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Market Round Up: Baidu’s Made in China, Brexit in the City, Factory orders give a pep

by | 2 Aug, 2018

 

1. Baidu’s Made in China 2025

China’s online giant, Baidu, grew its net profits last quarter by 45%, driven by its move into artificial intelligence (AI). For its BAT group partners, Alibaba and Tencent, that is also very good news.

Personalised news apps and AI projects helped Baidu raise sales to $987 million (6.4 billion yuan), proving the future is good for this technology. It recently showcased its ‘Baidu Brain’, crucial for its AI development, and a conversation-based AI system called DuerOS.

Baidu has been repositioning itself from its search engine business towards new technologies. Clearly its paying off, and pleasing to China president Xi Jinping’s ‘Made in China 2025’ program. Now everyone is waiting with bated breath to hear how the other China megas, Tencent and Alibaba, perform. Watch this space!

 

2. Factory orders a US pep-up

U.S. factory orders are scheduled for release today. In May, the factory order book expanded by 9.2% year on year, the second highest rate of monthly expansion since July 2014. It seems the underlying trend is firmly on the upside. A similar conclusion can be drawn from durable goods order data tool, implying that demand conditions in the U.S. economy are still positive, even though the cost of money is gradually increasing. Additionally, U.S. jobless numbers are due with many hoping this will be the icing on the cake.

Meanwhile, President Donald Trump has upped the ante after asking U.S. Trade Representative Robert Lighthizer to consider hiking the proposed tariff on $200bn of Chinese goods from 10% to 25%. Escalating trade tensions continue to permeate the markets.

 

3. Brexit in the City

According to the Mayor of London, the world’s biggest financial services sector will not be badly affected by Brexit. This new assumption is based on a 21 month transition period being agreed by both sides, which Charles Bowman, the mayor, believes is a ‘done deal’.

Recent projections show that anticipated banking job losses, as a result of the UK’s exodus, will only be between 5,000 and 13,000. This adjustment positively compares against prior projections of 65,000 to 75,000. Mind you, this is just one ‘experts’ opinion in a mire of jostling soothsayers.

Related:  Market Round Up: U.S. shoppers, Brexit hard or soft, China housing

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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