China reopening still ‘months away’ despite talk of preparations: Goldman Sachs
Speculation of China’s reopening led to a rally in markets last week, but economists at Goldman Sachs say that it’s still “months away.”
“The actual reopening continues to be months away as elderly vaccination rates remain low and case fatality rates appear high amongst those unvaccinated based on Hong Kong official data,” economists led by Hui Shan said in a note.
They added that the federal government might be working on an exit strategy, and that the firm expects the country to reopen within the second quarter of 2023.
— Jihye Lee
CNBC Pro: Morgan Stanley says this global battery material stock could soar by over 80%
Morgan Stanley expects shares in an Asian battery materials maker to rally by 85% by the tip of next yr.
This under-the-radar battery materials supplier to Tesla, which already has triple-digit revenue growth, plans to expand manufacturing into the US.
Even JP Morgan’s analysts who use a “conservative valuation approach” expect the stock to rally by 25% in a yr.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Apple says iPhone production temporarily reduced due to Covid-19 restrictions in China
Apple said iPhone 14 production has been temporarily reduced due to Covid-19 restrictions at its assembly plant in Zhengzhou, China, based on a statement Sunday.
The warning could mean the tech company may struggle to fulfill demand in December because it deals “significantly reduced capability” on the plant. The corporate has previously signaled slowing growth in its iPhone business in its earnings report last month.
The warning from Apple comes as China previously week ordered lockdowns in Zhengzhou, where Apple does the vast majority of its iPhone production. In accordance with Reuters, employees have fled the power due to Covid restrictions and outbreaks.
— Sarah Min, Kif Leswing
CNBC Pro: There are still opportunities in tech — here’s tips on how to trade it: Analysts
Tech firms are facing a double whammy of bad news, with disappointing earnings and continued rate hikes by the Federal Reserve each weighing on the sector.
But with the tech-heavy Nasdaq down greater than 30% year-to-date, analysts say there are some vivid spots that would offer opportunities to investors.
Listed below are a few of their top picks, including one stock with a mean upside of over 50%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
