Category: Business

(Bloomberg) — Chinese artificial intelligence software maker SenseTime Group Inc. slumped as much as 51% in Hong Kong on Thursday, after a lock-up of its shares expired following its initial public offering.

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The company dropped to trade at as low as HK$2.91 apiece, the lowest ever and below its initial public offering price of HK$3.85. A lock-up on a portion of the stock owned by cornerstone investors and shareholders — amounting to 23.4 billion of shares — expired on Wednesday.

“SenseTime’s average liquidity looks very low, and it’s also subject to US sanctions. That means its investor base is probably more concentrated, so the impact of lockup expiry is higher,” said Vey-Sern Ling, senior analyst with Union Bancaire Privée.

SenseTime joined a list of technology companies that have seen insiders selling their shares after a strong rebound since mid-March. This week, Tencent Holdings Ltd.’s major backer announced it will further cut its stake in the company. In May, JD Health International Inc.’s controller Richard Liu sold his stake in the company.

Selling pressure is not removed for SenseTime as another block of shares owned by its shareholders is set to expire near the end of this year, Bloomberg-compiled data show. The stock has rallied 18% since mid-April through Wednesday.

It shows that stakeholders are not optimistic on Sensetime’s outlook said Marvin Chen, a strategist at Bloomberg Intelligence. “There were concerns on growth outlook and earnings potential during the IPO. Also, early IPO investors in Sensetime should have been well aware of the potential risks and volatility due to potential US blacklists and bans.”

Chen does not think SenseTime’s move has broad implications on China tech.

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SenseTime, China’s most valuable private AI firm, was one of the highest-profile targets of sanctions from Washington aimed at containing China’s tech rise. Like Huawei Technologies Co. and Semiconductor Manufacturing International Corp., the company was regarded as a national champions, a leader in a burgeoning field considered key to establishing China’s tech credentials globally.

SenseTime’s plummet takes the on-paper loss for SoftBank’s Vision Fund, which holds about 4.7 billion shares, to about $1.5 billion in a single day, Redex Research analyst Kirk Boodry estimated.

Bloomberg reported in December that SenseTime secured funding from nine cornerstone investors including state-backed Mixed-Ownership Reform Fund and Shanghai Xuhui Capital Investment Co.

SenseTime went public at the end of December after the original share-sale schedule was derailed after a move by the US Treasury Department to sanction the company for its alleged role in creating facial-recognition software used in the oppression of Uyghur Muslims in the Xinjiang autonomous region of western China.

READ: How Huawei Landed at the Center of Global Tech Tussle: QuickTake

(Adds loss for SoftBank’s Vision Fund. An earlier version of the story corrected number of shares in second paragraph)

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President Xi Jinping has ventured outside mainland China for the first time since the Covid-19 pandemic erupted in January 2020, arriving in Hong Kong on the eve of the 25th anniversary of the former UK colony’s return to Chinese sovereignty.

Accompanied by Peng Liyuan, China’s first lady, Xi travelled by train from Shenzhen on Thursday afternoon and was greeted by school children, lion dancers and Hong Kong’s police band.

Chinese and Hong Kong security services are on heightened alert for Xi’s two-day trip. Ahead of the president’s arrival in a city that was rocked by pro-democracy protests in 2019, no-fly zones have been imposed over large areas and the People’s Liberation Army garrison in Hong Kong has boasted of its combat readiness.

In an interview published just days before Xi’s visit, Hong Kong garrison chief Major General Peng Jingtang said the PLA was boosting its defence capabilities in the territory. PLA forces in Hong Kong will be ready for combat in the “toughest and most complicated” fights, Peng told the official Xinhua news agency.

As an indication of those security jitters, Xi will spend the night in Shenzhen before returning to Hong Kong on Friday morning to preside over the swearing in of John Lee, the territory’s next chief executive, according to people familiar with his itinerary.

“The high-level security deployment has reflected Beijing’s growing concern over national security as well as the safety of state leaders at the highest level,” said Willy Lam, a political analyst at the Chinese University of Hong Kong.

Xi’s visit will probably be free of protests after democracy activists were warned by national security officials to stay at home. Many opposition figures are already in jail or exile. Before the imposition of a strict national security law on Hong Kong in June 2020, the annual July 1 handover anniversary was often marked by large pro-democracy protests.

As well as closures of roads, bridges and other transport facilities, police said drones were prohibited across Hong Kong and in Shenzhen, while a no-fly zone covered areas across the central Victoria Harbour.

Xi last visited Hong Kong in 2017 when Lee’s predecessor, Carrie Lam, began what proved to be a tumultuous term. As with the three China-appointed chief executives before her, Beijing did not allow Lam to serve two five-year terms — the maximum allowed under Hong Kong’s Basic Law, or mini-constitution.

At least 10 journalists from local and foreign media outlets, including news agencies Agence France-Presse and Reuters, have been banned from official events related to Xi’s visit this week over “security concerns”, the Hong Kong Journalists Association said.

“The restrictions, which came all of a sudden . . . and the unclear criteria for rejecting journalists from [attending the events] have seriously damaged Hong Kong’s press freedom,” the HKJA said. Hong Kong’s Foreign Correspondents’ Club and the Hong Kong News Executives’ Association also raised concerns over the bans.

“The purpose is to ensure maximum safety,” Regina Ip, incoming convener of Lee’s de facto cabinet, told the Financial Times. “There is no targeting of any particular media or individuals.”

Hundreds of guests, including officials, lawmakers and school children, were ordered into strict hotel quarantine before the events amid a surge in Covid-19 cases. More than 2,000 new infections were reported in Hong Kong on Wednesday.

Some envoys who were invited, including from the British consulate, will not attend because of the requirements, according to people familiar with the matter.

“Xi is likely going to offer carrot and stick to Hong Kong during his trip, with an emphasis on safeguarding national security and the principle of ‘patriots administering Hong Kong’,” said Chinese University’s Lam. “There could be new policies to help revive the city’s economy.”

Chinese national and Hong Kong flags have been hung along some city streets in an effort to create a festive atmosphere.

SoftBank and Toyota want to change the world of transportation through autonomous vehicles and other technologies.

The high-profile Japanese companies are forming a joint venture called Monet to develop businesses that will use driverless-car technology to offer new services, such as mobile convenience stores and delivery vehicles in which food is prepared en route.

SoftBank (SFTBF) will own just over half of Monet, while Toyota (TM) will hold the rest.

The new company’s name isn’t a reference to Claude Monet, the famous French painter, but rather a shortened version of the words “mobility network.”

Toyota President Akio Toyoda and SoftBank CEO Masayoshi Son attended the announcement of the project Thursday in Tokyo, a rare joint appearance by the heads of two of Japan’s biggest global companies.

Toyota first approached SoftBank with the idea of creating a Japanese alliance to try to catch up with global rivals that are developing autonomous driving tech.

Around the world, top carmakers and tech companies like Google’s parent, Alphabet (GOOGL), and China’s Baidu (BIDU) are pouring resources into self-driving vehicles.

Driverless vehicles have the potential to cause huge disruption in the auto industry and are also likely to transform the ride-hailing business.

Son, SoftBank’s billionaire founder, presides over a sprawling empire of artificial intelligence companies, internet businesses and ride-hailing startups, which can collect huge amounts of data on traffic patterns, passengers’ requests and other transportation trends.

The new venture taps into SoftBank’s advantages in tech and data, and Toyota’s vehicle-manufacturing expertise. Its aims include developing ways to tackle problems created by Japan’s rapidly aging society and shrinking workforce.

Over the next decade, Monet plans to roll out services like self-driving buses that can drive the elderly to grocery stores, hospital shuttles where medical exams can be done on board, and mobile offices. It will focus initially on Japan with a view to expanding globally.

SoftBank has already put money into autonomous driving. Its $100 billion tech-focused Vision Fund committed $2.3 billion to General Motors’ self-driving car unit GM Cruise earlier this year.

On Wednesday, another top Japanese company, Honda (HMC), said it would also invest $2.8 billion in GM Cruise.

Toyota has started pumping resources into driverless cars.

It set up a new company in March dedicated to the research and development of self-driving vehicles, with plans to invest $2.8 billion to develop a commercially viable autonomous car.

Both SoftBank and Toyota have invested in or partnered with some of the world’s biggest ride-hailing startups including Uber, China’s Didi Chuxing and Singapore-based Grab.

The new SoftBank-Toyota venture shows how relations between automakers and tech companies have shifted.

Twenty years ago, Son approached Toyota with the idea of connecting the company’s Japanese dealerships on the internet. But Toyoda turned him down.

Back then, Son said, SoftBank was a small company reaching out to the “giant rock” of Toyota. Today, it’s the carmaker that’s asking him for help.

— CNN’s Yoko Wakatsuki contributed to this report.

CNNMoney (Hong Kong) First published October 4, 2018: 1:32 AM ET

FCMB Bank (UK) Limited, an independently incorporated subsidiary of First City Monument Bank Limited (which is a member of FCMB Group Plc), has introduced its Personal and Business banking proposition in London, United Kingdom and Lagos, Nigeria at an impressive ceremony attended by the top echelon of the business community within and from outside the country.

The development follows the latest variation of permission obtained by the United Kingdom-based Bank to extend its services to include retail (investments) for individuals and business enterprises. This is in addition to the existing wholesale deposit taking activities, foreign exchange, treasury, corporate banking and trade finance offerings to corporate and institutional customers of FCMB Bank (UK) Limited.

The variation of permission was granted by the Prudential Regulation Authority, the financial services regulatory body of the United Kingdom, and it became effective on June 8, 2018.

The Personal and Business banking proposition of FCMB Bank (UK) Limited is anchored on the Bank’s London Leverage and Africa Awareness. This will enable the financial institution deliver its promise of being the Corporate and Private Bank for African-oriented entrepreneurs, investors and professionals across all their banking needs.

The Group Chief Executive of FCMB Group Plc, Mr. Ladi Balogun, explained at the ceremony that the launch of FCMB Bank (UK) Limited’s personal and business banking proposition is as much a statement of substance as it is one of intent. According to him, “our successful UK platform has proven to be of great importance to the Nigeria stockbroking and international trade finance activities of FCMB Group. Leveraging our deep networks in Africa’s biggest economy, the importance of a London presence to many of our Personal and Business banking customers, and technological innovation, we welcome this opportunity to meaningfully serve more of our customers and grow the value of our UK franchise”.

Also speaking, the Chief Executive Officer of FCMB Bank (UK) Limited, Mr. James Benoit, said, “with the extension of its services, the Bank is now able to receive deposits from both customer segments as well as provide them bank loans to enable them meet their financing needs. The deposit products on offer include current, notice savings and fixed deposit accounts at competitive rates; while its lending products include Buy-to-Let Mortgage Loans enabling target customers to acquire a piece of London and purchase property to include in their investment portfolios.’’.

He added that the Bank will be expanding its premises and entering into partnerships with Fintech providers to open up service options to its clients and enhance their overall banking experience.

Dignitaries at the launch commended the Board and Management of FCMB Group Plc for going the extra mile in ensuring the institution has a very strong presence in the United Kingdom through FCMB Bank (UK) Limited, which will go a long way to boost individual and business transactions between Nigeria and the United Kingdom, thereby enhancing customer experience.

Operating in the City of London, FCMB Bank (UK) Limited began its operations as a BIPRU €50k investment firm in September 2009 with CSL Stockbrokers (another subsidiary of FCMB Group Plc), providing the services of “receiving and transmitting” institutional client orders for Nigerian listed securities. Subsequent to the variation of its permission on September 27, 2013, the Bank commenced wholesale deposit taking activities across various segments.

See pictures from the launch below:

 

 

Every battle in “Divinity: Original Sin 2” can end in catastrophic failure. One wrong move on the player’s part can spell the end of the entire campaign, so it’s important to know every trick to prevent the party from getting wiped in a bad fight.

Here are a few important tips on how to come out of every combat encounter alive in “Divinity: Original Sin 2.”

Always scout ahead

While exploring, players can use one party member to scout ahead of the group while the rest stay a fair distance back.

If the scout gets spotted, the rest of the party can still freely move around without getting dragged into the fight. Use this opportunity to get them into advantageous positions to get the upper hand against the enemy.

Preferably, scouts should have the means to escape or soak damage. Movement skills like Teleport and Tactical Retreat are excellent for this role.

Use teleportation, mobility and displacement skills

Positioning is vital when it comes to tactical combat in “Divinity 2,” which is why mobility and displacement skills are held in such high regard.

Skills like Teleport and Nether Swap can turn the tide of battle in a flash. Use these abilities to put enemies in precarious positions, such as right next to a strong melee fighter or into a patch of burning oil. Players can also use Teleport to drop heavy objects on distant targets for some cheeky damage.

Be creative and use these abilities whenever possible.

Make pre-fight preparations

Sometimes, the best way to survive a battle is to not fight one in the first place. Skills like Persuasion and Sneaking can let players bypass fights entirely, and the Teleport skill often allows party members to reach paths that go straight through certain encounters.

Additionally, players can still move characters around even when one of them is engaged in dialogue with an NPC. Use this opportunity to get into position or lay traps for when the fighting breaks out.

Quicksave often

Like in most other RPGs, the Quicksave button will be the player’s best friend. Don’t be afraid to save before making a move and reload once things go sour.

Make a habit of saving before and during a fight to allow for quick redos and a bit of experimentation with strategies and tactics.

Divinity Original Sin 2’s combat areas can become incredibly messy once battles start raging
Photo: Larian Studios

The Dow Jones Industrial Average rose despite Federal Reserve Chairman Jerome Powell issuing an inflation warning. Tesla (TSLA) stock fell following news it is closing a Silicon Valley office. Bed Bath & Beyond (BBBY) plunged on earnings. Apple (AAPL) was a top blue chip.

A couple of stocks attempted breakouts despite the mixed action. General Mills (GIS) passed a buy point on earnings while AstraZeneca (AZN) also tested an entry.

X

Volume was mixed. It was up on the Nasdaq but lower on the New York Stock Exchange, according to preliminary data.

The yield on the benchmark 10-year Treasury note fell 11 basis points to 3.1%. West Texas Intermediate crude oil fell 2.2% to trade at just over $109 per barrel.

Fed Chair Powell Issues Inflation Warning

Federal Reserve Chairman Jerome Powell issued a warning on inflation at the European Central Bank forum on central banking.

He said there is “no guarantee” the Fed will be able to tame the problem of rising prices without damaging the jobs market.

U.S. Stock Market Today Overview
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	31027.92	+80.93	+0.26
S&P 500	(0S&P5)	3818.70	-2.85	-0.07
Nasdaq	(0NDQC )	11177.89	-3.65	-0.03
Russell 2000	(IWM)	170.65	-1.79	-1.04
IBD 50	(FFTY)	26.90	-0.34	-1.25
Last Update: 4:30 PM ET 6/29/2022

Powell also warned it is getting more difficult to achieve a so-called soft landing, though he believes it is still possible.

“It’s gotten harder,” he said. “The pathways have gotten narrower.”

Meanwhile, U.S. gross domestic product was revised down in the third estimate for Q1. It was changed to a 1.6% year-over-year drop from the previous estimate for a 1.5% decline. This is the first economic contraction since Q2 of 2020. Analysts had expected no revision.

Personal consumption spending was also revised lower to a 1.8% growth pace from a previous estimate for a 3.1% gain. No revision had been expected.

Nasdaq Firm As Small Caps Suffer

The Nasdaq ended the day fractionally negative. Paychex (PAYX) was the worst laggard as it fell 4.2%.

The S&P 500 also closed lower, this time falling 0.1%. Carnival (CCL) was a major laggard, dropping 14.1% as cruise stocks struggled.

The S&P 500 sectors were mixed. Health care and consumer staples were the best-performing areas. Energy and real estate were the worst laggards.

Small caps were given a spanking by the bears though, with the Russell 2000 falling 1%.

Growth stocks were mauled by the bears, with the Innovator IBD 50 ETF (FFTY) closing the day down 1.3%.

Dow Jones Today: Apple Stock, McDonald’s Lead

The Dow Jones Industrial Average bucked the trend by gaining around 80 points, or 0.3%.

Apple stock was one of the top components on the Dow Jones today. It ended the session up 1.3%.

It remains rooted below its 50-day moving average despite the gain, according to MarketSmith analysis.

Fellow tech giant Microsoft (MSFT) also did well as it muscled 1.5% higher.

But it was McDonald’s (MCD) that made the meatiest move on the Dow Jones today as it rose 2%.

Tesla Stock Falls Amid Closure

Tesla stock ended the day lower following reports the firm is closing an office in Silicon Valley.

The stock fell after it emerged the firm is closing a facility in San Mateo, Calif., where employees worked on the firm’s Autopilot systems. An estimated 200 jobs are being lost.

The news comes after CEO Elon Musk previously revealed the firm was looking to cut about 10% of its salaried staff even as it hires more hourly production workers. Tesla previously moved some Autopilot data employees to its Palo Alto, Calif., location. It has also mustered data annotation teams in Buffalo, N.Y.

Cutting costs is becoming a key aim for the EV giant. Musk previously described the firm’s new factories in Berlin, Germany, and Austin, Texas, as “gigantic money furnaces.”

Tesla stock closed the day off lows but still fell 0.4%. The former Leaderboard stock remains stuck well below its 50-day moving average. It is near the lows of a consolidation pattern with a 1,208.10 entry.

BBBY Stock Dives On Earnings, Management Shake-Up

Bed Bath & Beyond cratered after the firm served up a disastrous earnings report.

The home goods retailer lost $2.83 while analysts had expected a $1.39 loss. Revenue of $1.46 billion was also lower than expected. The firm also announced that CEO Mark Tritton has fallen on his sword. He is being replaced on an interim basis by Sue Gove, an independent director on the board.

“I step into this role keenly aware of the macroeconomic environment,” she said in a statement.

The retail giant ended the day down nearly 24%. It sold off in mammoth volume. It sits 50% below its 50-day moving average, according to MarketSmith data. 

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Ailing Rally Seeks Direction; Inflation, Jobs Data Due

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Outside Dow Jones: These Stocks Test Entries

With the current uptrend under pressure, investors should exercise caution on breakouts. Nevertheless, a couple of stocks made bullish moves Wednesday.

General Mills managed to break out of a cup base with an ideal buy point of 74.09.

It was boosted after posting an earnings beat. Revenue also came in above Wall Street expectations. EPS rose 23% to $1.12 per share.

The relative strength line hit a new high and the stock spiked in heavy volume. All-around performance is very strong, with its IBD Composite Rating coming in at 87 out of 99. It is in the top 6% of stocks in terms of price performance over the past 12 months.

AstraZeneca managed to break out from a double-bottom base, though it closed below the entry. The ideal entry point here is 67.50.

AZN is back above the 50-day moving average while the relative strength line is hitting fresh heights. All-around performance is excellent and earnings are seen spiking. EPS is expected to grow by 34% this year before slowing to 17% growth in 2023.

AZN specializes in biopharmaceuticals, oncology and rare disease treatments.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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