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CSCI Morning News Circular - 20181116

1. Macro News

• Global Economy Shows Strain as U.S. Steams Ahead. The global economy has hit a soft patch, putting the U.S.’s robust growth at risk should the slowdown persist. Economic output in Japan and Germany contracted in the third quarter, while in October consumer spending in China hit its slowest pace in five months and bank lending fell.  [WSJ]     
• Eurozone GDP Growth Slows to 0.2% QoQ in 3Q, In-line. Eurozone's seasonally adjusted preliminary GDP gained 0.2% quarter-on-quarter during the third quarter, in-line with estimates, Eurostat data disclosed. On a yearly basis, eurozone's third quarter GDP hiked 1.7%, in-line with projections as well.  [AAStocks]    
• China's fiscal revenue down 3.1% in October. China's fiscal revenue growth entered negative territory for the first time this year with a 3.1 percent year-on-year decline in October, official data showed. The country's fiscal revenue stood at 1.57 trillion yuan ($226 billion) last month, according to the Ministry of Finance.  [China Daily]              

1. Industry News   

• China Is Leading the World to an Electric Car Future. The world’s biggest market for electric vehicles wants to get even bigger, so it’s giving automakers what amounts to an ultimatum. Starting in January, all major manufacturers operating in China have to meet minimum requirements there for producing NEVs.A complex govt. equation requires that a sizeable portion of their production or imports must be green in 2019, with escalating goals thereafter.  [Bloomberg]     
• EU Would Hit Back Against Any U.S. Car Tariffs, Trade Chief Says. The European Union would retaliate against any U.S. decision to impose tariffs on car imports, though the bloc hopes it can avoid such a confrontation, European Trade Commissioner Cecilia Malmstrom said.  [Bloomberg] 
• China's power use sees milder growth in October. China's power consumption rose at a slower pace in October than the previous month, data showed Thursday. The country's electricity use increased 6.7 percent year-on-year last month, compared with 8 percent in September, according to the NDRC.  [China Daily] 
• Corporate News
• Philips signs strategic cooperation agreement with medical group. Philips (China) Investment Co Ltd and the China Strategic Alliance of Industry Technology Innovation for Minimal Invasive Tumor Therapy, the only national association approved by the Ministry of Science in the field of clinical medicine, signed a strategic cooperation agreement to promote minimal invasive tumor ablation treatment.  [China Daily]
• Geely in talks with Hainan to land its flying car. One year after its acquisition of US flying-car maker Terrafugia, Chinese private automaker Geely has launched talks with South China's Hainan province for a landing of its flying car project, Hainan Daily reported.  [China Daily]
• Chinese automaker Zotye plans US sales by 2020. Chinese automaker Zotye Auto says it plans to start selling vehicles in the United States in 2020. Zotye says it will work with an American partner, HAAH Automotive Holdings. The companies said Wednesday the first model for the U.S. market will be an SUV but gave no details.  [The Standard]
• Beijing Gas Blue Sky Says Operations Normal After Shrs Sink 44%. The company is unaware of any reasons for share price and volume movements or of any information which must be announced, co. says in a filing to stock exchange. Operations remain normal and the management has full confidence in the future development.  [Bloomberg] 
• Cathay Tries to Pacify Angry Hack Victims With ‘Exciting Offers’. Cathay Pacific Airways Ltd. is seeking to regain customer trust with “exciting offers” including better in-flight dining and entertainment. The marquee carrier is attempting to soothe angry customers by promising better services on board after coming under fire for the seven-month delay in disclosing the breach detected back in March.  [Bloomberg]
• JD Group Prepares to Sell FTLife, Involving Up to US$2.5B. Chinese integrated investment firm JD Group intends to sell its Hong Kong business FTLife Insurance for US$2 billion to US$2.5 billion, Reuters citing sources. The group has purportedly engaged Citigroup in the disposal, with second-round bids coming in a few weeks.  [AAStocks]
• China Southern Airlines Changes COO. China Southern Airlines announced that Wang Ren Jie was appointed as the Chief Operation Officer of the Company and that Zhang Zheng Rong will no longer act as the Chief Operation Officer of the Company and will remain as the Executive Vice President of the Company.  [AAStocks] 
• China Southern Airlines Not to Renew SkyTeam Membership Agreement from 2019. China Southern Airlines announced that based on the needs of the company’s development strategy and to better align with the new trend of cooperation model in the global aviation industry, the company decided not to renew its SkyTeam Membership Agreement from 1 January 2019 and will complete the transition arrangements in 2019.  [AAStocks] 
• Geely Auto, GWM Come to Peaceful Settlement on Malicious PR Activities. Rumours had it that some netizens with links to Geely Autowere trying to polish the brand name of the automaker on online platforms while discrediting Greatwall Motor. The two car makers made a joint announcement saying that people were pretending to be employees of Geely to attack Greatwall Motor with false accusations. There will be no more litigation about this case.  [AAStocks] 
• CCB Rolls Out 26 Initiatives to Back Private, Small Enterprise Development. CCB announced a notice in relation to further support on the development of civilian-run and small-micro enterprises, where it raised 26 initiatives and requirements to step up its bolster on such enterprises' development.  [AAStocks]
• Tencent Seeking to Acquire Amer Sports. Tencent is now in talks with a group of Chinese investors about making an acquisition proposal to Finland-based sports product company Amer Sports, sources quoted as saying by Bloomberg. Anta Sports may also join the consortium for the acquisition as a minority investor, it was reported.  [AAStocks]
• PetroChina Vice Chairman Resigns. PetroChina announced that due to the adjustment of positions, Zhang Jianhua tendered his resignation to the Company and ceased to hold the positions of Vice Chairman, Director and President of the Company with immediate effect. Zhang Jianhua also ceased to serve as the chairman of the Investment and Development Committee of the Board.  [AAStocks]
• HSBC Holdings Scrip Dividend New Shr Sales from 21 Nov. HSBC Holdings announced to declare the third interim dividend for 2018 of US$0.1 per ordinary share. The dividend is payable on 21 November 2018 to holders of record on 12 October 2018 on the Principal Register or Branch Register.  [AAStocks]
• China Life 10M18 Accumulated Premium Income about RMB492 Billion. China Life announced that the accumulated premium income for the period from 1 January 2018 to 31 October 2018 was about RMB492 billion, up about 4.8% year on year.  [AAStocks]
• Ant Financial CEO: No Schedule for IPO. Looking forward, Ant Financial's core business will be technology services rather than merely payment services, despite Alipay's transformation into a flagship consumer product, said CEO Eric Jing in a CNBC interview. Jing revealed that Ant Financial has never set any initial public offering timetable, believing the focus of the company should be laid upon technological development.  [AAStocks]