In today’s briefing:
- Ohayo Japan | CPI Caps Stocks; Nikkei at 34 Year High
- US Banks – Credit Card Charge-Offs Soaring to 8.5%, Can Catch Some Off Guard with Focus on CRE, C&I
- China Property Developers In Distress – Weekly News & Announcements Tracker | Jan 5-11, 2024
- Japan’s Drugstores Taking on – and Beating – Supermarkets
- State Companies’ Rush to Clean Energy Sparks Bubble Fears
Ohayo Japan | CPI Caps Stocks; Nikkei at 34 Year High
- S&P -0.13% as annual CPI comes in at 3.4% vs exp 3.2%. March rate cut odds down to 65%.
- Nikkei at 34 year high as revamped NISA attracts funds; Yen falls to one month low; Japan to earmark $130b for decarbonization
- Nikkei futures +0.5% premium to cash; Daiwa House massive CB issue; Fujitsu faces growing calls to compensate Post Office victims in UK. Uniqlo beats estimates
US Banks – Credit Card Charge-Offs Soaring to 8.5%, Can Catch Some Off Guard with Focus on CRE, C&I
- For US banks outside the largest 100, credit card charge off rates are soaring now at 8.5% compared with a total charge off rate of 0.25%
- Often smaller finance companies or non-traditional banks can see deterioration that hits the mainstream later, like in Thailand in 1997, and like with HSBC Finance, Countrywide, Indymac in the past.
- Ally Financial has already revealed a renewed surge of credit costs in 3Q23, defying the decline in the preceding two quarters. Maybe COF and others will show this too?
China Property Developers In Distress – Weekly News & Announcements Tracker | Jan 5-11, 2024
- This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress
- We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
- We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources
Japan’s Drugstores Taking on – and Beating – Supermarkets
- Major food-drugstores like Kusuri no Aoki and Genky Drugstores continue to pressure local supermarket competition.
- The model of funding discount foods and FMCG via high profit pharmaceutical and cosmetics ranges is one that traditional food chains cannot match.
- Now the largest players are creating brands and expanding into new regions. Many analysts have predicted saturation in the sector in the last decade. They continue to be wrong.
State Companies’ Rush to Clean Energy Sparks Bubble Fears
- China’s largest state-owned companies have poured hundreds of billions of yuan into wind and solar power projects, putting the country on course to hit its clean energy target six years ahead of schedule.
- But the investment frenzy has also raised concerns over profitability and waste.
- China has seen explosive growth in photovoltaic and wind power over the past three years as Beijing pushes to achieve a carbon peak by 2030 and carbon neutrality by 2060. To meet these goals, China in 2020 set a target to install 1.2 billion kilowatts of wind and solar power capacity by 2030. The country has moved faster than planned.
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