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CSCI Morning News Circular - 20190411

1. Macro News     

• IMF Cuts 2019E Global GDP Growth to 3.3%, Inches Up CN 2019E GDP Growth to 6.3%. The International Monetary Fund again lowered the 2019E world GDP growth rate by 0.2 ppts to 3.3% based on incessant global trade war and Brexit uncertainty, marking the third downgrade in half a year. However, the 2020E global GDP growth was left unchanged at 3.6%.  [AAStocks] 
• Canada Mulls Fresh Retaliatory Tariffs List Against US. Canada is looking at different ways to beef up the retaliatory tariff measures against America and having study over a fresh retaliation list on an ongoing manner, said the Foreign Minister Chrystia Freeland, whereas details remain yet to disclose.  [AAStocks] 
• S. Job Openings Fell by More Than 500,000 in February. U.S. Job openings fell in Feb to the lowest level in nearly a year. There were a seasonally adjusted 7.09mn unfilled jobs on the last business day of Feb. That was down by more than 500,000 from Jan’s near record, to the lowest level of available jobs since Mar 2018.  [WSJ] 

1. Industry News                      

• Vehicle sales in China continue to drop, NEV sales rise. Chinese sales of passenger vehicles, MPVs, SUVs and minivans in March dropped 12 percent on a yearly basis to 1.78 million units. This is the 10th consecutive monthly decrease, according to the China Passenger Car Association (CPCA), Changjiang Times reported.  [China Daily]
• HKEX, Hebei Province Govt Sign MOU. HKEX and the People's Government of Hebei Province have signed a Memorandum of Understanding in Hong Kong to strengthen mutual communication and capital market cooperation, as well as to seek more Hebei-based companies to list in Hong Kong and support the real economy of Hebei province. [AAStocks]
• China Plans to Ban Cryptocurrency Mining in Renewed Clampdown. China signaled its intent to ban cryptocurrency mining, dealing a fresh blow to an industry buffeted by tumbling virtual currency prices, stiff competition and waning investor interest.  [Bloomberg]
• Corporate News
• Wynn Resorts Ends Talks With Crown Resorts After Premature Disclosure. Wynn Resorts Ltd. abruptly called-off discussions over a potential $7.1 billion offer for Australia’s Crown Resorts Ltd. Tuesday, saying the takeover target had prematurely disclosed their talks.  [WSJ]
• China Aircraft Leasing Suspends Boeing 737 Max Order. China Aircraft Leasing Group Holdings, or CALC, has put its order for 100 Boeing 737 Max jets on hold until it’s assured of the aircraft’s safety, the South China Morning Post reports, citing Chen Shuang, the chairman of CALC and CEO of China Everbright.  [Bloomberg]
• Tencent Mobile Game Included in Latest Batch Approved in China. A game published and operated by Tencent is among 40 locally-developed new games that won regulatory approval, according to a statement on State Administration of Press, Publication, Radio, Film and Television’s website.  [Bloomberg]
• Ant Financial Scraps Investment Cap on its Own Tianhong Fund. Ant Financial will remove an investment cap on its own product as users of the Yu’E Bao wealth management platform seek better returns. The change comes after assets managed by the fund fell 22 percent to 1.13tn yuan in the six months to December.  [Bloomberg]
• Alibaba-Rival JD Is Said to Target Deep Job Cuts as Morale Sags.com Inc. is preparing deep cuts to its workforce and rescinding some job offers as the Chinese e-commerce giant struggles to revive dwindling morale and rein in losses. Alibaba Group Holding Ltd.’s closest rival told managers that it’s looking to reduce headcount across the company, cutting some teams by as much as half.  Bloomberg]
• China Travel Site Ctrip Said to Plan Convertible Bond Sale.com International Ltd. is planning to raise about $800 million in a convertible bond sale. The travel booking site could launch the offering as soon as this month. Ctrip’s sale would add to the $9.1bn of U.S. dollar convertible notes sold in the past year by Chinese companies, many of which are also in the technology sector, according to data compiled by Bloomberg.  [Bloomberg]
• At US$10bn, Uber’s listing to be largest since Alibaba’s in 2014. Uber Technologies has decided it will seek to sell about US$10bn worth of stock in IPO, and will make public the registration of the offering on Thur. A listing of this size will make Uber’s one of the biggest technology IPOs of all time, largest since that of Alibaba Group Hldg, in 2014.  [SCMP]
• Wanda dumps US$25bn in assets, about halfway through slimming exercise. Dalian Wanda Group has gone through a severe slimming exercise ever since it was placed on a watch list by Chinese regulators in April 2017, for highly leveraged acquisitions around the world, as part of a government drive to crack down on debt and prevent private-sector borrowings from hurting China’s financial system.  [SCMP]
• BYD Electronics unveils 5G strategy. BYD Electronics (Int’l) Co Ltd, a subsidiary of China's carmaker BYD Co Ltd, launched on April 8 its 5G strategy, as more and more mobile phone brands have released new 5G products. The name BYD has become synonymous with its new energy vehicles, while its manufacturing power in electronics has been relatively unknown among the public.  [China Daily]
• Unigroup has 1st 5G chipset for IoT devices. Chinese technology conglomerate Tsinghua Unigroup has unveiled its first 5G chipset for the internet of things devices, as it strives to pounce at the big opportunities brought by fifth-generation mobile communication technology.  [China Daily]
• Lenovo Group CEO: Stepping into '3S' Strategic Phase; Eyes 4x Growth of Intelligent Terminal. Lenovo Group CEO Yang Yuanqing revealed at the U.S. Declaration Ceremony 2019 that the company has stepped into a brand new "3S" strategic stage, namely Smart IOT, Smart Infrastructure and Smart Vertical.  [AAStocks] 
• China Comm Cons 2019 Target New Contract +8%, Income +10%. China Communications Construction disclosed at annual result press conference that the group has in 2018 achieved new contracts in an amount of RMB890.87bn, up 1.1% yearly. Looking ahead, the group targets at new contract growth of 8%, and 10% for income, this year.  [AAStocks] 
• Volvo Anticipates Closer Ties with Zhejiang Geely. Volvo AB CEO Martin Lundstedt told Bloomberg that the company is seeking closer ties with Zhejiang Geely, the parent company of Geely Auto, who could raise the truckmaker's insights and capability in Chinese market and multiple technologies.  [AAStocks] 
• SAIC Motor 1Q19 Production, Sales Fall 18%, 15.9% YoY. SAIC Motor announced that the vehicle production volume during January-March 2019 was 1.524 million units, down 17.96% yearly; sales volume was 1.533 million units, down 15.88% yearly.  [AAStocks] 
• Stanchart Reaches Settlement on Iranian Sanction Breach, Involving Nearly US$1.1B. Stanchart announced that in relation to legacy conduct (breach of Iranian sanctions) and control issues, the group will pay a total of USD947 million in monetary penalties to the U.S. Agencies and GBP102 million to the U.K. Financial Conduct Authority.  [AAStocks]