In today’s briefing:
- Ohayo Japan: Stocks Ignore Conflict; Japan’s Used Car Sales to Russia Hit the Brakes
- US – Fed Liquidity Moves USD147bn Lower In Past 3 Weeks, Pace Is Accelerating
- Luxury Goods – What Makes a Brand Unique?
- China TMT Update-Oct.10-Baba/LI/NIO/XPEV/Tencent/NetEase-Huawei Wenjie’s New M7/New Taobao Rules
- Cannabis News for the Week Ending October 6, 2023
Ohayo Japan: Stocks Ignore Conflict; Japan’s Used Car Sales to Russia Hit the Brakes
- Overnight: S&P gained 0.6% as market shook off initial concerns over conflict in Middle East. Bond market closed; Oil +4%
- Japan: BlackRock, the world’s largest asset manager, is looking to collaborate with Japanese businesses to invest in decarbonization technology.
- JapanX: Japan has recently imposed strict restrictions on its used car sales to Russia, significantly impacting a thriving trade worth nearly $2 billion annually
US – Fed Liquidity Moves USD147bn Lower In Past 3 Weeks, Pace Is Accelerating
- US Federal Reserve Bank balance sheets are released weekly and more current than commercial banks. Latest Fed B/S is for 4 October, shows -USD47bn WoW in loans, securities, repos.
- Liquidity conditions in the US banking system are becoming tighter faster, with the most recent week showing loans, securities, repos at -9.4% YoY vs -8.3% four weeks ago.
- With tighter liquidity we should expect less loan growth, but also more difficult conditions for cash-strapped companies, prompting more defaults, and higher credit costs at banks.
Luxury Goods – What Makes a Brand Unique?
- Why do certain brands like LV, Hermes and Cartier keep on delivering extraordinary results?
- Which luxury brands will be able to continue to raise their prices well above inflation in the medium and long term?
- If you don’t have a story for your brand, what is your brand worth?
China TMT Update-Oct.10-Baba/LI/NIO/XPEV/Tencent/NetEase-Huawei Wenjie’s New M7/New Taobao Rules
- BABA：SME merchants benefited from new Taobao rules ( + )
- LI/NIO/XPEV: The cumulative large deposit order volume of Wenjie’s new M7 has exceeded 50,000 units(-)
- Gaming Industry: August Market Sustains Ongoing Recovery with Impressive 46% YoY Growth in Domestic Market(+)
Cannabis News for the Week Ending October 6, 2023
Global equities ended the week up modestly, with the MSCI World Index returning 0.07%. US indices fared worse, with the S&P 500 -0.48%, NASDAQ -0.59%, and Russell 2000 -1.56%. Most of the declines were due to a strong jobs report that sent interest rates higher, and stocks lower.
Cannabis stocks fell again this week with the US cannabis MSOS ETF falling 10.83% and the global YOLO ETF dropping 8.19%.
MSOS has now retraced more than 50% of the gains since the HHS announcement on August 30.
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