Happy Friday! The first Friday of June is the National Doughnut or Donut Day in US. So... how about having a doughnut today to celebrate the incoming weekend? 🍩😋
Morning Wrap your day:
- The meme stock AMC has gone crazy, but the jump didn’t last?
- Biden amended Trump’s China blacklist.
- How about Dinner at Tesla? It’s stepping into restaurants!
- A new Windows is coming.
Wall Street with stimulus fears: A better-than-expected US weekly unemployment report and private payrolls numbers for May reflected a strengthening labor market. S&P 500 and Nasdaq were weighed down by inflation worries after upbeat data.
- But stocks came off lows on signs of compromise: Biden has pitched to Republicans the idea of a 15% minimum corporate tax, though it’s also stressed that he was “absolutely not” abandoning efforts to raise it to 28%.
European stocks pared losses on upbeat eurozone business growth data and strong US jobs data.
Asia: China closed lower as a rebound in consumer firms faltered, after a private survey showed that services activity growth slowed in May. Hong Kong fell as global investors awaited US job data.
A Free Popcorn May Work
Source: Morning Wrap
The meme stock AMC has gone crazy. Following our previous story, it jumped 95% on Tuesday.
95%! How come?! 📈
Well… it’s actually related to popcorn. On Tuesday, the cinema chain launched an investor portal for individual investors to sign up for their loyalty program, with the following perks.
- A large free popcorn! 🍿 Upon their first visit this summer, all registered investors can get a free large popcorn.
- Push the shareholder meeting later. AMC wishes to hear from more individual investors and decided to push their AGM later for more retail investors to join.
- And… more direct communications with individuals through Youtube and Twitter.
More losses for short-sellers: Following its 95% jump, the total loss incurred by short sellers on AMC has been widened to USD 2.8 bln.
- More retail investors joined the party now, including those from South Korea and India.
But it dropped 30% overnight at open? 📉
Yea, the price jump doesn’t last forever. Riding the price surge, AMC announced to issue an additional 12 mln shares for raising USD 700 mln. AMC said the money will be used to repay loans and acquire cinemas.
- While announcing, AMC discouraged investors from holding their stocks as it’s abnormal, “unless you are prepared to incur the risk of losing all or a substantial portion of your investment”.
Immediately after this announcement, AMC turned into -30% from +20% in the premarket session, and closed 18% lower.
Biden: Let’s change Trump’s policy
Source: Axios, Morning Wrap
Still remember that US’s securities ban on Xiaomi (imposed by Trump) was formally lifted in May after a lawsuit? Here’s more - Biden amended Trump’s China blacklist just hours ago, blocking 59 Chinese companies.
Oh really...what are the changes?
#1 Shift of target. Investment ban would no longer be linked to companies owned or controlled by Chinese military (reported by Defense Department) ➡️ but firms operating in defense and surveillance tech sectors (reported by Treasury Department).
- Minor change in wording… but it could mean a lot in terms of scope: camera, internet, technology could all be included under the new rule.
#2 A possible wider universe. 🚫 A large number of previously listed entities would still be kept after amendment, and Treasury will add new entities to the list.
#3 But it also signalled a narrowing of the scope in one key area. ✅ If the parent company is listed in the blacklist, will its subsidiary be listed as well?
- Trump didn’t answer clearly, leaving investors confused.
- Biden would say a clear NO - Parent and subsidiary firms would be treated separately.
+ Wider...narrower? Why does it look contradictory? Not a typo. 😂 It’s somewhat mixed signals. But ultimately, it can give Biden a lot of latitude when it comes to the implementation of the order.
Then how do investors think?
China stocks drifted between gains and losses as investors digested the new plan, before closing lower. Some defense and aerospace stocks fell.
- Xiaomi (+2.4% in HK) would also be a key test to see how the new order would be implemented as it was just removed from the blacklist.
The ban on new investments will take effect Aug 2, and investors would have one year to fully digest.
How about Dinner at Tesla?
Source: Screen Rant, Morning Wrap
Not a typo here, it’s truly the Tesla that jumps into your mind… They are stepping into restaurants and pop-up dinings now.
Humm… how do you know?
Secret unveiled? Tesla recently filed trademarks containing its “T” logo and “Tesla” logo - but made for “restaurant, pop-up, and take-out” categories.
It’s actually not the first hint: The Technoking Elon Musk also tweeted this two months ago, saying the new Santa Monica supercharging station may have “50’s diner & 100 best movie clips playing”. 😉
How will it look like?
Musk has actually given out the answer in his 2018’s tweet - “an old-school drive-in, roller skates & rock restaurant”. A “T-branded” dine-in restaurant could also be possible for the new one.
Will he accept Bitcoin and Dogecoin in the new Tesla restaurants?
A new Windows is coming
Source: The Telegraph
It has been 6 years since the release of the current generation Windows 10 and... Microsoft finally thinks it’s time for an update. Did you guys forget about it? 🧐
Wow… what to expect?
The upcoming version, to be released on Jun. 24, is described as one of the “most significant” overhauls this decade, as per Microsoft CEO Satya Nadella. Here are some of the updates that could be expected.
- A new look: Microsoft could redesign the Start menu, Action Center, File Explorer, and Taskbar and make them more modern… possibly rounded corners.
- New app store: Microsoft may also revamp its Microsoft Store for a better commerce experience. Wait… you have an app store? 🤣
+ When can we use it? That’s another fair question. The new version could be pushed to developers (aka. Windows Insiders) for a test run. A mass release to us could be expected as early as the coming fall.
Just curious, how will Microsoft name the new one? Windows 10X? Or simply… Windows 11?
What’s Moving in the Business World?
😨 Pfizer and heart inflammation? Israel sees a possible link between Pfizer’s Covid-19 vaccine and dozens of cases of heart inflammation in young men. (More)
🧳 EU: Still strict on US + UK. EU will keep non-essential travel restrictions on US and UK, though it allowed non-essential travel into the 27-nation bloc last month. (More)
📝 Trump’s blog goes black. Trump’s blog has been permanently shut down, but his senior later signalled another social media comeback. (More)
💯 Golman Sachs v.s. JPM: JPMorgan has applied to take full control of its China securities venture, competing with Goldman Sachs to be the first US bank with 100%. (More)
🚦 The green light: China finally allows Ant Group to start operations at its consumer finance unit, the first sign of progress after the halt of its IPO last year. (More)
💵 Russia cut out USD from its wealth fund, adding to euro, gold, and yuan to reduce vulnerability to Western sanctions. (More)