In today’s briefing:
- Good Morning Japan | Equities – All Good (Again); Strong Tech Bid; EV, AI Drivers; NUGGET: Advantest
- China NPC: Implications of Government Working Report 2023
- China Auto – Trough Behind Us, Green Shoots Ahead
- Copyright Wars
- Weekly Stock Bullfinder – Week of 3/6
Good Morning Japan | Equities – All Good (Again); Strong Tech Bid; EV, AI Drivers; NUGGET: Advantest
- OVERSEAS. Strong Beta Close in US Markets, with SPX +1.6%; US 10YR Yield retreated to under 4%; Tech w/SOX +1.5%, led by BroadCom. +5.7%; Ford +4% on strong EV demand
- JAPAN. NKY Futs +0.9% vs Cash; USDJPY strenthens 135.8; Expect follow on Beta/Semi bid on Broadcom sentiment lift; Govt to restrain EPCO px Hikes; Renesas, OAL, JAL added to NKY
- NUGGET: Advantest looks best positioned to benefit from the emerging boom in Generative AI.
China NPC: Implications of Government Working Report 2023
- Although 5% GDP growth target for 2023 is at the low end of market speculation of 5.5-6%, we think this reflects the government’s conservative stance amid post-COVID recovery.
- A 0.2pp higher budget deficit and a special purpose bond quota of Rmb3.8trn suggested that government spending will stay as important economic driver.
- Consumption is another major stimulus for economic growth, and more supportive measures will be rolled out – we have seen many cities planning to hand out consumption vouchers.
China Auto – Trough Behind Us, Green Shoots Ahead
- 2M2023 retail sales of passengers vehicles down 21% yoy, the biggest decline in 10 years.
- Demand recovery is expected from March with signs of warming up starting in NEV segment after price cuts and local supportive police’s introduced
- Cost friendly models would continue be preferred. i.e demand in mass market may be stronger than luxury market, PHEV segment may do better than BEV segment
Copyright Wars
- AI has been the talk of the town in 2023, and two products in particular, ChatGPT and Dall-E 2, have been making waves with their massive popularity and usage.
- ChatGPT hit the incredible milestone of 100 million users in just two months, so it’s no wonder investors and creators are excited about the productivity boosts and potential outcomes that AI can bring in the near future.
- Even mainstream media and tech leaders are heralding AI as the next big thing after the iPhone.
Weekly Stock Bullfinder – Week of 3/6
- One area that appears to be picking up steam is market participants increasingly seeking out alternative non-government published data to inform real time indicators on the health of the US economy, jobs, and inflation.
- There are many reasons alternative data sources are picking up importance including declining survey participation rates, significant and material revisions of prior published data, revisions to weightings or calculation methodologies, among others.
- In particular, the steady structural decline over the past decade of survey responses can lead to inaccurate signals and conclusions with high error rates.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
