Prediction markets put the probability of a Democratic House victory above 90%, but the Senate race is less certain. Goldman Sachs expects no major shift in fiscal policy over the next two years, with spending potentially rising slightly while the effective US tariff rate may still increase.
TrendForce expects PC DRAM prices to rise more in the fourth quarter of 2026 than Goldman Sachs forecasts, while its server DRAM outlook is broadly in line; smartphone DRAM and NAND are constrained by inventories and purchasing appetite.
Third-quarter revenue in 2026 rose 25% quarter on quarter, exceeding Goldman Sachs’ forecast; a rising share of AI cabinets also weighed on the gross margin outlook, prompting the bank to cut its full-year profit forecast and price target.
Charging and consumer energy storage grew faster than Goldman Sachs expected, while cleaning appliances weighed on the smart home business. Improved expense efficiency supported profit, but the third-quarter gross margin declined slightly.
Third-quarter revenue rose 25% quarter over quarter and gross margin increased to 46.6%. Goldman Sachs is optimistic about the ramp-up of 1.6T optical modules, but has cut its revenue forecasts for the next three years and lowered its A- and H-share price targets because of tight component supplies.
CRRC’s third-quarter EMU deliveries fell to 12 trainsets from 70 in the second quarter, and revenue fell short of Goldman Sachs’ expectations; Times Electric’s revenue grew 17%, but margins and operating cash flow came under pressure. Goldman Sachs cut its earnings forecasts for both companies and maintained its Buy rating on CRRC’s H shares.
Falling stocks weighed on insurers’ profits, while growth in the value of new life insurance business also slowed markedly. Goldman Sachs expects its covered insurers to post an aggregate net loss in the fourth quarter if the market does not recover before year-end; property and casualty underwriting performed better than expected.
Goldman Sachs believes the baijiu industry has yet to see a broad-based recovery: Moutai and J S Jiu outperformed most peers, but inventory digestion, cash flow and dividend commitments will shape the outlook.
From 2 November, the overnight reverse repo rate replaces the 7-day rate as the policy benchmark. Goldman Sachs believes the adjustment will allow more flexible liquidity provision and reflects policymakers’ focus on credit risk.
The manufacturing PMI fell to 49.3 and the non-manufacturing PMI to 49.7, both below Goldman Sachs forecasts and the Bloomberg survey consensus. Goldman Sachs said seasonal factors explained part of the decline, but activity slowed across manufacturing, services and construction.
A shift toward higher-specification products and higher DRAM prices boosted third-quarter profitability, with operating profit exceeding Goldman Sachs’ forecast by 29%; the bank expects revenue to continue growing in the fourth quarter, but gross margin and operating profit to decline quarter on quarter.
Nomura estimates that domestic auto sales in China fell about 25% year over year in October 2026. BYD and XPeng grew on exports and new models, while deliveries weakened at NIO and Li Auto; taxes, costs and export requirements pose further challenges for the industry.
Nomura believes enterprise AI competition is shifting from model capabilities to the integration of applications and business processes. Meanwhile, ByteDance’s and Alibaba’s revenue advantages in China’s model-as-a-service market come from video generation and large language models, respectively.
The overnight reverse repo rate has been set at 1.25%, replacing the 7-day operation rate as what Nomura considers the main policy anchor. The operating corridor has moved down by 15 basis points, signaling greater tolerance for ample liquidity, but the change in tenor itself will not automatically lead to a reduction in the LPR.
Group revenue rose 11% year over year in the third quarter, but core net profit fell 47%. Management believes the quarter-on-quarter impact of chip costs peaked in the third quarter, while year-over-year pressure will persist through the first half of 2027.
Intel expects client revenue to fall more than 20% sequentially in the fourth quarter of 2026, with server growth insufficient to offset the decline. HSBC cut its price target to $160 but sees continuing value in improvements in server CPUs and the foundry business.
Industrial policy and technological maturity are moving satellite internet from validation to large-scale deployment. Brokerages are optimistic about supply-chain demand driven by mass production, but companies differ in their technology reserves, laboratory research and development, and progress in supplying existing products.
The average VLCC freight rate from Oman to China in 9–October rose 328% from 5–August, but third-quarter results mainly reflected voyages booked earlier. GF Securities expects the company's profit to continue growing in 2027 before declining in 2028.
Wellsenn XR expects global AI glasses sales to rise from approximately 8.46 million units in 2025 to 90 million units in 2030. As demand expands, the market remains highly concentrated, and there is a time lag before related companies realize revenue.
Xiaolin Cailianshe says indices rebounded on higher volume in the morning of 2 November, as financials and AI applications strengthened. Although funds returned to tech hardware, the sector still showed insufficient momentum of its own. The report also tracked the certification and production progress of Zhishang Technology’s optical connectivity products.
