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 is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data,” economists led by Hui Shan said in a note.
They added that the government is probably working on an exit strategy, and that the firm expects the country to reopen in 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 end of next year.
This under-the-radar battery materials supplier to Tesla, which already has triple-digit revenue growth, plans to expand manufacturing into the United States.
Even JP Morgan’s analysts who use a “conservative valuation approach” expect the stock to rally by 25% in a year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Apple says iPhone production temporarily reduced because of Covid-19 restrictions in China
Apple said iPhone 14 production has been temporarily reduced because of Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement Sunday.
The warning could mean the tech company may struggle to meet demand in December as it deals “significantly reduced capacity” at the plant. The company has previously signaled slowing growth in its iPhone business in its earnings report last month.
The warning from Apple comes as China in the past week ordered lockdowns in Zhengzhou, where Apple does the majority of its iPhone production. According to Reuters, employees have fled the facility because of Covid restrictions and outbreaks.
— Sarah Min, Kif Leswing
CNBC Pro: There are still opportunities in tech — here’s 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 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 opportunities to investors.
Here are some of their top picks, including one stock with an average upside of over 50%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
