In today’s briefing:
- Japanese Still Saving: ¥19 Million in Average Liquid Savings
- US Banks – HFD Mtg Vol Near 1990 Level, Net Int Inc Delta Can Be Negative & With Surging Provisions
- South Korean Gaming: An Overview Post Covid May Contain Catalysts Investors Have Overlooked
- Ohayo Japan|NVIDIA Crushes Street #s – Stock Surges; JAPAN X: JFE Adopts “Green Steel”
- [Blue Lotus Sector Update]: Is There a Good Capacity War from China?
- China TMT Update-PDD/ATAT/XPEV/NIO/LI-Temu Increases Prices/Hotel RevPAR Declines/G9 Facelift
Japanese Still Saving: ¥19 Million in Average Liquid Savings
- Japanese households were already saving at some of the highest rates on record before the pandemic due to government insistence that inflation was just around the corner.
- The pandemic only exacerbated worries over financial security leading to further squirrelling away of funds, eliminating any benefit from higher wages on consumption.
- As a result, consumer savings have hit new records, averaging ¥19 million in liquid assets per household and much higher for older households.
US Banks – HFD Mtg Vol Near 1990 Level, Net Int Inc Delta Can Be Negative & With Surging Provisions
- High-Frequency data for US mortgage loan applications, lending and LLR are a red flag
- US large banks’ loan growth is decelerating sharply, and LLR rising fast for many weeks
- Banks face low or negative net interest income growth, as credit costs rise substantially
South Korean Gaming: An Overview Post Covid May Contain Catalysts Investors Have Overlooked
- Investor focus post covid has been on Macau and Philippine recovery.
- Basic economics and demographics of South Korea favor a bullish cycle ahead post covid.
- Kangwon Land Co. holds a revenue lead against all competitors due to its status as the only property in the country permitting locals to gamble.
Ohayo Japan|NVIDIA Crushes Street #s – Stock Surges; JAPAN X: JFE Adopts “Green Steel”
- OVERSEAS. NVIDIA Surges after hours on Beat, Buyback; US Yields Fall after weak PMI; China Braces for Trust Defaults; India lands on the Moon; RUSSIA: Prigozhin off the board
- JAPAN. NKY Futures +0.6% vs Cash; USDJPY 144.8; Japan to allow broader defense exports; Kishida quandry: Spend more amid rising Debt Costs; Japan Govt Budget: 60bn Yen for AI
- Japan X. JFE Steel Adopts “Green Steel” for Low CO2 Emissions in Cargo Ship Construction . This is just the start of a trend we expect to accelerate.
[Blue Lotus Sector Update]: Is There a Good Capacity War from China?
- C1H23 solar PV and wind power capacity addition grew 154% and 72% YoY in China, significantly above 2022 growth. With the real estate fallout, renewable capex will likely stay robust.
- We view hydrogen being constrained by its end use in the near future. Incremental renewable capex will still go to solar and wind;
- Capacity addition is a long-term problem. But we don’t think overcapacity is an issue now. Capacity investment in upgrading technology is a plus. The more should be the better.
China TMT Update-PDD/ATAT/XPEV/NIO/LI-Temu Increases Prices/Hotel RevPAR Declines/G9 Facelift
- PDD: Temu reportedly increases product prices in certain regions (+)
- Atour Lifestyle: Summar vacation season is coming to a end, hotel RevPAR begin to decline
- XPEV/NIO/LI: Xpeng to launch G9 facelift in September ( +/-/-)
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