Thematic (Sector/Industry)

• The Dow Jones Industrial Average fell 115 points (0.30%) to 38,571.03, starting June with a decline after weak U.S. manufacturing data raised economic concerns.
• GameStop shares surged 21% to $28 on Monday, driven by speculation that Keith Gill, known as Roaring Kitty on X, holds a significant position in the company.
• The MLIT launched investigations into Japan’s auto companies and ordered some companies to suspend sales of specific models with potentially compromised safety features.

• Tencent’s <DNF Mobile> achieved ~RMB 1 billion gross billings (GB) in first week; 
• We raised NetEase’s <Condor Hero> gross billing estimate by 10% as it will launch a major update patch in C3Q24;
• The pre-registrations of Bilibili’s new game <Three Kingdom: MDTX> reached 2.5 million. We maintained our RMB 3-4 billion annual gross billing (AGB) in 2025 estimate unchanged.

• Adani Group’s overall Market Cap Surges, Rebounding After Hindenburg Report
• Surge in NSE’s Cash Market Turnover Led by Individual Investors
• Welspun Corp (WLCO IN) ‘s EPIC Secures Major Contracts with Saudi Aramco

• We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
• Portfolio changes: Six stocks remain, eight new join the fray
• Since inception, it has gained 121% versus the SET 100 Index’s return of 20%

• GSK faces trial over Zantac cancer claims, risking costly settlements amid CEO successes
• Elon Musk accused of insider trading by shareholder, selling $7.5 billion in shares before bad news hit
• Beijing’s $42 billion housing bailout insufficient to tackle massive crisis, raising trade tension concerns

• Silicon Box January series B funding round in January 2024 pushed the advanced packaging startup into Unicorn status with a >$1 billion valuation
• In addition to their Singapore based 70,000 sq metre facility, they announced a second, $3.6 billion investment in Italy in March 2024
• Despite their unicorn status and being in business for nigh on three years, we still have no specifics on the precise nature of the advanced packaging technology they are offering

• The US cannabis MSOS ETF drifted 1.84% lower, while the global YOLO ETF slid 0.54%.
• Absent meaningful news, cannabis stocks are being pressured while we wait for the 60-day comment period on the proposed rule to reschedule cannabis.
• Most of the larger MSOs were down last week, with MariMed (CSE: MRMD, OTCQX: MRMD) at -10.46% and Cannabist (NEO: CBST, OTCQX: CBSTF) at -8.06% losing the most. 

• A good week for furniture and furnishings stocks. The Water Tower Research Commercial/Contract Index (+3.5%) and Home Goods Retailers Index (+2.5%) posted strong returns relative to the market (-0.5% to +0.1%) and the Mass Retailers Index (-0.6%).

• Our Residential Manufacturers & Suppliers Index (-0.5%) was in line with the broader market.

• The China price is now the highest in Asia. According to Science Is Strategic (citing Haver Analytics), unit labor rates in China are now ~2.5x to 4x higher than other Asian countries (see Figure 1). 

• The Dow added around 575 points on Friday taking its gains for the month of May to end the month up 2.3%. The Nasdaq climbed 6.9%…what’s that old adage?  
• SG Holdings announced a tender offer to acquire C&F Logistics Holdings at 5,740 yen per share, totaling around 123.7 billion yen ($788 million)
• Dalton Investments proposed a management buyout to take Japanese broadcaster Fuji Media Holdings private

• Indian credit markets have been growing rapidly, with banks and non-bank financial institutions increasingly lending and servicing retail clients to meet the growing demand for retail loans from a population that has recovered strongly post Covid-19 pandemic.
• Indian financial institutions are filling the retail financing gap so fast that the Reserve Bank of India (RBI), India’s central bank, has had to introduce new regulation to maintain financial stability in the Indian banking system. However, improvement in underlying fundamentals and roaring capital markets are driving large increases in bank balance sheets and valuations respectively.
• Criat’s Credit Cycle Index (Criat CCI) for Indian banks has steadily improved more than 15bps since the middle of 2023, as the NIFTY Bank index reached new highs of INR 49,000.

• The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: Chinese industrial profits, PMI data, and property sale measures.
• Companies mentioned:Naver Corp (035420 KS), Flipkart Online Services (1398508D IN), Samsung Electronics (005930 KS)

• If you pay attention, the Internet has been a bit different lately. Many of the attributes and ways we once interacted with the internet is changing.

• I probably noticed it the most when one of my favorite websites, subredditstats.com showed me this image the other day.

• Reddit’s free API is closing. But so is X (formerly Twitter), and other properties all around the internet are slowly adding limits and closing their doors.

• US stock markets showed mixed performance post long weekend, with the NASDAQ partially buoyed by Nvidia’s strength
• Fed’s Kashkari suggested US rate hikes remain possible, contrasting with growing expectations for an ECB rate cut as early as next week
• Japanese stocks were volatile last week. Tohoku Electric Power was the standout performer after announcing the completion of safety works at the Onagawa No. 2 nuclear reactor

• JSW launches coated steel product to substitute imports which has market of INR 2200 crore
• Adani may tie up with Japan for renewable energy post-meeting between officials
• FII short position highest before election results; India Q4 GDP beat analyst estimates

• Total public EV charging stations (incl. temporary unavailable locations) were 69,157 as of May 30, 2024. Compared to the end of FY23, it is an increase of 7.0%.
• Total EVSE charging ports (including the temporary unavailable ports) were184,771, up nearly 9.7% compared to the end of 2023 and up 1.2% over April 2024.
• Compared to China, US still lags far behing in terms of EV infrastructure. China had 2.7 million EV charging stations at the end of 2023.

• EU adds Temu to highest digital scrutiny tier due to risks like counterfeit goods and IP violations
• Tesla recalls multiple models due to seat belt warning system flaw; plans software update in June
• Russian court permits UniCredit to use Russian bonds as collateral, softening prior asset seizure terms

• Arrow Exploration (AXL LN/AXL CN)C; target price of £0.65 per share: All eyes on the first horizontal well at Carrizales Norte – The 1Q24 production of 2,730 boe/d was close to our expectations.
• Arrow’s cash position of US$11.6 mm was also in line.
• The first water disposal well at RCE is being brought into production and the conversion of the CN-4 well is currently waiting regulatory approval.

• Donald Trump has been found guilty on all 34 counts of falsifying business records, sparking market concerns.
• Stocks closed lower Thursday, led by Salesforce’s worst day in nearly two decades, down 19.7% on weak revenue.
• Kansai Paint (4613) announced a share buyback of up to 80 billion yen, purchasing up to 40 million shares (19.01% of issued shares)

• S&P Upgrades India’s Outlook: Positive Signals for the Indian Economy
• Jio Financial Services Launches ‘JioFinance’ App: A Leap Towards Digital Financial Inclusion
• Adani Green ambitions are running short says global analyst; raising concern on capital and returns

• The JGB  market is doing the BoJ’s work for it
• Japanese financials will continue to perform in this market environment
• US bonds follow the same pattern as inflation and bond issuance rises

• This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress
• We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
• We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources

• NIO US/1810 HK/ LI US: EV sales in the 20th week of 2024 NIO, Xiaomi and LI performed well(/////)
• BEKE US: Shanghai implements central government policies to further stimulate property market demand from nine aspects.(+)
• 981 HK/1347 HK/1810 HK/ACMR/China semiconductor: China launches Big Fund III to support semiconductor development (+)

• 700 HK: Tencent’s <DNF Mobile> achieved nearly RMB 1 bn gross billings in the first week of the operation(+)
• 700 HK: Tencent will release a mobile version of the classic basketball game <NBA 2K All-Star>. (+)
• BIDU US: Baidu Apollo received complaints from users in the important city of Wuhan, saying that autonomous driving caused traffic congestion(/)

• More Chinese technology companies might turn to convertible bonds after Alibaba Group Holding Ltd. and JD.com Inc. raised a combined $6.5 billion through such notes, said UBS, the joint book runner for JD.com’s issuance.
• Both enterprises said the proceeds will be used for share buybacks, which are expected to boost their stock prices and show some positive signs in the capital market for other Chinese tech companies, Selina Cheung, co-head of UBS Asia equity capital markets, said Tuesday.
• Chinese e-commerce giant JD.com announced the completion of its $2 billion offering of convertible senior notes last Thursday.

• BHP Group Ltd (BHP US) Faces Setback in Copper Ambitions After Failed Anglo-American Takeover Attempt
• China Considers Record Fine and Suspension for PwC Over Evergrande (3333 HK) Audits
• Elon Musk Agrees to Testify in SEC Probe of Twitter Inc (TWTR US) Acquisition

• Stocks fell on Wednesday as rising Treasury yields overshadowed gains from Nvidia. The Dow Jones Industrial Average dropped 411 points
• After hours, stocks had a mixed performance as Salesforce shares plummeted over 14% after its revenue missed estimates, despite beating earnings expectations
• Japan plans to allow companies to use share delivery for acquiring stakes in foreign firms by 2025, easing global M&A deals

• Gerald Stack, Ben McVicar, and Ofa Karlina discuss investing in infrastructure and the opportunities it offers
• Infrastructure assets provide essential services like energy, water, and transport, leading to reliable and predictable long-term demand
• Short-term problems or opportunities in infrastructure companies can impact share prices, creating investment opportunities for savvy investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• UK refining sector facing challenges including competition from overseas refineries, transition to electric vehicles, and sustainability targets in aviation
• Closure of Grangemouth refinery in 2025 highlights broader trend of refinery closures in UK
• Exxon Mobil’s Forli refinery investing in new diesel production capacity to address UK’s growing diesel deficit and decrease diesel imports by a quarter

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Wells Fargo Strengthens Investment Bank with JPMorgan Veteran Fernando Rivas
• ConocoPhillips to Acquire Marathon Oil in $ 17 Billion Deal
• Biden Administration Expands Clean Energy Tax Credits Beyond Wind and Solar

• RIL signs deal with Russian major to source crude at discounted price
• Adani Promoters buys stake in group companies ahead of fund raising
• Paytm denies Adani’s hand; Coal India going beyond Coal to diversify

• The clothing sections of GMS chains and supermarkets have declined so far in relevance that most assume the format will disappear entirely. 
• But new efforts by Aeon, as well as collaborations by the likes of Ito-Yokado, could lead to a new lease of life and higher margins.
• This may impact on retailers like Shimamura but the more likely result will be new opportunities to takeover supermarket apparel floors as Adastria is doing already.

• I had the opportunity to talk about the CHIPS Act’s progress with two people at the program office.
• I really think this is a great step in the right direction, and we talk about some of the misconceptions of the CHIPS program, and more.
• Today will be a pretty special interview podcast, and I have Dan Kim and Hassan Khan from the CHIPS program.

• The WTR Sustainable Index was up 0.3% W/W versus the S&P 500 Index (flat), the Russell 2000 Index (down 1.2%), and the Nasdaq Index (up 1.4%).
• Energy Technology (14.3% of the index) was up by 11.0%, while Industrial Climate and Ag Technology (59.4% of the index) was up by 0.8%, ClimateTech Mining was down 6.0%, and Advanced Transportation Solutions (20.3% of index) was down 6.7%.
• Top 10 Performers: VIEW, PEV, PEGY, LIDR, BRDS, VIHD, ARVL, CPWHF, BE, NXT

• Toyota, Mazda and Subaru are positioning themselves to meet growing consumer demand for hybrid vehicles, which offer a balance of fuel efficiency, emissions, and practicality compared to fully electric vehicles
• Nvidia climbed above $1,100 for the first time ever, buoyed by news that Elon Musk’s AI startup xAI raised $6 billion in a Series B
• GameStop (GME) soared nearly 25% after raising close to $1 billion from a share sale. Apple (AAPL) also saw gains following a significant increase in iPhone sales in China.

• Haldiram’s skyrockets from Bikaner roots to $8 billion global snack powerhouse.
• Agarwal family’s strategic split and merger propel Haldiram to new heights in the snack industry.
• Bain and Blackstone battle for Haldiram, eyeing a massive acquisition.

• Adani Group readying its war-chest with the fund raise as it recovered from Hindenburg Saga
• Reliance entering into logistics infrastructure sector with its logistics park in Chennai
• NTPC soon to launch its renewables arm IPO of 10,000 crore after elections

• The China Power Sector has revived on the back of industry tariff reforms, higher consumption driven by AI adoption, and an increase in grid investments. Yet, there are still values.
• China Power International (2380 HK) and Huaneng Power Intl Inc H (902 HK) are the power conglomerates that look attractive on fundamentals, earnings and valuations.
• Among clean energy names, China Longyuan Power (916 HK) is a laggard YTD. However, earnings growth should accelerate and its multiples are not stretched.

• 700 HK:<DnF Mobile> officially launched today, with good first-day performance.（+）
• JD US/AAPL US/1810 HK: iPhone prices cut by 20%+ for 6.18 shopping festival (+/-/-)
• JD US/2618 HK/BABA US/PDD US/VIPS US: JD begins cracking down on “big enterprise disease” through layoffs and stricter corporate culture (+/+/-/-/-)

• U.S. Tech Lobby opposes India’s antitrust law, fearing cost hikes and investment hurdles.
• Apple’s China iPhone shipments surge 52% in May, driven by discounts and sales preparation.
• Nasdaq 100 Futures rise on Apple’s China surge, but global markets remain cautious.

• MSOS fell 14.90% last week, while YOLO dropped 8.72%. Of the larger MSOs, Verano (NEO: VRNO, OTCQX: VRNOF) got hit hardest at -20.77%.
• MariMed (CSE: MRMD, OTCQX: MRMD) at -4.61% and Cannabist (NEO: CBST, OTCQX: CBSTF) at -7.43% held up best, but the entire top 10 was down last week.
• Cannabis stocks continue to sell off in the face ostensibly good news

• A tough week for our indexes. It was a down week in the market for Water Tower Research’s Residential Manufacturers & Suppliers Index (-6.4%) and Home Goods Retailers Index (- 6.7%) relative to the broader market indexes (-0.1% to -1.5%) and the Mass Retailers Index (-1.6%).
• On a relative basis, the Commercial/Contract Furniture Index (-1.0%) outperformed.
• Leggett reappointed Karl Glassman as CEO. Amidst the ongoing mattress industry recession/depression, Glassman, who served as Leggett’s CEO from 2016 to 2021 and Board Chair since 2020, was again appointed President and CEO, succeeding CEO Mitch Dolloff, who resigned.

• US market holiday. Nikkei Futures point to higher open. Oil prices higher as Europe hints at interest rate cuts
• Aisin (7259) will dissolve its capital alliance with EXEDY, selling its 34.5% stake to fund EV product development and shareholder returns.
• Mitsubishi Corporation (8058) will sell British food manufacturer Princess to Italy’s Newlat Food for £700 million by July’s end

• JLR to produce cars in India but for the first time
• Reliance – Airtel may tussle on the African Markets after Indian Market
• FII may show interest to Indian Markets to reap benefits of demographic dividends

• Musk’s xAI secures $6 billion to rival OpenAI, aiming for AI dominance.
• India’s booming public sector raises economic concerns amid private sector decline.
• China launches $47.5 billion fund to bolster domestic chip industry amidst global tensions.

• Leaders from South Korea, Japan, and China will hold a trilateral summit to enhance economic ties and address regional tensions
• Management buyouts (MBOs) in Japan surged to a record 1.47 trillion yen ($9.7 billion) last fiscal year
• Management buyouts (MBOs) in Japan surged to a record 1.47 trillion yen ($9.7 billion) last fiscal year

• The three big convenience store chains all posted record financial results for FY2023. 
• The format’s limitations were exposed by the pandemic, providing a catalyst for some major changes and prompting new and innovative marketing and support services.
• These have made the sector more robust, but whether this new surge of growth will continue in 2024 will depend on how concerned customers are with higher prices.

• The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: South Korea unveils plan to support chip manufacturers
• Companies mentioned:Alibaba Group Holding (9988 HK), Baidu (9888 HK), Tencent (700 HK), IFlytek Co Ltd A (002230 CH), Li Auto (2015 HK), Samsung Electronics (005930 KS)

• India’s construction equipment sector surged by 26% in FY23, hitting a milestone of over 100,000 units sold, driven by infrastructure and railway demand.
• Obust growth in infrastructure projects, valued at USD 7.9 Bn in 2023, with an estimated growth to USD 12.4 Bn by 2029, highlights a thriving market.
• 2 Companies in India is riding on the wave of this fast growing construction equipment industry.

• China saw 3.9 trillion yuan shift from cash to bonds and wealth products in April 2024.
• Adani Enterprises (ADE IN) has fully recovered the $30 billion stock loss from the Hindenburg Report.
• Alibaba Group Holding (BABA US) raised $4.5 billion via convertible bonds for buybacks and AI investments.

• Data and historical trends suggest that investing at all time highs can still be profitable in the long run.
• It is important to focus on earnings growth, long term time frames, and the power of compounding. Indian markets have a track record of generating multi-bagger returns.
• All time highs should not be feared, but rather seen as a sign of a growing and healthy market.

• Overseas markets face pressure from Fed comments and strong economic data, finding relief in earnings, but uncertainty persists into next week.
• Japanese equities react to US moves, with Topix down slightly; inflation aligns with expectations, but pressure remains for tighter policy.
• MS&AD Insurance Group surges 14% with robust shareholder returns; Fujikura rises 12% on revised earnings and improved outlook, while Fuji Electric falls 10% on conservative growth projections.

• 300274 SZ/DQ US/CSIQ US/JKS US/601615 SH/2208 HK/601012 SH: Domestic new energy installed capacity further slows downDomestic new energy installed capacity further slows down (/////////////)
• XPEV US: Xpeng Motors’ losses narrowed slightly in the first quarter of 2024 as software sales to Volkswagen increased gross profits (+)
• 1211HK/LIUS/NIOUS/XPEVUS/TSLAUS:20th week of 2024, BYD fell back a bit while Tesla recovered most of lost ground, Nio and Xiaomi had strong deliveries, and LI once again beat AITO (-/+/+/-/+)