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☆ Wall Street analysts are more confident in Nike's outlook after strong earnings, improving inventory
▼ + stars: | 2022-12-21 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

Wall Street analysts think Nike is moving in the right direction after the company reported strong earnings, as well as signs of improving inventory. Meanwhile, Morgan Stanley analyst Alex Straton raised her price target to $138, from $127, following the earnings beat. The new price target implies shares could jump more than 33% from Tuesday's closing price. Bank of America analyst Lorraine Hutchinson reiterated a neutral rating on the stock, but raised her price target to $120, up from $112. "Nike's strong revenue surprised to the upside but the company didn't move through as much inventory as we expected.

"I can confirm a shipment of the BioNTech vaccine is on its way to China," the person told journalists in Berlin. In return, Chinese citizens in Europe can be vaccinated with China's SinoVac (SVA.O), the spokesperson said. Experts predict that the country of 1.4 billion people could face more than a million COVID deaths next year. China is stuck between rising Covid-19 cases and stalled vaccination ratesNO WESTERN SHOTSChina has nine domestically developed COVID vaccines approved for use, more than any other country. While the shots became available in Hong Kong, Macau and Taiwan, the regulatory review for mainland China has not been concluded.

☆ Southeast Asian venture capital firms expect to be pickier in 2023 than in 2022
▼ + stars: | 2022-12-20 | by ( Sheila Chiang | ) www.cnbc.com time to read: +6 min

Venture capital-backed companies only raised $369 billion for the first three quarters of 2022, according to Crunchbase data. Malte Mueller | Fstop | Getty ImagesVenture capital firms in Southeast Asia will probably be pickier next year, with valuations plunging and economic headwinds slowing growth in 2022. Sequoia Southeast Asia raised a $850 million fund in June, East Ventures raised $550 million in July, and Insignia Ventures Partners raised $516 million in August. Indonesia-based e-grocery company HappyFresh ceased operations in Malaysia after seven years, while Grab discontinued its quick commerce service GrabMart Kilat in Indonesia. "The 15-minute model of quick commerce in Southeast Asia is very difficult because the unit economics are very negative.

☆ Nike results boosted by discounts, promotions; shares surge
▼ + stars: | 2022-12-20 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +2 min

Shares in the world's largest sportswear maker surged 13% in after-market trading. Steeper discounts and increased promotions to reduce excess inventory through the quarter helped the Beaverton, Oregon-based company boost sales and attract recession-wary customers. A profit of 85 cents per share for the second quarter ended November topped estimates of 64 cents, per Refinitiv data. Gross margins decreased 300 basis points to 42.9%, while net income for the reported quarter was flat on a year-over-year basis. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Nike sales may soar as discounts draw shoppers; margin squeeze looms
▼ + stars: | 2022-12-19 | by ( Deborah Mary Sophia | ) www.reuters.com time to read: +2 min

Analysts are projecting a near 11% jump in quarterly sales as a bounce in its U.S. business may help overcome weakness in the China market. "While retailers were initially worried about the amount of Nike inventory being shipped, the consumer is showing up and buying the Nike brand," Credit Suisse analyst Michael Binetti wrote in a note on Friday. "Most retailers have been worryingly low on Nike inventory for 2 years and are just happy to have enough to drive their apparel & footwear categories at this point," Binetti said. Reuters GraphicsLockdowns in China in October and November are also expected to be a drag on its sales in the region for the second quarter. The company reported a 20% slump in Greater China revenue in the same period last year and a 16% fall in the prior quarter ended Aug. 31.

China, the world's top crude oil importer and No. 2 oil consumer, is experiencing its first of three expected waves of COVID-19 cases after Beijing relaxed mobility restrictions. "Despite a surge in COVID cases, the reopening optimism and accommodative policy improve oil's demand outlook," CMC Markets analyst Tina Teng said. An announcement by the U.S. Energy Department on Friday that it will begin repurchasing crude oil for the Strategic Petroleum Reserve for delivery in February next year also supported the outlook for stronger prices. This will be the United States' first purchase since this year's record 180 million barrel release from the stockpile.

☆ Casinos in Macau, the Vegas of the East, have managed to renew crucial gaming licenses. But there's a hefty catch — they need to pump in $15 billion into non-gaming sectors.
▼ + stars: | 2022-12-19 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Macau's six casino operators pledged to invest nearly $15 billion in non-gaming sectors. In return for the investments, Macau's government has renewed their gaming licenses. Gaming licenses for the six major casino operators had expired back in June, throwing into question Macau's future as a gambling hub. The new 10-year gaming licenses come into effect on January 1, 2023. Among the six gaming companies, Sands China has committed to spending the most in non-gaming projects — about 27.8 billion patacas, or $3.5 billion.

☆ Goldman Sachs reveals outlook for Greater China tech – and names its top picks for 2023
▼ + stars: | 2022-12-19 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

One segment of the stock market that has been particularly beaten down is the tech sector. Goldman Sachs , however, has a mixed outlook on the sector for 2023. In a note titled "Greater China Tech: Demand outlook by sub-sectors; key indicators and top picks for 2023" on Dec. 9, the bank shared its outlook and top stock picks for the various sub-sectors. Goldman's top picks in the automotive software segment include ThunderSoft, Desay and ArcSoft Corp, while the bank's top pick in the cybersecurity software segment is Beijing Venustech. Smartphones Goldman expects growth in the smartphones segment to remain flattish in 2023, driven by soft shipments in China.

☆ Macau government cancels COVID risk zones for mainland China
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: 1 min

HONG KONG, Dec 19 (Reuters) - Macau's government said on Monday that it would cancel its regulations on risk zones in mainland China starting from Tuesday, the latest unwinding of stringent COVID-19 rules that have hammered revenues in the world's biggest gambling hub. In addition, all arrivals into Macau via the mainland, including from overseas, need to show a negative COVID test conducted within the last 72 hours, versus 48 hours previously, the government said. Macau is heavily reliant on Chinese visitors. Tourists from greater China, including Hong Kong and Taiwan, account for more than 90% of total visitation. Reporting by Twinnie Siu and Farah Master; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

HONG KONG, Dec 19 (Reuters) - Asia's hedge funds are heading for their worst showing in a dozen years, with long-short stockpickers wrongfooted by volatility in China, while macro strategy funds riding big global shifts in interest rates shine. On average, Asian hedge funds fared better than the indexes, losing 9.1% through to end-November, Eurekahedge data showed. By strategy, Asia equity long-short funds lost 12% and Greater China long-short funds lost 14%, while Asia macro funds rose 12% and Asia multi-strategy rose 1%. Big picture macro funds, which trade on economic and political shifts, also performed well, as U.S.-China tension and rising interest rates roiled financial markets. Long positions in U.S. government debt and the Singapore dollar also helped through November when many macro managers were caught out by a sudden drop in the U.S. dollar.

Underlining the bleak return prospects at home, hedge funds with Greater China strategies have lost 12.9% for the year to end-November - on track for their worst year since 2011, according to Eurekahedge data. Rich Chinese are also fretting about Xi Jinping's "common prosperity" drive to reduce income inequality, asset managers said, adding that they are looking at overseas private equity and property investment opportunities in countries like the United States and Japan. Although investing outside of mainland China is not a new development, a significant chunk of that wealth has usually been invested in Chinese assets such as Chinese securities listed in the offshore markets. The Boston-based asset manager has been receiving many queries from Greater China family offices to learn about U.S. economic policies and investment rules, he said. The U.S. consulate told Reuters that it frequently explains investment and economic trends in the United States to a wide variety of audiences.

☆ Macau casinos' new contracts to sharpen focus on non-gaming activities
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +3 min

The operators are expected to focus on non-gaming activities in the new term, particularly as Beijing is keen for Macau to diversify away from gambling and attract foreign tourists. Some analysts expect them to make non-gaming investments of up to $15 billion cumulatively over the next decade. Genting, with its strong non-gaming track record and mass market appeal, was a credible threat for the Macau operators, many executives and analysts have said. Previous attempts by Macau to diversify have been unsuccessful, with casino operators shying away from investing in non-gaming due to the high costs, particularly as the gambling industry was far more lucrative. Macau's gambling industry currently accounts for more than 80% of government revenues.

☆ Chinese consumers wary of splurging after Beijing relaxes COVID strictures
▼ + stars: | 2022-12-11 | by ( Casey Hall | ) www.reuters.com time to read: +5 min

"On the other hand, we don't know who is safe, we don't know who has the coronavirus. "Moving from isolation facility quarantine to home quarantine will not increase retail sales significantly," said Iris Pang, chief economist for greater China at ING. A spa at a mall in downtown Beijing that resumed business on Friday said most staff had returned but customers were far fewer. Luca Solca, a luxury analyst with Bernstein, said the end of the curbs was good news for the luxury industry, heavily dependent on Chinese spending. "My base-case scenario is that the softening should prompt Chinese consumers to go back to enjoying life and spending money – benefiting, among others, top luxury brands," he said.

☆ China's reopening from Covid won't be a straight path forward
▼ + stars: | 2022-12-09 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +5 min

Hector Retamal | Afp | Getty ImagesBEIJING — As mainland China relaxes many of its stringent Covid controls, analysts point out the country is far from a quick return to a pre-pandemic situation. Mainland China's daily Covid infections, mostly asymptomatic, surged to a record high above 40,000 in late November. Looking ahead, it's pretty clear that China's Covid policy is about to cross a turning point, said Bruce Pang, chief economist and head of research for Greater China at JLL. That means there may be a surge in Covid infections, and China's policy will never go back, Pang said. Goldman Sachs analysts expect China's reopening — defined as a shift away from lockdowns — to come in the second quarter of 2023, according to a separate report on Wednesday.

☆ Apple made China the backbone of its iPhone assembly. Shifting away could take years
▼ + stars: | 2022-12-09 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +6 min

For years, Apple has relied on a vast manufacturing network in China to mass produce the iPhone, iPad and other popular products found in households around the world. “Apple would not be the company that it is today without China as a manufacturing base,” said Eli Friedman, a professor at Cornell University whose research focuses on labor and development in China. Apple CEO Tim Cook, who helped build the company’s global supply chain, acknowledged the unique manufacturing strengths of China in one 2015 interview. Labor costs in China, while on the rise over the past decade, are also “artificially cheap because of political repression against labor organizers,” according to Friedman. Another key element to why Apple “is really reluctant to rock the boat with China is that China is also a massive market for Apple,” according to Wharton’s Allon.

☆ China's yuan could get a boost as Covid measures ease, says BK Asset Management
▼ + stars: | 2022-12-09 | by ( Jihye Lee | ) www.cnbc.com time to read: +2 min

watch nowThe Chinese yuan significantly strengthened in the past few days as China announced further easing of its Covid control measures. However, it quickly recovered to 6.96 within about a month as Chinese health authorities continued to announce further easing measures. "That will renew the demand for the Chinese yuan and drive the yuan even higher than it is right now." Beijing has been rolling back the restrictions "pretty quickly," and the surge in demand for the yuan comes with a sooner-than-expected easing measures, Lien said. Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022.

☆ NZ's Fonterra cuts milk price forecast as demand weakens
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +1 min

Dec 8 (Reuters) - New Zealand's Fonterra Co-operative Group Ltd (FCG.NZ) on Thursday lowered its farmgate milk price forecast range for the second time for the 2022/23 season on higher costs and softening demand for whole milk powder. The world's biggest dairy exporter now expects to pay farmers between NZ$8.50 and NZ$9.50 per kilogram of milk solid (kgMS), compared with NZ$8.50 to NZ$10.00 per kgMS it forecast in August. Chief Executive Officer Miles Hurrell said demand for whole milk powder has weakened, particularly in Greater China, offset by increased participation from other regions. Fonterra's global milk supply from key exporting regions declined for the 12 months to September, while its New Zealand milk collections dropped 3% season-to-date. The New Zealand dairy giant's first-quarter earnings before interest and taxes rose to NZ$368 million ($234 million), compared to prior year's NZ$190 million.

☆ Reaction to China relaxing COVID restrictions in major policy shift
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +6 min

REDMOND WONG, GREATER CHINA MARKET STRATEGIST, SAXO MARKETS, HONG KONG"The 10 new measures are underwhelming, given the high expectations. GARY NG, ECONOMIST, NATIXIS, HONG KONG"The latest announcements show China is determined to speed up its reopening due to economic pressure. It is likely to see upswings cyclically in business sentiment from suppressed demand, especially in sectors heavily affected by the covid restrictions. "The next checkpoint will be Chinese New Year; I think markets are looking for further relaxation to facilitate return to their hometowns by Chinese New Year." SAKTIANDI SUPAAT, REGIONAL HEAD OF FX RESEARCH & STRATEGY, MAYBANK, SINGAPORE"I think markets have, in some ways, priced in that element (of further easing).

Goldman Sachs forecasts 16% index returns for MSCI China (.dMICN00000PUS) and CSI300 (.CSI300) next year and recommends an overweight allocation to China, while J.P.Morgan expects a 10% potential upside in MSCI China in 2023. Morgan Stanley upgraded its recommendation to overweight on Monday with an increase in exposure to consumer stocks as reopening prospects improve. Bank of America Securities turned bullish in November, with its China equity strategist, Winnie Wu picking internet and financial stocks to lead the short-term rebound. "We have experienced several rounds of policy back and forth in 2022," she added, referring to both COVID and property policies. UBS Global Wealth Management recommends a market-neutral allocation to Chinese stocks.

Billionaire money manager Bill Ackman went public last week with his wager that the days of the Hong Kong dollar's 39-year-old peg to the U.S. dollar are numbered. "For me, the Hong Kong dollar peg is like a delayed, or lagging bet against China," said Diego Parrilla, who runs Quadriga Igneo, a $240 million fund designed to profit from market turmoil. The Hong Kong dollar has been pegged in a tight band between 7.75 and 7.85 per greenback for nearly four decades. In the short-term, the market is moving against this style of trade as local interest rates and the Hong Kong dollar go up. "The far forwards market still prices in higher U.S. rates than Hong Kong rates," said Mukesh Dave, founder and CIO at Aravali Asset Management in Singapore, which in theory ought to contain gains in the Hong Kong dollar.

☆ Analysis: China c.bank to offer limited, targeted growth support, no bazooka
▼ + stars: | 2022-12-01 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

Since 2020, when the world's second-largest economy was first jolted by the coronavirus, the PBOC has expanded its arsenal of structural policy tools, including relending and rediscount facilities and other low-cost loans. "The central bank is likely to expand the scope of structural policy tools and step up the use of such tools," said a person involved in policy discussions who spoke on condition of anonymity. Its outstanding loans made via structural tools amounted to nearly 5.6 trillion yuan ($781.64 billion) at the end of September, central bank data showed. A central bank adviser said last month that China should set a growth target no lower than 5% for next year. On Nov. 21, the central bank kept its benchmark lending rates unchanged for a third straight month.

☆ World stocks in upbeat spirits, Fed's Powell in the spotlight
▼ + stars: | 2022-11-30 | by ( Dhara Ranasinghe | Foo Yun Chee | ) www.reuters.com time to read: +4 min

[1/2] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 29, 2022. REUTERS/StaffLONDON, Nov 30 (Reuters) - World equity markets rallied on Wednesday and focus turned to Jerome Powell, who speaks later in the day in what will be the U.S. Federal Reserve chief's last opportunity to steer sentiment ahead of the Fed's December meeting. European stock markets rallied (.STOXX) and U.S. equity futures pointed to a firm start for Wall Street , . MSCI's broadest gauge of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) rallied more than 1% to its highest since September. Hong Kong's Hang Seng Index rallied more than 2% (.HSI), although Japan's blue-chip Nikkei fell 0.2% (.N225).

☆ Asia stocks rebound despite disappointing China data
▼ + stars: | 2022-11-30 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

MSCI's broadest gauge of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) reversed morning losses to gain 0.67%. "Despite the surge in cases and recent protests, China has not hardened its COVID approach and is continuing to fine-tune its policy, which is encouraging to investors." "Headlines from China regarding COVID restrictions and protests are causing jitters among investors. A series of U.S. data concerning manufacturing, inflation and jobs will also be released this week. Oil prices posted gains of more than 1% in Asian trade on Wednesday on falling U.S. crude inventories and a lower greenback, but concerns OPEC+ will leave output unchanged at its upcoming meeting and weak China data limited gains.

☆ Asia stocks choppy as investors cautious after disappointing China data
▼ + stars: | 2022-11-30 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

HONG KONG, Nov 30 (Reuters) - Asian shares wobbled on Wednesday as investors remain cautious about China's path to reopening its economy after it released disappointing manufacturing data, with China and Hong Kong stocks wiping out strong gains from the previous day. MSCI's gauge of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) was up 0.02% at 0201 GMT, paring earlier losses. The losses in Hong Kong and China reversed positive sentiment from Tuesday, when Chinese officials said the country would speed up COVID-19 vaccinations for elderly people. "Headlines from China regarding COVID restrictions and protests are causing jitters among investors. A series of U.S. data concerning manufacturing, inflation and jobs will also be released this week.

China on Friday launched its first private pension scheme in 36 cities as it grapples with a rapidly ageing population, allowing individuals to open retirement accounts at banks to buy pension products ranging from deposits to mutual funds. The move marked the official launch of China's version of IRA, or Individual Retirement Accounts in the United States, a private pension scheme that offers tax advantages for individuals saving for retirement. As part of the new system, local domestic workers covered by China's public pension insurance can participate in the private pension scheme and contribute up to 12,000 yuan ($1,680) per year to their individual accounts and receive tax benefits. Eddy Wong, chief executive of China International Fund Management (CIFM), a joint venture between JPMorgan and Shanghai International Trust Co., said China's individual pension market has "huge potential and room for development". "The first movers in China's pension market enjoy an advantage," said Howhow Zhang, Greater China wealth and asset management strategy and transactions leader at consultancy EY.

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