In today’s briefing:
- Ohayo Japan | Toyota Hangs up on KDDI
- US Banks – No Period on Record Since 1972 Shows Terms on Credit Card Loans so Poor
- Optics Earnings (FN, ANET, COHR, LITE, AAOI)
Ohayo Japan | Toyota Hangs up on KDDI
- The Dow extended its winning streak to eight sessions, marking its best week of the year.
- U.S. central bank is likely to proceed with interest rate cuts this year, although the timing and magnitude of the policy adjustments are uncertain
- Toyota plans to sell part of its stake in KDDI for approximately 200 billion yen, intending to fund investments in car electrification
US Banks – No Period on Record Since 1972 Shows Terms on Credit Card Loans so Poor
- Terms of credit on US credit card loans have surged to levels well higher than any period on record, since 1972 suggesting far worse delinquencies, risk aversion by lenders.
- There are important implications for the 2nd and 3rd order effects on consumption in the US economy, as well as obvious 1st order implications for banks, card issuers.
- In September 2022 delinquent card loans rates bottomed at 7.6% and this delinquency rate is now at 9.7% in December 2023.
Optics Earnings (FN, ANET, COHR, LITE, AAOI)
- To make my content readable, this is an optics-only earnings update.
- I will discuss everything together and put together a high-level overview.
- The specific things I am interested in are Marvell’s ZR and custom silicon.
💡 Before it’s here, it’s on Smartkarma
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