To The Moon

Nike has announced its Q3 earnings for the 2023 fiscal year. The report shows that Nike's revenue for Q3 grew 14% year-over-year to $12.39 billion, exceeding market expectations of $11.47 billion. However, net profit fell by 11% to $1.24 billion, while diluted earnings per share were $0.79, beating the market's expected $0.55 but lower than the previous year's $0.87. Like other retailers, Nike has been dealing with excess inventory caused by supply chain disruptions and changing consumer demand, which has been affecting its profit margins. The report shows that Nike's Q3 gross margin fell to 43.3%, down 3.3 percentage points from the same period last year. The reason for this decline is that the company increased discounts and promotions to clear out its inventory. Nike CEO John Donahoe to

Let's start with the conclusion. 1. Compared to the December dot plot, we do not see any hint of the Fed turning dovish. 2. The banking crisis does not affect the Fed's tightening attitude. As always, the Fed doesn't know what path it wants to take the U.S. economy down. 4. Ready to start hearing the "stagflation" narrative? 1. Don't see any signs of the Fed turning pivot (Pivot). As expected, the Fed raised rates by one tick in March, raising the benchmark rate to a range of 4.75%-5.00%, in line with Street's expectations, and in line with the expected message, which is usually not too important. Going into this FOMC meeting, I think the worst scenario "is definitely an immediate rate cut" because it means the Fed is likely to see more systemic problems than we see on the outside, which m

The market had initially expected the US Federal Reserve to increase interest rates by two percentage points in March before the banking crisis erupted, and expectations were reduced to one percentage point. As expected, the Federal Reserve announced a one-percentage-point interest rate hike, causing the market to rise before falling at the end of the session. Although the rate hike should have stimulated the stock market, what did Powell say that caused concern in the market? Future rate hikes are a consensus Firstly, a one-percentage-point rate hike indicates the Federal Reserve's cautious stance towards the recent banking crisis. In addition, according to the interest rate dot plot, the Federal Reserve expects to raise rates only once this year. The tone has changed from "continued incr

Paul Adolph Volcker Jr., a prominent American economist, served as the 12th Chairman of the Federal Reserve from 1979 to 1987. During his tenure, Volcker gained widespread acclaim for putting an end to the high inflation that plagued the US in the 1970s and early 1980s. In 1981, the US experienced double-digit inflation for the second time in less than a decade. Gas prices skyrocketed, mortgage interest rates were high, making it difficult for many middle-class Americans to buy homes. The job market was also weak, with unemployment rates exceeding 7%. The country was in the midst of a full-blown crisis. However, this crisis eventually came to an end, with most economists crediting Federal Reserve Chairman Paul Volcker for using "chemotherapy" to control inflation. He orchestrated two large

Pinduoduo recently announced its 2022 annual performance, which showed that its revenue for the quarter ending in December was RMB 39.82 billion, lower than market expectations of RMB 41.95 billion, and its net profit was RMB 9.45 billion. As a result, the company's stock fell by 15% in early trading in New York. It is believed that during the COVID-19 pandemic in 2021, Pinduoduo may have incurred more costs in the process of promoting agricultural businesses and sales to consumers by offering more discounts, in addition to subsidies provided to merchants and customers. The increase in these costs is likely to have exceeded the growth in revenue. Therefore, in order to maintain its position as China's second-largest online retailer, Pinduoduo pulled out all the stops among numerous co

Many people believe that we live in a world dominated by Microsoft. However, the reality is that Google is actually leading the way in the market for productivity software. Productivity software is a category of software tools that help individuals and organizations be more productive. This includes word processors, spreadsheets, presentation software, and other tools that are commonly used in the workplace. While Microsoft has traditionally dominated this market with its Office suite of products, Google has been steadily gaining ground in recent years. In fact, Google now has a larger market share than Microsoft when it comes to productivity software. This shift can be attributed to a number of factors. For one, Google's cloud-based approach to productivity software has resonated with man

According to recent reports, there are around 80 trillion US dollars of uninvested deposits in the United States. Surprisingly, nearly 40% of these deposits are not insured, which poses a significant risk to depositors. To avoid potential losses, investors must be aware of the top 10 banks with the highest percentage of uninvested deposits, as listed below: 1. BNY Mellon, BK USD: 97% 2. SVB, SIVB: 94% 3. State Street, STT: 91% 4. Signature Bank, SBNY: 90% 5. Northern Trust, NTRS: 83% 6. Citigroup, C: 77% 7. HSBC Holdings, HSBA: 73% 8. First Republic Bank, FRC: 68% 9. East West Bancorp, EWBC: 66% 10. Comerica, CMA: 63% Investors must keep in mind that uninvested deposits mean that banks are not generating revenue from them, which can negatively affect the bank's profitability. The higher th

Credit Suisse, one of the world's largest investment banks, has been hit with a series of fines over the years for various misconducts. The bank has been fined more than 50 times since 2000, totaling over $11 billion, with an average of $570 million per year. The latest fine in 2022 amounted to $700 million, which is more than double the amount they paid in 2021. This situation is a significant moment for the global banking system. Credit Suisse's mismanagement and the rapid rise of interest rates have caused a crisis. The bank has dug its own grave by repeatedly breaking the rules and facing heavy penalties. Investors in Credit Suisse should pay close attention to these developments. The bank's reputation has been damaged, and its stock price may continue to decline. Investors should keep

The recent reserve requirement ratio cut by the People's Bank of China has caused mixed reactions in the market. To understand why the People's Bank of China can now choose to cut the reserve requirement ratio, there are several points to consider. Firstly, changes in the external environment have released domestic monetary policy space. Recent events such as the SVB Bank and Credit Suisse Group in the United States may lead to increased volatility in overseas financial markets and economies, slowing down the pace of the Federal Reserve's rate hikes. Secondly, China's inflation rate is relatively low, providing further room for monetary policy easing. This is the biggest difference between the Chinese and American economies. Thirdly, the main contradiction in China's economy is still the i

The Federal Reserve (Fed) is facing one of its toughest interest rate decisions in recent times. Despite the pressure from inflation, which would normally call for a two-point rate hike, the US banking industry is showing signs of a lack of confidence in a high-interest-rate environment. Additionally, the forced merger of Credit Suisse by the Swiss government has added to the already unstable global financial market. A two-point rate hike at this time could further damage market confidence. If the Fed adopts a more conservative approach, such as temporarily suspending interest rate increases to observe the situation, investors will immediately anticipate an interest rate cut due to economic recession as the Fed's justification. This could cause inflation expectations to resurface, potentia