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On the economic calendar today: The National Employment Report is forecast to show private payrolls rising by 600K in June, after surging by 978K in May. While the figures will be watched by the market, there is more anticipation for Friday's jobs report, which will give a better picture on the state of the economy. That data has the potential to affect the Fed's monetary policy stance, which currently sees two rate hikes starting in 2023.
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IPOs

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Chinese ride-hailing company Didi Global (DIDI) has reportedly priced its IPO at $14/share - at the top end of its expected range - valuing the firm at more than $67B. The IPO would raise more than $4B for the company, making it one of the biggest listings of 2021. It may also decide to increase the size of the offering before ADSs (American Depositary Shares) begin trading today on the New York Stock Exchange.
By the numbers: DIDI is offering 288M ADSs that will trade under the ticker symbol "DIDI." The firm has granted underwriters the option to buy as many as 43.2M additional ADSs for overallotments, while each ADS will represent 0.25 Class A ordinary shares. Didi reported $21.6B in revenue last year, while the company turned a profit in its last quarter on $6.4B in revenue.
Seeking Alpha contributor EM Investor is skeptical about such a high valuation, writing that Didi's growth potential "is without a doubt attractive, but the key question is at what cost investors should buy into this growth story." There are also some worries about investing in a Chinese company. The Communist party continues to wield a heavy grip on the economy and there are many concerns about transparency. Examples: Remember Luckin Coffee (sales scandal in 2019)? Phoenix Tree Holdings (delisted for shady disclosures in 2020)? RLX Technology (hit by a vaping crackdown plunge in 2021)? Some IPOs have not even made it to market like Ant Group, which was set to go public last year before Beijing stepped in, while other listings have faced heavy scrutiny like Chinese giant Tencent (OTCPK:TCEHY).
But... Didi has taken out the competition. Known as the "Uber of China," it literally bought Uber China from Uber (UBER) in 2016. Uber remains a major pre-IPO shareholder, owning about 12% of the ride-hailing giant, while Didi also has the strong backing of other Asian tech giants. The Softbank Vision Fund (OTCPK:SFTBY) owns some 20% of the pre-IPO stock and Tencent holds about a 6% stake. Other investors include Alibaba (BABA) and Apple (AAPL), which both have executives on Didi's board. (7 comments)
By the numbers: DIDI is offering 288M ADSs that will trade under the ticker symbol "DIDI." The firm has granted underwriters the option to buy as many as 43.2M additional ADSs for overallotments, while each ADS will represent 0.25 Class A ordinary shares. Didi reported $21.6B in revenue last year, while the company turned a profit in its last quarter on $6.4B in revenue.
Seeking Alpha contributor EM Investor is skeptical about such a high valuation, writing that Didi's growth potential "is without a doubt attractive, but the key question is at what cost investors should buy into this growth story." There are also some worries about investing in a Chinese company. The Communist party continues to wield a heavy grip on the economy and there are many concerns about transparency. Examples: Remember Luckin Coffee (sales scandal in 2019)? Phoenix Tree Holdings (delisted for shady disclosures in 2020)? RLX Technology (hit by a vaping crackdown plunge in 2021)? Some IPOs have not even made it to market like Ant Group, which was set to go public last year before Beijing stepped in, while other listings have faced heavy scrutiny like Chinese giant Tencent (OTCPK:TCEHY).
But... Didi has taken out the competition. Known as the "Uber of China," it literally bought Uber China from Uber (UBER) in 2016. Uber remains a major pre-IPO shareholder, owning about 12% of the ride-hailing giant, while Didi also has the strong backing of other Asian tech giants. The Softbank Vision Fund (OTCPK:SFTBY) owns some 20% of the pre-IPO stock and Tencent holds about a 6% stake. Other investors include Alibaba (BABA) and Apple (AAPL), which both have executives on Didi's board. (7 comments)
Outlook

As governments across the globe advance greener transport legislation to meet climate targets, a question that continues to surface is how much cleaner are electric vehicles (EVs) than traditional automobiles with an internal combustion engine (ICE). Estimates exploring the carbon gap have to cover thousands of parameters, such as the extraction and processing of minerals for EV batteries and the production of power cells. Other considerations are based on "after-sale" elements like the type of power used to charge an EV or the fuel dynamics and upkeep of a gasoline car.
Bigger picture: It's a little complex to delve into all the variables, so it may be easier to divide them between the "building" of the vehicles and their "maintenance." Compared to gasoline cars, EVs are not as green when it comes to manufacturing due to the mining of rare earth metals that are needed for their batteries. But once they hit the road, the only thing that contributes to their carbon footprint is the sourcing of their energy, giving them an advantage over gas-powered cars.
Meet the GREET model: The framework created by the Argonne National Laboratory in Chicago, called the "Greenhouse Gases, Regulated Emissions and Energy Use in Technologies," is being used to help shape policy at the EPA and the California Air Resources Board. Reuters recently took a test drive of the model, stacking up a Tesla (NASDAQ:TSLA) Model 3 versus a Toyota (NYSE:TM) Corolla, with the assumption that both vehicles would travel 173,151 miles during their lifetimes. The scenario also took place in the U.S., where 23% of electricity comes from coal-fired plants.
Results? Even before hitting the road, the analysis showed that the production of a mid-sized EV generated 8.1M grams of CO2 during the extraction and manufacturing process, more than the 5.5M grams for a comparable gasoline vehicle. One would also have to drive another 13,500 miles in a Model 3 - the average mileage motorists drive each year - before breaking even with the Corolla in terms of emissions. Tesla then pulls ahead... At Year 5, the Model 3 has emitted a total of 17M grams of carbon emissions (vs. 30M for the Corolla) and at Year 10, it has released 25M grams (compared to the 52M produced by the Toyota vehicle).
Not every country is the same: If the Model 3 was being driven in Norway, which gets most of its electricity from renewable hydropower, the breakeven point would come after 8,400 miles. Compare that to the 78,700 miles needed to reach carbon parity in nations like China and Poland, which generate the majority of their power from coal. (468 comments)
Bigger picture: It's a little complex to delve into all the variables, so it may be easier to divide them between the "building" of the vehicles and their "maintenance." Compared to gasoline cars, EVs are not as green when it comes to manufacturing due to the mining of rare earth metals that are needed for their batteries. But once they hit the road, the only thing that contributes to their carbon footprint is the sourcing of their energy, giving them an advantage over gas-powered cars.
Meet the GREET model: The framework created by the Argonne National Laboratory in Chicago, called the "Greenhouse Gases, Regulated Emissions and Energy Use in Technologies," is being used to help shape policy at the EPA and the California Air Resources Board. Reuters recently took a test drive of the model, stacking up a Tesla (NASDAQ:TSLA) Model 3 versus a Toyota (NYSE:TM) Corolla, with the assumption that both vehicles would travel 173,151 miles during their lifetimes. The scenario also took place in the U.S., where 23% of electricity comes from coal-fired plants.
Results? Even before hitting the road, the analysis showed that the production of a mid-sized EV generated 8.1M grams of CO2 during the extraction and manufacturing process, more than the 5.5M grams for a comparable gasoline vehicle. One would also have to drive another 13,500 miles in a Model 3 - the average mileage motorists drive each year - before breaking even with the Corolla in terms of emissions. Tesla then pulls ahead... At Year 5, the Model 3 has emitted a total of 17M grams of carbon emissions (vs. 30M for the Corolla) and at Year 10, it has released 25M grams (compared to the 52M produced by the Toyota vehicle).
Not every country is the same: If the Model 3 was being driven in Norway, which gets most of its electricity from renewable hydropower, the breakeven point would come after 8,400 miles. Compare that to the 78,700 miles needed to reach carbon parity in nations like China and Poland, which generate the majority of their power from coal. (468 comments)
Today's Markets
In Asia, Japan -0.1%. Hong Kong -0.5%. China +0.5%. India -0.1%.
In Europe, at midday, London -0.5%. Paris -0.8%. Frankfurt -1%.
Futures at 6:20, Dow -0.3%. S&P -0.2%. Nasdaq -0.2%. Crude +1% at $73.72. Gold -0.3% at $1757.90. Bitcoin -1.5% at $34650.
Ten-year Treasury Yield -2 bps to 1.46%
In Europe, at midday, London -0.5%. Paris -0.8%. Frankfurt -1%.
Futures at 6:20, Dow -0.3%. S&P -0.2%. Nasdaq -0.2%. Crude +1% at $73.72. Gold -0.3% at $1757.90. Bitcoin -1.5% at $34650.
Ten-year Treasury Yield -2 bps to 1.46%
Today's Economic Calendar
7:00 MBA Mortgage Applications
8:00 Fed's Bostic Speech
8:15 ADP Jobs Report
9:45 Chicago PMI
10:00 Pending Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
1:00 PM Fed's Barkin Speech
3:00 PM Farm Prices
Companies reporting earnings today »
8:00 Fed's Bostic Speech
8:15 ADP Jobs Report
9:45 Chicago PMI
10:00 Pending Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
1:00 PM Fed's Barkin Speech
3:00 PM Farm Prices
Companies reporting earnings today »
What else is happening...
SpaceX (SPACE) prepared to spend $30B on Starlink (STRLK) - Musk.
All-time high: Moderna (NASDAQ:MRNA) jab effective against Delta variant.
U.S. senator encourages people to buy Bitcoin for retirement.
New online store... Shopify (NYSE:SHOP) cuts app store fees for developers.
Facebook's (NASDAQ:FB) Zuckerberg unveils newsletter-product 'Bulletin.'
Pain and no gain! Beachbody (BODY) gives back post-SPAC gains.
Southern California spot gas prices soar in confronting heatwave.
Shell (NYSE:RDS.A), Renault (OTCPK:RNLSY) weigh investment in EV charging.
Turnaround setback... Intel (NASDAQ:INTC) delays new data center processor.
Mizuho cites names pushing AI toward a $1T chip market.
All-time high: Moderna (NASDAQ:MRNA) jab effective against Delta variant.
U.S. senator encourages people to buy Bitcoin for retirement.
New online store... Shopify (NYSE:SHOP) cuts app store fees for developers.
Facebook's (NASDAQ:FB) Zuckerberg unveils newsletter-product 'Bulletin.'
Pain and no gain! Beachbody (BODY) gives back post-SPAC gains.
Southern California spot gas prices soar in confronting heatwave.
Shell (NYSE:RDS.A), Renault (OTCPK:RNLSY) weigh investment in EV charging.
Turnaround setback... Intel (NASDAQ:INTC) delays new data center processor.
Mizuho cites names pushing AI toward a $1T chip market.


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