Daily Brief Thematic (Sector/Industry): Ohayo Japan | Inflation Jitters Drag Down Tech Stocks and more

• U.S. stocks declined, dragged down by a hotter-than-expected producer price index report that increased wholesale prices by 0.4%
• Marubeni plans to accelerate asset sales, targeting at least ¥160 billion annually from FY2026, a 30% increase from the previous three-year average
• Oji Holdings will undertake a share buyback program, purchasing up to 100 million shares (10.1% of total issued shares) for as much as ¥50 billion

• Uncertainty around Trump administration’s policies, including deregulation and potential impacts on banking and the economy, may create challenges and opportunities for the banking sector in the next four years
• The US banking sector is expected to remain strong and dominant, with potential growth for top banks like JP Morgan and Wells Fargo.
• The future of banking may see a divide between larger, stronger banks and fewer smaller institutions, with potential changes in the private credit sector.

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• Morningstar’s positive assessment of SGX boosts the company’s value, attracting optimism from major financial institutions like Citi, Morgan Stanley, and RHB.
• Maybank’s decision to maintain a ‘buy’ rating on Sembcorp and raise its target price follows the company’s deal to import renewable energy from Malaysia, indicating confidence in its future prospects.
• DBS sells off 54,600 CLINT units for $61,152, suggesting the bank may be reallocating its investment portfolio or adjusting its positions in certain assets.

• LI US/TSLA US/XPEV US/NIO US/1211 HK:In the 49th week of 2024, LI and Tesla hedged against the slowdown in industry sales by increasing subsidies (/////////)
• 300750 CH: CATL announces a battery Factory plan in Spain, marking its third overseas plant (+)
• BEKE US: Second week of December sees abnormal surge in existing home sales, while new home sales maintain steady growth (+)

• The market was of two minds the past week, with big caps outperforming small caps and furniture and furnishings retailers outperforming manufacturers.
• The WTR Commercial/Contract Furniture Index was down 2.6% and the Residential Manufacturers & Suppliers Index was down 0.2%, while the Home Goods Retailers Index was up 2.9% and the Mass Retailers Index was up 5.4%.
• The S&P 500 and DJ30 were both up 0.7%, while the R2K fell 1.2%.

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, BIOA discontinued its lead obesity study, while JANX had impressive prostate cancer data, which also lifted VIR.
• MRUS gained from earlier HNSCC abstract data but may give it back after its weekend presentation.