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Citi: China battery production schedules weaken: top five manufacturers expected to cut output plans by another 2% month on month in November

Citi's channel survey shows that actual production schedules in October were below the level indicated by its mid-month survey, and the top five battery manufacturers' planned output is expected to fall to 187.5 GWh in November. A narrowing window to bring forward exports, the approaching Lunar New Year off-season and the addition of new capacity could together put pressure on battery selling prices and margins.

Citi: The Fed may pause rate hikes in October, but another 25-basis-point increase remains possible in December

Citi expects the Fed to hold rates steady in October, but Chair Warsh may continue to signal that the hiking cycle is not over; the bank’s forecast for a December hike differs from the market pricing shown in the report.

Bank of America: UPS raises full-year guidance: Small-business parcel growth, but Amazon volume cuts still weigh on operations

UPS reported third-quarter adjusted earnings per share slightly above expectations and raised its 2026 revenue and profit targets. Growth in its US small and medium-sized business segment and improved revenue per piece supported profit, but US and international parcel volumes still fell year over year.

Citi: S&P has room to rise by year-end, but earnings breadth and AI investment returns face tests

The S&P 500 index has risen 1% so far in the fourth quarter and is near its all-time high. Citi sees a path higher by year-end, but its 8100-point target now looks aggressive. Earnings breadth, interest rate expectations, AI capital spending and the midterm elections will all affect the extent of any gains.

Nomura: Tianfu Communication’s third-quarter growth rebounds: passive components improve margins, while optical engines remain constrained by component shortages

Nomura raised its earnings forecasts for Tianfu Communication for 2027–2028, citing strong prospects for high-margin passive components and demand for NPO and CPO. However, optical-engine component shortages lowered its 2026 expectations, while a reduced valuation multiple also brought its target price down to 232 yuan.

Citi: UMC price increases and improved AI expansion outlook prompt Citi to raise target price despite earnings forecast cuts

UMC expects its blended average wafer selling price to rise about 10% year over year in 2027, and its AI business plans are becoming clearer. However, rising depreciation and material costs and weak consumer demand have led Citi to lower its earnings forecasts for the next two years.

Citi: Genie 4 advances real-time interaction as Chinese video models take different paths toward world models

Genie 4 improves on its predecessor with stronger real-time simulation, physical realism and native audio. Citi believes video generation models could extend into interactive world models, but foundation model capabilities, coherence and computing costs remain key constraints.

Citi: Copper-clad laminate leaders beat third-quarter profit expectations as AI product price increases take over from capacity expansion

Citi believes customers are seeking to secure supply under long-term agreements, and its view that copper-clad laminate demand will exceed supply in 2027 and beyond is unchanged. Both manufacturers reported third-quarter gross margins above expectations. Fourth-quarter growth will be driven respectively by price increases, product mix and new capacity.

Citi: Hengli Hydraulic: Mexico and ball screw capacity expansion as Citi looks to faster profit growth in 2027

Citi expects Hengli Hydraulic's revenue to grow 30% in 2026, while net profit rises only about 5%. Higher production volumes at two new facilities could improve profitability in 2027, but the ball screw business's gross margin and capacity utilization remain key constraints.

Citi: China’s scrap steel use returns to growth in September, weakening a source of support for iron ore demand

Citi estimates that China’s implied scrap steel use rose 14% year on year in September, but was still down 4% in the first three quarters; changes in the substitution of scrap for pig iron affect demand for iron ore imports.

Citi: Microsoft Azure growth rises to 48% as Copilot accelerates commercial cloud revenue

In Microsoft’s first quarter of fiscal 2027, growth in Azure and M365 commercial cloud exceeded market expectations, and cloud gross margin improved from the previous quarter. However, commercial seat growth slowed, and the Windows business continued to decline.

Bernstein: Samsung Electronics: HBM4 ramps up rapidly, fourth-quarter memory shipment guidance beats expectations

Samsung’s memory prices rose and HBM4 revenue expanded in the third quarter. Its fourth-quarter DRAM and NAND shipment growth guidance exceeded Bernstein’s forecasts, but net profit fell short of consensus, and a decision on a new shareholder return policy must wait until early 2027.

J.P. Morgan: Australian pension funds are tracking indexes more closely, amplifying earnings-season volatility, JPMorgan says

The average active share of 12 large pension managers fell from 25.6% at the end of 2024 to 19.7% in June 2026. Meanwhile, allocations continued to shift toward global equities; within Australian equity portfolios, funds increased bank holdings and favored mid-cap stocks.

Citi: Singles’ Day (Double 11) shifts to direct price cuts; Citi expects overall GMV growth to slow to 2%–5%

Tmall’s digital electronics and mobile phone sales and Douyin’s livestreaming activity were strong in the opening phase, but general e-commerce grew only 0.9% during this year’s 618 shopping festival. Citi expects overall growth during Singles’ Day (Double 11) to slow from last year, while platforms place greater emphasis on conversion, retention and merchant efficiency.

Nomura: Ningbo Orient Wires & Cables: Revenue recognition accelerates, while expenses and impairment slow profit growth

Third-quarter 2026 revenue rose 40% year on year, while net profit grew just 9%; Nomura lowered its earnings forecasts for the next three years and is watching for new submarine cable orders.

Nomura: Sangfor’s third-quarter revenue rises 31%, but costs squeeze gross margin

Nomura believes enterprise demand for AI cloud services and security products is driving business growth, but rising component prices and competition in the cybersecurity market may continue to pressure gross margin; the bank maintains a neutral rating.

Nomura: Microsoft lowers full-year capital spending, but AI computing demand still exceeds supply

Third-party computing capacity delivery delays led Microsoft to reduce its 2026 capital expenditure guidance from 175 billion dollars to 170 billion dollars; management expects spending to exceed 50 billion dollars next quarter and accelerate in the first half of 2027.

Nomura: UMC bets on AI-related products: average selling prices expected to rise in 2027, alongside expansion costs

UMC expects its blended average wafer selling price for full-year 2027 to rise 10% year over year and aims to increase AI-related revenue to more than a quarter of total revenue by 2029. High capacity utilization supports pricing power, but new capacity, depreciation and raw material costs will affect margins.

Nomura: CHPT: New projects lift valuation, while near-term margins and revenue timing face tests

Nomura is positive on CHPT’s progress in cloud service provider processor and AI testing projects, raising its target price from NT$3000 to NT$4000; however, deliveries of low-margin products and expense guidance prompted it to lower its earnings forecasts.

Nomura: SK hynix: Memory price increases lift operating profit; can buybacks amplify earnings per share?

In the third quarter of 2026, SK hynix’s operating profit exceeded Nomura’s expectations, but net profit fell sharply quarter on quarter. Nomura is positive on future memory prices and shareholder returns, and expects share repurchases and cancellations to further boost earnings per share.