Thematic (Sector/Industry)

• Topix added 1.7%, driven by speculation that the Government Pension Investment Fund (GPIF) will increase its investment ratio in Japanese stocks
• Retail stocks notable performers this week as the TSE’s retail sector hit a year-to-date high, surging 21% since January
• Notable performers this week included Fujikura on street upgrades, Ito-en after announcing a new marketing campaign, and Ebara’s gaining recognition as a laggard

• Several companies in China’s semiconductor supply chain said new U.S. export restrictions aimed at crippling the country’s ability to produce advanced chips would have limited impact on their operations.
• The U.S. Department of Commerce on Monday added 140 companies, including 136 Chinese firms, to its Entity List, effectively banning them from accessing U.S. advanced chip and AI-related technology.
• The new rules also restrict exports of high-bandwidth memory, a core component for AI development.

• Why the 6 hour martial law in Korea was called by President Yoon
• The negative impact of the President’s decision is one of many reasons for Korea to underperform into 1h25
• Corp Value Up plays are still attractive; for those looking to short, you might have to wait longer

• AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN)C; Target price of £0.08 per share: US$100 mm guarantees highlight the value of the South Africa energy trading business – British International Investment (BII) and GuarantCo have announced a US$100 mm guarantee finance facility for Etana Energy, the South African electricity trading platform which is owned and was co-founded by Chariot (49%) and H1 Holdings (51%).
• Etana is one of the few companies holding an electricity trading licence in South Africa that can buy and sell electricity through the grid.
• Etana is therefore a required counterparty to power producers.

• Political and regulatory uncertainty to start 2025. The pending health leadership in government will likely be the overarching theme for at least the first half of 2025.
• We have seen controversial Trump picks for the HHS, CMS, CDC, and NIH, bringing investor concerns over regulatory disruption and vaccine skepticism.
• The FDA pick was closer to a more traditional choice and could maintain current regulatory standards.

• U.S. stocks drifted lower on Thursday as investors await Friday’s critical jobs report
• Hewlett Packard Enterprise (HPE) surpassed Wall Street expectations in its fourth quarter, driven by strong demand for AI-powered servers and Nvidia processors
• NTT DATA aims to boost data center sales to $3.5 billion by March 2028, a 60% increase from its previous target

• China has boycotted sales of Gallium, Germanium, and Antimony, three important elements, to the US
• All three are used in the production of semiconductors, but in very small quantities.  They are also widely available from sources outside of China.
• The net impact of this boycott to the US semiconductor market should be negligible.

• Tech sell off led my semi-cap names after D/G to sell for AMAT
• Ulta beat paints a brighter picture for US consumer spending than expected
• Is the relentless buy momo/sell everything else in Japan ready for a reversal?

• TCOM US: United Airlines to Add Three China-U.S. Flights Next Year. Weekly Cap of 100 Flights Remains Main Constraint for China-U.S. Route Recovery(+)
• BABA US : 1688 launches SHEIN- like private-label brand. (+)
• BABA US/JD US/PDD US: Alibaba announced as e-commerce sponsor for 2025 CCTV Spring Gala (+/-/-)

• LI US/XPEV US/NIO US/1211 HK/TSLA US/ZK US:Electric vehicles delivered in the 48th week of 2024: LI and AITO stagnated, new new forces surged,while BYD and Tesla maintained moderate rise.(///////////)
• MNSO US /601933 CH: A brief comment on the recent stock rally(///)
• 981HK/ACMR US/1347 HK: Impacts of US semiconductor export controls. (-/-/+)

• Earnings results have differed in the recently concluded C3Q24. Performance ads in home electronics, 3C, auto, entertainment and travel have benefited from recovery in consumption; 
• Heading into C4Q24, we expect rebound in real estate to benefit property ads, and the continuing warm up in consumption to spread to e-commerce (apparel and cosmetics);
• We expect trade-in subsidies for home electronics and electrical vehicles to renew in C1Q25 and further stimulus to encourage consumption in travel and catering to be announced. 

• Pepper resource upgrade announced, significant increase in ounces and grade
• $220 million raised through equity offering, fully funding underground operations
• Comparison made between Northern Star’s investment in De Grey and potential acquisition of Spartan for investment banking analysis

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

• US stocks surged on Wednesday, fueled by a tech rally, with all three major indexes reaching new record closes
• Marvell Technology surged 23% on Wednesday after its fiscal Q4 revenue forecast of $1.8 billion exceeded Wall Street’s expectations; strong AI outlook
• The Japanese government plans to streamline visa requirements for Chinese nationals, reducing application paperwork to boost cross-border exchanges

• Tech and semi’s continuing to favor AI over power/analog post Marvell and Microchip numbers.
• Worth paying attention to less known Japanese SPE Shibaura Mechatronics and the long lost Towa.
• US Homebuilders weak on concern over Trump’s plans to deport undocumented workers.

• Tiruppur’s knitwear exports rebounded with 13% growth in FY25 (April-August), signaling recovery after an 11% decline in FY24.
• Factories started operating at 95% capacity utilization vs 60-70% earlier.
• Bangladesh crisis and upcoming UK FTA giving huge business to indian textile exporter.   

• The incoming US administration has repeatedly indicated that it will favor policies that support US oil and natural gas supply growth.
• Policies will likely include regulatory changes to increase access to onshore and offshore federal leases and streamline the permitting process for new wells and offshore facilities.
• We also expect the administration to streamline the permitting process for new interstate transmission pipelines and LNG export facilities. 

• Microchip setting a downbeat tone for power and auto semi related.
• Big gains for JP SPE yesterday on China news may be set to continue.
• Seagate delaying some HDD production, although HAMR is progressing as planned.

• US stocks closed mixed on Tuesday as the S&P 500 and Nasdaq hit fresh records amid mixed economic signals
• Job openings unexpectedly rose to 7.74 million in October, while Fed officials hinted at potential rate cuts.
• Microchip Technology (-7%) has revised its quarterly revenue guidance downward to $1.025 billion and plans to close its Arizona manufacturing facility by September 2025.

• India’s Q2 FY25 GDP growth fell to 5.4% YoY, the lowest in seven quarters, signaling mounting economic challenges.
• Weak private consumption, sluggish investment, and subdued exports contributed to the slowdown. Manufacturing underperformed while agriculture and services provided some resilience.
• The slowdown underscores vulnerabilities in consumption and investment cycles. Targeted policy measures are critical to sustaining long-term growth amid rising inflation and global uncertainties.

• BIDU US: Baidu Receives Hong Kong Autonomous Driving Taxi Pilot License (/)
• SE US/MELI US/BABA US: Brazil e-commerce penetration rate rises 6.8ppts yoy during Black Friday (+/+/+)
• SE US/BABA US: Shopee to raise commission rates in Philippines (+/+)

• The South African listed property sector returned to positivity in November, rising by 1.69% (unfortunately Q4 2024 to-date remains negative at -1.05%).
• For the year to date the sector is up 28.37%, and on a one-year rolling period the index is up 43.85% as measured by the J803 All Property TR Index.
• SA listed property remains ahead of global listed property for 2024, with the FTSE EPRA Nareit Global Index’s TR of 3.48%, lagging the J803 TR Index by 18.99% in ZAR.

• BEKE US: Property Transactions Remained Strong in November, with Accelerated Growth in the Final Week.(+)
• BZ US/3690 HK/TCOM US/ATAT US: Manufacturing PMI Slightly Exceeds Consensus in November, While Service PMI Falls Below; Hiring Intentions Remain Low.(-/-/-/-)
• ZTO US/ BABA US/VIPS US: China parcel volume delivery grew 40% yoy in the prior week (+/+/+)

• U.S. stocks opened December with mixed results as the Nasdaq and S&P 500 hit record highs
• Super Micro Computer’s (+28%) stock rebounded after an external investigation found no financial misconduct
• Stellantis (-6.2%) announced CEO Carlos Tavares’ immediate resignation, more than a year ahead of schedule

• US semi-cap names continuing to jump on looser US restrictions than expected.
• See attached table for short interest levels for Japan SPE plays.
• Gelsinger out and uncertainty up, although JP suppliers will see minimal reaction.

• This is a very light note, given time constraints. It’s rumored that on Monday, we will have new export controls, which seem to be massively light.
• Importantly, they are going to exclude CXMT altogether.
• History is a pretty good guide. Almost every single export restriction has led to bad returns prior, bad returns on the week off, and positive returns almost 100% of the time 6 months after for SOXX. This applies doubly to Semicap.

• We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
• Portfolio changes: Five stock remains, nine stocks added into portfolio
• Since its inception, it has generated a before-fee total return of 193% versus the MSCI Asia ex Japan of 89%

• We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
• Portfolio changes: Three stocks remain, and 11 stocks added into portfolio
• Since its inception, the portfolio has generated a before-fee total return of 259% versus MSCI ASEAN’s 44%

• AI’s evolution is poised to revolutionize industries and economies globally, with potential for job transformation and economic growth.
• The build-out phase of AI is benefiting companies in sectors like chip producers and data center architecture, with opportunities expanding into adoption and transformation phases.
• Investors can position themselves for success by taking an active approach, seeking expertise and identifying promising opportunities in the AI space for long-term growth and value gains.

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

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• The short holiday week saw another controversial name picked for NIH head, PSTX was acquired by RHHBY, AMGN underwhelmed with obesity data, and Medicare proposed to cover LLY and NVO obesity drugs.
• In addition, SRPT filled its pipeline with ARWR assets, BHVN’s poor SMA results benefited SRRK, and MRK expanded its PAH drug benefit.

• The WTR Sustainable Index was up 1.3% W/W versus the S&P 500 Index (up 1.1%), the Russell 2000 Index (up 1.2%) and the Nasdaq Index (up 0.7%).
• Energy Technology (14.1% of the index) was up 1.4%, while Industrial Climate and Ag Technology (47.7% of the index) was down 0.1%, ClimateTech Mining was up 2.5%, and Advanced Transportation Solutions (20.7% of index) was up 3.0%.
• Top 10 Performers: OPTT, KULR, ALLIF, ACHR, BLDE, FCEL, INVZ, EGT, AMMP, NRGV

• US stocks soared to record highs on Friday, capping off their best month in a year.
• Chubu Electric Power Company’s Chairman urged the Japanese government to maximize nuclear power utilization in its upcoming Strategic Energy Plan
• Denso and Fuji Electric will jointly invest $1.4bn in producing energy-efficient silicon carbide power semiconductor devices for EVs in Japan

• US semi-cap names jump as markets delayed pricing in report China restrictions will be tempered.
• Shiseido restructuring briefing the numerical targets enough to stem the bleeding?
• TGA around the corner should see focus on Japanese game developers, including Nexon which has been heavily sold post earnings.

• China’s booming demand for physical products based on media intellectual property (IP) is increasingly reflected in the stock market, where related stocks have become a hot topic among investors.
• These products, known in Chinese as “guzi” (谷子) — a transliteration of the English word “goods” — are based on IP from comics, anime, TV dramas and computer games.
• Their prices vary widely.

• Celltrion outlined mid- to long-term business outlook. European Patent Court has dismissed injunction against Eoflow. Lunit partnered with Salud Digna, one of Mexico’s largest healthcare chains.
• China has accepted Hansoh Pharma’s fifth indication approval application for Ameile. Sichuan Kelun-Biotech received marketing authorization in China for the first domestically developed TROP2-directed ADC sacituzumab tirumotecan.
• Eisai launched Leqembi in South Korea. Dr. Reddy’s launched new biologic drug, toripalimab in India, for the treatment of nasopharyngeal carcinoma. Aster DM is merging with Quality Care India Limited.

• The Japanese stock market posted a muted performance this week, with the Nikkei 225 slipping 0.2% and the Topix declining 0.6%
• The yen strengthened by 4.5 yen against the dollar, closing at its highest level in over two weeks
• Sector-Wise, Textiles (+5%) led the market this week, with Wacoal (+8%), Goldwin (+4%) and Asics (+5%) all performing well.

• Deregulation’s Green Energy Boost: Reduced federal oversight could accelerate innovation in renewables as corporations and markets drive sustainability efforts independently of government policies.
• Tariff-Induced Deflation Risks: Disrupted global supply chains and demand destruction from tariffs may lead to deflationary pressures rather than the widely expected inflation.
• Rise of Privatized Services: Tax cuts could act as a gateway to increased privatization of government services, shifting more essential functions like education and law enforcement to corporate control.

• Listed corporate capex is experiencing a surge, exceeding the previous cycle peak and mirroring the pre-boom phase of 2001-2004.
• Government capex is poised to accelerate, particularly in the second half of FY25, fuelled by election-related spending patterns.
• India’s investment rate is nearing a decadal high, reflecting a strong appetite for capital expenditure across various sectors.

• AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of NOK51 per share: Water inflow from a small interval in Welchau deeper formation.
• Continuing well test up hole – Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.
• Gas was initially observed at surface.

• LI US/1211 HK/1810 HK/XPEV US/NIO US/9863 HK/ZK US:In the 47th week of new energy vehicles, LI and BYD were impacted by new new forces. (////////////)
• 1211 HK:BYD Requests Suppliers to Reduce Prices by 10% in 2025.(+)
• 1810 HK/JD US: Jiangsu Province Expands Consumer Subsidy Scope, Adding 27 Product Categories Including Mobile Phones and Laptops.(+/+)

• NTES US: NetEase Denies Full Staff Layoff at Shenzhen Game Division, Clarifies It’s a Product-Specific Adjustment (/)
• NTES US: NetEase officially Named Their Urban Open-World RPG <Project Mugen> as <Ananta> (+)
• NTES US: NTES US: NetEase Closes Overseas Studio “Worlds Untold” (/)

• Following a review, Just Eat TakeAway.com (“JET”) has decided to delist its shares from the London Stock Exchange (LSE).
• This in order to reduce administrative complexity, costs, and address low liquidity and trading volumes.
• The company has requested the FCA to cancel its LSE listing and the LSE to remove the shares from trading.

• InPost | Allegro signs 5 years’ contract with DHL as an Allegro Delivery service partner
• Yesterday, Allegro announced to have signed a contract with DHL Poland extending the cooperation between the two companies that has been in place since 2022.
• The new agreement covers 1. Deliveries via DHL’s out-of-home network of automated parcel machines (“APMs”) and pickup drop-off points (“PUDOs”)

• United States stock markets will be closing early on Friday, Nov. 29 after being closed altogether on Thursday, Nov. 28, in observance of the Thanksgiving holiday
• Online sales in the U.S. during the first half of the Thanksgiving holiday increased by approximately 4%, surpassing last year’s 2% growth, as consumers take advantage of significant discounts.
• Toyota Motor reported global sales of 903,103 units in October, a 1% year-on-year increase and a monthly record.

• Semiconductors are the unsung heroes of the modern world. These tiny chips power everything from smartphones and laptops to cars, data centers, and even advanced artificial intelligence systems.
• While the US has historically led in semiconductor innovation, China is rapidly trying to catch up. This competition has led to global push for self-sufficiency in semiconductor production.
• Countries worldwide are investing heavily in semiconductor production to reduce their dependence on foreign suppliers and gain a strategic advantage.

• Forget government pressure, will peer pressure help fast forward Korea Corp Value Up program? 
• Japanese shame game versus Korean pride of the chaebols ? 
• Heading into 2025 we are seeing major Korean companies come out with longer term shareholder return plans

• If anyone remembers, in the spring of last year, we had a banking crisis – multiple bank-runs that led to the some of the largest bank failures in US history.
• Sparked by the bankruptcy of FTX, Silvergate was first hit by a bank run before the subsequent panic-induced domino-closure of three highly reputable banks – Silicon Valley Bank (SVB), NY based Signature Bank and lastly, First Republic Bank.
• I still vividly remember the day, Peter Thiel “commanded his cronies” to pull their money out of SVB, ASAP; the stock gapped down bigly at opening and the rest is history.

• Following a review of its asset-based financing (“ABF”) activities, ~ABN Amro has taken the decision to materially reduce the international footprint of its ABF division.
• This will be accompanied by an orderly wind down of non-strategic client portfolios, especially in the UK, and a reorganisation in Germany.
• This strategic alignment aims to strengthen the position of the bank and ensure long-term profitability. 

• De Beers once had a monopoly in the diamond market, but now the industry is more of an oligopoly with major producers controlling a majority of global supply
• Diamonds are non-fungible assets with a complex pricing dynamic due to various categories and qualities
• Most diamonds are sold via contract, leading to less price volatility but allowing miners to adjust supply based on demand fluctuations

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

• The election of Donald Trump with overwhelming majority changes the investment logic of our sectors and perhaps others. But besides acknowledging, what is actionable is the broad impact expected globally; 
• Thus the questions of whether Trump’s policies will be successful, become important: how flexible they are, what are the signposts and who stand to benefit and be hurt;
• Our standing assumption is that both MAGA and non-MAGA will claim victory.  We are assuming quality executions from the Trump team but the odds of achieving is still daunting.

• Inflation concerns weighing on sentiment after October’s Personal Consumption Expenditure (PCE) data showed a 2.3% annual increase, up from 2.1% in September
• Dell Technologies and HP led declines among tech stocks. Dell slid 12.3% after mixed earnings and caution about gradual AI adoption
• Sumitomo Corp is exploring a bid for Seven & i Holdings’ York Holdings, a business encompassing supermarket and retail chains

• Chinese government launched a special regulation to address algorithm of major Internet platforms, outlining 21 rectification requirements, which impacted Meituan, TRIP.com, and social media companies;
• However, The rectification measures focused mostly on user operation, algorithm registration, and compliance, with an aim to strengthen government control over public opinion, but not on monetization;
• We maintain that Chinese government needs the Internet platforms to boost consumption and employment, as manifested by Premier Li Qiang’s recent labeling  of Internet as New Quality Productivity Force.

• HP and Dell misses after-mkt yesterday setting off a wave of tech selling.
• MSFT under antitrust scrutiny from the FTC raising concerns AI demand is too focused?
• Panasonic briefing on AI continues to point to strong growth for its DC related server and power management solutions.