LB Morning Call | Strong earnings reports stimulate U.S. stocks rise, Twitter v.s. Musk case holds first hearing

US Stock News

1. Twitter Inc. v. Musk held its first hearing. A Delaware judge ruled that Musk's termination of the acquisition of Twitter will be tried in October .

2. Google plans to test AR prototypes in the real world next month. The tested AR prototypes will include in-camera display devices, microphones and cameras, but the functions of these devices will be strictly limited.

3. Google announced that in order to comply with the new European Union regulations, starting from the same day, the company will reduce the commission rate for Google Play non-game application developers who switch to a third-party payment system from 15% to 12%. The fee reduction applies only to European consumers, but game apps will eventually be able to use third-party payment systems as well.

4. General Electric plans to spin off and form three independent listed companies, focusing on the three major industry sectors of medical, energy and aviation.

5. iQIYI and Douyin Group announced a cooperation to explore the secondary creation and promotion of long video content. In this cooperation, Douyin will realize cross-end jumping, that is, after users see the re-creation content in Douyin, they can click to jump to iQIYI to watch the positive film.

6. Volvo's net sales in the second quarter 118.9 billion SEK, up 31% year over year and 20% adjusted for currency changes; adjusted operating profit 13.75 billion SEK, with an operating margin of 11.6%.

7. Johnson Simon Johnson: Second-quarter sales of $24.02 billion, market estimate of $23.96 billion; adjusted EPS of $2.59, market estimate of $2.55; revised down adjusted EPS forecast for the fiscal year to $10-10.1, previously $10.15-10.35.

8. Netflix's second-quarter earnings per share were $3.20, compared with analysts' expectations of $2.91. Revenue was $7.97 billion, analysts expected $8.04 billion. Net profit was $1.441 billion, analysts expected $1.329 billion. The number of paying users fell 970,000 in the second quarter, and analysts expected a 2 million reduction. Netflix U.S. stocks rose more than 8% after hours.

Hong Kong News

It is reported that Tencent Video is negotiating a strategic cooperation with Kuaishou for re-creation. Tencent Video responded that this news is a rumor.

Macroeconomy

1. On July 19, the 9th China-EU High-level Economic and Trade Dialogue was held in the form of a video conference. China and the EU had pragmatic, candid and efficient discussions on the four topics of macroeconomics, industrial chain supply chain, trade and investment, and financial cooperation, and the exchanges were constructive. The two sides reached a series of achievements and consensuses on macroeconomic policy coordination, industrial chain and supply chain cooperation, WTO reform, expanding market opening, implementation of the China-EU Geographical Indications Agreement, animal and plant inspection and quarantine, two-way opening of the financial industry and regulatory cooperation.

2. Tian Yulong, chief engineer of China's MIIT, said that relevant departments are stepping up research on the extension of the exemption of new energy vehicle purchase tax, and will issue relevant results as soon as possible.

3. It is reported that the European Central Bank will discuss raising interest rates by 50 basis points on July 21 to curb record inflation. Data showed that inflation in the euro zone surged more than expected in June, hitting a record high of 8.6%. Bank of England Governor Bailey said he would consider raising interest rates by 50 basis points in August to speed up the fight against inflation.

Reminders

09:15, China's July loan market quoted rate (LPR)

22:00, the total number of existing home sales in the United States in June