In today’s briefing:
- Ohayo Japan | Fed Minutes Signal September Rate Cut
- Could a Japan “Megaquake” Disrupt Semis?
- Japan Morning Connection: Mercari, Sumitomo Forestry, Anritsu
- What Does a Trump Presidency Mean for China Healthcare?
Ohayo Japan | Fed Minutes Signal September Rate Cut
- Stocks edged higher Wednesday after Federal Reserve minutes strengthened expectations for a September rate cut
- Japan set a record for foreign visitors in July, with 3.29 million arrivals, driven by a weak yen and summer holiday
- Japan Tobacco (JT) announced a $2.4 billion acquisition of Vector Group, the fourth-largest U.S. tobacco company
Could a Japan “Megaquake” Disrupt Semis?
- Japan’s Meteorological Agency has issued a warning of an upcoming serious 8-9-point earthquake
- The expected epicenter is home to at least one dozen semiconductor wafer fabrication plants: “Fabs”
- While it’s hard to predict earthquakes, this news should be considered when investing in the area.
Japan Morning Connection: Mercari, Sumitomo Forestry, Anritsu
- Good retailer numbers and outlooks by Target and TJX setting a positive tone for the likes of Mercari on the read for consumer spending.
- Toll Bros numbers from the day before lifting US Homebuilders should see the likes of Sumitomo Forestry rebound off yesterdays weak price action.
- Japanese R/E names look increasingly vulnerable to downside ahead of Ueda’s speech tomorrow which should point to a BoJ trajectory for future rate hikes.
What Does a Trump Presidency Mean for China Healthcare?
- The assassination of Trump in July has greatly increased the probability of his election as president this year. However, a Trump presidency is not necessarily good for healthcare industry.
- Trump’s reform in the field of healthcare has two major propositions – One is to achieve the independence of US pharmaceutical supply chain. The other is to reduce drug prices.
- From a US national security perspective, China’s APIs/CXO would be the segments with the highest sanction risk. China Biotech may also face some headwinds. The risk of “decoupling” further increases.
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