In today’s briefing:
- Ohayo Japan | Flat Start
- # 36 India Insight: Coal India Projects, Adani $4 Bn in PVC, ITC INR 20,000 Cr Investment
- Earnings: NXPI, CDNS, TXN, SLAB, Alphawave, TSEM, KLAC, SK Hynix, MXL, STM, ASMI, VRT, UCTT
- Key Tax Changes in Budget 2024: What You Need to Know
- Japan Morning Connection – 30 July 2024
- Furniture/Furnishings Weekly – Conn’s Files as Industry Bankruptcies and Layoffs Mount
- Biopharma Week in Review – Jul 29, 2024
Ohayo Japan | Flat Start
- US stocks closed mostly flat on Monday, starting a significant week that includes a Federal Reserve rate decision, the July jobs report, and Big Tech earnings
- Japanese luxury market thrives due to Chinese tourists exploiting the weak yen. Brands like Gucci, Burberry, and LVMH report strong sales in Japan, contrasting global trends
- Hong Kong’s activist investment fund Oasis Management acquired about 5% of Pasona Group; Murakami takes 5.05% of Heiwa Real Estate.
# 36 India Insight: Coal India Projects, Adani $4 Bn in PVC, ITC INR 20,000 Cr Investment
- Coal India advancing 119 projects to increase coal production, aiming for 1 billion tonnes by 2025-26.
- Adani’s $4 billion PVC project resumes, targeting India’s PVC demand with 2 million tonnes capacity.
- ITC plans Rs 20,000 crore investment, focusing on FMCG, paperboards, packaging, and hotel business demerger.
Earnings: NXPI, CDNS, TXN, SLAB, Alphawave, TSEM, KLAC, SK Hynix, MXL, STM, ASMI, VRT, UCTT
- This is going to be a big week, so I’ll be as brief as I can while getting everything in one place.
- Let’s start with Automotive, which is my favorite idea set right now. The problem is that the near-term results were much weaker than I expected, and it looks like the bottom is maybe in.
- I was expecting another quarter of scrapping along the bottom, and Industrial weakness punched a new low.
Key Tax Changes in Budget 2024: What You Need to Know
- Budget 2024 introduces revised income tax slabs, increased standard deductions, and changes to capital gains taxation, including higher rates and updated exemption limits.
- Key updates include reduced surcharge rates for high earners, higher capital gains taxes, and increased STT on F&O, affecting investor returns and compliance.
- The budget’s changes simplify tax structures but increase tax burdens on capital gains and trading, requiring adjustments in investment strategies and tax planning.
Japan Morning Connection – 30 July 2024
- Positive CEO comments on Silicon Carbide (SiC) from ON Semi could be beneficial for Rohm which has significant SiC exposure.
- Tesla’s 5.6% rise after Morgan Stanley named it a top pick in the US auto sector may help buoy sentiment for the beleaguered Panasonic with Tesla as it’s major customer.
- Names in Factory Automation with strong China exposure may benefit from Fanuc’s stronger-than-expected Q1 results, driven by government subsidies and growth.
Furniture/Furnishings Weekly – Conn’s Files as Industry Bankruptcies and Layoffs Mount
- The market rotation continued to benefit many of the stocks in the Water Tower Research Furniture and Furnishings indexes.
- The Water Tower Research Commercial/Contract Furniture Index was up (+5.5%) and Home Goods Retailers Index was up (+4.7%) for the week, while the Residential Manufacturers & Suppliers Index pulled back slightly (-1.4%) overall, even as many individual issues within the index continued higher, as the rotation to smaller-cap and value stocks continued with the S&P 500 and Dow 30 (-1.9%) down, while the R2K (+1.8%) continued higher.
- The Water Tower Research Mass Retailers Index was down modestly (-0.4%).
Biopharma Week in Review – Jul 29, 2024
- Last week, IONS matched Ultragenyx’s Angelman benefit, with maybe better safety.
- PFE and SGMO had approvable gene therapy results in hemophilia A, but durability remains a question.
- BIIB had a bad week, as SAGE-partnered essential tumor trial failed and ESAIY-partnered lecanemab in Alzheimer’s hit an EU regulatory wall.
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