In today’s briefing:
- A Scenario Analysis: If Fed Initiates a Rate Cut Cycle, How Should Investors Position Themselves?
- Ohayo Japan | Winning Streak Snapped
- Japan Morning Connection: Rohm, Anritsu, Shiseido
- How Many Chinese Growth Equity Names Are Growing at Double Digits?
- [Blue Lotus Daily-TMT Update]:700 HK/LCKNY US/NTES US/BABA US/PDD US/AMZN US/SHEIN/3690 HK
- [Blue Lotus Daily]:LKNCY US/1519 HK/ZTO US/BZ US/1810 HK/981 HK/AAPL US
- Sustainable Investing Surveyor – Focus on Green Plains, Inc. (GPRE)
A Scenario Analysis: If Fed Initiates a Rate Cut Cycle, How Should Investors Position Themselves?
- Jackson Hole is annual event among central bankers and economists, where Fed Chair Powell will also be speaking on Friday
- In the scenario of a new Fed rate cut cycle, we expect Hong Kong RE, China RE and Singapore RE to benefit, while investors can reduce exposure in Japan RE
- We also recommend some trade ideas based on our analysis and suggest specific stocks
Ohayo Japan | Winning Streak Snapped
- Stocks declined on Tuesday, snapping an eight-day winning streak for the S&P 500 and Nasdaq
- Hitachi acquired U.S.-based Castle Hill Technologies to expand its digital transformation (DX) support in production, particularly in the pharmaceutical sector
- Oasis Management, an activist investment fund, disclosed a 3.96% stake in Mercari, making it the company’s sixth-largest shareholder.
Japan Morning Connection: Rohm, Anritsu, Shiseido
- TXN lowering capex slightly and commenting that demand remains below 2019 levels a slight negative for SPE and analog/power names such as Rohm and Fuji Elec.
- Keysight technologies strong earnings and guidance beat after hours is a strong positive read for Anritsu who offers similar telco testing products.
- Poor sales figures from Hainan Island point to a continued tough operating environment in China for cosmetics names such as Shiseido.
How Many Chinese Growth Equity Names Are Growing at Double Digits?
- With consumption in the doldrums, one would expect none growing at double digits. This is actually not the case;
- Further, how many Chinese Growth Equity names are accelerating in growth in the second half? Quite a lot;
- We reiterate our view that Chinese Internet names are took-all winners with strong pricing power, which are showing when they need to. The weak market sentiment is self-fulfilling.
[Blue Lotus Daily-TMT Update]:700 HK/LCKNY US/NTES US/BABA US/PDD US/AMZN US/SHEIN/3690 HK
- 700 HK: <Black Myth: WuKong> Tops Steam’s Most Played Games Now with Over 1.2 million Concurrent Players (+)
- 700 HK: Tencent’s <Rock Kingdom: World> Begins Beta Testing Today: iOS Only, Android/PC Versions Not Yet Available (+)
- 700 HK: <Honor of Kings> Matchmaking Algorithm to Be Overhauled (+)
[Blue Lotus Daily]:LKNCY US/1519 HK/ZTO US/BZ US/1810 HK/981 HK/AAPL US
- LKNCY US: The drink “Tengyun American” coffee package jointly launched by Luckin and “Black Myth: Wukong” game was sold out in its first day （/）
- 1519 HK/ZTO US: Weekly parcel volume grew ~29% y-o-y (+)
- Consumer Industry update:China’s Retail Industry Prosperity Index moderate rebound in August, mainly from offline retail recovery. (+)
Sustainable Investing Surveyor – Focus on Green Plains, Inc. (GPRE)
- The WTR Sustainable Index was up 3.0% W/W versus the S&P 500 Index (up 3.9%), the Russell 2000 Index (up 2.9%) and the Nasdaq Index (up 5.4%).
- Energy Technology (13.8% of the index) was up 3.8%, while Industrial Climate and Ag Technology (46.2% of the index) was up 2.9%, ClimateTech Mining was up 2.7%, and Advanced Transportation Solutions (20.1% of index) was up 2.7%.
- Top 10 Performers: ZEV, ORGN, GIGA, GTEC, PSIX, GEVO, GCEI, COMM, ASPN, FF
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