The United States will announce September CPI data today. The U.S. 10-year Treasury bond yield came to 1.563%. US stock futures rose on Wednesday (13th). Dow Jones futures rose 0.06%, S&P 500 futures rose 0.13%, and Nasdaq 100 futures rose 0.41%.
1. Fed Brad: Half the chance of inflation is temporary, and we should prepare for an interest rate hike next spring
St. Louis Federal Bank official James Bullard said on Tuesday (12th) that there is a half chance of whether current inflation is temporary. If the Federal Reserve (Fed) starts to reduce debt purchases, it should act aggressively. , So as not to cause inflation to become a bigger problem. The official with voting rights next year called for the start of debt reduction in November and preparations for raising interest rates as soon as next spring if necessary.
In an interview with CNBC, Brad said that the current inflation “has a 50% chance” is temporary, and called on Fed officials to start reducing the current large-scale debt purchase plan in November, and to complete it before next spring, and to reduce debt purchases. You may have to move faster to be ready to raise interest rates next spring or summer if necessary.
The Fed is expected to cut debt purchases in November, which may end before mid-2022. At present, most officials tend to completely end bond purchases before raising interest rates. Fed officials have repeatedly stated that reducing bond purchases does not mean that interest rate hikes will come immediately.
2. Apple’s iPhone 13 production target will be revised down to 10 million units this year
Bloomberg on Tuesday (12th) quoted people familiar with the matter as reporting that due to the chronic shortage of chips, Apple (AAPL-US) may lower its production target of iPhone 13 in 2021 by as much as 10 million.
People familiar with the matter said that Apple originally expected to produce 90 million iPhones in the last three months of this year (the fourth quarter of calendar year 2021), but now the company told the supply chain that due to Broadcom (AVGO-US) and Texas Instruments (TXN- US) Difficulties in wafer supply, so total output will decline.
3. GM will get LG compensation of 1.9 billion U.S. dollars to repair Bolt electric vehicles
General Motors said on Tuesday (12th) that the company has reached an agreement with its partner LG Electronics (LG Electronics) to receive a US$1.9 billion in compensation for Bolt electric vehicle repairs from LG Electronics, representing GM’s approximately US$2 billion repair cost. Most are compensated by LG Electronics.
This agreement means that LG Electronics not only shoulders almost all of GM’s recovery and repair costs, but also almost bears the responsibility for the Bolt electric vehicle to catch fire. GM expects to recognize this compensation in the third quarter earnings report.
However, the cooperative relationship between the two parties has not been affected. Shilpan Amin, GM’s vice president of procurement and supply chain, said that LG is an important supplier of the company and is very pleased to reach this agreement. The production of battery modules is expected to start repairing customer vehicles this month.
4. Qualcomm announced the immediate execution of a $10 billion stock repurchase
Mobile phone chip maker Qualcomm (QCOM-US) announced on Tuesday (12th) that it will immediately execute a $10 billion treasury stock repurchase. When US semiconductor stocks are exhausted, Qualcomm’s share price rose 1.34% after the market.
Qualcomm said that the $10 billion repurchase of new treasury stocks will be combined with the $900 million repurchase plan in 2018, which will be executed immediately after the release, and there will be no expiry date. Qualcomm fell 1.59% on Tuesday, and after the market was affected by the news, it rose 1.34% to $124.6 per share.
Qualcomm will announce its financial report for the fourth quarter of fiscal year 2021 on November 3, US time. According to FactSet statistics, 18 of the 29 Wall Street analysts maintain the buy rating and target price, and 11 hold the rating. The average target price is US$180.99, and the potential upside is about 47%.
5. The third dose of Modena vaccine was rejected by FDA experts
US Food and Drug Administration (FDA) scientists on Tuesday (12th) refused to support Modena’s application for the third dose of the vaccine and cited data that two doses of the vaccine are sufficient to prevent severe illness and death.
FDA scientists published a 45-page document on the Internet, saying: “Real-world effectiveness studies have shown that the effectiveness of the Modena vaccine against the symptomatic infection of the new coronavirus or the variant virus Delta will gradually decline over time. , But overall, the current two doses of COVID-19 vaccine are sufficient to prevent severe illness and death.”
The current position of FDA scientists seems to be biased against the third dose of vaccine. Pfizer proposed last month to administer the third dose of vaccine to young people and was rejected. However, the authorities said that people with weakened immune systems can be given stronger protection.