Reopening in China still ‘months away’ despite talks over preparations: Goldman Sachs
Speculations of a reopening of China led to a rally in markets last week, but economists at Goldman Sachs say it is “months away”.
“The actual reopening is months away as vaccination rates among the elderly remain low and mortality rates among the unvaccinated appear high, according to official data from Hong Kong,” economists led by Hui Shan said in a note.
They added that the government is likely working on an exit strategy and that the company expects the country to reopen in the second quarter of 2023.
– Jihye Lee
CNBC Pro: Morgan Stanley says this global inventory of battery material could increase by over 80%
Morgan Stanley expects shares of an Asian battery materials maker to surge 85% by the end of next year.
Already posting triple-digit sales growth, this under-the-radar supplier of battery materials to Tesla plans to expand production into the United States.
Even JP Morgan’s analysts, who use a “conservative valuation approach,” expect the stock to rise 25% in a year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Apple says iPhone production has been temporarily reduced due to Covid-19 restrictions in China
Apple said production of the iPhone 14 has been temporarily reduced due to Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement Sunday.
The warning could mean the tech company could struggle to meet demand in December as it trades at “significantly reduced capacity” at the plant. The company signaled slowing growth in its iPhone business in its earnings report last month.
Apple’s warning comes as China last week ordered lockdowns in Zhengzhou, where Apple operates most of its iPhone production. Staff have fled the facility due to Covid restrictions and outbreaks, according to Portal.
— Sarah Min, Kif Leswing
CNBC Pro: Opportunities still exist in tech — here’s how to trade them: Analysts
Tech firms are facing a double whammy of bad news, with disappointing earnings and continued Federal Reserve rate hikes both weighing on the sector.
But with the tech-heavy Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could offer investors opportunities.
Here are some of their top picks, including a stock with an average upside potential of over 50%.
CNBC Pro subscribers can read more here.
— Wheat Tan