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☆ Analysis: Tencent bets big on WeChat Channels in push to build its own TikTok
▼ + stars: | 2023-01-13 | by ( Josh Ye | ) www.reuters.com time to read: +6 min

"Tencent hopes it can turn Channels into the next WeChat Pay. Two sources familiar with Tencent said the importance of Channels has been repeatedly communicated within the company. In November, Tencent President Martin Lau said Channels' advertising revenue was on track to reach 1 billion yuan in the fourth quarter of 2022. "For example, in Douyin or Kuaishou, you won't be able to ask your viewers to add you on WeChat. But on Channels, you can quickly add somebody on WeChat," Yang said.

☆ Banks’ profit picnic will attract ant invasion
▼ + stars: | 2023-01-12 | by ( John Foley | ) www.reuters.com time to read: +7 min

JPMorgan (JPM.N), Bank of America (BAC.N), Wells Fargo (WFC.N) and Citigroup (C.N) all report fourth-quarter earnings on Friday. The good news is that for the year ahead, rising interest rates twinned with growing loan books should more than make up for sliding investment banking fees. The CFPB squeezed a $3.7 billion settlement from serial miscreant Wells Fargo in December for wrongly levying charges on customers. CONTEXT NEWSJPMorgan, Bank of America, Citigroup and Wells Fargo will report fourth-quarter 2022 earnings on Jan. 13. The CFPB said that Wells Fargo will also allocate over $2 billion in redress to customers.

☆ Morgan Stanley names its top pick in Chinese tech — and gives it over 70% upside
▼ + stars: | 2023-01-12 | by ( Zavier Ong | ) www.cnbc.com time to read: +2 min

Several investment banks have become more bullish on China's tech sector in recent weeks — and Morgan Stanley's one of them . The investment bank has named Alibaba its "top pick" in the Chinese tech sector — for the first time in three years. Alibaba is also well placed to benefit from a consumption recovery in China and continued operational efficiency improvement across segments, according to Morgan Stanley. Morgan Stanley sees more upside for Alibaba when it comes to earnings, forecasting earnings before interest, taxes, depreciation and amortization (EBITDA) growth of 18% into 2026. Morgan Stanley has a base case price target of $150 on Alibaba, and an upside to $200 per share in a bull case.

☆ Know what's in your ETFs: Wild divergence in retail funds to start 2023
▼ + stars: | 2023-01-11 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

At the same time, several online retail stocks have boomed, thanks in part to China abandoning its zero Covid policy. That has created a large gap between some retail ETFs, with broader funds lagging behind those with an e-commerce focus. For example, the Amplify Online Retail ETF (IBUY) and ProShares Online Retail ETF (ONLN) gained 7.7% and 8.1%, respectively in the first five trading days of the year. IBUY YTD mountain Online retail ETFs like IBUY are off to a fast start in 2023. Any reversal there could push retail ETFs that also hold more traditional "brick-and-mortar" stores, back into the lead.

☆ Ant Group Won’t Be Squashed After All
▼ + stars: | 2023-01-10 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

Chinese billionaire Jack Ma would cede control of Ant Group, the company said on the weekend. China’s fintech giant Ant Group seems to be finally crawling out of Beijing’s regulatory purgatory. That will lift sentiment on the Chinese tech sector—though investors still need to grapple with the industry’s changed landscape. More regulation and slower growth than in the pre-crackdown days will still be the norm, but the combination of a less actively hostile central government and a recovering Chinese consumer sector in mid-2023 seem very likely to boost both shares and earnings.

☆ Alibaba signs cooperation agreement with authorities in China's Hangzhou -media
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, Jan 10 (Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd (9988.HK) has signed a cooperation agreement with the government of Hangzhou, the city where the company is headquartered, local media reported on Tuesday. China's internet giants have been in the crosshairs of Chinese regulators for the past two years, but authorities have in recent months given increasing signs that relations between the government and China's tech sector will thaw, which would bode well for the sector's prospectsThe government-backed Zhejiang Daily reported that at the signing event, local authorities formulated specific measures to help develop the online platform economy. The signing comes just two days after Ant Group Co Ltd (688688.SS), the finance company long affiliated with Alibaba, announced Jack Ma had ceded control of the company. The announcemnt caused shares of Alibaba and other Ant Group affiliated companies to soar, as investors interpreted the move as possible cap to a years-long regulatory crackdown on the Chinese tech industry read moreOn Monday, Guo Shuqing, Communist party chief of the People's Bank of China, was quoted by state broadcaster CCTV as saying that rectification of the financial business of 14 online platform companies has been "basically completed," though he did not name any companies. read moreReporting by Josh Horwitz; Editing by Kirsten Donovan and Conor HumphriesOur Standards: The Thomson Reuters Trust Principles.

☆ This year's blockbuster IPO is between a rock and a hard place: listing in New York or London won't change Arm's fortunes in brutal downturn
▼ + stars: | 2023-01-10 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +7 min

ARM is preparing for an IPO in 2023 that couldn't come at a more tricky time. This pushed SoftBank to reposition Arm for the public markets as the Japanese firm seeks to generate profits from assets that can offset losses in its venture capital business. Figures from EY suggest that after a record year of listings in 2021, last year's IPO market went into reverse mode. SpaceX is another big company around which IPO talks have been swirling, the rocket company led by Elon Musk. Chip sector in turmoilArm's other challenge with going public in 2023 lies in the state of the chip sector: it's down.

☆ An oil historian explains China's impact on a key Russian oil product — which is now trading far below the EU's price cap
▼ + stars: | 2023-01-10 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

In December, a $60-per-barrel price cap was established to limit how much cash Moscow could pull in from oil exports. But the country's key oil product is trading far below that level, which in one sense makes the cap moot. Russian President Vladimir Putin, center, speaks to workers while visiting the Rosneft oil refinery in the Black Sea port of Tuapse, southern Russia. But to Gregory Brew, a Kissinger Visiting Scholar at Yale, rather than being a direct consequence of any sanction measure, the steep discount reflects the easing global market. It isn't about what Russia can produce or how badly it's revenue is impacted by sanctions, but instead the focus should be on what kind of market Russia will be operating in.

☆ S&P 500, Nasdaq rise as investors bet on less aggressive rate hikes
▼ + stars: | 2023-01-09 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +2 min

SummarySummary Companies Tech shares lead S&P 500 sector gainsAlibaba climbs as Ant Group's Jack Ma to give up controlMacy's, Lululemon drop on holiday-quarter warningsIndexes: Dow down 0.03%, S&P 500 up 0.5%, Nasdaq up 1.3%NEW YORK, Jan 9 (Reuters) - The Nasdaq Composite (.IXIC) and S&P 500 (.SPX) indexes rose Monday afternoon, led by technology shares, on growing expectations that the Federal Reserve will become less aggressive with its interest rate hikes. Technology (.SPLRCT) led the gains among S&P 500 sectors as U.S. Treasury yields declined, while the Nasdaq led the rise among the major indexes. Also, S&P 500 companies are about to kick off the fourth-quarter earnings period, with results from top U.S. banks expected later this week. The Dow Jones Industrial Average (.DJI) fell 9.63 points, or 0.03%, to 33,620.98, the S&P 500 (.SPX) gained 17.57 points, or 0.45%, to 3,912.65 and the Nasdaq Composite (.IXIC) added 138.83 points, or 1.31%, to 10,708.12. The S&P 500 posted 13 new 52-week highs and two new lows; the Nasdaq Composite recorded 114 new highs and 23 new lows.

Megacap growth stocks Apple Inc (AAPL.O), Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O) gained over 2% each as U.S. Treasury yields declined. The highly awaited U.S. Labor Department's inflation report on Thursday is expected to show some moderation in year-on-year consumer prices in December. Advancing issues outnumbered decliners for a 4.45-to-1 ratio on the NYSE and a 2.54-to-1 ratio on the Nasdaq. The S&P index recorded 12 new 52-week highs and two new lows, while the Nasdaq recorded 107 new highs and 18 new lows. Reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

"The number of jobs created is working its way down slowly and wages are starting to calm down. Money market bets show 75% odds of a 25-basis point hike in the Fed's February policy meeting, with the terminal rate expected just below 5% by June. ET, Dow e-minis were up 103 points, or 0.30%, S&P 500 e-minis were up 16 points, or 0.41%, and Nasdaq 100 e-minis were up 56.75 points, or 0.51%. Macy's Inc (M.N) and Lululemon Athletica Inc (LULU.O) dropped 4.7% and 10%, respectively, following dour holiday-quarter forecasts from both the retailers. Reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Futures rise on China reopening optimism, easing rate hike worries
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +3 min

A key inflation report due on Thursday will provide further cues on the state of price pressures and the outlook for interest rates. The U.S. Labor Department's consumer prices index (CPI) report is expected to show prices increased by 6.5% year-on-year in December, moderating from a 7.1% rise in November. "Sentiment still feels as fragile as a teacup and U.S. inflation numbers on Thursday could provide a key test for investor confidence." ET, Dow e-minis were up 89 points, or 0.26%, S&P 500 e-minis were up 12.5 points, or 0.32%, and Nasdaq 100 e-minis were up 30.25 points, or 0.27%. Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Seeing through another shock
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +4 min

Brazil's weekend political shock reminds world markets of fragile geopolitics, but investors more broadly appear happier to stick with a new year narrative of recovery from a dire 2022. Days after his inauguration, leftist President Luiz Inacio Lula da Silva announced a federal security intervention in Brasilia until Jan. 31. Fed chair Jerome Powell speaks on Tuesday but the big data release of this week is Thursday's consumer price report. The gap between positive euro zone economic surprise indices and negative U.S. equivalents is now at its widest since June. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Morning Bid: Goodbye to all that
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Tom Westbrook:After three years, travellers are streaming into China by air, land and sea. the official newspaper of the Chinese Communist Party, the People's Daily, wrote on Sunday. The yuan punched through its 200-day moving average to its highest since August, and the dollar was in retreat wherever Chinese tourists are expected. The twin hopes, then, of a gentler Fed and reviving China are holding recession fears at bay. In emerging markets, focus is on the open of trade in the Brazilian real after hundreds of supporters of far-right former President Jair Bolsonaro were arrested during an invasion of the country's Congress, presidential palace and Supreme Court.

☆ Ant-linked firms' shares rise after news of Jack Ma ceding control; Alibaba jumps
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +4 min

Jan 9 (Reuters) - Shares of listed Chinese companies that count Ant Group as a major shareholder rose on Monday after announcements that Ant founder Jack Ma is giving up control of the fintech giant following an overhaul. Ant indirectly owns stakes ranging from more than 20% to slightly more than 5% in those companies. Ant said over the weekend that founder Jack Ma will give up control of the company. China's domestic A-share market requires companies to wait three years after a change in control to list. read moreLi Nan, professor of Finance at Shanghai Jiaotong University, however said Ant's inherent problems remain after its change of control.

☆ Shares of Ant-linked firms rise after news of Jack Ma ceding control; Alibaba jumps
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

Jan 9 (Reuters) - Shares of listed Chinese companies that count Ant Group as a major shareholder rose on Monday after announcements that Ant founder Jack Ma is giving up control of the fintech giant following an overhaul. Hong Kong-listed shares of Ma's Alibaba (9988.HK) jumped more than 5%. Ant said over the weekend that founder Jack Ma will give up control of the company. China's domestic A-share market requires companies to wait three years after a change in control to list. Ant Group said on Sunday it has no plan to initiate an IPO.

☆ Shares of Ant-controlled companies, Alibaba rise after Jack Ma gives up control
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, Jan 9 (Reuters) - Shares of listed Chinese companies that count Ant Group as a major shareholder rose on Monday, after announcing that Ant founder Jack Ma is no longer their controller following an overhaul at the fintech giant. Hong Kong-listed shares of Ma's Alibaba (9988.HK) jumped more than 5%. Ant said over the weekend that founder Jack Ma will give up control of the company. read moreThe overhaul seeks to draw a line under a regulatory crackdown that was triggered soon after its mammoth stock market debut was scuppered two years ago. Reporting by Shanghai newsroom; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

Other rate-sensitive growth stocks like Apple Inc (AAPL.O) and Alphabet Inc (GOOGL.O) gained about 1% each as U.S. Treasury yields declined. The gains pushed technology (.SPLRCT) to the top of the major S&P 500 sector indexes list. The S&P 500 growth index (.IGX) was up 3.6%, outperforming a 0.7% rise in its value peers (.IVX). Advancing issues outnumbered decliners for a 3.68-to-1 ratio on the NYSE and a 2.15-to-1 ratio on the Nasdaq. The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 95 new highs and 14 new lows.

☆ Premarket stocks: Bonds are back, but for how long?
▼ + stars: | 2023-01-09 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —Stocks soared on Friday to their best day in more than a month. But the big turnaround story during the short first week of the year isn’t just about equities, it’s also about bonds. Bonds are particularly sensitive to those increases — as rates are hiked, the price of existing bonds falls as investors prefer the new debt that will soon be issued with those higher interest payouts. This time around, investors are scooping up bonds as they anticipate the pace of Fed interest rate hikes will soon ease. Core bonds, or US investment grade debt, tend to perform well during Fed rate hike pauses.

☆ The December jobs report sent mixed signals. Here's what it means for markets.
▼ + stars: | 2023-01-09 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

The December jobs report is another data point that signals the Fed has more work to do to cool the economy. "A labor market this strong means an imminent recession is highly improbable," Indeed Hiring Lab economist Nick Bunker wrote in a note. While stocks usually sell off after these strong reports, fearing the worst from the Fed, Friday saw a strong rally. History suggests there are very strong odds the stock market gains 20% this year after last year's bludgeoning. Tesla stock has tumbled to multiyear lows.

☆ China's crackdown on Ant and other tech giants is 'basically' over, top official says
▼ + stars: | 2023-01-09 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —China’s heavy-handed crackdown on tech giants is coming to an end and the country’s economic growth is expected to be back on track soon, according to a top central bank official. “Next, we’ll promote healthy development of internet platforms,” said Guo, who is also chairman of China’s Banking and Insurance Regulatory Commission. Mark Schiefelbein/APChina’s crackdown on its biggest tech companies began in 2020 with new regulations on fintech, which forced Ma’s Ant Group to suspend its $37 billion IPO days before its launch. Regulators then targeted the online financial service units of 13 other tech giants, including Tencent, Baidu, JD.com, Bytedance, Meituan, and Didi. Ant Group’s restructuringMajor tech companies in China have struggled under a sweeping regulatory crackdown for months now.

HONG KONG, Jan 9 (Reuters Breakingviews) - Jack Ma is leading China’s consumer internet out of the sin bin. After his fintech champion Ant said its founder will cede control, shares in affiliate Alibaba (9988.HK), rose 7% in Hong Kong on Monday morning. The company on Saturday announced that Ma's 50%-plus voting stake will be whittled down to roughly 6%, and a fifth independent director will join the board. Follow @mak_robyn on TwitterloadingCONTEXT NEWSChinese financial technology company Ant on Jan. 7 announced its founder Jack Ma will give up majority control of the company as part of a broader "corporate governance optimization". Ma held more than 50% of voting rights in Ant via his investment vehicle, Hangzhou Yunbo, which effectively controlled two other entities that owned a combined 53.46% stake in Ant.

☆ Goldman Sachs adds Alibaba to conviction buy list, says shares can rise more than 25%
▼ + stars: | 2023-01-09 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

The outlook for Alibaba has improved in 2023 as China reopens, according to Goldman Sachs. Analyst Ronald Keung added the stock to his conviction buy list, saying Alibaba is the best way to play a rebound in the China internet sector. Shares of Alibaba tumbled 25% in 2022, and roughly 49% in 2021, as China's stringent Covid policies during the pandemic dampened investor sentiment on the stock. Still, the stock is up more than 21% a little more than a week into 2023, and the analyst expects further upside. The company's shares are up more than 4% in the premarket Monday.

☆ Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares
▼ + stars: | 2023-01-09 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

The gains also come on the back of a broader market rally in Asian shares, thanks to China's reopening. A top Chinese central banker suggested over the weekend Beijing's tech crackdown is coming to a close. The Hang Seng Tech Index — an index that tracks the 30 largest tech companies listed in Hong Kong — closed 3.2% higher. Shares of Hong Kong-listed Chinese tech giants Tencent and NetEase closed 3.6% and 2.6% higher respectively. Hong Kong's Hang Seng Index closed 1.9% higher, the Shanghai Composite Index gained 0.6%, and the Shenzhen Composite Index rose 0.7%.

☆ Jack Ma's Alibaba climbs after the the billionaire gives up control of Ant Group
▼ + stars: | 2023-01-09 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

The rally comes as billionaire Jack Ma gives up control of Ant Group, the fintech business empire he built decades prior. Ant saw its $37 billion IPO canceled at the last minute in November 2020. Alibaba confirmed on Saturday a previous report by the Wall Street Journal that said Ma would cede control of Ant. Last week, he resurfaced in Thailand hours before Ant Group announced in a statement he was giving up control of the company. Local media reported that Ma was at a restaurant with Soopakij Chearavanont, the chair of the Charoen Pokphand Group.

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