Daily Brief Thematic (Sector/Industry): SUMCO Despairs On Legacy Rebound and more

• The pace of recovery in 200 millimeters appears to have been very weak. Customers continue to respect LTA prices but we have to push out delivery timing which impacts volumes.
• China appears to have developed their own capability to fabricate wafers. Quality does not necessarily appear to be very good but there is strong pressure to comply with “Buy China” 
• The recovery in legacy applications has been surprisingly slow. At this stage we don’t know whether it is a slow recovery or in fact that there won’t be a recovery.

• The return of Donald Trump to the global trade landscape brings uncertainty and potential disruption, particularly for countries like China with high trade exposure to the US
• India, on the other hand, appears to be in a more insulated position, with lower trade dependence and stable fundamentals
• Overall, the trade dynamics between the US, China, and India will continue to evolve, shaping the future of the global economy.

• US stocks ended mixed as tech shares led a modest rebound, with Tesla surging over 5% following reports that Trump’s incoming administration may ease self-driving vehicle regulations.
• Investors are now focused on Nvidia’s upcoming earnings report Wednesday as a key test for AI-related stocks, which have been crucial drivers of market gains over the past year.
• The Japan Tourism Agency is proposing to eliminate the ¥500,000 daily cap on tax-free purchases for foreign tourists in its fiscal 2025 tax reforms

• Nidec may be back in focus on a lifeline for SMCI and heating issues for NVDA.
• Tesla and power-semis are both up on the self-driving U-turn.
• No bid for JP SPE’s recently, although Lasertec may still have further to fall.

• The WTR Sustainable Index was down 4.5% W/W versus the S&P 500 Index (down 2.1%), the cex (down 4.0%) and the Nasdaq Index (up 5.7%).
• Energy Technology (13.5% of the index) was down 1.6%, while Industrial Climate and Ag Technology (48.3% of the index) was down 3.8%, ClimateTech Mining was down 3.4%, and Advanced Transportation Solutions (20.6% of index) was down 5.5%.
• Top 10 Performers: GRB, BE, WKHS, MULN, LILM, HLGN, FGPHF, AMPS, NEOV, NOVA

• WTR-CMI last week. After the momentous US election, the stock market has rallied on expectations of lower regulations, lower taxes, and a more confrontational approach to China and other geopolitical adversaries.
• Last week saw some profit taking across the market, with the Russell 2000, which we view as a better proxy for the broader market, declining 4%, with the large- cap, tech-heavy S&P 500 posting a 2.1% decline.
• Our WTR-CMI Index of 30 specialty chemicals and materials companies fared similarly, losing 2.2% of its value. 

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, Trump named RFK Jr. to lead the HHS, placing an overhang on XBI and vaccine makers PFE, GSK, MRNA, MRK, and SNY. BNTX and MRK made moves in the PD- 1/VEGF space.
• ABBV’s costly neuro play failed, removing the main threat to BMY’s Cobenfy. AMGN was rattled by bone loss data for its obesity drug. 

• Furniture and furnishing stocks retrenched last week, in line with the broader market.
• The Water Tower Research Commercial/Contract Furniture Index declined 3.1%, the Residential Manufacturers & Suppliers Index dipped 3.0%, the Home Goods Retailers Index fell 1.0%, while the Mass Retailers Index was down 1.3%.
• The S&P 500 and DJ30 were both down 2.2% during the week, while the R2K declined 5.5%. 

• Interview with digital advertising expert Eric Suffert discussing Apple’s app tracking transparency and its impact on digital advertising
• Exploring the historical paradigms of data flow in digital advertising before and after the implementation of ATT
• Examining the hub and spoke model and the mutual benefits for advertisers and platforms like Facebook in the previous paradigm

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