Daily Brief Thematic (Sector/Industry): Do diamond miners have a future? (Paul Zimnisky) and more

• 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

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• 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.