Michael Vi
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U.S. adds Tencent, Huawei to list of Chinese military companies. (00:25) Uber and Nvidia to collaborate for autonomous mobility. (01:49) U.S. natural gas surges as severe winter storms seen hiking demand, cutting supplies. (03:11)
This is an abridged transcript of the podcast.
The U.S. Department of Defense has added Tencent (OTCPK:TCEHY) , Huawei and AI firm SenseTime (OTCPK:SNTMF) to its list of Chinese military companies.
Tencent's Hong Kong-listed shares slid nearly 8% on Tuesday, and its ADRs (OTCPK:TCEHY) ended 7.8% lower on Monday.
CATL, whose EV battery technology is used by Tesla (TSLA) and Ford (F), was also designated as a Chinese military company and its Shenzhen-listed shares fell 2.8% on Tuesday.
Other firms added to the so-called 1260H list - which is updated annually - include contract chipmaker SMIC (OTCQX:SIUIF), COSCO Shipping (OTCPK:CICOF) (OTCPK:CICOY), and CNOOC (OTCPK:CEOHF).
The companies can request reconsideration of the DOD's decision, with supporting evidence as to why they should be removed from the list.
CATL said it has never engaged in any military-related activities. "We will proactively engage with the DOD to address the false designation, including legal action if necessary."
According to the DOD, the list is an "important continuing effort" in countering Beijing's military-civil fusion strategy, which ensures the Chinese military can acquire advanced technologies and expertise developed by Chinese companies and research programs "that appear to be civilian entities."
Uber Technologies (NYSE:UBER) entered a strategic partnership with Nvidia (NASDAQ:NVDA) aimed at accelerating the development of AI-powered autonomous driving technology.
This collaboration will leverage Uber's (UBER) vast data from millions of daily trips alongside Nvidia's (NVDA) advanced platforms, specifically the Cosmos and DGX Cloud systems.
“By working with NVIDIA, we are confident that we can help supercharge the timeline for safe and scalable autonomous driving solutions for the industry,” said Dara Khosrowshahi, CEO of Uber (UBER).
Premarket Uber (UBER) stock is up 2.5%.
U.S. natural gas futures jumped to their biggest gain of the new year on Monday, as strong weather-driven demand is now seen as extending well beyond mid-January.
Energy analysts say, freezing weather and snow storms across the U.S. could cause massive power outages and boost natural gas demand to its highest levels of the winter, while supplies of gas could drop due to the freezing of oil and gas wells and pipes.
ETFs: (NYSEARCA:UNG), (BOIL), (KOLD), (UNL), (FCG)
Meanwhile, Europe is burning through its gas reserves at the fastest rate in seven years as cold weather ramps up heating demand, with temperatures expected to drop again this week.
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Catalyst watch:
The IPO quiet period on Anteris Technologies Global (AVR) will expire to free up analysts to post ratings.
McDonald's (MCD) will launch its McValue platform in restaurants across the United States. The new value offering will include various features such as the $5 Meal Deal, exclusive in-app offers, local food and drink deals, and a new "Buy One, Add One for $1" option on popular menu items for breakfast, lunch, and dinner.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is up 0.2% at $73/barrel. Bitcoin is up 2.7% at $101,000.
In the world markets, the FTSE 100 is down 0.1% and the DAX is up 0.1%.
The biggest movers for the day premarket: Inari Medical's (NASDAQ:NARI) is up 21% after Stryker (SYK) announced an agreement to acquire the medical device company for approximately $4.9B.
On today’s economic calendar:
- 10:00 am Job Openings and Labor Turnover Survey
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