Wake up and many giants plan to lay off employees! Is China going to do something with Google?

category:Finance
 Wake up and many giants plan to lay off employees! Is China going to do something with Google?


Americas technology companies are also having a hard time. The chip giant micron technology reported a 76% increase in quarterly net profit, far exceeding market expectations, but its share price fell 7.39% because it predicted that future performance would be affected by the Huawei ban.

However, a number of China capital stocks rose sharply last night. Alibaba announced that Alibaba cloud may soon make profits, up 6.15%, and its market value soared by more than 300 billion yuan. Tuniu and Wanda sports also rose nearly 30% due to repurchase plan and privatization offer respectively.

Goldman Sachs, Xiaomo and haohaoda insurance have laid off employees

The financial elite is not immune to the wave of layoffs in the United States.

Last night, the company reported that Goldman would resume layoffs and that it was working on a plan to cut about 1% of its workforce, or about 400 jobs. According to Reuters, many of the job cuts are related to back office jobs.

Pat Scanlan, a spokesman for Goldman Sachs in New York, said: at the time of the outbreak, the company announced that it would suspend any layoffs. Now the company has decided to continue with a small number of layoffs.

Previously, Goldman Sachs has been planning not to lay off workers during the outbreak. According to Bloomberg, the resumption of the layoffs is mainly due to the fact that the financial industry has lost its determination to provide stability to nervous employees during the economic downturn.

It is worth noting that Goldman Sachs is thinking about how to achieve the $1 billion cost reduction target set in January in the current environment. The 400 person layoff may be just the beginning of further layoffs in the future.

Goldman Sachs closed up 2% last night, with no significant change in its shares after hours announcement of layoffs.

In addition, it is reported that JPMorgan will also lay off more than 100 people in the annual layoffs.

Earlier, on Tuesday, the company quoted people familiar with the matter as saying that JPMorgan plans to lay off hundreds of employees in its consumer department. The exact number of layoffs is not clear, but it plans to cut about 1% of its employees. It is reported that the consumer sector, including credit cards, deposits, housing and car loans, accounts for about half of the banks revenue.

JPMorgan closed up 0.96% last night, but fell slightly 0.28% after hours.

On Wednesday, Allstate also announced that it would start laying off about 3800 people, or 7.5% of its employees. The layoff plan is part of the companys restructuring plan. In addition to layoffs, the company will also reduce costs by closing offices and other means.

The company announced that the layoffs would mainly affect employees in the claims, sales, service and support functions.

Its difficult to implement this plan because were still dealing with the impact of the flu pandemic, but we have to provide the best value to our customers, the companys CEO said

According to public information, Allstate Insurance Company was founded in 1931 and ranked the second largest property and accident insurance company in the United States engaged in personal insurance business for many years.

Allgood rose 0.75% last night, and there was no significant change in the stock price after the announcement of layoffs.

At present, the employment situation in the United States is not optimistic. Yesterday, entertainment giant Disney just announced 28, 000 job cuts. In addition to the financial industry and entertainment industry, layoffs in the U.S. aviation industry are also likely to further upgrade. On September 30, local time, the federal governments $25 billion rescue plan for the aviation industry expired. Several airlines, including United Airlines and American Airlines, said they would have to lay off staff temporarily if there was no more assistance. Just now, the CEO of American Airlines said that 19000 people would be laid off tomorrow.

Chip giant quarterly net profit soared 76%, stock price fell 7.39%

American companies are also complaining about the Huawei ban..

According to the financial report, Meguiars revenue in the fourth quarter of the fiscal year ended September 3 was $6.06 billion, up 24% year-on-year, higher than analysts expected $5.89 billion; net profit attributable to the company was $988 million, up 76.11% from $561 million in the same period last year; excluding special items, Meguiars profit per share in the fourth quarter was $1.08, higher than the analysts previous earnings of 99 cents per share expect.

Sanjay Mehrotra, the companys chief executive, said on a fourth quarter earnings conference call that the company was unable to transfer the chips to other customers because it had only been given one months notice before it stopped shipping to China on September 14, according to a US government ban.

Huawei is Meguiars biggest customer and it will take time to make up for lost orders, merotra said.

The company expects sales to reach around $5.2 billion in the first quarter of the fiscal year, down from analysts expectations of $5.31 billion.

Meguiar also said that since Meguiars existing license was invalid due to the new restrictions imposed by the U.S. government, it has applied for a new license, but there is no guarantee when or whether it will be able to obtain the license.

Foreign media: China to launch antitrust investigation on Google

China is preparing to launch an antitrust investigation into Google, a unit of the U.S. alphabet, to investigate accusations that Google is using its dominant Android operating system to snuff out its competitors, two people familiar with the matter, who declined to be named, said, according to Reuters.

According to people familiar with the matter, the charges against Google were filed last year by Huawei Technology Co., a telecom equipment giant, and have been submitted by Chinas antitrust regulatory authority to the State Councils antitrust Committee for review. According to the report, a person familiar with the matter pointed out that the decision on whether to conduct a formal investigation into Google may be made as soon as October and may be affected by Sino US relations.

Earlier, the trump administration of the United States took a series of actions against Chinese technology companies on the ground of national security risks. These include putting Huawei on its trade blacklist and threatening to take similar action against semiconductor manufacturing company SMIC, ordering byte jump to sell tiktoks US business.

At the same time, China is embarking on major changes to its antitrust law and has proposed a number of amendments, including a substantial increase in the maximum fine and an expansion of the criteria for judging a companys market manipulation, Reuters said.

If Chinas regulators continue to conduct antitrust investigations, they may refer to the practices of European and Indian regulators on Google, including inquiries of Google executives, focusing on how to impose fines based on Googles global revenue rather than local revenue, people familiar with the matter said.

In July 2018, the European Commission decided to impose a fine of 4.34 billion euros (about US $5.06 billion) on Google due to its illegal restrictive measures to strengthen its dominant position in search engine and violate EU anti-monopoly rules. The decision prompted Google to offer European users more options than the default search tool, and gave mobile phone manufacturers the freedom to use more competitive systems.

China capital stocks rose sharply

Alibaba rose 6.15%, Wanda sports and tuniu rose nearly 30%

Last night, most of the popular stocks closed higher.

Alibaba rose more than 6%, and its market value soared by $46.1 billion, or about 310 billion yuan.

In the financial year 2021, the chief financial officer of Alibaba cloud group is expected to achieve a profit in 2021.

It is reported that in the past 12 months, Alibabas total revenue increased by 34% year-on-year, reaching about 550 billion yuan. Among them, the growth rate of new retail business and direct business in the past 12 months exceeded 100%, and the total revenue exceeded 100 billion yuan. Cloud computing revenue increased by 60% year-on-year, and rookies increased by more than 50% year-on-year.

In addition, the announcement of the annual shareholders meeting of Alibaba group showed that Ma Yun did not appear in the members of the latest board of directors.

Last night before the plate, Wanda Sportsuff08 WSG.US uff09Announced that its board of directors has received a non binding preliminary acquisition proposal from Wanda sports media (Hong Kong) Holdings Limited, a wholly-owned subsidiary of Wanda Group. The latter intends to acquire all outstanding class A shares of Wanda sports at a price of US $2.5/ads or US $1.67/class a common shares.

Wanda sports said the companys board planned to evaluate the proposed deal and could not guarantee that any final offer would be reached.

Tuniu rose 27.36% after announcing on the evening of September 30 that the board of directors had approved a stock repurchase plan under which the company would buy back up to $10 million of common stock or ADSS over the next 12 months.

In addition, Weibo rose 8.26%, Jingdong rose 3.26%, baidu rose 3.27%.

Last night, Mary erdoes, JPMorgans chief executive of asset and wealth management, said it would be reckless and irresponsible to be an investor in todays world and not invest in China.

US stocks close in September: NASDAQ down more than 5%

On the 30th of local time, the US Department of Commerce released accurate GDP data for the second quarter (April June) of the United States. The total economic volume of goods and services plummeted by 31.4% in the second quarter. This record number is more than three times the largest decline in GDP in US history and nearly 10% decline in the first quarter of 1958.

However, it is expected that the general rebound in GDP will come to an end in the third quarter. Im more optimistic about the economy; there will be a blowout in the current quarter; economic growth will continue into the first quarter of next year, fed Brad said.

The chaotic presidential debate also failed to bring good news to the market. The small non farm data of the United States in September was significantly better than expected. Driven by the increase in trade and transportation, public utilities and manufacturing jobs, the ADP data in September increased by 749000, far exceeding the expected 600000.

As a result, the three major U.S. stock indexes turned red last night. During the session, US White House chief of staff meadows said that there was substantial progress in the negotiation of stimulus plan, which pushed the three major stock indexes to rise by more than 1%.

However, market confidence was dampened by news that the US stimulus plan negotiations failed again in the afternoon. It is reported that on Wednesday afternoon local time, U.S. Treasury Secretary mu nuqin and House Speaker Nancy Pelosi negotiated for 90 minutes on the fiscal stimulus package, but the two sides failed to reach an agreement.

Mitch McConnell, the majority leader of the US Senate, said that Republicans and Democrats are still far apart on the stimulus package.

After the news that stimulus talks failed again, the gains of the three major stock indexes narrowed.

The Dow was down 2.3% in the month, the S & P 500 was down 3.9%, and the Nasdaq was the biggest, down 5.2% in September.

Biden dominates the first debate in the presidential election?

Analysts: US stock volatility will increase before and after the election

Many market participants hope that the presidential election debate will show a clear winner, so as to avoid the market being hit by the lengthy election process. But the first debate of chaos did not allay market concerns.

U.S. President trump and Democratic presidential candidate Joe Biden debated a number of issues on Tuesday night, including their qualifications to manage the U.S. economy, the nomination of Amy coney Barrett to the Supreme Court, and the U.S. response to the coronavirus pandemic.

According to CBSs subsequent instant poll data, 83% of the audience thought the tone of the debate was negative and 17% of the audience thought it was positive. For who won the debate tonight, 48% of the audience thought Biden won, 41% thought trump won, and 10% thought it was a draw.

Stephanie Kelly, senior political economist at Aberdeen standard investments, said: trumps particularly aggressive style last night may be popular with some of his voters, but his less determined voters in 2016, such as independents and suburban women, may not like it that much. Preliminary polls after the debate showed Biden was seen as a weak winner, but it would be interesting if there was a broader response based on different demographic groups

Biden has an average lead of 6.1 percentage points in recent polls, according to real clear politics.

The first presidential debate doesnt make any sense to the market, said David Bahnsen, chief investment officer of Benson Group. It just strengthens the hopes, aspirations and assumptions of each candidates foundation. Michael Hewson, chief market analyst at CMC markets, said: the intense nature of the so-called debate last night raised questions about the outcome of next months election and the possibility of an imminent stimulus deal. Sebastien Galy, senior macro strategist at nordea asset management, said: this debate has had little impact on voters and has not dealt a decisive blow to Bidens leadership. The same may happen in the next two debates, but Bidens lead is still at risk. Source: China Fund News Editor in charge: Yang Bin_ NF4368

The first presidential debate doesnt make any sense to the market, said David Bahnsen, chief investment officer of Benson Group. It just strengthens the hopes, aspirations and assumptions of each candidates foundation.

The heated nature of the so-called debate last night raised questions about the outcome of the next months elections and the possibility of an upcoming stimulus agreement, said michaelhewson, chief market analyst at cmcmarkets