In today’s briefing:
- In Court Today With Segantii
- Ohayo Japan | Inflation Cools…a Bit
- Postcard from Uttar Pradesh | Addressing the Core
- HK Strategy: What Are the Best-Of-The-Breed Stocks?
- #13 India Insight: India’s Retail Inflation Eases, Tata Motors Guidance, Nestle Royalty, HCL Tech
- Manila Trip Report – An emerging Pacific tiger? (Part 1)
- [Blue Lotus Daily – TMT Update]:1024HK/BABA US/BIDU US/NTES US/700 HK
- [Blue Lotus Daily]:300750 SZ/1211 HK/XPEV US/NIO US/1810 HK/LI US
- Fewer Price Hikes in Spring, but Prices Still Rising
- #17Business Buzz: BHP Averts Strike, UBS Market Concerns, EU Tariffs on Chinese EVs
In Court Today With Segantii
- Although this note does not encapsulate a trade idea, the fallout from the Capital Management Limited’s (Segantii) insider dealing case has impacted certain event trades, as the fund winds down.
- On the 2nd May, the SFC commenced criminal proceedings against Segantii, its founder/ director/CIO Simon Sadler, and former trader Daniel La Rocca.
- In the Eastern Magistrates’ Court this morning, we heard the prosecution’s request to transfer the case to the District Court.
Ohayo Japan | Inflation Cools…a Bit
- US CPI remained flat over previous month and rose 3.3% over May last year – a slight deceleration
- The Federal Reserve concluded its two-day policy meeting on Wednesday by keeping interest rates unchanged in the 5.25%-5.50% range
- Japanese companies announced record share buybacks of ¥9 trillion ($57 billion) from January to May, up 60% from the previous year.
Postcard from Uttar Pradesh | Addressing the Core
- With the “Postcard” series, our objective is to bring to our readers on-ground insights based on interactions across key channels located in tier 2 and tier 3 locations.
- Uttar Pradesh (UP) is crucial in Indian politics with the most Lok Sabha seats and has a diverse economy focused on agriculture, services, and manufacturing.
- We are trying to be optimists, but it’s hard to ignore the ground realities, especially when compared to a much less developed and smaller nation like Nepal.
HK Strategy: What Are the Best-Of-The-Breed Stocks?
- The best-of-the-breed constituents are those that outperformed HSI YTD, rallied more than the Index in the Apr-May rebound, and retreated less than the Index in the May-Jun retreat.
- Only 4 out of the 82 HSI members made it – China Hongqiao (1378 HK), Tencent (700 HK), China Construction Bank (939 HK), and Orient Overseas International (316 HK).
- Their fundamentals look to stay strong, while both valuation and dividend yield appear to remain undemanding despite share price strengths.
#13 India Insight: India’s Retail Inflation Eases, Tata Motors Guidance, Nestle Royalty, HCL Tech
- Tata Motors Ltd (TTMT IN) and Dollar Industries guided for their upcoming years and expansion strategy.
- India’s Retail Inflation eases to Lowest Since May 2022, now market is waiting for rate cut.
- HCL Technologies (HCLT IN) to Establish Product Innovation Centre for Olympus in Hyderabad
Manila Trip Report – An emerging Pacific tiger? (Part 1)
- Initially planned around meeting a Chairman of an exciting listed company (to be covered separately), Altraman’s recent trip to Manila quickly morphed into a slew of meetings with other enterprises.
- His first stop was the Philippines Stock Exchange (PSE.PS) – the holding company itself being a potential play on the market as a whole, where he learned of catalysts such as soaring fintech-driven retail investor participation and government reforms to slash transaction costs.
- Further afield in Quezon, Altraman met with D&L Industries (DNL.PS), a raw materials manufacturer serving many of the country’s blue chips and multinationals.
[Blue Lotus Daily – TMT Update]:1024HK/BABA US/BIDU US/NTES US/700 HK
- 1024HK: Kuaishou has launched its AI video generation tool “Kling” and has begun invite-only testing.(+)
- BABA US/BIDU US: Alibaba publishes GPT-4 level AI LLM model Qwen2 (+/-)
- NTES US:NetEase announced that <World of Warcraft Classic> will begin a public server stress test on June 11th. The Blizzard platform“Battle.net“has already opened for login today.(+)
[Blue Lotus Daily]:300750 SZ/1211 HK/XPEV US/NIO US/1810 HK/LI US
- 300750 SZ: US lawmakers called to ban CATL and Gotion batteries to US.(+)
- 1211 HK/XPEV US/NIO US/1810 HK:BYD’s two models equipped with DM-5 exceeded 80,000 pre-order in two weeks.(//-/-/-)
- LI US/XPEV US/NIO US/1810 HK: /In the 23rd week of 2024, LI’s electric vehicle deliveries is leading the way, but most of them have fallen back.(///////)
Fewer Price Hikes in Spring, but Prices Still Rising
- April, which along with October is the month when many Japanese FMCG brands adjust prices, saw far fewer price hikes this year compared to 2023.
- Even so, numerous major brands still announced hefty price increases for later in the year.
- Meanwhile, government subsidies for utility costs are ending and the weak Yen is an increasing concern for many consumer-facing companies.
#17Business Buzz: BHP Averts Strike, UBS Market Concerns, EU Tariffs on Chinese EVs
- UBS merger with Credit Suisse sparks concerns over reduced competition and higher financing costs
- EU announces tariffs on Chinese electric vehicles, risking trade tensions with China
- Preliminary wage deal at BHP’s Spence copper mine averts potential costly strike
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