In today’s briefing:
- Ohayo Japan| Goldilocks in Play Everywhere; NUGGET: New Console? Can’t Keep a Super Mario Down!
- Auto Semiconductor Earnings, Testing, Semicap
- Trends in Casual Dining, Quick Service and Online Food Delivery
- US Banks – Loan Growth Moving Lower With Rising Provisions, Not Great Combination
- Anti-Corruption in China Healthcare – the Impact and the Outlook
- China TMT Update-XPEV/3690HK/241HK/6618HK-Volkswagen Cooperation;Crackdown on Healthcare Corruption
- The Highlights – Cannabis News for the Week Ending July 28, 2023
Ohayo Japan| Goldilocks in Play Everywhere; NUGGET: New Console? Can’t Keep a Super Mario Down!
- OVERSEAS. US Equities close July a winning note as markets continue to price in the Goldilocks economy; Rally has broadened out beyond a few select tech stocks
- JAPAN. NKY Futures +0.3% vs Cash; USDJPY 142.3; NKY powers above 33k level despite prospect of higher rates; Earnings in full swing – generally supportive; Nintendo-next Gen Console Coming ?
- NUGGET. Nintendo(7974)- rumour of a Next Gen Console in 2024 is gaining traction. If true, would completely reboot the company’s earnings and share price outlook
Auto Semiconductor Earnings, Testing, Semicap
- A partial earnings recap of companies so far this week: grouped by categories
- Simo and Maxlinear are going to be in a separate note.
- It’s too funny and interesting not to, but that will hopefully come out soon. It’s been quite a week of content.
Trends in Casual Dining, Quick Service and Online Food Delivery
- Barbeque Nation Hospitality (BARBEQUE IN) has a strong operating model, well-regarded management, and a good dining experience, resonating well with non-vegetarian and corporate customers.
- Current consumer trends show increased spending in the restaurant business, driven by social pressure to showcase lifestyles on platforms like Instagram.
- ONDC has potential as a platform but faces challenges in scaling up due to infrastructure and delivery integration issues.
US Banks – Loan Growth Moving Lower With Rising Provisions, Not Great Combination
- High frequency data shows large US banks reporting loan growth at 2.5% YoY at 19 July week
- This is far lower than where it was earlier this year at 8.2% YoY at 18 January week
- Loan loss reserves for large banks are up ~18.3% YoY in each of the past 3 weeks
Anti-Corruption in China Healthcare – the Impact and the Outlook
- The anti-corruption campaign has significantly accelerated since the beginning of this year. After Central Commission for Discipline Inspection has been involved, the anti-corruption efforts in pharmaceutical/device sectors would be unprecedented.
- The main targets are leaders of hospitals/governments. The impact of anti-corruption on companies is indirect. As long as senior management are not investigated/arrested, the impact on stock price isn’t significant.
- However, investors not only need to consider the problem of sales growth slowing down in the context of anti-corruption, but also consider whether companies is engaging in financial fraud.
China TMT Update-XPEV/3690HK/241HK/6618HK-Volkswagen Cooperation;Crackdown on Healthcare Corruption
- XPEV: Xpeng and Volkswagen cooperation updates, per the analyst call with IR team (/)
- 3690.HK: NDRC adds guidelines for restoring consumption of catering and tourism (+)
- 241HK/ 6618HK：Central Discipline Committee launched crackdown on healthcare corruption (-)
The Highlights – Cannabis News for the Week Ending July 28, 2023
The Fed raised rates 0.25% at the July FOMC meeting on Wednesday, bringing the fed funds rate to 5.25% to 5.50%.
Stocks rallied, as investors sense the Fed may be nearing the end of its rate-hike cycle.
The S&P 500 gained 1.05%, while the MSCI World Index climbed 0.82%.
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