Beijing Says Musk Opposes Decoupling of U.S., China
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China’s foreign ministry said Elon Musk told officials in Beijing that he opposes decoupling the world’s two biggest economies, in a meeting held shortly after the Tesla chief executive arrived in the country at a time of heightened geopolitical tensions with the U.S. In a statement released Tuesday evening, Musk was quoted by Chinese officials as having told Foreign Minister Qin Gang that the interests of the two countries were intertwined and inseparable, like “conjoined twins.” The ministry published a photo of Qin and Musk shaking hands. Musk’s trip to China - one of Tesla’s most important retail markets and home to its biggest manufacturing plant - is his first in more than three years after China largely closed itself off during the pandemic. At Tuesday’s meeting, Qin likened China-U. S. relations to driving a Tesla vehicle, which requires holding the steering wheel correctly, stepping on the brakes at the right time, avoiding dangerous driving and using the gas pedal appropriately, according to a readout from the ministry. Tesla didn’t respond to a request for comment.
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Swiss stocks declined sharply on Tuesday, in line with markets across Europe, as worries about growth and inflation outweighed optimism about U.S. debt ceiling deal. The benchmark SMI ended with a loss of 151.79 points or 1.33% at 11,282.45, the day's low. Nestle ended 3.3% down. The Swiss food group said has hired Anna Manz, the finance chief at the London Stock Exchange Group, as its new chief financial officer. Credit Suisse, Novartis and UBS Group ended lower by 2.37%, 2.13% and 1.87%, respectively. Logitech declined 1.51% and Sonova drifted down 1.3%. Roche Holding, Alcon, Givaudan, Lonza Group, Holcim and Sika lost 0.8 to 1%. Swiss Re, Richemont and Zurich Insurance Group gained 0.68%, 0.47% and 0.4%, respectively. In the Mid Price Index, Barry Callebaut declined more than 2.5%. Lindt & Spruengli, Galenica Sante, Georg Fischer, DocMorris and Julius Baer lost 1 to 1.7%. Bachem Holding rallied more than 2%. Dufry, VAT Group, AMS, Swatch Group, Temenos Group, Baloise Holding and Flughafen Zurich gained 1 to 1.7%. Data from the State Secretariat for Economic Affairs, or SECO, showed the Swiss economy rebounded at a faster-than-expected pace at the start of the year on robust domestic demand.
European stocks closed notably lower on Tuesday as investors stayed cautious, awaiting the passage of the U.S. debt ceiling deal before June 5. The pan European Stoxx 600 ended 0.92% down. The U.K.'s FTSE 100 dropped 1.38%, Germany's DAX ended lower by 0.27% and France's CAC 40 fell 1.29%, while Switzerland's SMI ended 1.33% down. Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Ireland, Netherlands, Poland, Portugal and Russia closed weak. Finland, Norway, Spain and Sweden ended with modest losses, while Iceland and Turkiye closed higher. In the UK market, Ocado Group, Rolls-Royce Holdings, Shell, Unilever, Johnson Matthey, Diageo, British American Tobacco, Haleon, Astrazeneca, Anglo American Plc, Vodafone Group, BP, Imperial Brands and Croda International lost 2 to 4%. Frasers Group climbed about 2.7%. B&M European Value Retail surged 2.15%. Hargreavs Lansdown, JD Sports Fashion, Whitbread, ABRDN, St. James's Place, Segro, BT Group, Centrica, Endeavour Mining and Kingfisher gained 1 to 2%. In Paris, Credit Agricole plunged more than 10%. Societe Generale tumbled nearly 6% and Sanofi ended 4.7% down. TotalEnergies, Capgemini, Pernod Ricard, Danone, Teleperformance, WorldLine, Carrefour, BNP Paribas, ArcelorMittal, Bouygues and Alstom lost 1 to 3.4%. STMicroElectronics, Dassault Systemes, Unibail Rodamco and Engie gained 1 to 1.2%. In the German market, Fresenius fell 2.7%. Beiersdorf ended 2.2% down, while Henkel, Bayer, Covestro, Symrise, BASF and Fresenius Medical Care lost 1.5 to 2%. Commerzbank, Fresenius Medical Care, MTU Aero Engines, Sartorius and Volkswagen also ended notably lower. Puma, Deutsche Post, Infineon, Siemens Energy and E.ON gained 1 to 1.7%.
Tech stocks kept ticking higher and Treasury yields declined Tuesday following a tentative deal over the weekend to raise the U.S. debt ceiling. Investors are waiting to see if the agreement reached by President Biden and House Speaker Kevin McCarthy can be implemented by June 5, after which Treasury Secretary Janet Yellen said the U.S. would be unable to pay all of its bills on time. The next step is for the legislation to be passed by Congress, which could run into procedural hurdles and opposition from lawmakers. Stocks were mostly higher. Enthusiasm for companies involved with artificial-intelligence and the ongoing flight to the market's biggest tech stocks lifted the Nasdaq Composite, which rose 0.3%. The S&P 500 inched up less than 0.1%. The blue-chip Dow Jones Industrial Average gave up about 51 points, or 0.1%. Nvidia, the chipmaker at the heart of the artificial-intelligence boom, was among the day's big gainers, rising 3%. At one point Tuesday, Nvidia's shares traded high enough to give the firm a $1 trillion market capitalization, the first semiconductor company to achieve that rare valuation. Rival chipmakers Intel and Qualcomm increased 3.4% and 5.1%, respectively. Netflix and Tesla, two of the other big technology stocks that have dominated the market in recent years, each added more than 3%.
Negative signs dominate the stock markets in East Asia and Australia at midweek. In Shanghai, the composite index loses 0.7 per cent after the purchasing managers' index for the manufacturing sector slipped deeper into contractionary territory in May, contrary to expectations.
The yield on the benchmark 10-year Treasury note reversed course after climbing into the weekend. It ended Tuesday at 3.697%, down from 3.820% at the previous close. The yield on one-month Treasury bills dropped to 5.224%, from 5.496% before the debt deal.
UBS raises Morphosys to Buy (Neutral)
BoA raises the Deutsche Post target to EUR 60 (53) – Buy
Citi lowers the Vodafone target to 83 (93) p – Neutral
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