Morning News

# English Translation

Source: Wall Street News

## Market Overview

U.S. stocks withstood the impact of Trump's ouster of a Federal Reserve Governor, with the three major stock indexes reversing to gains intraday and staging a successful rebound. NVIDIA climbed over 1% ahead of its earnings report, extending its winning streak to three consecutive days. Following Trump's mention of furniture tariffs, furniture stock RH plummeted more than 4%.

Chinese assets gained strength: the offshore RMB breached the 7.15 level intraday for two straight days, hitting a new one-month high. The U.S.-listed Chinese Stocks Index closed 0.7% higher, notching a new five-month peak and a five-day winning streak, while outperforming the broader market once again. NIO surged 10%, and XPeng Motors rose over 5%.

As the French government faced a confidence vote, France's stock index closed nearly 2% lower, with Société Générale dropping close to 7%. The yield spread between French and German government bonds widened to its largest in four months.

After Trump sought to dismiss a Federal Reserve Governor, the U.S. Dollar Index pulled back to its daily low. Gold touched a new daily low initially but later rebounded to a two-week high. Crude oil fell more than 2%, ending its four-day winning streak and moving away from its three-week high.

Bitcoin dipped below $109,000 to a one-month low before rebounding by over $2,000. Ethereum also rebounded by more than 6% at one point.

During the Asian trading session, the decline of A-shares accelerated in late trading. Trading volume exceeded 2 trillion yuan for 10 consecutive days. Sectors including AI chips and rare earths saw a broad correction, with B-shares falling over 4%. Government bonds rebounded, while commodities declined.

## Top News

The State Council issued the "Artificial Intelligence +" Action Guidelines, focusing on breakthroughs in AI chip development and the cultivation of a software ecosystem, while vigorously promoting the development of end devices such as smart cars.

Trump announced the "removal" of the current Federal Reserve Governor, claiming that interest rate cuts would become the majority stance of the Fed. Governor Cook will sue over the dismissal decision. The Fed stated that the President can only remove a Governor for "just cause" and that the Fed will abide by any ruling from the court.

Trump stated: He has finalized trade agreements with the EU, Japan, and South Korea; "very high" tariffs on furniture will be imposed soon; the U.S. has been "exploited" and will no longer provide direct aid to Ukraine; Meta will build a $50 billion AI data center in Louisiana.

The U.S.-EU trade war reignited, as Trump once again "lashed out" at the digital tax, vowing to retaliate with tariffs and export controls. The EU reaffirmed its right to formulate digital rules and refuted the U.S. accusations.

The U.S. plans to raise tariffs on India by 50% starting Wednesday. German media revealed that Trump has called Indian Prime Minister Modi at least four times recently, but all calls were rejected. Faced with tariff pressure to push for reforms, Modi implemented surprise tax cuts and accelerated administrative streamlining and decentralization.

U.S. Secretary of Commerce: Statistical data and GDP figures will be released on the blockchain soon.

A global alert on long-term bonds was triggered, and a political storm hit Paris: France's stock index plummeted nearly 2%, and the yield spread between French and German government bonds reached its widest in four months.

A critical issue affecting the entire market: Morgan Stanley predicts that NVIDIA's earnings guidance may be conservative due to uncertainties surrounding its sales in China.

The iPhone 17 is on the way—Apple officially announced that it will hold a launch event in the early hours of September 10 (Beijing Time).

Alibaba released Wan2.2-S2V, an AI model capable of generating videos. The model can transform static images into talking videos in seconds.

## Market Closing Data

### U.S. & European Stock Markets

- S&P 500: Rose 0.41% to close at 6,465.94 points  

- Dow Jones Industrial Average: Rose 0.30% to close at 45,418.07 points  

- Nasdaq Composite Index: Rose 0.44% to close at 21,544.27 points  

- European STOXX 600 Index: Fell 0.83% to close at 554.20 points  

### A-Shares

- Shanghai Composite Index: Fell 0.39% to close at 3,868.38 points  

- Shenzhen Component Index: Rose 0.26% to close at 12,473.17 points  

- ChiNext Index: Fell 0.75% to close at 2,742.13 points  

### Bond Market

By the end of the bond trading session, the yield on the U.S. 10-year benchmark Treasury note stood at approximately 4.26%, down nearly 2 basis points intraday. The yield on the U.S. 2-year Treasury note was around 3.68%, dropping about 3 basis points during the day.

### Commodities

- WTI Crude Oil Futures (October): Closed down 2.39% at $63.25 per barrel  

- Brent Crude Oil Futures (October): Closed down 2.29% at $67.22 per barrel  

- COMEX Gold Futures (December): Closed up 0.45% at $3,433 per ounce

# Detailed Top News

## Global Highlights

### China's State Council Issues "AI +" Action Guidelines: Focus on AI Chip Breakthroughs, Software Ecosystem Cultivation, and Promote Smart Terminal Development like Intelligent Vehicles  

The document points out that efforts should be made to:  

- Strengthen collaborative innovation between AI and technologies in fields such as biomanufacturing, quantum technology, and 6G;  

- Increase financial and fiscal support for the AI sector, develop and expand long-term capital, patient capital, and strategic capital, and improve risk-sharing and investment exit mechanisms;  

- Accelerate the innovation of AI-driven breeding systems and support the intelligent application of AI in agricultural fields such as crop cultivation and livestock breeding;  

- Promote the intelligent transformation and upgrading of municipal infrastructure in an orderly manner, and explore urban planning, construction, and governance oriented to the development of a new generation of intelligent terminals.  

### National Development and Reform Commission (NDRC) Answers Reporters' Questions: What are the Main Contents and Features of the "AI +" Guidelines?  

### Unprecedented Move: Trump Claims to "Fire" Current Fed Governor, Taking Another Step in His "Fed Control" Plan  

Trump’s "three-step plan" to take control of the Federal Reserve is advancing: replacing Powell, seizing control of the Board of Governors, and dismissing regional Fed presidents. If Cook is successfully removed, Trump may secure four seats on the Fed’s Board of Governors, gaining a majority in the seven-member board. According to analysis from the "New Fed Wire," if he gains a majority by March next year, he may refuse to renew the terms of regional Fed presidents, thereby taking control of the FOMC (Federal Open Market Committee) and reshaping the Fed system.  

- Fed Governor Cook will sue Trump over the dismissal decision.  

- Trump: Interest rate cuts will become the majority stance of the Fed. On Tuesday, Trump stated that he will soon have a "majority" of his appointees on the Fed’s Board of Governors, and these members will support his desire for substantial interest rate cuts.  

- Fed Statement: The President can only remove a governor for "just cause," and the Fed will abide by any court ruling.  

### Wall Street Debates "Trump’s Firing of Cook": Fed Independence at Risk, Bearish for Dollar, Bullish for Gold and Bitcoin  

Analysts believe that Trump’s move to "fire" Cook not only raises expectations of interest rate cuts but also reignites concerns about the Fed’s independence, undermining investors’ confidence in dollar assets. As a result, investors are shifting their focus to traditional safe-haven assets such as gold and the Japanese yen, as well as cryptocurrencies.  

### Trump: Trade Agreements with EU, Japan, and South Korea Finalized; "Very High" Tariffs on Furniture to Be Imposed Soon  

Trump claimed that tariffs of 100% or 200% will prevent other countries from dominating the furniture industry. Following this statement, furniture stock Wayfair, which had risen over 3% intraday, reversed course and fell. He also praised the fact that oil prices are approaching $60 per barrel, stating, "We don’t want wind turbines or solar panels," and that fossil fuels and nuclear energy are the only effective energy sources.  

### Trump: The U.S. Has Been "Exploited" and Will No Longer Provide Direct Aid to Ukraine  

Trump clearly stated that the U.S. government has previously committed up to $350 billion in financial support to Ukraine, which has led to the U.S. being "exploited." Now, the U.S. will stop providing direct aid to Ukraine; NATO will take over Ukraine’s weapons needs, and the U.S. will only conduct weapons transactions with NATO, which must pay the full cost of the weapons.  

### EU Reaffirms Right to Formulate Digital Rules, Refutes U.S. Accusations  

According to Xinhua News Agency, after Trump threatened to retaliate with tariffs against other countries’ digital regulatory measures, the EU stated that the EU and its member states have the sovereign right to formulate rules for economic activities within their territories. Eric Mamer, Chief Spokesperson of the European Commission, said at a press conference on the same day: "Regulating economic activities within our own territory is a sovereign right of the EU and its member states." He added that this issue is not part of the framework agreement of the U.S.-EU trade deal, and "the two are completely different matters."  

### U.S.-EU Trade Tensions Reignite: Trump Again "Attacks" Digital Tax, Vows Retaliation with Tariffs and Export Controls  

### U.S. Plans to Raise Tariffs on India by 50% Starting 12:00 AM on August 27; Indian Stocks Post Worst Relative Performance in 20 Years  

Currently, the MSCI India Index has underperformed the MSCI Emerging Markets Index for four consecutive months, with a relative underperformance of over 15 percentage points so far this year, heading for its worst relative annual performance in more than two decades. Citigroup predicts that the 50% tariff rate may slow India’s GDP growth by 0.6 to 0.8 percentage points.  

### German Media Reveals: Trump Has Tried to Call Modi at Least Four Times Recently, All Calls Rejected  

U.S. President Trump has attempted to call Indian Prime Minister Modi at least four times in recent weeks, but Modi has refused to speak with him. There are signs that Modi is dissatisfied with the U.S. imposing additional tariffs on India and Trump’s remarks describing India as a "dead economy." Modi’s refusal to talk to Trump stems from both "deep anger" and "cautious considerations."  

### Modi Implements Surprise Tax Cuts and Accelerates Administrative Streamlining to Push Reforms Amid Tariff Pressure  

Before reaching an agreement with officials, Modi suddenly announced a reduction in consumption tax and plans for "next-generation reforms," including the establishment of a high-level committee dedicated to promoting administrative streamlining. These measures aim to reduce corporate compliance costs and improve the business environment. Analysts believe that the tax cuts may increase India’s nominal GDP growth rate by 0.6 percentage points within 12 months.  

### U.S. Commerce Secretary Raimondo: Statistical Data and GDP to Be Disclosed on Blockchain Soon  

U.S. Commerce Secretary Gina Raimondo stated at a White House cabinet meeting that the Department of Commerce will begin releasing economic statistics, including GDP, on the blockchain, though specific implementation details are still being developed. Raimondo noted that officials are currently "finalizing all details" to advance the project.  

### Global Long-Term Bond Alert Triggered; Political Storm Hits Paris: French Stock Index Plummets Nearly 2%, French-German Bond Yield Spread Widens to Four-Month High  

The confidence vote initiated by the French Prime Minister to push for fiscal austerity is pushing Macron’s government to the brink of collapse. This incident not only exposes France’s own fiscal troubles but also becomes the latest example of the "slow-motion crisis" in the global government bond market. Société Générale warned that the global long-term bond storm has been overlooked.  

### Critical Market-Wide Issue: Morgan Stanley Predicts NVIDIA’s Earnings Guidance May Be Conservative Due to Uncertainties in China Sales  

Morgan Stanley stated that how NVIDIA’s management assesses opportunities in the Chinese market is "a major variable" affecting the final Q3 guidance. However, from a longer-term perspective, concerns about China’s business have actually "clarified expectations for the outlook." A more cautious starting point for earnings guidance may instead leave room for subsequent stock price performance.  

### Goldman Sachs Summarizes NVIDIA’s Stock Price Pattern: Strong H1, Suppressed H2, Unlikely to Outperform Market by Year-End  

Historical patterns show that NVIDIA’s stock price typically performs strongly in the first half of the year due to clear customer capital expenditure guidance but tends to flatten in the second half due to the lack of such hard data catalysts. The bank expects Broadcom to follow a similar trend, while AMD and Marvell may remain range-bound by the end of the year.  

### iPhone 17 on the Way: Apple Officially Announces Launch Event in the Early Hours of September 10 (Beijing Time)  

The theme of this launch event is "Epic Ahead." Media reports indicate that the iPhone 17 series will include the standard iPhone 17, Pro, Pro Max, and the all-new iPhone 17 Air. The Air model, with a thickness of only 5.5mm, will be the thinnest and lightest iPhone ever. Apple may also update all Apple Watch models simultaneously for the first time in three years, and the AirPods Pro 3 may also make an appearance.  

### Alibaba Releases Video-Generating AI Model Wan2.2-S2V: Static Images Transformed into Talking Videos in Seconds  

By inputting a static image, an audio clip, and text descriptions, Wan2.2-S2V can generate high-quality, natural, and smooth dynamic character videos. The videos go beyond "lip-syncing" and achieve film-level scene control capabilities, supporting stable generation of minute-long videos. In addition to lip movements, the model can animate hand gestures, facial expressions, and body postures, and is compatible with cartoon characters, animals, and stylized images.  

### Trump: Meta to Build a "$5 Billion" AI Data Center in Louisiana  

However, Meta stated in December last year that its data center project in the state would involve a $1 billion investment.  

### Top Goldman Sachs Trader: U.S. AI Stocks Undergo "Tactical Pullback," Not "Major Correction"  

Peter Callahan, a top technology trader at Goldman Sachs, stated that regarding the recent pullback in AI-related stocks, most investors have indicated that it is only a tactical adjustment, rather than a major correction similar to those in the spring of 2025 or summer of 2024. Callahan attributed the pullback to several factors: the high valuation of AI stocks, renewed doubts about recent AI investment returns and adoption rates, and a macro environment that is more favorable to cyclical stocks.  

## Domestic Macroeconomics  

### Li Qiang: Actively Promote Service Exports in Emerging Fields; Accelerate Cultivation of New Forms and Models Such as Digital Trade in Services and "AI + Trade in Services"  

Li Qiang emphasized the need to:  

- Proactively expand imports of high-quality services to promote the high-quality development of China’s service industry through high-level opening-up;  

- Advance institutional opening-up in trade in services, strengthen alignment with high-standard international economic and trade rules, further reduce the negative list for cross-border trade in services, and steadily relax market access in the service sector;  

- Actively promote service exports in emerging fields, leverage China’s innovative advantages in AI, biomedicine, and the digital economy to expand exports of services such as scientific research, consulting, and e-commerce, and accelerate the cultivation of new forms and models like digital trade in services and "AI + trade in services."  

### Ministry of Commerce: Implement National Treatment for Foreign-Invested Enterprises; Strive to Resolve the Issue of "Wide Gates Opened, Narrow Gates Blocked" in Market Access  

The Ministry of Commerce stated that it will:  

- Steadily advance further opening-up based on pilot programs in areas such as value-added telecommunications, biotechnology, and wholly foreign-owned hospitals;  

- Accelerate the comprehensive pilot programs for expanding opening-up in the service sector, prioritizing the trial implementation of new opening-up measures on open platforms;  

- Ensure equal treatment for domestic and foreign enterprises in participating in competitions such as large-scale equipment upgrades, consumer goods trade-ins, government procurement, and public bidding.  

## Domestic Companies  

### Cambricon: H1 Revenue Surges 43-Fold, Net Profit Turns Profitable; Cloud Business Drives Growth; Zhang Jianping Maintains Holdings  

In H1 2025, Cambricon achieved operating revenue of 2.881 billion yuan, a year-on-year surge of 4,347.82%. The company’s net profit attributable to shareholders reached 1.038 billion yuan, compared with a loss of 530 million yuan in the same period last year. The net profit margin stood at 36.02%, a year-on-year increase of 104.37%. Among the revenue sources, the cloud product line contributed 2.87 billion yuan, accounting for a high 99.6%. Notably, the ending inventory reached 2.69 billion yuan, an increase of 51.64% from the beginning of the period. Zhang Jianping maintained his holdings of 6.0863 million shares, with a market value of approximately 8.0887 billion yuan.  

### Zhongji Innolight: H1 Revenue Rises 36.9% YoY, Net Profit Grows 69.4% YoY; Proposes Dividend of 4.0 Yuan per 10 Shares  

In H1, the company’s optical communication transceiver module business achieved revenue of 14.432 billion yuan, with a gross profit margin of 39.96%, an increase of 6.13 percentage points from 33.83% in the same period last year. This improvement was mainly driven by the rapid increase in the shipment proportion of high-end optical modules such as 800G and continuous cost reduction and efficiency improvement measures.  

### Shenghong Technology: H1 Revenue Rises 86% YoY, Net Profit Surges 3.7-Fold YoY  

Benefiting from the explosive growth in AI computing power demand, Shenghong Technology’s H1 revenue increased by 86% YoY. Its gross profit margin rose significantly from 20.37% in the same period last year to 35.75%, representing a substantial improvement. The high gross profit margin was mainly due to the volume growth of AI-related high-end products and the company’s achievements in optimizing product structure.  

### Inspur Information: H1 Revenue Rises 90.05% YoY, Net Profit Grows 34.87% YoY  

### Northern Rare Earth: H1 Revenue Surges 45% YoY, Net Profit Attributable to Shareholders Jumps Over 19-Fold YoY; Production and Sales of Three Major Products Hit New Highs  

### Tsingtao Brewery: H1 Revenue Rises 2.1% YoY; High-End Strategy Drives Net Profit to Grow 7.21% YoY Against the Trend  

### Nongfu Spring: H1 Revenue Rises 15.6% YoY, Net Profit Grows 22.1% YoY; Tea Beverage Business Surpasses Bottled Water for the First Time  

### Guming Beverage: H1 Revenue Rises 41.2% YoY, Net Profit Grows 42.4% YoY; Sinking Market Expansion Strategy Takes Effect  

### Zijin Mining: H1 Net Profit Surges 55% YoY Driven by Rising Gold Prices; Proposes Dividend of 2.2 Yuan per 10 Shares  

### PetroChina: H1 Revenue Falls 6.7% YoY, Net Profit Drops 5.4% YoY; Oil and Gas Equivalent Output Rises 2.0% YoY  

### Ping An Insurance (Group) of China: H1 Operating Profit Attributable to Shareholders Continues to Grow; Interim Dividend Increases to 0.95 Yuan per Share  

### China Tourism Group Duty Free Corporation Limited (CTGF): H1 Revenue Falls 10% YoY, Net Profit Drops 20.8% YoY; Membership Exceeds 45 Million  

### Enlight Media: H1 Net Profit Surges 372% Driven by "Nezha 2"; Film-Related Revenue Grows 218.54% YoY  

## Overseas Macroeconomics  

### U.S. July Durable Goods Orders Fall 2.8% MoM (Preliminary), More Than Expected; Core Capital Goods Orders Post Fastest Growth in Nearly Three Years  

Although dragged down by sharp fluctuations in aircraft orders, U.S. total durable goods orders (preliminary) fell for the second consecutive month in July. However, core capital goods orders rebounded by 1.06%, posting the fastest growth in nearly three years. This indicates that corporate demand for equipment and expansion remains solid, easing concerns about economic slowdown.  

### Fed’s "Third-in-Command": The Era of Low Neutral Interest Rates "Seems Far from Over"  

After Fed Chair Powell opened the door to short-term interest rate cuts, John Williams, the Fed’s "third-in-command," spoke from a longer-term perspective. He believes that the fundamental economic forces driving interest rates downward still exist: "The global demographic and productivity growth trends that have pushed r-star lower have not reversed," and the era of low neutral interest rates "seems far from over."  

### U.S. Critical Minerals List "Expanded": Plans to Add Six Minerals Including Copper, Silicon, Silver, and Potash  

The six newly added critical minerals are copper, potash, silicon, silver, lead, and rhenium. The U.S. Department of the Interior stated that these minerals are of strategic significance to U.S. economic development and national security. Additionally, metallurgical coal and uranium, previously proposed by Trump, were not included, while arsenic and tellurium were recommended for removal from the list.  

### Fiscal Alert Triggered: Japan Applies for Record-High Debt-Servicing Budget; A Quarter of National Budget to Be Used for Debt Repayment  

As the Bank of Japan continues to raise interest rates gradually, pushing up government debt costs, Japan’s Ministry of Finance has applied for 32.4 trillion yen in debt-servicing funds for the next fiscal year—the highest debt-servicing cost budget in Japan’s history. Currently, debt-servicing expenditures account for approximately a quarter of Japan’s national budget.  

### Trump Makes an Unreasonable Request to South Korea  

According to Niutanqin (a Chinese news outlet), in front of reporters, Trump told Lee Jae-myung that he hopes to own the land in South Korea where U.S. military bases are located. The only thing Lee Jae-myung could do was pretend not to hear. It can be said that silence became Lee Jae-myung’s only response at that time—neither acknowledging nor provoking, nor responding.  

# Overseas Companies

Bitcoin and Ethereum experienced extreme volatility, with a "flash crash" after hitting new highs. While "whales" (large-scale investors) shifted their positions, Wall Street institutions engaged in "bottom-fishing" (buying assets at low prices). After Bitcoin surged to a new high of $117,200, a whale sold 24,000 Bitcoins, triggering a flash crash that pushed the price below its 10-day moving average. Similarly, Ethereum plummeted to $4,400 after reaching a historic high of $4,954. Forced liquidations across the entire crypto market exceeded $800 million. Analysts pointed out that the core of the market turbulence lies in a large-scale capital reallocation. There are signs that this capital is flowing into Ethereum, with approximately $2 billion of Bitcoin-related funds being reallocated to Ethereum. Rumors suggest that Wall Street institutions such as Fidelity and BlackRock are engaging in bottom-fishing.

Pantera, a well-known crypto fund, plans to acquire a U.S.-listed company and raise $1.25 billion to target the "Solana Treasury". The prominent crypto fund Pantera is seeking to raise up to $1.25 billion, with plans to invest in a Nasdaq-listed company and transform it into a Solana-focused investment firm, dedicated to purchasing and holding Solana tokens. The fund has become the most active investor in crypto treasury stocks, having invested over $300 million in more than 10 crypto treasury stocks this year.

The 10th test flight of SpaceX’s Starship faces another setback, leaving its future uncertain. SpaceX canceled the 10th test flight of its Starship Super Heavy rocket due to issues with the ground system (referring to the launch pad and surrounding infrastructure that supports takeoff). This year, the Starship has already suffered three consecutive launch failures, and the launch pad even exploded during a static test in June.

Eli Lilly’s oral weight-loss drug shows efficacy in diabetic patients and is expected to be submitted for FDA approval within the year.

# Industries/Concepts

1. **Gaming**: High-frequency data for multiple games remains strong, and combined with better-than-expected interim results, the gaming sector is expected to continue performing well during the peak summer season in the third quarter, supported by policy encouragement and abundant supply.

2. **CDMO**: A research report from Founder Securities points out that among CDMO companies that have disclosed their performance, revenue and profits generally grew at an accelerated pace in the first half of the year, with a positive order trend. In particular, companies under the WuXi AppTec umbrella have generally raised their performance guidance, and the industry’s future performance fulfillment is continuing to be optimistic.

3. **Liquor**: The current liquor cycle is a combination of the liquor industry’s own cycle and the macroeconomic cycle. Positive trends are evident in both key factors that changed market asset pricing in the previous cycle. Firstly, on the demand side, as the Mid-Autumn Festival and National Day peak seasons approach, the positive trend of liquor demand is becoming increasingly clear. Secondly, China’s A-share market hit a 10-year high in August 2025, with a significant improvement in market liquidity.

4. **Chlor-Alkali**: A research report from Changjiang Securities notes that the downstream application areas of chlor-alkali involve diverse demand from real estate, aluminum oxide, chemical industry, printing and dyeing, etc., and have a certain correlation with China’s GDP. Exports of caustic soda and PVC have both shown steady growth. Against the backdrop of curbing "involution" (excessive internal competition), supply-side equipment transformation and energy consumption management are expected to become key drivers for the chlor-alkali industry.

# Today’s News Preview

- Profits of China’s industrial enterprises above designated size in July.

- The United States begins imposing an additional 25% tariff on India, bringing the total tariff rate to 50%.

- Speech by Thomas Barkin, President of the Federal Reserve Bank of Richmond.

- Earnings reports to be released by NVIDIA, CrowdStrike, Snowflake, Ctrip, and HP.

- U.S. EIA crude oil inventory changes.

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