The biggest IPO of this year has been confirmed, a stunning night! Global currency market plummets

On September 5th local time, major stock indexes in European and American stock markets collectively closed lower. ARM, which is considered the largest IPO project of the year, has officially set its IPO price in the United States. The company plans to issue 95.5 million shares of ADS, priced between $47 and $51 per share. In terms of commodities, international oil prices slightly rose overnight, and important oil producing country Saudi Arabia announced that it will extend its measures to reduce oil production until the end of the year.

On the eve of the Federal Reserve's interest rate meeting this month, several Federal Reserve officials will speak out this week on issues such as inflation and interest rate hikes. Overnight, officials were the first to release dovish signals, believing that "the data does not indicate that the Federal Reserve needs to take any immediate action.". However, it also emphasizes that the Federal Reserve will have to maintain high interest rates until inflation decreases.

According to Xinhua News Agency and CCTV news, on September 5th local time, the City Council of Birmingham, the second largest city in the UK, announced bankruptcy and the city will stop all new expenses, except for statutory services such as protecting vulnerable groups.

Overnight general decline in European and American stock markets

ARM determines the listing and issuance price

After experiencing a period of rebound, on September 5th local time, the three major US stock indexes showed a downward trend again. As of the close, the Dow Jones, Nasdaq, and S&P 500 indexes fell 0.56%, 0.08%, and 0.42%, respectively.

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From the perspective of industry sectors, most of the large technology stocks on the overnight US stock market rose against the trend, while most of the popular Chinese concept stocks fell. As of the close, Netflix rose 2%, Microsoft rose 1.49%, Meta rose 1.27%, Apple rose 0.13%, and Google rose 0.08%; Nenglian Zhidian fell 9.5%, Century Internet fell 9.39%, Tuya Intelligence fell 8.68%, Lujin Holdings fell 5.77%, and Ctrip Group fell 5.25%.

ARM, a chip giant under SoftBank Group, officially submitted its IPO application on September 5th local time. The company's ADS per share is priced between $47 and $51, and is expected to issue a total of 95.5 million ADSs.

According to media reports, ARM's overall valuation reached $64 billion, far surpassing Nvidia and making it the world's largest IPO project this year. According to the company's disclosure documents, it is expected that after this issuance, SoftBank Group's shareholding in ARM will reach 90.6%. If the underwriters fully exercise their over allotment rights, the shareholding will decrease to 89.9%. Its cornerstone investor lineup can also be considered luxurious, including Apple, TSMC, Nvidia, Samsung, Intel, and others.

In terms of European stock markets, major overnight stock indices also closed lower. As of the close, the FTSE 100 index in the UK, the CAC40 index in France, and the DAX index in Germany fell 0.20%, 0.34%, and 0.34%, respectively.

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Boosted by factors such as Saudi Arabia's announcement of a voluntary reduction in oil production, international oil prices slightly rose overnight, with NYMEX crude oil main contract and ICE Brent crude oil main contract both rising by over 1%. According to CCTV News, on September 5th local time, Saudi Arabia announced the extension of its daily oil production reduction measures of 1 million barrels until the end of 2023. On September 5th local time, Russian Deputy Prime Minister Novak also stated that Russia will voluntarily reduce its daily oil exports by 300000 barrels to the global market until the end of 2023.

The US dollar index has reached its highest point in nearly six months

The US dollar index rose as high as 0.6% to 104.91, the highest in nearly six months for three consecutive days until mid March, partly due to concerns about safe haven demand from other global economies, as the US dollar strengthened against G10 currencies across the board.

The euro fell 0.8% against the US dollar and briefly hit the 1.07 mark, reaching its lowest point in three months. The pound fell as low as over 90 points against the US dollar, a decrease of 0.7%, falling 1.26 points, reaching a two and a half month low.

The Japanese yen fell 0.9% against the US dollar and fell 147% again, while the Australian dollar fell 1.4% against the US dollar, both hitting their lowest levels since November last year. The offshore renminbi fell below 7.31 yuan at one point, falling more than 360 points from its deepest close on the previous day, to a two-week low.

On the news side, the comprehensive PMI of the Eurozone in August further dropped to 46.7, the lowest since November 2020, shrinking for three consecutive months and below the initial value of 47. The dominant service industry also fell into recession, indicating that European business activity is declining faster than expected, increasing the possibility of a recession.

After the release of PMI data, the money market predicted that the likelihood of the European Central Bank raising interest rates by 25 basis points in September would decrease from 30% to 26%, with a 60% chance of another rate hike by the end of the year. The European Central Bank survey also showed a slight increase in consumer expectations for inflation in the eurozone in the coming years.

Federal Reserve officials:

The data will determine whether the Federal Reserve will raise interest rates again

The latest statements from several Federal Reserve officials this week have become a focus of market attention, including Boston Fed Chairman Collins, former St. Louis Fed Chairman Brad, New York Fed Chairman Williams, Atlanta Fed Chairman Bostic, and others. On September 5th local time, Federal Reserve Director Waller was the first to release a dovish signal, stating that "the data does not indicate that the Federal Reserve needs to take any immediate action.".

Waller believes that recent data provides space for the Federal Reserve to make its next interest rate decision, and the data does not indicate that the Federal Reserve needs to take any immediate action. The data will determine whether the Federal Reserve will raise interest rates again, and more data is needed to indicate that the Federal Reserve has ended raising interest rates.

Waller did not provide a clear answer on whether to stop raising interest rates, but instead stated that another rate hike by the Federal Reserve is unlikely to lead to an economic recession, and the impact on the job market is not significant. The Federal Reserve will have to keep interest rates high until inflation decreases.

Most institutions in the current market are inclined for the Federal Reserve to announce another pause in interest rate hikes at its September meeting. Dongwu Securities analysis believes that although the hawkish risk of the Federal Reserve has not been completely relieved, the "pressure" has weakened. Currently, the US economy is resilient, and inflation and employment are slowing down. If the downward trend of inflation and employment can be "stabilized" before the November meeting, the pressure on the Federal Reserve will be reduced.

In terms of inflation in Europe, according to the statistical data released by the Eurostat earlier, the inflation rate in the Eurozone in August was calculated at an annual rate of 5.3%, which is the same as July. According to CCTV News, on September 5th local time, European Central Bank Chief Economist Philip Ryan stated in a media interview that the ECB expects the core inflation rate in the eurozone to decline in the autumn.

Birmingham City Government declares bankruptcy in the UK

On September 5th local time, the City Council of Birmingham, the second largest city in the UK, announced bankruptcy. The city will cease all new expenditures, except for statutory services such as protecting vulnerable groups.

According to media reports, the main reasons for the bankruptcy of the Birmingham City Council were an increase in social care spending, a decrease in corporate taxes, and high inflation, with the direct cause being related to the £ 760 million bill to resolve claims for equal pay for equal work.

According to the Local Government Finance Act 1988 in the UK, if the Chief Financial Officer of the Birmingham City Council believes that the authorities are unable to achieve a balance of income and expenditure, it means that the City Council is "effectively bankrupt". The Birmingham City Council must meet within 21 days to discuss follow-up issues. In addition, apart from providing legal services to protect vulnerable groups, no new expenditures are allowed, but existing commitments and contracts will continue to be fulfilled.