In today’s briefing:
- Japan Morning Connection – 23 July 2024
- Ohayo Japan | US Stocks Slip
- Is the AI Boom Over?
- Union Budget 2024: Key Announcements for Different Industries
- All You Need to Know: Economic Survey 2023-24
- # 32 India Insight: Reliance Disney Merger, Eureka Forbes Distribution Plans, Suzlon Profits Surges
- [Blue Lotus Daily-TMT Update]:3690 HK/TCOM US/1024 HK/BIDU US/PDD US/AMZN US/NTES US/700 HK/BABA US
- [Blue Lotus Daily]:1519 HK/ZTO US/1810 HK/981 HK/XPEV US/LI US/NIO US/QCOM US/TSMC US
- 2nd Quarter 2024 Letter to Investors
- Sustainable Investing Surveyor – Focus on Westwater Resources, Inc. (WWR)
Japan Morning Connection – 23 July 2024
- Major indices surged, led by Rambus +9.14% signaling strong tech sector momentum. However there is continued weakness for auto related chips and a lower cyclical demand in industrial IC’s.
- CrowStrike continued it’s significant drop, with CEO to testify on outage; increased interest in rivals like Trend Micro suggests potential market share shifts in security software.
- Kyushu Rail announced a 15% rail fare hike effective April 2025, leading to a +6.78% surge; tech industry growth in Kyushu will impact infrastructure-related firms positively.
Ohayo Japan | US Stocks Slip
- US Stocks were flat ahead of key tech earnings. Both Alphabet and Tesla posted mixed results, with share prices falling after-hours
- Nidec revised its FY2025 forecast, expecting a 48% year-on-year increase in net profit to 185 billion yen
- Hitachi will sell its 40% stake in its air-conditioning joint venture with Johnson Controls International to Bosch
Is the AI Boom Over?
- Nvidia gave guidance for significantly slower Q/Q growth in Q2
- Nvidia and its HBM suppliers have told of shortages, driving hyperscale datacenters to build excess inventory
- At the first sign of softness, Nvidia’s customers are likely to enter a digestion phase, drastically reducing orders
Union Budget 2024: Key Announcements for Different Industries
- 9 Key Sectors for generating opportunities for India in Budget: Agri, Employment, Inclusive development, Manufacturing and Services, Urban Development, Energy, Infra, Innovation & R&D, NexGen reforms.
- The overall tone of the Union Budget 2024 emphasizes support for MSMEs, Infrastructure, defence, and youth development.
- The budget’s focus on diverse sectors and inclusive development strengthens confidence in India’s long-term economic resilience and growth trajectory.
All You Need to Know: Economic Survey 2023-24
- The Economic Survey 2024 emphasizes long-term strategies for India’s “Amrit Kaal” goals, highlighting sustained economic growth, climate action, and sectoral advancements.
- India’s GDP grew by 8.2% in FY24, with key sectors like agriculture, manufacturing, and electronics showing strong performance. The government focuses on bottom-up reforms for sustained growth.
- The survey’s emphasis on strategic, long-term growth and resilience reinforces confidence in India’s economic future, aligning with the vision for a “Viksit Bharat” by 2047.
# 32 India Insight: Reliance Disney Merger, Eureka Forbes Distribution Plans, Suzlon Profits Surges
- India’s CCI intensively scrutinizes Reliance-Disney $8.5 billion merger amid major antitrust concerns.
- Eureka Forbes, under new leadership, plans extensive distribution network growth and product launches.
- Suzlon’s Q1 consolidated net profit soars 200% YoY, reaching ₹302 crore with a 50% revenue increase.
[Blue Lotus Daily-TMT Update]:3690 HK/TCOM US/1024 HK/BIDU US/PDD US/AMZN US/NTES US/700 HK/BABA US
- 3690 HK/TCOM US: Online catering is robust in 2Q24, while online tourism diminishing quickly（+/-）
- 1024 HK: Source said Kuaishou’s video generation LLM, Kling AI, has surpassed one million total application users.（+）
- 3690 HK:Meituan may launch food delivery service in Riyadh in September or October this year (+)
[Blue Lotus Daily]:1519 HK/ZTO US/1810 HK/981 HK/XPEV US/LI US/NIO US/QCOM US/TSMC US
- Macro News Update: Our take from the decision draft of the CCP 3rd Plenary Session
- 1519 HK/ZTO US: Weekly parcel volume shows 31% y-o-y growth (+)
- 1810 HK/981 HK: Huawei’s mid-premium Nova 13 smartphone to be delayed (+//)
2nd Quarter 2024 Letter to Investors
- Inflation and Market Dynamics: In this letter, we discuss persistent inflationary pressures and potential misallocation of capital in financial markets that could lead to future economic instability.
- Of specific concern is persistent under-investment in the Real Asset Ecosystem, which includes commodity producers and industries with significant vertical linkages to commodities, an ecosystem of businesses that ensure sustainable economic growth and stability.
We review our Enviox and Siemens Energy investment thesis and explain continued confidence in our lithium investments despite widespread negative EV sentiment.
Sustainable Investing Surveyor – Focus on Westwater Resources, Inc. (WWR)
- The WTR Sustainable Index was down 3.6% W/W versus the S&P 500 Index (down 2.0%), the Russell 2000 Index (up 1.7%) and the Nasdaq Index (down 4.0%).
- Energy Technology (14.4% of the index) was down 8.1%, while Industrial Climate and Ag Technology (59.6% of the index) was down 1.7%, ClimateTech Mining was down 7.0%, and Advanced Transportation Solutions (20.7% of index) was down 6.0%.
Top 10 Performers: ARVL, ZAPP, NAAS, VMC, PEGY, QS, LCID, OUST, EVGO, COMM
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