In today’s briefing:
- Japan Banks – Near End of Negative Rates BOJ, Deposits with BOJ to See Big Yield Rise, Not Only JGBs
- Ohayo Japan: SPX Rebounds – Tesla Leads; JAPAN X: Japan Equities: Is This Rally Different?
- China TMT Update-Baba/Healthcare-Daniel Zhang Stepping Down/ Anti-Corruption Might Nearing Its End
- Macro Nugget: US Banks
- SPAC Talk – Why Traditional IPOs Remain the Default Choice for Private Companies to Go Public
- The Highlights – Cannabis News for the Week Ending September 8, 2023
Japan Banks – Near End of Negative Rates BOJ, Deposits with BOJ to See Big Yield Rise, Not Only JGBs
- Comments today from BOJ suggest we are nearing the end of negative interest rates in Japan, which can mean an immediate boost to net interest income for Japan’s banks
- Many banks have cash and deposits with the BOJ at high levels, where yields are negative, and this can be the first big positive delta to bank’s income
- Credit metrics in Japan are improving and loan growth is accelerating, this is generally at odds with other major banking systems, US, UK, Singapore
Ohayo Japan: SPX Rebounds – Tesla Leads; JAPAN X: Japan Equities: Is This Rally Different?
- OVERSEAS: SPX rebounded on Monday with 9/11 Sectors positive; Tesla up 10% on upgrade from Morgan Stanley; Tech strong ahead of Apple’s Event – expectations high; China stablilizing.
- JAPAN: NKY Futs -0.1% vs Cash; USDJPY 146.6; JP yields rise; yen strengthens and Banks Rally as Ueda hints at normalization; This time is different: WSJ on Japan
- JAPAN X: Japan Equities: Is This Rally Different? We generally worry when the FT, WSJ jump on the Japan bandwagon – generally the top. However, the hard data is supportive..
China TMT Update-Baba/Healthcare-Daniel Zhang Stepping Down/ Anti-Corruption Might Nearing Its End
- Baba’s recent management change – Daniel Zhang proposed stepping down
- NHC Director said healthcare anti-corruption must balance pros and cons, suggesting the campaign might nearing its end
- Alibaba’s subsidiary, Lingxi Games, has released a self-developed new mobile game called “Forest Kingdom.” (森之国度)
Macro Nugget: US Banks
- Recently the FED released its H4 recently which bears some interesting insights into the state of the US banking sector.
- The Reverse Repo facility has been squashed since May while the bank reserves have remained relatively stable.
- We are not at all surprised by the banks’ continued caution throughout the summer, and we expect this risk-averse attitude to persist in the coming quarters.
SPAC Talk – Why Traditional IPOs Remain the Default Choice for Private Companies to Go Public
It’s feast… August ended with 19 deal announcements, the most active month of deal activity this year.
Total deal value amounted to $9.1 billion, at an average of $481 million per transaction, which is the highest level since the average of $586 million in January 2023, if we were to exclude the $27 billion BSAQ/VinFast transaction anomaly announced in May and de-SPACing in August.
September has begun spritely, with four new IBC transactions announced in the first eight days, all of which were valued at below $400 million.
The Highlights – Cannabis News for the Week Ending September 8, 2023
Global equities gave back most of last week’s gains, with the MSCI World Index ending the week -1.42% and the S&P 500 -1.26%.
The NASDAQ finished the four- day stretch -1.93%, while small caps were hit hardest, down 3.60%.
Losses were fueled by mid-week economic reports that signaled inflation could pick up again.
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