designs to companies like Qualcomm and Nvidia, charging royalties on each design. ARM claims that 99% of premium smartphones are powered by its technology.
Uber plans to spend $950 million to acquire Taiwanese Foodpanda
Uber Technologies, a multinational transportation company from the United States. Preparing to acquire Foodpanda in Taiwan for US$950 million in cash As Foodpanda wants to focus on other markets, Pierre-Dimitri Gore-Coty, Uber’s senior vice president of delivery, said the Taiwanese market faces fierce competition. The acquisition will help the company grow in a market where online food delivery platforms are still a small part of the food delivery landscape.
Measurable AI, an insights platform, revealed that As of August, Foodpanda and Uber Eats dominated Taiwan’s food delivery market. Considering the order quantity Foodpanda holds 52% of the market share, while Uber Eats follows at 48%.
News for 15 May 2024
Gold expects US inflation to remain close to expectations.
On May 14, the price of gold rose to close at 2,358$/oz due to the dollar index weakening to 105.02. The weakening dollar supported the gold price to increase.
As for May 15th at 7:30 p.m., there will be an announcement of the CPI Consumer Inflation Index numbers for April in the United States, expected to be 3.4%.
Tencent shows signs of recovery after revenue and profits grew QoQ, YoY
On May 14, Tencent reported 1Q24 revenue increased to 160 billion RMB +6%YoY, +3%QoQ and net profit equal to 43 billion RMB +62%YoY, +53%QoQ due to Online advertising revenue and Fintech services increased to 27 and 52 billion RMB, respectively. Gross profit improved from 1Q23 to 19%, while in 1Q24 it was 23%. This was due to costs per unit beginning to decrease.
Looking at the 2Q24 income trend to continue to recover. The reason is that the government sector has begun to stimulate the economy. However, the domestic gaming business may be slightly pressured by strict policies, accounting for 22% of total revenue. Looking at revenue growth, it may increase YoY but remain stable near 1Q24.
Tesla continues to reduce costs
Tesla said in a filing with the US government of California that it plans to lay off another 601 employees in California. While continuing to lay off employees around the world which started a month ago Amid declining sales and intensifying price competition for EV vehicles.
Last month, Tesla said it would lay off 6,020 employees in California and Texas.
News for 16 May 2024
Gold is about to make an all-time high.
On May 15th, the price of gold rose to close at 2,386$/oz due to the US April inflation index coming out equal to the expected level of 3.4%. The trend of slowing inflation has resulted in the market more relaxed, along with the dollar index weakening to 104.28. The dollar weakened, supporting the price of gold to increase.
As of May 16 at 7:30 p.m., there was an announcement of the number of weekly welfare applicants in the United States, forecast at 219k, and the Philadelphia branch manufacturing sector index, forecast at 7.7.
Alibaba profits shrink sharply after investing 300% in investment
Alibaba (BABA) reported 1Q24 income increased to 221,874 RMB Million +7%YoY, but net profit was only 919 RMB Million -96%YoY. This was due to the company accelerating the purchase of land and equipment worth approximately 10,174 RMB Million +305%YoY. Due to the size of this investment, the cash flow budget decreased from 32,267 RMB Million to only 15,361 RMB Million, and CAPEX increased from 3.5 billion RMB to 11.2 billion RMB in this quarter. Most of this came from investing in Alibaba Cloud’s infrastructure, although profits shrank sharply. but looking for future growth
Positive factors
- Cainiao Smart Logistics Network Limited – Smart Logistics Worldwide delivery of over 10 million parcels per day.
- Alibaba significantly increases investment in improving customer experience As a result, the number of 88VIP members has grown double-digit to more than 35 million and Alibaba Cloud has reduced public cloud prices on more than 100 items.
News for 17 May 2024
Gold: If it fails to break above the resistance level, be cautious of a potential weakening.
This past May 16th, the price of gold weakened, closing at 2,376$/oz. This was due to the number of weekly US welfare claims coming out equal to the expected level of 222k, along with the rebound of the dollar index. Rising to 104.49, the dollar strengthens and pressures the price of gold to weaken.
Tonight (May 17) at 9:15 p.m., there is a statement from Waller, a Fed member, regarding the US economic outlook.
The trend of contraction of the US economy continues to increase as a supporting factor for gold prices.
JD’s revenue and profit for Q1 2024 have strongly rebounded.
On May 16, JD reported 1Q24 income increased to 260,049 RMB Million +15%YoY and net profit 7,365 RMB Million +16%YoY. This was due to the retail and transportation side increasing to 226,835 RMB Million. +7%YoY and 42,137 RMB Million +15%YoY respectively. In addition, the transportation business that was previously loss-making began to turn to profit in 1Q24 equal to 224 RMB Million, while the company tends to increase its net profit margin from 3% in 1Q23 to 4% as support. Profit continues to increase
However, investing in new ventures still has a loss of approximately 670 RMB Million, compared to the income proportion which is still quite low. Moreover, if the Chinese government relaxes more restrictions on technology companies, it will cause the business trend to continue to recover.
It is estimated that strictness from the government will decrease. Because in the past the strictness caused the economy to start up. In addition, China has begun selling bonds, seen as a major fiscal stimulus. It is expected that purchasing power will gradually recover, with a P/E of only 15 times, approximately 30 times lower than the historical average.
