In today’s briefing:
- Ohayo Japan | Nvidia -5% After Results
- Japan Morning Connection: NVDA Disappoints
- US Lags Behind China and Europe in EV Charging Infrastructure
- # 51 India Insight: Zee-Sony Settle Dispute, NSE Files for IPO, HUL INR 962 Crores GST Notice
- What Is the Implication if RMB Appreciates 10%?
- China’s Duty-Free Haven Hands Out $3.4 Million Vouchers to Spur Spending
Ohayo Japan | Nvidia -5% After Results
- Stocks retreated on Wednesday as investors awaited Nvidia’s crucial earnings report. The Nasdaq Composite led declines, falling 1.12%
- Nvidia reported strong Q4 earnings, beating expectations with $30.04 billion in revenue and $0.68 EPS.
- Super Micro Computer’s stock plunged 19% after announcing a delay in filing its annual report, following accusations of “accounting manipulation” by Hindenburg Research
Japan Morning Connection: NVDA Disappoints
- NVDA disappoints market expectations and trades -7% after-market, setting a very weak tone for Japanese SPE and tech related names to start.
- The bad news for 4911 Shiseido continues, with the tone out of a small sell-side meeting held yesterday after-market pointed to further earnings downside.
- Expect a continued rotation into value and domestic defensives as the market pivots away from AI/tech with plenty of room for profit taking after the recent rebound.
US Lags Behind China and Europe in EV Charging Infrastructure
- US considerably lags behind China and Europe which had 3.2 million and 0.9 million public charging points at the end of July 2024. US had just 180,136.
- US aims to reach 500,000 public EV chargers by 2030. This compared with EU’s target of 3.5 million chargers by the same timeframe.
- EV adoption remains slow in the U.S. impacted by pricing and lack of infrastructure.
# 51 India Insight: Zee-Sony Settle Dispute, NSE Files for IPO, HUL INR 962 Crores GST Notice
- Zee and Sony Amicably Settle Disputes Over Failed Merger, Withdraw Claims
- NSE Files for SEBI NOC to Gain Approval for Long-Awaited IPO Listing
- ReNew and Microsoft Forge 437.6 MW Green Energy Pact to Advance Carbon-Negative Goals
What Is the Implication if RMB Appreciates 10%?
- News report today that RMB may appreciate 10% due to potential USD weakness and capital inflow of USD1trn back into China, causing upward pressure of the currency
- The capital inflow comes from potential unwinding of carry trade, as Chinese companies borrow CNY at low interest rate and place capital in USD deposit, at higher interest rate
- We think this scenario is unlikely unless China economy is showing strong recovery. But, if this happens, it will hurt export but positive for HK-listed Chinese property stocks
China’s Duty-Free Haven Hands Out $3.4 Million Vouchers to Spur Spending
- China’s tropical island province of Hainan is to hand out 24 million yuan ($3.4 million) in spending vouchers to encourage tourists to splash out and reverse falling retail sales in the duty-free haven.
- The provincial government said it will distribute the vouchers, including 9 million yuan to buy airline tickets and 15 million yuan for tax-free shopping, between late August and October.
- The initial batch of flight ticket vouchers will apply to Hainan Airlines’ services, but other carriers can request to join the program, the government said.
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