In today’s briefing:
- Ohayo Japan | Stocks Flat; Microsoft to Spend Big on JP Data Centers
- Early Sign of AI GPU Market Inflection Point?
- A Deep Dive into Chinese Industrial Production
- Global O&G Firms’ Credit Quality Improves on Tighter Oil Markets
- Weekly Sustainable Investing Surveyor – Week Ended April 5, 2024
Ohayo Japan | Stocks Flat; Microsoft to Spend Big on JP Data Centers
- US stocks in holding pattern ahead of March CPI report on Wednesday. NKY Futures point to lower open in Tokyo
- Microsoft plans to invest $2.9 billion in data centers in Japan by 2025, responding to Tokyo’s AI computing demand
- Seven & i Holdings mulls selling a stake in its superstore business, Ito-Yokado and York-Benimaru, by creating a new intermediate holding company
Early Sign of AI GPU Market Inflection Point?
- Taiwan Dell said “AI GPU shortage issue has been resolved. The lead time has been cut from 40 weeks by the end of 2023 to 8-12 weeks or less now.
- We see this news short term positive but medium term negative to AI GPU supply chain vendors but need more information to confirm if this is an inflection point.
- 1. Taiwan Dell got priority supply? 2. Earlier overbooking over? 3. Lead time cut by supply upside? 4. Cooling company said the same; 5. Will lead time continue to shrink?
A Deep Dive into Chinese Industrial Production
- This post examines China’s economic strategies and their impact on global trade and geopolitical dynamics, focusing on the shift from low-value-added goods to high-value-added industries like lithium-ion batteries, solar cells, and EVs.
- It highlights China’s approach of integrating economic and political strategies under the concept of “China, Inc.” where the state uses overcapacity as a strategic tool to further its geostrategic interests.
- The current Chinese export-led strategy challenges the principles of free trade, raises concerns about the sustainability of global economic interdependence, and is the basis for fear about China dumping industrial products on developed markets.
Global O&G Firms’ Credit Quality Improves on Tighter Oil Markets
- Oil spot prices have gained at a relatively stable pace since the start of 2024, with crude prices rising close to 19% year to date.
- Robust demand due to recovery in economic activity across major markets has been a steady tailwind to oil prices despite the prevalent geo-political catalysts that have spurred across global markets.
- Globally listed oil and gas producers and service providers have therefore seen a marginal improvement in their aggregate credit risk profiles, with their Criat Credit Cycle Index (CCCI) dropping by close to 2bps over the same period.
Weekly Sustainable Investing Surveyor – Week Ended April 5, 2024
- The WTR Sustainable Index was up down 1.5% W/W versus the S&P 500 Index (down 1.0%), the Russell 2000 Index (down 2.9%), and the Nasdaq Index (down 0.8%).
- Energy Technology (12.7% of the index) was down by 5.0%, while Industrial Climate and Ag Technology (57.1% of the index) was down by 1.0%, ClimateTech Mining was down by 1.9%, and Advanced Transportation Solutions (24.1% of index) was down by 1.2%.
- Top 10 Performers: VVPR, NEOV, KULR, ORGN, EGT, BLDE, WAVE, FAT, AQMS, HCNWF
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