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10/26
12:06
Shenwan Hongyuan Group stated that the profit growth of Chinese mainland listed companies in the first three quarters slowed down compared to the first half of the year. They anticipate that third-quarter financial reports will show a slight decrease in profit growth, which could put further pressure on the Chinese stock market. This forecast is based on government data for industrial profits, which has a high historical correlation with the earnings of listed companies. Previously, the benchmark CSI 300 Index had entered a bear market due to weaker-than-expected stimulus measures and the impact of AI trading. Analysts at BNP Paribas believe that the 12-month forward earnings forecasts for technology, industrial, and materials companies have been raised, while those for consumer companies have been lowered. They expect the technology sector to be the only sector with an upward revision in earnings forecasts by 2027.
12:05
Approaching.AI, a Chinese provider of high-quality AI token production services, recently completed a Series B funding round exceeding RMB 1.3 billion. The round was co-led by Zhejiang Caijing Innovation, Xiaoshan Capital, and ICBC Investment. As of October this year, the company has cumulatively raised RMB 2.4 billion in 2026. This round's funds will primarily be used for expanding high-quality AI token production capacity, upgrading the ATaaS platform, developing underlying inference technologies, and fostering commercial partnerships. Approaching.AI stated that it has successfully enabled domestic chips to support trillion-parameter leading large models and achieved large-scale production of high-quality AI tokens, with overall cost-effectiveness surpassing international leading hashrate.
12:04
Copper prices extended last week's decline, falling as much as 0.6% in London on Monday, after two consecutive weeks of losses. Meanwhile, artificial intelligence (AI) stocks remained under pressure, with market risk aversion increasing as investors closely monitor earnings reports from major tech companies and the Federal Reserve's upcoming policy meeting.
12:02
JPMorgan Chase released a research report, upgrading Chinese robotics manufacturer Unitree Robotics' rating by two notches from "Underweight" to "Overweight," and significantly raising its December 2027 price target from 300 yuan to 995 yuan, approximately 59% higher than its closing price on October 23.

This rating adjustment stems from JPMorgan Chase's revised assessment of the timeline for physical AI implementation, believing that the breakthrough window could be brought forward to "the next 1-2 years or 2-3 years," rather than the previously anticipated "up to 10 years." The bank raised its 2027 humanoid robot sales forecast for Unitree Robotics to 31,701 units, significantly increased its 2028 sales forecast from 41,552 units to 111,554 units, and expects its 2028 revenue to reach 13.383 billion yuan, a year-on-year increase of 173.8%. JPMorgan Chase also pointed out that Unitree Robotics, as one of the few direct embodied AI investment targets in the A-share market, possesses a scarcity premium.

Risk factors include slower-than-expected enterprise adoption, competition from new entrants, and regulatory and geopolitical changes.
12:01
Goldman Sachs credit strategist Amanda Lynam acknowledged in her latest report that the U.S. corporate bond market is undergoing a deep stress test due to the wave of AI capital expenditures. Its investment-grade and high-yield credit spreads are rapidly approaching the previously set peak for the downside scenario, and are expected to "modestly exceed" this range, with risks "clearly skewed towards further widening."

Tony Pasquariello, Goldman Sachs' head of hedge fund products, revealed that credit market veterans are repeatedly mentioning the word "collapse." Last week, Meta's earnings triggered a significant widening of AI credit spreads, with its Credit Default Swaps (CDS) reaching an all-time high, and Goldman Sachs' AI basket having fallen 23% since June.

This turmoil has spread to the sovereign bond market, with the spread between French 10-year government bonds and German government bonds widening to 178 basis points, the widest level since the 2011 European debt crisis. The French 10-year government bond yield has broken above 5% for the first time since 2002. The market is facing a triple overlay of AI financing pressure, year-end deleveraging sentiment, and European sovereign risk.
11:50
SK Hynix confirmed on Monday that it will announce shareholder return measures concurrently with its third-quarter earnings report on Wednesday (October 28). Market widely expects this could include a special dividend of up to 16 trillion Korean Won (approximately $12.1 billion), funded by proceeds from the sale of its stake in Japanese memory chip maker Kioxia. Boosted by this news, SK Hynix's stock price rose over 2% at one point on Monday, outperforming the market, while the KOSPI index fell over 1% during the same period.
11:47
Yemen's Houthi rebels claimed responsibility for ballistic missile attacks on "enemy" forces and weapons depots in Aden and Lahj. The group's spokesperson, Yahya Saree, stated on X that the targets were the Salah al-Din area in Aden province and the Al-Wahat area in Lahj province. This occurred hours after the Houthis launched a ballistic missile towards the Saudi capital, Riyadh, which the Saudi-led coalition claimed to have intercepted and destroyed.
11:34
Hong Kong is actively enhancing its status as an international gold trading center. According to government plans, Hong Kong aims to increase its total gold storage capacity by more than tenfold to 2,000 tons by 2030. Additionally, to support larger trading volumes, Hong Kong has established a central gold clearing and settlement system, which is expected to officially launch early next year. The government will also halve the profits tax rate for eligible physical commodity traders from 16.5% to 8.25% and increase the gold portfolio of the Exchange Fund. Hong Kong Chief Executive John Lee, in his policy address last month, emphasized the importance of accelerating the development of the international gold trading market and pledged to build a commodity trading ecosystem with gold as an entry point through a series of coordinated efforts. Hong Kong is also strengthening cross-border ties with mainland China and Southeast Asian countries, including signing a cross-border gold settlement agreement with Shanghai, collaborating with Shenzhen on gold processing and trading, and establishing a gold market cooperation corridor with Laos. Invest Hong Kong stated that these initiatives reflect the growing importance of China and Asia in the global economy, positioning Hong Kong to become an attractive global alternative regional gold hub.
11:32
James van Geelen, founder of Citrini Research, stated that he has significantly reduced his semiconductor holdings and holds some short positions, citing that AI infrastructure financing has shifted from cloud vendors' own cash flow to equity and debt markets, making market sentiment a part of the fundamentals. He believes that cyclical stocks always peak when they appear "cheapest" based on next year's expected earnings.

In a podcast conversation on October 21, James van Geelen pointed out that tech giants' cash flow has dried up, and almost all incremental investment in AI infrastructure comes from equity or debt financing. This means a downturn in market sentiment could directly cut off funding, impacting actual construction spending. He estimates that supporting current infrastructure valuations requires AI labs' annual recurring revenue (ARR) to reach approximately $1 trillion by the end of 2028. However, consumer demand is nearing saturation, price reductions have not proportionally increased usage, and open-source models' share has risen from 1% a year ago to 18%, all of which are dragging down ARR growth.

He is currently long Meta (due to the potential monetization of its AI assistant Muse, with ARPU projected to grow fourfold by 2030) and short Google (due to DeepMind talent drain and threats to its search business). He believes the AI cycle will "end with a whimper, not a bang," meaning downward revisions in ARR expectations will drag down the entire sector. Additionally, he disclosed that AI can compress drug design time by 20%, but the real bottleneck lies in laboratories (such as monkey shortages), not hashrate. Therefore, investment opportunities are in clinical outsourcing (naming Charles River Laboratories), rather than AI concept stocks.
11:31
On-chain monitoring firm Lookonchain has detected that a wallet associated with the Ethereum Foundation sold 2,785 ETH for $2,304 each, totaling $6.42 million, in the past hour. Additionally, the firm observed that two other wallets linked to the Ethereum Foundation deposited 4,393 ETH, worth $11.13 million, to Kraken 5 hours ago. These wallets initially received 59,751 ETH from the Ethereum Foundation 10 years ago at a price of $0.9 per ETH. The last suspected sale of ETH by the Ethereum Foundation was two weeks ago, after which the price of ETH has fallen by 9%.
11:31
Chicago soybean futures fell to a two-month low after Brazilian President Lula's election victory, sparking expectations of closer ties between Brazil and China, which could erode the U.S. share in the world's largest soybean import market. Lula's emphasis on pragmatic engagement with China could further solidify Brazil's position as China's top soybean supplier.
11:30
Musk retweeted a post from @emd_worldwide with the comment "Wow." The tweet noted that during Brazil's federal elections, @LulaOficial had requested the Superior Electoral Court (TSE) to extend national voting hours by two hours, citing "transportation issues." The tweet implied that the Lula government had more control over the transportation system. Furthermore, @LulaOficial immediately asked Brazilian Supreme Court (STF) Justice @Cristianozaninm to order the extension of voting hours without waiting for the TSE's decision, which sparked controversy.
11:28
Lula's unexpected victory in the second round of Brazil's presidential election has upended bullish expectations for Brazilian assets. On Monday, an ETF tracking Brazilian stocks in the Japanese market plunged by as much as 16% at one point, marking its largest single-day drop since 2020. In the A-share market, the Brazil ETFs, ChinaAMC Brazil ETF and E Fund Brazil ETF, both hit their downside limits during the call auction. CME exchange currency derivative contracts showed the Brazilian Real against the US Dollar at 5.55, a decline of over 10% from Friday's closing price. Analysts anticipate that the São Paulo market may trigger circuit breakers after Monday's open, with the Real potentially falling another 8% to 10%, and local government bond yields possibly fluctuating by 150 to 200 basis points.
11:22
Hong Kong Chief Executive John Lee stated on Monday at the Belt and Road Green Innovation Conference that Hong Kong will launch a Green Technology Bridgehead Programme next year. The initiative aims to help mainland and overseas green enterprises spread their ideas and solutions to Belt and Road markets. Lee emphasized Hong Kong's role as a leading green and sustainable finance hub, connecting green projects with global capital by assisting partners in financing, investment structuring, insurance, and cross-border risk management. He added that the city's professional services ensure projects are bankable and insurable, and it can also help connect green technologies with markets in need.
11:08
Korean retailers are testing products on AI-generated shoppers to predict buying decisions, fine-tune prices and identify potential flaws before launch. These "synthetic consumers," built using large language models and consumer data, mimic real purchasing behavior, allowing companies to test products, marketing campaigns and store layouts without the time and cost of real-world trials.
11:02
Iranian Foreign Ministry spokesman Esmaeil Baghaei stated that Tehran is prepared for "any situation" but remains open to diplomacy. Baghaei told German public broadcaster ARD that Iran has never abandoned negotiations or closed the door to diplomacy, but at the same time is fully prepared to defend its territory and is currently conveying messages through mediators. He criticized Washington's insistence on unilateral demands, including requiring Iran's "complete surrender," and accused European countries of siding with the United States instead of playing an "independent role." Baghaei also stated that due to the military aggression against Iran by the United States and Israel using the entire region, the Strait of Hormuz is unsafe, and Iran has no choice but to take necessary measures to protect its territorial integrity, national security, and people.
10:49
Houthi military spokesman Yahya Saree claimed on X that the Houthi forces launched a "precise" ballistic missile attack on King Khalid International Airport in the Saudi capital, Riyadh, and multiple drone attacks on crude oil pumping stations in the country's east and west. This came hours after Saudi Arabia announced it had intercepted and destroyed a Houthi ballistic missile fired towards Riyadh. The Saudi-led coalition stated it had carried out retaliatory strikes on two missile launchers in the Yemeni capital, Sanaa.
10:46
Goldman Sachs' economic research team, in their preview report for the October FOMC meeting, stated that they expect the Federal Reserve to skip the October meeting after its September rate hike, but likely act again in December to complete the second and final rate hike of this cycle. Goldman Sachs believes that the recent tightening of financial conditions by approximately 30 basis points is only slightly more than the magnitude of a 25 basis point hike, and far from sufficient to substitute for further rate increases. Federal Reserve Governor Christopher Waller's statements also point to an "alternate meeting" pace for rate hikes. Furthermore, Goldman Sachs does not expect a rate hike in March 2027, as inflation overshoot primarily stems from supply shocks, but rising energy prices pose the biggest upside risk to inflation forecasts.
10:36
Daewoo Engineering & Construction is expanding AI use across its construction sites, introducing real-time translation, automated safety monitoring, and digital management systems to reduce workplace risks and improve efficiency. The Korean builder began standardizing artificial intelligence translation and tablet-based safety training at its domestic sites in September, targeting communication barriers, administrative workloads, and workplace hazards. Its AI translation system converts supervisor instructions into various languages for foreign workers.
10:35
Bloomberg Markets reported that India's small-cap index experienced its largest drop in five months last Friday, erasing its year-to-date gains, as investors sold off stocks due to margin calls. Small-cap stocks account for a significant portion of positions financed through margin loans, and falling prices forced investors to liquidate leveraged positions.
10:33
Sumitomo Corp. plans to leverage its experience gained in the UK to expand its battery energy storage business in Japan. The company is currently studying battery energy storage system operations and their relationship with power trading in Leicester, UK. Sumitomo Corp.'s storage facility in Leicester has 30 containers capable of storing enough energy to power 160,000 homes for two hours.

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