President Donald Trump has publicly blamed the Federal Reserve's interest rates hikes for holding back U.S. economic growth.The Fedread more
China's President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. Experts say the move...Asia Politicsread more
Gold prices spiked in the afternoon of Asian trading hours on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, and the 10-year Treasury yield...Metalsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Waymo has signed a deal with Renault and Nissan to develop self-driving cars and trucks for use in France, Japan and possibly other countries in Asia, including China, the...Autosread more
"No U.S. drone was operating in Iranian airspace today," a U.S. Central Command spokesman said, according to NBC News.World Politicsread more
The Fed left interest rates unchanged at its monetary policy meeting. The U.S. central bank did, however, drop the word "patient " from its statement and said it would "act as...Asia Marketsread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday.Bondsread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Shares of Luckin Coffee surged as much as 50% Friday morning in the Chinese up-start retailer's Nasdaq debut.
The opening trade under the symbol LK was $25 per share. On Thursday night, Luckin priced its initial public offering at $17 per share, for an implied market value of roughly $4 billion. The Beijing-based chain also boosted its IPO to 33 million shares, 3 million more than initially planned. Its IPO price was on the high end of its expected range of $15 to $17 per share.
Shares closed Friday afternoon up 20% at $20.38 per share, giving the stock a market value of $5.6 billion.
Luckin is trying to overtake Starbucks as the biggest coffee chain in China. Since it was founded less than two years ago, it has opened 2,370 stores and plans to add 2,500 this year alone. Roughly 90% of its stores are smaller format shops designed for easy pickup and proximity to its customers, in contrast to Starbucks' larger and more homey cafes. Starbucks is celebrating its 20th anniversary in China this year.
Coffee sales in China are expected to reach $8.2 billion this year, growing annually by 11.3% over the next five years, according to Statista. But tea still remains the top drink for Chinese consumers. Luckin is also trying to reach tea drinkers with trendy beverages, like fruit teas topped with cream cheese.
Luckin has also tried to attract new customers by discounting its drinks, a strategy that Starbucks CEO Kevin Johnson has said is not sustainable. But investors may disagree.
In 2018, the chain reported net sales of $125.3 million and a net loss of $241.3 million. Shareholders will want to see the company become profitable eventually. The $561 million Luckin raised through the IPO will help fund new stores, customer acquisition, tech investments and other general corporate purposes.
Luckin is the latest company to make its debut on the stock market this year. While ride-hailing giants Uber and Lyft have had rocky entries into the public market, others like Beyond Meat have seen shares soar.