Daily Brief Thematic (Sector/Industry): Ohayo Japan | Bracing for Jobs Data and more

• Wall Street is bracing for Friday’s crucial jobs report, expected to influence Federal Reserve policy. Nonfarm payrolls are forecast to grow by 161,000 in August
• Seven & i Holdings will reject Alimentation Couche-Tard’s $40 billion takeover offer, deeming the price too low
• Effissimo Capital Management, an activist investment fund, has increased its stake in Teijin from 6.03% to 7.67%

• Not much lead from the US, although Broadcom numbers missing after hours set a slightly negative tone for tech, despite NVDA and TSLA posting gains.
• The market should like the news that 3382 7&I is engaging with ACT and asking for a higher bid, which may also indicate their failure to attain ‘core’ status from the JP Govt.
• PPIH looks oversold after missing out on NKY225 inclusion yesterday, especially in comparison to Baycurrent who also missed, yet finished the day +4.5%.

• Tech and cloud firms are heavily investing in artificial intelligence, but there are questions about whether the revenues from AI will catch up with the capital spending
• It will take time for big tech companies to see a return on their AI investments, with the AI build-out expected to take years
• There are opportunities for investment in firms supplying key inputs for the AI sector, such as energy, utilities, materials, and real estate

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Our core pick is flow monster CME Group for its dominant franchise through its trading and post-trading (including clearing) operations in interest rates, equity indices, foreign exchange and commodity derivatives
• We also like Deutsche Borse as the European flow monster and for its attractive valuations and gearing into greater European securities activity
• We downgrade Japan Exchange to a neutral from buy for its fair valuations, as we see more compelling opportunities with CME group and Deutsche Borse; CBOE is one to watch

• Credit growth is persistently weak in Australia, and this is as good of a sign as any, of weak demand or / and worsening credit metrics.
• Many other figures at the macro level point to weakness ahead (and now) for Australia’s banks even if credit costs appear low.
• WBC data on stressed corporate exposures shows all too well how migration can impact bad loans. BEN shows this too, with mortgage loans.

• Adani plans to raise Rs 40,000 crore via NCDs from retail investors, diversifying funding sources.
• Reliance secures 10 GWh battery storage under India’s PLI scheme, advancing clean energy goals.
• Nazara partners with Telangana to launch an AI Centre, driving innovation in gaming and emerging tech.

• BABA US/700 HK/WB US/PDD US/JD US/VIPS US:Taobao to launch WeChat Pay support this month (+/+/-/-/-/-)
• 3690HK: Meituan Plans to Increase Marketing Investment to Support Small and Medium-sized Restaurant Businesses(+)
• 3690HK: Meituan food delivery and Meituan hotel services launch on Alipay Mini Program(+)

• 1211 HK/LI US/XPEV US/NIO US: In the 35th week of 2024, BYD’s EV delivery hits a new high, while Xpeng’s sales increase by 700 units(///////)
• LI US/NIO US/XPEV US: Xiaomi SUV spy photos exposed, similar to Model Y, good news for Li Auto, NIO and Xpeng.(+/+/+)
• XPEV US: XPEV MONA M03 pre-order exceeded only 30K in 48 hours.(/)