Biden spoke out on inflation
"Fighting inflation is my top priority"
On the eve of the release of inflation data, Biden spoke out against inflation, saying that anti-inflation is a top priority, and also talked about the removal of tariffs imposed on Chinese products during the Trump era! Four Fed officials also spoke intensively, and the stock market immediately fluctuated sharply...
Tomorrow (before the U.S. stock market opens on Wednesday), the US April CPI data will be released. On the eve of the release of this blockbuster inflation indicator, Biden also made a heavy speech on inflation.
On Tuesday, US President Joe Biden said that households across the Country are being hit by inflation. Fighting inflation is my top priority.
Biden also noted that historical inflation is occurring around the world. Inflation has outpaced wage growth for many Americans.
Biden believes that the epidemic and the Russian-Ukrainian conflict are the main causes of inflation, and his own policies have reduced unemployment and raised wages.
He also stressed in his speech, "I plan to cut the deficit by $1.5 trillion." The policies I have made are to help slow down, not exacerbate, inflation. ”
Regarding the high price of oil, Biden pointed out that increasing the global gasoline supply will reduce gasoline prices.
Biden said it was possible to remove some of the tariffs imposed on Chinese products during the Trump era
in response to inflation
According to the Global Network, the US CNBC just reported that Biden said on the 10th that he may cancel some of the tariffs imposed on Chinese imports to help control rising consumer prices in the United States.
Joe Biden said in a speech to the nation in Washington on the 10th that the White House is reviewing the "punitive measures" implemented during the administration of former President Trump, which raised the price of all goods from diapers to clothing and furniture, and he also said that the White House may choose to completely cancel the above measures.
Biden said: "We are thinking about what will have the most positive impact. He added that whether to remove tariffs is under discussion. Trump has imposed a large number of economic penalties on Chinese goods in the long tit-for-tat trade war with Beijing to support American-made goods.
The extent to which the removal of Trump-era tariffs on China would cool inflation is a matter of debate among economists, but many say lowering or eliminating tariffs on China is one of the few options for the White House, eager to use all available leverage to reduce costs.
Biden reiterated that the dual role of the pandemic and the war in Ukraine has led to the fastest rise in U.S. prices since the early 1980s. "I want every American to know that I take inflation very seriously," Biden said, "and the first cause of inflation is the once-in-a-century pandemic." Not only has it shut down our global economy, it has also left supply chains and demand completely out of control. And this year we have a second reason, and that is Putin's war in Ukraine", Biden reported, referring to the war as a direct result of the rise in oil prices.
Four Fed officials spoke out intensively
Heavy hawkish rhetoric is dragging down the market
On Tuesday, a number of Fed officials also spoke out on inflation, monetary policy, the job market and other issues. Officials have made hawkish remarks such as "never rule out the possibility of a 75 basis point rate hike," "cut inflation even if unemployment rises," and "do more in advance," which have largely dragged down stock market confidence.
Fed Mestre said the possibility of a 75 basis point rate hike is not ruled out forever. Inflation risk is skewed to the upside, which is a reason to do more "ahead of time". The Fed is on credit for "the FOMC will do more." After 50 basis points each in June and July, the Fed "must see" more measures that need to be done based on data.
Mester also noted that the Fed's task will not be smooth sailing, and that unemployment may have to rise to lower inflation. Our tools need to be leveraged to better coordinate requirements. We can raise policy rates and alleviate excess demand.
Fed Governor Waller said it was time to raise interest rates because the economy could afford it. Raise the rate now and do it in front.
Waller also pointed out that the difficulty of reducing inflation is that some people will lose their jobs as a result. The labor market is very strong at the moment, and we can lower inflation without causing too much damage. We think we can raise interest rates, but not much of an impact on the unemployment rate.
Fed Williams noted that it is important to take measures in advance. The Fed will move quickly this year to restore the federal funds rate to more normal levels. The balance sheet cuts provide room for a 50 basis point rate hike at the next meeting. [The Federal Reserve] is rapidly canceling its easing through quantitative tightening. If necessary, it will (support) not hesitate to raise real interest rates above neutral levels. We also need to be able to rely on data and adjust the route.
Fed Barkin noted that the Fed will do everything it can to curb inflation. It will take a little time, but the Fed is acting. Some of the inflationary pressures of the COVID-19 pandemic will eventually be addressed.
According to CME "Fed Observation", the probability of the Fed raising interest rates by 25 basis points by June is 0%, the probability of raising interest rates by 50 basis points is 89.0%, and the probability of raising interest rates by 75 basis points is 11.0%; the probability of cumulative interest rate hikes by 25 or 50 basis points by July is 0%, the probability of cumulative rate hikes of 75 basis points is 4.0%, the probability of cumulative rate hikes of 100 basis points is 85.5%, and the probability of cumulative rate hikes of 125 basis points is 10.5%.
The Dow fell four times in a row, and the intraday earthquake was 860 points
Nasdaq V-shaped rebound, closing up nearly 1%
Following Monday's plunge, the three major U.S. stock indexes originally rebounded on Tuesday, but near noon, the intensive hawkish remarks of Fed officials dragged down the stock market, and the three major stock indexes rushed higher and fell back.
Among them, the Dow rose to a high of 32752.17 shortly after the opening of the market, but fell back to a low of 31887.89 points in the afternoon, and the intraday earthquake was 864.28 points.
The Nasdaq, on the other hand, resumed its rally after a midday pullback, rising more than 2% at one point in the late session.
As of the close, the three major stock indexes were mixed, with the Dow Jones recorded four consecutive declines, closing down 0.26% at 32,160.74 points; the NASDAQ rose 0.98% at 11,737.67 points, and the S&P 500 index rose 0.25% at 4,001.05 points.
In terms of large technology stocks, Apple rose 1.61% and Tesla rose 1.64%. Microsoft rose 1.86 percent, Google rose 1.33 percent, Amazon rose 0.06 percent and Meta rose 0.73 percent. Nvidia rose 3.81 percent, Intel rose 2.18 percent, Qualcomm rose 1.40 percent and AMD rose 2.74 percent.
The 10-year Treasury yield fell below 3 percent, a key factor driving the rebound of nasdaq and tech stocks.
In addition, intraday, the voice of a legendary investor also boosted market confidence. Legendary hedge fund manager David Tepper said on Tuesday that he had closed his bearish NASDAQ position or thought it had bottomed out, CNBC reported.
On Tuesday, Chinese stocks also rebounded mostly. Pinduoduo rose 1.75 percent, JD.com rose 1.20 percent and Alibaba fell 0.32 percent. Ideal Auto rose 4.07 percent, Xiaopeng Auto rose 1.15 percent, but Weilai fell 0.81 percent. In addition, Futu rose 7.20%, Baidu rose 1.21%, and Tencent Music rose 0.79%.
The EU's oil embargo on Russia has been opposed
International oil prices plunged, and U.S. oil fell below $100
On Tuesday, Eastern Time, international oil prices fell again, and U.S. oil has fallen below the 100 U.S. oil mark.
On the news side, the French president and the Hungarian prime minister held telephone talks on the EU's embargo on Russian oil
According to CCTV, on May 10, local time, French President Emmanuel Macron held telephone talks with Hungarian Prime Minister Orbán in order to reach an agreement on the EU's oil embargo on Russia as soon as possible. Sanctions need to be agreed to by the 27 EU member states, while Hungary, which relies on Russian fuel, has so far refused to pass the sanctions agreement.
Orban's spokesman, Havasi, said the two leaders had discussions on energy security issues. On the 9th, Orbán also exchanged views with European Commission President von der Leyen who visited Budapest.
The Elysées, the French presidential palace, said the two leaders' talks were aimed at finalizing the necessary guarantees for the oil supply conditions of some member countries in a spirit of solidarity. In addition, contacts between the two sides are continuing, with the aim of reaching a comprehensive agreement on the EU's sixth set of sanctions against Russia as soon as possible.
In the first half of 2022, France holds the presidency of the European Union. The European Union last week submitted a draft of a new round of sanctions to Russia to member states, which includes a gradual ban on oil imports from Russia within 6 to 8 months.
The latest news from Russia and Ukraine:
Russia said that the Luhansk armed forces had broken through the depth of the local Ukrainian defenses
At the time of the huge earthquake in the stock market, there is also new news on the situation in Russia and Ukraine.
Russia said that the Luhansk armed forces had broken through the depth of the local Ukrainian defenses
According to CCTV news, according to the news released by the Russian Ministry of Defense on the 10th, the Luhansk armed forces, with the support of the armed forces of the Russian Federation, completed the operation against Popasnaya in the Donbass region and broke through the defense in depth of the Ukrainian army.
White House Press Secretary: Biden will provide more security and economic assistance to Ukraine as soon as possible
On May 10, local time, White House press secretary Psaki said at a briefing that US President Biden met with House Speaker Pelosi and other members of the congressional delegation visiting Ukraine on the same day to hear comprehensive reports and opinions and provide more security and economic assistance to Ukraine as soon as possible.
Natural gas transportation was affected by the loss of control of the Northern Region of Luhansk by the Ukrainian side
On the 10th local time, the Ukrainian natural gas pipeline transportation company released a message saying that because the Ukrainian side lost control of the northern region of Luhansk, the company could not operate the pumping station located in the region, and the natural gas transportation was temporarily interrupted.
The announcement also said that due to force majeure, the company will stop receiving natural gas transmission from Rostov Oblast in Russia at a pumping station located in the north of Luhansk from 7 o'clock local time on the 11th.
The company said that as many as 32.6 million cubic meters of natural gas transiting Ukraine to Europe through the pumping station are transported daily, accounting for almost a third of the gas transmission through Ukraine.
The Ukrainian Gas Pipeline Transport Company can also currently receive gas from a pipeline passing through Russia's Kursk Oblast to Ukraine's Samui Oblast, but Gazprom said the line's application for gas supply has reached its maximum.
Since the morning of May 10, Gazprom has delivered 95.8 million cubic meters of gas through Ukraine as planned. Since the suspension of supplies to Poland and Bulgaria on April 27 as they refused to pay fuel fees in rubles, the amount of gas in transit transported through Ukrainian gas pipelines has increased by 80 percent.
Zelenskiy met with German Foreign Minister Berberk in Kiev
On the 10th local time, Ukrainian President Zelenskiy met with German Foreign Minister Berberk in Kiev.
"Ukraine can count on our support, not only in the military realm, nor in the present," Berbock said during the meeting. ”
Bill Gates claimed to have tested positive for COVID-19
Symptoms are currently mild
According to the Global Network, Microsoft co-founder Bill Gates said on Twitter that he tested positive for the new crown virus. Bill Gates said he is currently suffering from mild COVID-19 symptoms and is being quarantined "until he recovers" as recommended by experts.
Musk: Or complete the Twitter acquisition in 2 to 3 months
The Chinese market will account for 25% to 30% of Tesla's sales
On Tuesday, Musk, the world's richest man, also made a blockbuster remark.
Regarding the Twitter acquisition, Tesla CEO Elon Musk said that the best-case scenario could be to complete the Twitter acquisition transaction within 2 to 3 months.
In addition, foreign media broke the news that a person familiar with the matter revealed that private equity giant Apollo is negotiating to take the lead in providing preferred stock financing for Elon Musk's Twitter acquisition transaction. The financing, arranged by Morgan Stanley, will exceed $1 billion, with the likes of Sixth Street Partners likely to participate.
He also said, "I do think that blocking Trump's account is incorrect and will revoke the suspension measure." Twitter should not have a permanent suspension. ”
For Tesla, Musk said Tesla's goal of producing 20 million cars by 2030 is a vision, not a promise. As long as I can play a role, I will stay at Tesla. Other than Tesla, no other company has made significant progress in solving the problem of real AI.
He also pointed out that in the long run, the Chinese market will account for 25% to 30% of Tesla's sales. There will be some strong electric vehicle companies in China.
Asked if Tesla plans to produce motorcycles, Tesla CEO Elon Musk said the motorcycles are dangerous and would not be recommended to anyone.
For SpaceX, he said it plans to send an unmanned starship to Mars within 3-5 years and complete a manned mission by the end of 2030.
He also noted that there aren't many benefits to merging Tesla, SPACEX and other businesses together.
For other acquisitions, Musk noted that Tesla's acquisition of mining companies is not currently planned. But Tesla's acquisition of mining companies is "not impossible." The chances of Tesla acquiring another automaker are slim to none.
Cryptocurrency exchange giants performed thunderously
Plunged 16% after hours
There was also a stock thunderstorm on Tuesday.
After U.S. stock market on Tuesday, cryptocurrency exchange Coinbase released its latest earnings report. Coinbase reported a net loss of $430 million in the first quarter, compared to a net profit of $771 million in the same period last year; a loss of $1.98 per share, which was expected to be a profit of $0.05; and revenue of $1.16 billion, compared to $1.597 billion in the same period last year.
Earnings reported an unexpected loss, and the company's stock price immediately fell sharply after hours, plunging more than 16% at one point. (Closed down 12.6% on Tuesday)
This article originated from China Fund News