Alpha-Centric ESG Research

Kyle Rudden

Late last year, in a series of Insights related to the 2020 U.S. elections, I addressed then-candidate (and now President) Joe Biden's environmental policies and climate-related objectives. President Biden's priorities included rejoining the Paris Agreement (former President Trump withdrew).A week ago, on 19 February and less than one month after taking office, Biden made good on that promise and the U.S. officially rejoined the Paris accord. This is, unequivocally, a positive event, but the U.S. has fallen "behind" other countries and needs to update its climate objectives.The U.S. has not increased its Paris Agreement commitments since former President Obama joined in April 2016. Other nations have upped their goals in recent years. Recently, in late 2020, China's President Xi Jinping raised China's GHG reduction targets, and timing for achieving net-zero. The Biden administration has promised to do so around Earth Day this year, in April.

Late last year, in a series of Insights related to the 2020 U.S. elections, I addressed then-candidate (and now President) Joe Biden's environmental policies and climate-related objectives. President Biden's priorities included rejoining the Paris Agreement (former President Trump withdrew).A week ago, on 19 February and less than one month after taking office, Biden made good on that promise and the U.S. officially rejoined the Paris accord. This is, unequivocally, a positive event, but the U.S. has fallen "behind" other countries and needs to update its climate objectives.The U.S. has not increased its Paris Agreement commitments since former President Obama joined in April 2016. Other nations have upped their goals in recent years. Recently, in late 2020, China's President Xi Jinping raised China's GHG reduction targets, and timing for achieving net-zero. The Biden administration has promised to do so around Earth Day this year, in April.

Biden Making Good on Major Environmental Promises: Rejoins U.S. In Paris Agreement

Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

Credit

<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> stock is tumbling, again, and its overpriced bonds are frozen in the headlights with nowhere to go but down.
The reason given for this latest rout is that Tesla needed to shut down production for two weeksdue to supply chain disruptions in parts and supplies caused by the severe winter storm which swept much of the country in recent weeks.
Except when the stock plunged CEO Elon Musk opened the plant back up after just two days.
Which suggests that Tesla can make all the cars its needs. It just doesn't need as many as it hoped to mean faltering demand.

Tesla Motors (TSLA US) stock is tumbling, again, and its overpriced bonds are frozen in the headlights with nowhere to go but down.
The reason given for this latest rout is that Tesla needed to shut down production for two weeksdue to supply chain disruptions in parts and supplies caused by the severe winter storm which swept much of the country in recent weeks.
Except when the stock plunged CEO Elon Musk opened the plant back up after just two days.
Which suggests that Tesla can make all the cars its needs. It just doesn't need as many as it hoped to mean faltering demand.

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Markets sold-off across asset classes with the S&amp;P down 2.4% while the Nasdaq plunged 3.5%, its worst fall in four months. Popular stocks with rich valuations like Tesla, Square, Zoom  fell over 8%, 4% and 5% while most FAANG stocks were down over 3% with the exception of Netflix , which was down 1.2%.The US 10Y Treasury yield spiked to an intraday high of 1.61% after a weak 7Y note auction whilst easing after that to close ~6bp higher. European equities posted relatively modest losses of ~0.3-0.5%. US IG CDS spreads were 4.5bp wider and HY was 20.7bp wider. EU main CDS spreads widened 2.9bp and crossover spreads widened 11.2bp. Asian equity markets have opened ~2% lower today while Asia ex-Japan CDS spreads are flat.

Macro; Rating Changes; New Issues Commentary; Talking Heads; Top Gainers & Losers

S&amp;P ended 1.1% higher while Nasdaq was 1% higher. Tesla rallied 6% with a mixed session for big tech – Facebook, Amazon and Apple were lower by 0.6%, 1% and 0.4% while Google and Netflix were up 1.2% and 1.3%. Fed Chair Powell reiterated the primary goal of full employment and said it may take over three years for inflation to exceed the 2% target. US 10Y Treasury yields eased some of its 9bp sell-off to 1.43% to close at 1.40%. European equities were also higher by over 0.5%. German GDP growth in Q4 2020 was revised upward to 0.3% from 0.1%. US IG CDS spreads were 1.1bp tighter and HY was 6.7bp tighter. EU main CDS spreads tightened 0.9bp and crossover spreads tightened 3.2bp. Asian equity markets have opened ~1% higher today while Asia ex-Japan CDS spreads are 0.5bp tighter. Momentum in the Asian primary markets continue with six new dollar deals launched today dominated by Chinese issuers.

S&amp;P ended 1.1% higher while Nasdaq was 1% higher. Tesla rallied 6% with a mixed session for big tech – Facebook, Amazon and Apple were lower by 0.6%, 1% and 0.4% while Google and Netflix were up 1.2% and 1.3%. Fed Chair Powell reiterated the primary goal of full employment and said it may take over three years for inflation to exceed the 2% target. US 10Y Treasury yields eased some of its 9bp sell-off to 1.43% to close at 1.40%. European equities were also higher by over 0.5%. German GDP growth in Q4 2020 was revised upward to 0.3% from 0.1%. US IG CDS spreads were 1.1bp tighter and HY was 6.7bp tighter. EU main CDS spreads tightened 0.9bp and crossover spreads tightened 3.2bp. Asian equity markets have opened ~1% higher today while Asia ex-Japan CDS spreads are 0.5bp tighter. Momentum in the Asian primary markets continue with six new dollar deals launched today dominated by Chinese issuers.

Vedanta, Sunac, Fantasia Launch $ Bonds; Macro; Rating Changes; New Bond Issues; Talking Heads; T...

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Equity Bottom-Up

Since my last detailed look at <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a>’s valuation back in September last year (<a href="https://www.smartkarma.com/insights/baidu-strategies-for-operating-in-an-industry-in-decline" target="_blank" data-smartkarma-citation="insights:43393" rel="noopener">Baidu: Strategies for Operating in an Industry in Decline</a>) Baidu’s share price has witnessed a meteoric rise of 170%, re-rating from 6.2x to 16.9x NTM EV/EBITDA.This has been driven by several catalysts, such as M&amp;A into live streaming, increased share buybacks, the continued prospect of a Hong Kong listing, and improved reported earnings, but most-of-all, by their announcement that they plan to start an intelligent electric vehicle company in strategic partnership with <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a>. Following their recent 4Q20 results, management also went to great lengths to highlight the revenue growth acceleration in their “Non-marketing Baidu Core” sub-segment, emphasising the shift away from their traditional Core Search Advertising, or mobile ecosystem, to diversify revenue streams. In this insight, I take a closer look at this sub-segment and analyse what the current market value implies for those operations, as well as their future “intelligent electric vehicle” venture.

Since my last detailed look at Baidu (BIDU US)’s valuation back in September last year (Baidu: Strategies for Operating in an Industry in Decline) Baidu’s share price has witnessed a meteoric rise of 170%, re-rating from 6.2x to 16.9x NTM EV/EBITDA.This has been driven by several catalysts, such as M&amp;A into live streaming, increased share buybacks, the continued prospect of a Hong Kong listing, and improved reported earnings, but most-of-all, by their announcement that they plan to start an intelligent electric vehicle company in strategic partnership with Geely Auto (175 HK). Following their recent 4Q20 results, management also went to great lengths to highlight the revenue growth acceleration in their “Non-marketing Baidu Core” sub-segment, emphasising the shift away from their traditional Core Search Advertising, or mobile ecosystem, to diversify revenue streams. In this insight, I take a closer look at this sub-segment and analyse what the current market value implies for those operations, as well as their future “intelligent electric vehicle” venture.

Baidu: A Closer Look at Non-Marketing Baidu Core. What Are We Paying for EV?

United States

Tesla Inc. operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tesla (TSLA US)

Biden Making Good on Major Environmental Promises: Rejoins U.S. In Paris Agreement

Barely a month into office, U.S. President Biden is making good on climate-related promises. The first among them is rejoining the Paris Agreement.

Kyle Rudden

Tesla Is Falling and It Can't Get Up

Tesla stock is tumbling and its overpriced bonds are frozen in the headlights with nowhere to go but down. Deliveries are sputtering, and Elon's...

Vicki Bryan

Macro; Rating Changes; New Issues Commentary; Talking Heads; Top Gainers & Losers

Markets sold-off across asset classes with the S&P down 2.4% while the Nasdaq plunged 3.5%, its worst fall in four months. Popular stocks with...

BondEvalue

Vedanta, Sunac, Fantasia Launch $ Bonds; Macro; Rating Changes; New Bond Issues; Talking Heads; T...

S&P ended 1.1% higher while Nasdaq was 1% higher. Tesla rallied 6% with a mixed session for big tech – Facebook, Amazon and Apple were lower by...

BondEvalue

Baidu: A Closer Look at Non-Marketing Baidu Core. What Are We Paying for EV?

In this insight, I take a closer look at “Non-marketing Baidu Core” and analyse what the current market value implies for those operations, as well...

Wium Malan, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)