Sorting The Leftovers

Soccer is not just trending because of the World Cup this week. It’s also trending because Manchester United’s stock is going gangbusters. 😮

The soccer franchise saw its shares rise 60% this week on news that its owners are exploring a sale. And they expected a “bidding war” to take place. It was also in the news because Cristiano Ronaldo and the club mutually agreed that the superstar would leave the club “with immediate effect.”

Whether or not the rally will lead to investors scoring a goal remains to be seen. But for now, this trending stock seems to have some staying power in the minds of investors and traders. 🧠

There was a slew of car news today, so let’s recap. 🚗

Tesla has to recall over 80,000 cars in China over software and seatbelt issues. This has investors watching, given China is one of its most important markets.

Ford recalls 518,000 SUVs in the U.S. over a possible fuel leak and fire risk. The company also put out tips for owners to maximize their Ford F-150 lightning range during the colder winter weather. 🥶

Vietnam’s VinFast is shipping its first 999 electric vehicles to U.S. customers. This ends a five-year bid to develop an auto production hub for markets in North America and Europe. The company expects its second batch of cars to be shipped to the U.S. in January.

Renault wants to use water from 4,000 meters below the surface to supply heat to an old production plant. The idea is “one of the most ambitious decarbonization projects on a European industrial site.” Geothermal technology could also produce carbon-free electricity during the summer months. Overall, this is an important step for Renault and Europe to reach their carbon neutrality goals. ⚡

After a strong month of gains, Chinese stocks are pulling back on news that lockdowns are once again hurting its economy.

The country’s capital city, Beijing, struggles to keep Covid under wraps as Thursday’s local infections rise to 1,800. That brings the monthly total to 10,000, prompting additional lockdown measures that will grind its economy to a halt. Road, subway, and other transportation use are down dramatically in Beijing and smaller cities.

Additionally, unrest continues at Foxconn plants where Apple iPhones are made. Roughly 20,000 workers, most of which were recently recruited, have left their posts over concerns about lockdowns and working conditions. They’ve also clashed with security personnel this week as tensions remain high. Many analysts expect this and other Covid-related conditions in China to weigh on supply chains further.

Meanwhile, China’s central bank is strengthening efforts to support its struggling property market, which makes up 25% of its economy. It plans to offer cheap loans to financial firms that buy bonds issued by property developers. It’s also drafting a list of good-quality and systemically important developers eligible for broader government support to improve their balance sheets.

The central bank is also reducing its reserve requirement ratio for banks by 25 bps beginning on December 5th. This frees up $70 billion for banks to support the country’s slowing economy.

We’ll have to see how this develops. But for now, tensions in the country are high. And global investors remain concerned.