In today’s briefing:
- Ohayo Japan| Fed Job Done-Inflation Over, Stocks Rally; NUGGET: BayCurrent – To Leap from DX to AI ?
- Southeast Asia Plantations: Malaysia Palm Oil Inventories Surprised to the Downside
- China Extends Policy to Take Pressure off Ailing Property Market
- [Blue Lotus Innovative Drugs Sector Update]: Biotech-Biopharma Ecosystem Is Coming of Age in China
- Maverick Valuations #2 – USA: Dow Jones, Nasdaq 100 & The Mighty S&P 500
Ohayo Japan| Fed Job Done-Inflation Over, Stocks Rally; NUGGET: BayCurrent – To Leap from DX to AI ?
- OVERSEAS. Fed job done; Inflation over- Stocks, Bonds Rally, USD falls; China new June new Credit growth accelerates- spurs Resources; Musk launches xAI ; Big Broker Upgrade to Euro Semi
- JAPAN. NKY Futures +0.3% vs Cash; USDJPY 138.5; US CPI print drives yen strength – headwind to stocks; PayPay to list in US ? GS Ups Sony to Conviction BUY
- NUGGET. DX Consultant BayCurrent to report on Friday – Generative AI boom the next driver ?
Southeast Asia Plantations: Malaysia Palm Oil Inventories Surprised to the Downside
- Malaysian palm oil inventories for June came in below market expectations, with output surprisingly weak given the increase in foreign workers in the first half of 2023.
- Reasons for this is not yet clear, but it is likely structural factors are putting pressure on output, which could exacerbate the anticipated El Niño effect on yields.
- Reiterate positive view on Plantation sector equities and the price outlook for crude palm oil (CPO). Forecasts maintained.
China Extends Policy to Take Pressure off Ailing Property Market
- China has extended a policy released last year to allow developers to postpone or swap their loans in an effort to shore up the country’s ailing real estate sector.
- The policy was first released in November 2022 and includes 16 measures that aim to encourage financial institutions to set “reasonable” down payment ratios and interest rates to support demand for mortgages and allow a postponement of loan repayments to help builders complete construction projects.
- Two of the 16 measures were originally valid for six months and expired in May. Property development loans from banks and trust firms could be extended up to a year if they were due within six months starting from November 11, 2022.
[Blue Lotus Innovative Drugs Sector Update]: Biotech-Biopharma Ecosystem Is Coming of Age in China
- Novartis’s forfeit of option to license BeiGene’s (BGNE) Ociperlimab (TIGIT) likely suggested pessimism towards its year-end read-out.
- The priority of Tislelizumab in Novartis’s pipeline may also be sidelined; With Chinese innovative drug sales subdued under NDRL, the global biotech model is gaining superiority over local biopharma model.
- BGNE’s pipeline faces an aging problem, which must be mitigated by smart licensing. We downgrade BGNE to SELL and ZLAB to BUY.
Maverick Valuations #2 – USA: Dow Jones, Nasdaq 100 & The Mighty S&P 500
- To start, the 2023 and 10 years Total Returns & CAGR of the big 3 indices: sentiment is very positive, risk appetite is on and we have a new bull market.
- Let’s start with the Dow Jones Industrial Average (DJIA).
- Created in 1896, is one of the oldest & most widely recognized stock market indices in the world & and is made up of 30 blue-chip stocks that are considered leaders in their respective industries.
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