Finance

The head of China’s central bank told a closely watched meeting Tuesday that the People’s Bank of China planned to maintain supportive monetary policy, state media said.
The PBOC head added the central bank plans to “increase the intensity of counter-cyclical monetary policy,” state media said in Chinese, translated by CNBC.
He was presenting a report on financial work at this week’s meeting of the National People’s Congress Standing Committee.

Pan Gongsheng, governor of the People’s Bank of China, delivers a speech during the 2024 Lujiazui Forum on June 19, 2024 in Shanghai, China.
Vcg | Visual China Group | Getty Images

BEIJING — The head of the People’s Bank of China said in a closely watched meeting Tuesday that the central bank planned to maintain supportive monetary policy, according to state media.
PBOC Governor Pan Gongsheng added that the central bank intended to “increase the intensity of counter-cyclical monetary policy,” state media said in Chinese, translated by CNBC. Counter-cyclical policies refer to measures intended to address short-term economic developments. Pan has used similar language in recent months.

He was presenting a report on financial work at this week’s meeting of the National People’s Congress Standing Committee. The gathering, which wraps up Friday, is widely expected to approve further fiscal stimulus.
Finance Minister Lan Fo’an addressed the committee Monday about a plan to increase the local government debt limit in order to replace hidden debt, state media said. Lan on Tuesday also presented a report on managing state-owned assets, according to state media.
The PBOC in late September started cutting several of its interest rates in a bid to shore up slowing growth. The moves followed the U.S. Federal Reserve’s shift into an easing cycle with a large 50 basis-point cut in mid-September. The Fed is expected to lower rates again when its two-day meeting ends Thursday local time. More

A specialist trader works inside a post on the floor at the New York Stock Exchange on Oct. 23, 2024.
Brendan McDermid | Reuters

Treasury yields rose in early trading Tuesday evening as investors awaited results from the tight presidential race between Vice President Kamala Harris and former President Donald Trump.
The 10-year Treasury yield traded 7 basis points higher at 4.6%. The yield on the 2-year Treasury was also up by 6 basis points to 4.27%. One basis point is equivalent to 0.01%. Yields and prices have an inverted relationship.

Bond yields could see a big pop in the event of a Trump win, and they could surge in a Republican sweep, where the party captures control of Congress and the White House. That is because Republicans may introduce tax cuts and steep tariffs, moves that could widen the fiscal deficit and reignite inflation.
“If there’s a Republican sweep of House, Senate and the presidency, I expect the bond market to be wobbly,” Jeremy Siegel, finance professor at the Wharton School of the University of Pennsylvania, said on CNBC’s “Squawk Box” on Tuesday. “I expect them to be worried that Trump would enact all those tax cuts, and I think bond yields would rise.”
Neither Trump nor Harris really promised fiscal discipline on the campaign trail, raising worries that investors will demand higher yields in exchange for holding Treasuries as the government is forced to issue more and more debt to fund its ballooning spending.
The yield can be expected to approach 4.5% in the event of a Trump win, or fall toward 4% under a Harris victory, according to Stephanie Roth, chief economist at Wolfe Research.
A Harris administration with a divided Congress may prompt bond yields to retreat.

“I think a split Congress, whoever wins the presidency, is probably the favorite for the markets, so that neither candidate can get his or her full plan pushed through,” Siegel said.
The benchmark 10-year Treasury yield surged 50 basis points in October, marking the biggest monthly increase since September 2022.
On Thursday, the Federal Reserve will make its next decision on interest rates and is widely expected to slash rates by a quarter point. More

Trump Media experienced a flurry of trading activity Tuesday as a possible proxy for Donald Trump’s presidency chances.
The Truth Social parent lost $19.2 million in its third quarter.
Trump Media reported about $2.6 million in revenue and a net loss of $363 million for the first nine months of 2024.

Republican presidential nominee and former U.S. President Donald Trump speaks at a campaign town hall meeting in Lancaster, Pennsylvania, on Oct. 20, 2024.
Brian Snyder | Reuters

Trump Media, which experienced a flurry of trading activity Tuesday as a possible proxy for Donald Trump’s presidency chances, revealed after the closing bell Tuesday a loss for the third quarter along with a slight drop in already-meager revenue.
The Truth Social parent lost $19.2 million during the period. Revenue fell 5.6% to just $1.01 million from the year-earlier period. The filing was not telegraphed to investors beforehand and came as a surprise to traders not expecting it on Election Day, the very day the former president and Trump Media majority owner squares off against Vice President Kamala Harris.

Shares rose more than 6% in after-hours trading following the filing. Earlier in the day, the stock gave up an 18.6% surge to close 1.2% lower. The shares could move in the after hours or on Wednesday depending on the election results.
Trump Media, which trades under the ticker DJT, has seen volatile trading lately. Over the past week, it is down more than 34%. However, it is still up 93% year to date.
Volume for the stock more than doubled its average 30-day volume.
Trump Media also reported about $2.6 million in revenue and a net loss of $363 million for the first nine months of 2024. On top of that, the company boasted that it ended the third quarter with $673 million in cash and investments, along with no debt.
“This has been an extraordinary quarter for the Company,” CEO Devin Nunes said in a statement. Trump Media is continuing to “explore additional possibilities for growth.”
— Additional reporting by CNBC’s Kevin Breuninger

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Republican presidential nominee and former U.S. President Donald Trump reacts at a rally in Las Vegas, Nevada, U.S. September 13, 2024. 
Piroschka Van De Wouw | Reuters

Shares of Trump Media & Technology rose on Election Day Tuesday, with traders betting a second Trump presidency would give the business prospects of the Truth Social operator a boost.
The stock, which trades under the ticker DJT — former President Donald Trump’s initials — is also seen as a proxy for Republican candidate’s prospects of retaking the White House. Wall Street research firms listed the stock as one to watch leading into Tuesday.

Shares were last up about 8.2% in premarket trading.

Stock chart icon

DJT 1-day chart

Year to date, Trump Media, which is majority-owned by Trump, has nearly doubled. However, it has struggled recently, as Vice President Kamala Harris appeared to gain momentum heading into Election Day. Shares have plummeted 33% over the past week. But the stock was up 12% on Monday.
“We are trading this like GameStop on steroids right now,” said Jay Woods, chief capital strategist at Freedom Capital Markets, on CNBC Monday.
“And you know, kudos to those that are trading it making money. But over the long term, the metrics don’t make any sense,” Woods added.
Trump Media shares have seen huge retail trader inflows in the week’s leading up to the election and has been the most-discussed stock on Reddit page WallStreetBets, which gained popularity during the GameStop fueled stock meme fad of 2021.

Despite the wild swings in DJT stock, the latest NBC News poll shows Trump and Harris are neck and neck, with both candidates getting support from 49% of voters.
—With reporting by Kevin Breuninger and Alex Harring More

Deeproute.ai, a Chinese startup developing autonomous driving systems, announced a $100 million funding round Tuesday from an undisclosed automaker, while emphasizing close ties with chipmaker Nvidia.
Pitchbook data showed Chinese company Great Wall Motor led the investment.
The startup is also in “deep cooperation” with Nvidia, Maxwell Zhou, CEO of DeepRoute.ai, told reporters Tuesday in Mandarin, translated by CNBC.

A car with autonomous driving system by Alibaba-backed DeepRoute.ai, drives on a street in Shenzhen, Guangdong province, China July 27, 2022. 
David Kirton | Reuters

BEIJING — Deeproute.ai, a Chinese startup developing autonomous driving systems, announced a $100 million funding round Tuesday from an undisclosed automaker, while emphasizing close ties with chipmaker Nvidia.
Pitchbook data showed Chinese company Great Wall Motor led the investment.

It’s been difficult to obtain financing, especially from a non-government source, Maxwell Zhou, CEO of DeepRoute.ai, told reporters Tuesday in Mandarin, translated by CNBC.
The startup is also in “deep cooperation” with Nvidia, Zhou said, noting “in-depth discussions” with the chipmaker’s CEO Jensen Huang.
Zhou spoke on “Commercializing mass-produced autonomous driving solutions” at Nvidia’s closely watched GTC AI conference in March.

Shenzhen-based Deeproute said it uses Nvidia’s Orin chip for its current driver-assist system.
The startup added it is part of the first batch of companies in China to obtain Nvidia’s newer Thor chip for cars and will release a new system using it next year that can use more visual cues to manage more complex driving scenarios.

“Lots of companies in China are competing on autonomous driving. It is actually a competition over AI,” Zhou said.
In terms of AI computing power, Deeproute said it has its own capacity, and can tap Alibaba’s if needed. The e-commerce and cloud computing company led a $300 million investment round in Deeproute in 2021, giving it a valuation of more than $1 billion just two years after it was founded in 2019, according to the startup.
The U.S. in October 2022 imposed sweeping restrictions on China’s ability to access the most advanced semiconductors from Nvidia and other American companies. Automotive chips don’t currently fall in that category.
Nvidia is scheduled to release earnings for the quarter ended Oct. 27 on Nov. 20. For the quarter ended July 28, the chipmaker said its automotive segment saw revenue rise by 37% year-on-year to $345 million.

Eyes on Japan

Deeproute currently works with Chinese automakers selling in China. The company expects at least three car models using its driver-assist system will hit the road this year.
Already, Deeproute’s systems are running in more than 20,000 cars on the road, Zhou said. He expects that number to increase, potentially by ten-fold, next year.
The startup, which has an office in California, said it is looking to work with foreign automakers and plans to participate in Japan’s auto show next year.

Tesla competition

Deeproute has focused on using artificial intelligence to automatically drive cars, without relying on “high-definition maps.” That allows a vehicle to use driver assist tech on roads where those technical parameters haven’t been created.
It’s a trend car tech companies such as Xpeng and Huawei are pursuing — and Tesla’s strategy for developing autonomous driving. Elon Musk’s car company has focused on using cameras and artificial intelligence to steer the vehicle, without heavy reliance on HD maps.
Those maps, used by autonomous driving companies such as Alphabet’s Waymo, give a car a detailed picture of city streets. But they need to be created before a car runs on the road, a process that can drive up costs.
Zhou said the company is very eager for Tesla’s driver-assist product — called “Full Self-Driving” — to enter China. His reasoning is that Tesla’s product will encourage more consumers to become more interested in driver-assist features — and boost Deeproute’s prominence in the sector.
When asked about IPO plans, Zhou said the startup would keep to its own development pace, but it welcomed the latest public offerings of other industry players.
Chinese autonomous driving software developer WeRide went public on the Nasdaq last month, while robotaxi operator Pony.ai has filed for a U.S. IPO.

Industry focus on driver-assist

Companies in China’s autos industry are increasingly looking at driver-assist tech as a way to stay competitive in the market.
Pony.ai announced Saturday an agreement to cooperate on mass-development of fully autonomous robotaxis with state-owned Beijing Automotive Group’s new energy vehicle subsidiary.
Tencent on Monday announced it extended its strategic cooperation with German autos supplier Bosch to work on autonomous driving and tech-enabled cockpits. The two companies first agreed to strategic cooperation in 2020.
Clarification: This story has been updated to reflect that Deeproute was part of the first batch of companies in China to obtain Nvidia’s new Thor chip for cars. More

Chinese home appliance company Hisense aims to become the No. 1 seller of television sets in the U.S. in about two years, Catherine Fang, president of Hisense International, told CNBC in an exclusive interview Monday.
In its bid to boost its brand in the U.S., the company last week became the first official partner of the FIFA Club World Cup that’ll kick off in Miami in June 2025.
Hisense ranked second by North America market share for TV set shipments, behind Samsung, according to Counterpoint data for the second quarter.

TV screens show global hit video game “Black Myth: Wukong” at Hisense booth during the IFA Berlin 2024 on September 6, 2024 in Berlin, Germany.
China News Service | China News Service | Getty Images

BEIJING — Chinese home appliance company Hisense aims to become the No. 1 seller of television sets in the U.S. in about two years, Catherine Fang, president of Hisense International, told CNBC in an exclusive interview Monday.
In its bid to boost its brand in the U.S., the company last week became the first official partner of the FIFA Club World Cup that’ll kick off in Miami in June 2025. FIFA President Gianni Infantino, FIFA Secretary General Mattias Grafström, and Hisense Group Chairman Jia Shaoqian attended an event in Shanghai on Oct. 30 to mark the partnership.

“We hope through this sponsorship we can increase our market share,” Fang said in Mandarin, translated by CNBC. Sports events can burnish Hisense’s image as a premium brand, she added.
The company’s newest TVs use an in-house artificial intelligence chip to improve image rendering, Fang said, noting plans to increase the use of AI for improving audio quality, or providing athlete stats via voice command. The company was not immediately able to share to what extent those features were available on TV sets in the U.S.
Hisense’s 55-inch U8 TV series starts at around $700 in the U.S., while the 100-inch version costs around $3,000 or more.

In the second quarter, the company shipped the second highest number of TV sets in North America, behind Samsung, according to research firm Counterpoint.
“Hisense and TCL, which have been focusing on normal LCD TVs, are trying to increase their market share by strengthening their advanced TV portfolios such as QD-LCD and Mini LED LCD,” Counterpoint said.

Hisense also sells home appliances such as refrigerators and washing machines, often called white goods.
Fang said the company aims to become the top Chinese brand of such white goods in North America, also in roughly the next two years.
While China-based companies have been eyeing overseas markets relatively recently as growth at home slows, Hisense has built up its global business over several decades.
Hisense generates half of its revenue outside China, with North America accounting for about 30% of its overseas sales, Fang said. More

A closely watched meeting of China’s parliament on Monday reviewed a proposal to raise the local government debt limit, according to state media.
New debt would go toward replacing hidden debt, the report said, noting that Finance Minister Lan Fo’an spoke at the meeting on the plan.
The standing committee of China’s National People’s Congress is meeting this week and widely expected to approve further fiscal support for the country’s slowing economy.

A Chinese flag flutters on top of the Great Hall of the People ahead of the opening ceremony of the Belt and Road Forum (BRF), to mark 10th anniversary of the Belt and Road Initiative, in Beijing, China October 18, 2023.
Edgar Su | Reuters

BEIJING — A closely watched meeting of China’s parliament standing committee on Monday reviewed a proposal to raise the local government debt limit, according to state media.
New debt would go toward replacing hidden debt, the report said, noting that Finance Minister Lan Fo’an spoke at the meeting on the plan.

Lan indicated at a press conference last month that an increase in the local debt limit was in the works. Local authorities in China have historically been responsible for much of public services spending, but have struggled financially as revenue from land sales to developers has dropped.
China has about 50 trillion yuan to 60 trillion yuan (about $7 trillion to $8.45 trillion) in outstanding hidden debt, according to Ting Lu, chief China economist at Nomura.

In a report Friday he estimated about 10 trillion yuan in additional debt quota could be approved over the next few years to swap out part of the hidden debt.
“Beijing might eventually raise the debt swap to RMB15trn, if China’s economy faces even bigger challenges,” Lu said.
The standing committee of China’s National People’s Congress is meeting this week and widely expected to approve further fiscal support for the country’s slowing economy. Committee Chair Zhao Leji is leading the gathering, scheduled to wrap up Friday. More

Traders work on the floor at the New York Stock Exchange on Oct. 24, 2024.
Brendan McDermid | Reuters

Stocks typically rise after a presidential election, but investors need to be prepared for some short-term choppiness first, history shows.
The three major benchmarks on average have seen gains between Election Day and year-end in the presidential election year going back to 1980, according to CNBC data. However, investors should not be expecting a straight shot up in the market after polls close.

The S&P 500 after the election

Election Date
Day After
Week After
Month Later
Year End

11/3/2020
2.20%
5.23%
8.83%
11.48%

11/8/2016
1.11%
1.91%
4.98%
4.64%

11/6/2012
-2.37%
-3.77%
-1.01%
-0.15%

11/4/2008
-5.27%
-10.62%
-15.96%
-10.19%

11/2/2004
1.12%
2.97%
5.29%
7.20%

11/7/2000
-1.58%
-3.42%
-6.17%
-7.79%

11/5/1996
1.46%
2.16%
4.23%
3.72%

11/3/1992
-0.67%
-0.31%
2.38%
3.76%

11/8/1988
-0.66%
-2.48%
0.52%
0.93%

11/6/1984
-0.73%
-2.61%
-4.49%
-1.86%

11/4/1980
2.12%
1.72%
5.77%
5.21%

Average
-0.30%
-0.84%
0.40%
1.54%

Median
-0.66%
-0.31%
2.38%
3.72%

Source: CNBC

In fact, the three indexes have all averaged declines in the session and week following those voting days. Stocks have tended to erase most or all of those losses within a month, CNBC data shows.
This means investors should not be anticipating an immediate pop on Wednesday or the next few days after.

The Dow after the election

Election Date
Day After
Week After
Month Later
Year End

11/3/2020
1.34%
7.06%
9.06%
11.38%

11/8/2016
1.40%
3.22%
6.99%
7.80%

11/6/2012
-2.36%
-3.70%
-1.30%
-1.07%

11/4/2008
-5.05%
-9.68%
-12.98%
-8.82%

11/2/2004
1.01%
3.49%
5.47%
7.45%

11/7/2000
-0.41%
-2.48%
-3.06%
-1.51%

11/5/1996
1.59%
3.04%
5.85%
6.04%

11/3/1992
-0.91%
-0.83%
0.74%
1.50%

11/8/1988
-0.43%
-2.37%
0.67%
1.93%

11/6/1984
-0.88%
-3.02%
-5.92%
-2.62%

11/4/1980
1.70%
0.73%
3.55%
2.86%

Average
-0.27%
-0.41%
0.83%
2.27%

Median
-0.41%
-0.83%
0.74%
1.93%

Source: CNBC

That is especially true given the chance that the presidential race, which is considered neck-and-neck, may not be called by Wednesday morning. America may also need to wait for close Congressional races to have final counts for determining which party has control of either house.

The Nasdaq Composite after the election

Election Day
Day After
Week After
Month Later
Year End

11/3/2020
3.85%
3.52%
10.90%
15.48%

11/8/2016
1.11%
1.58%
4.31%
3.65%

11/6/2012
-2.48%
-4.25%
-0.75%
0.25%

11/4/2008
-5.53%
-11.19%
-18.79%
-11.41%

11/2/2004
0.98%
2.95%
8.00%
9.61%

11/7/2000
-5.39%
-8.12%
-19.41%
-27.67%

11/5/1996
1.34%
2.23%
5.78%
5.04%

11/3/1992
0.16%
3.83%
8.56%
11.97%

11/8/1988
-0.29%
-1.77%
-0.96%
0.67%

11/6/1984
-0.32%
-1.08%
-4.58%
-1.27%

11/4/1980
1.49%
0.97%
6.75%
4.76%

Average
-0.46%
-1.03%
-0.02%
1.01%

Median
0.16%
0.97%
4.31%
3.65%

Source: CNBC

The “election is now center stage as the next catalyst for financial markets,” said Amy Ho, executive director of strategic research at JPMorgan. “We caution that uncertainty could linger on the outcome as the timeline for certifying election results could take days for the presidential race and weeks for the House races.”
This election comes amid a strong year for stocks that has pushed the broader market to all-time highs. With a gain of about 20%, 2024 has seen the best first 10 months of a presidential election year since 1936, according to Bespoke Investment Group.

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