In today’s briefing:
- Rare Earth Stocks Plunge as Tesla Seeks Alternatives
- Japan Weekly | Movers, Macro and Insights
- GEM Weekly (3 Mar 2023): China PMI, India GDP; Naver, L&F Co, MediaTek, Foxconn
- SPAC Talk: Crushed Warrants Still Warrant Caution
Rare Earth Stocks Plunge as Tesla Seeks Alternatives
- Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles to control costs.
- The leading electric-car maker is designing next-generation powertrain that will use a permanent magnet motor that doesn’t rely on rare earth materials, Colin Campbell, Tesla vice president for powertrain engineering, said at an investor meeting.
- The change reflects Tesla’s efforts to control material costs and reduce its involvement in the health and environmental risks of mining the minerals, Campbell said.
Japan Weekly | Movers, Macro and Insights
- The Nikkei and Topix indexes finished the week 1.73% and 1.57% higher
- A more flexible BOJ will be a good thing…just don’t expect too much too soon
- Mitsubishi Chem is looking to divest non-core assets….could they make use of more tax-efficient spin-offs
GEM Weekly (3 Mar 2023): China PMI, India GDP; Naver, L&F Co, MediaTek, Foxconn
- The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
- Macro data points: Chinese PMI data, South Korean exports, India GDP growth
- Companies mentioned:Naver Corp (035420 KS), Mediatek Inc (2454 TT), Foxconn Technology (2354 TT), Hon Hai Precision Industry (2317 TT)
SPAC Talk: Crushed Warrants Still Warrant Caution
- SPACs are still heading for the exits in droves.
- While the six IPO pricings that occurred last month would ordinarily be nothing to write home about, February 2023 happened to be the most active month for SPAC IPOs since May 2022, which was the last time a month produced six IPOs.
- However, while the six IPOs last May raised a total of $915 million in gross proceeds, last month’s IPOs raised about half that amount (~$500 million), reflecting the tougher prevailing fundraising environment.
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