In today’s briefing:
- Ohayo Japan | Dow Surges…again
- June 2024 Marks 13th Sequential Month Of Record Breaking Scorching Heat Across Land & Seas
- #30 India Insight: Temasek Investment in India, Farm Loan Waiver Scheme, HUL Sale of Pureit
- Australian Biotech Companies Amid Talk of Likely Interest Rate Cut
- [Blue Lotus Daily-TMT Update]:PDD US/BABA US/JD US/VIPS/3690HK/1024 HK/1519HK/ZTO/TCOM/NTES/BILI/
- [Blue Lotus Daily]:981 HK/1810 HK/BEKE US/AAPL US/688036 CH/QCOM US
- US Oil & Gas – Seeking a Balance Between Growth and Capital Returns to Shareholders
- How to Stimulate China’s Consumption, Part IV：Consumption Voucher Is Effective
Ohayo Japan | Dow Surges…again
- The Dow Jones Industrial Average surged over 700 points on Tuesday, setting a new all-time closing high
- Neste and Mitsubishi Corporation are forming a strategic partnership to develop renewable chemicals and plastics
- Fujitsu announced a strategic partnership with Cohere Inc., focusing on developing advanced Japanese language models for enterprises
June 2024 Marks 13th Sequential Month Of Record Breaking Scorching Heat Across Land & Seas
- New records were set in June with land temperatures 1.75°C above average and ocean temperatures 0.98°C soaring above average.
- The Climate Shift Index (CSI) revealed that 4.97 billion people experienced extreme heat from June 16-24, with a significant increase in heat due to climate change.
- June 2024 saw severe precipitation extremes, with drought conditions in places like the western U.S. and heavy rainfall in regions including southern Japan and Bangladesh.
#30 India Insight: Temasek Investment in India, Farm Loan Waiver Scheme, HUL Sale of Pureit
- Government Implements Uniform 5% Tax for Aircraft and Engine Parts to Boost Domestic MRO Industry
- Telangana Government Announces INR 35,000 Crore Farm Loan Waiver Scheme
- Temasek to Invest $10 Billion in India Over Next Three Years
Australian Biotech Companies Amid Talk of Likely Interest Rate Cut
- In last month’s monetary policy decision, the Reserve Bank of Australia (RBA) kept interest rate unchanged at 4.35%.
- According to a Reuters poll, a majority of the economists predicted interest rates to remain unchanged in the current quarter, followed by a 25bps cut to 4.10% in 4Q24.
- Amid possible rate cut talks both in the domestic as well as the U.S. market, we want to take a look at Australian biotech companies.
[Blue Lotus Daily-TMT Update]:PDD US/BABA US/JD US/VIPS/3690HK/1024 HK/1519HK/ZTO/TCOM/NTES/BILI/
- PDD US/BABA US/JD US/VIPS US/3690 HK: NBS publishes social retail consumption data for June 2024 (-/+)
- 1024 HK: Kuaishou Releases First Fully AI-Generated Micro-Drama, Receives Positive Reviews.（+）
- BABA US/PDD US/1519 HK/ZTO US: Weekly parcel volume shows 26% y-o-y growth (+)
[Blue Lotus Daily]:981 HK/1810 HK/BEKE US/AAPL US/688036 CH/QCOM US
- 981 HK/1810 HK: Huawei to launch updated Nova series smartphones (+//)
- BEKE US:China’s residential property prices show narrowing MoM decline in June (+)
- 1810 HK/AAPL US: IDC publishes 2Q24 smartphone sales data (+)
US Oil & Gas – Seeking a Balance Between Growth and Capital Returns to Shareholders
- The Energy Select Sector SPDR Fund (XLE) has underperformed the S&P500 and Russell 2000 indices during 2024 (Fig 1).
- The S&P 500 has gained ~18%, outpacing the ~8% rise in the XLE and the ~6% rise in the Russell 2000.
- The XLE’s 1H24 performance likely reflects oil prices trading in the $75 – $80/bbl band for much of the first six months of 2024 and natural gas prices which were negatively impacted by mild winter weather.
How to Stimulate China’s Consumption, Part IV：Consumption Voucher Is Effective
- Consumption subsidies in China has been muted in the 2020-2024 period, compared to practices in 2009-2012. We believe it reflects different thought of Chinese government at these two times;
- Past data has suggested that consumption subsidies are effective. We expect consumer subsidies of ~RMB 50bn to be issued in C2H24 to revive consumption;
- An even bigger consumer stimulus of ~RMB 200bn might be issued in 2025, and we believe a consumption tax reform might be one the permanent fixes for the purpose.
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