In today’s briefing:
- Chinese EV’s and the Lagging Edge Price War
- Ohayo Japan| Tech Lead in Equity Rebound Amid Concerns; NUGGET: Activism-Japanese Firms Expect It !
- Q2’23 Foundry Flounders As Inventory Stubbornly Lingers
- [Blue Lotus Macro]: Underestimating the Pain but Unable to Turn Back
- China TMT Update-ACMR/981.HK/1347.HK/NIO/1211.HK/XPEV/BYD-Tesla Cuts Model Y Prices/Geely Cuts Price
- The Highlights – Cannabis News for the Week Ending August 11, 2023
Chinese EV’s and the Lagging Edge Price War
- This earnings season has highlighted the robust performance of older-generation (“trailing edge”) companies.
- Their inventories have also been rising. At the same time, there’s a noticeable demand slump in China.
- Surprisingly, Chinese semiconductor firms are increasing their investments in older technology, known as the “lagging edge” capacity. Put the pieces together, and there’s a big story here.
Ohayo Japan| Tech Lead in Equity Rebound Amid Concerns; NUGGET: Activism-Japanese Firms Expect It !
- OVERSEAS. US Equities rebound led by Tech as NVIDIA +7% gets boost from MS report; China troubles persist: Country Garden suspends bond trading; Foreign Investors losing interest in China
- JAPAN. NKY Futures +0.7% vs Cash; USDJPY 145.5; Yen Weakens be beyond 145 to USD, heads to 146 on widening spreads; JP M&A Boom as Cos seek improvements; Dentsu Miss
- NUGGET. Activism-Japanese Firms Expect It ! June’s Reuters survey of companies in Japan revealed this fact. At the very minimum, an implicit acknowledgement that there is room for improvement
Q2’23 Foundry Flounders As Inventory Stubbornly Lingers
- Foundry segment is on track to decline 15% YoY with no prospects of a meaningful H2 recovery
- Inventory levels across smartphone, PC and consumer electronic supply chains remain elevated, plagued by lack-lustre end user demand.
- At least some of the key players appear to be lowering prices but this is highly unlikely to stimulate end user demand and may actually make things worse
[Blue Lotus Macro]: Underestimating the Pain but Unable to Turn Back
- The slew of negative economic data for July traces its root to the inadequacy of industries Chinese government wants to promote towards generating employment, income and investments;
- With overwhelming advantage in financing, US’s reshoring initiative is bound to succeed in its first iteration.
- For China, boosting demand is no longer an option. Exporting deflation might be the only answer.
China TMT Update-ACMR/981.HK/1347.HK/NIO/1211.HK/XPEV/BYD-Tesla Cuts Model Y Prices/Geely Cuts Price
- ACMR/981.HK/1347.HK: US outbound investment restrictions likely to exempt publicly traded securities (+/+/+)
- NIO/1211 HK: Geely’s sub-brand Zeekr cut price of its 001 model (-/-)
- XPEV/NIO/BYD: Tesla China cuts Model Y prices and offers insurance subsidy for Model 3 (-/-/-)
The Highlights – Cannabis News for the Week Ending August 11, 2023
Global equities slipped this week, with the MSCI World Index down 0.28% and the S&P 500 down 0.26%.
The MSCI World and S&P 500 are down 2.85% and 2.65% in August, respectively.
After a strong rally from March through July, markets are taking a breather.
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