In today’s briefing:
- The Impact of the US Biosecure Act on India’s Pharma Export Market
- Earnings: TSMC, AEHR, ASML, VAT Group, Export Restrictions
- Ohayo Japan | S&P 500 Surges in Tech-Led Rally
- Union Budget 2024 Expectations: The Modi 3.0 Era and Its Impact on India’s Economic Growth
- Mapping Indian Market Performance Around Past 10 Budgets
- Japan Morning Connection – 22 July, 2024
- Biopharma Week in Review – Jul 22, 2024
- The Highlights – Cannabis News for the Week Ending July 19, 2024
- Furniture/Furnishings Weekly – Another Good Week for Stocks
The Impact of the US Biosecure Act on India’s Pharma Export Market
- The US Biosecure Act may restrict federal sourcing from China, boosting India’s pharmaceutical manufacturing.
- India’s CDMO market is expected to double in three years, significantly enhancing global competitiveness.
- Strategic investments in India’s pharmaceutical sector now appear more promising and potentially lucrative.
Earnings: TSMC, AEHR, ASML, VAT Group, Export Restrictions
Aehr had a messy print, with the core business actually weaker than expected as they incorporated their recent acquisition. It’s hard to stay bearish, as they have a lot of potential product launches coming.
TSMC beat gross margins despite everything because of higher utilization. The logic cycle is starting to kick off in earnest. I believe WFE Capex will be much higher next year.
ASML talked up high-NA DRAM insertion on 25/26. Only Samsung could do it. Good luck, Samsung!
Ohayo Japan | S&P 500 Surges in Tech-Led Rally
- Nvidia led the tech recovery, surging 4.8%, with Meta and Alphabet also posting strong gains.
- Goodyear Tire & Rubber is selling its off-the-road equipment tire business to Yokohama Rubber for $905 million
- Mitsubishi Heavy Industries has contracted with Airbus to supply emergency doors for A321neo planes, diversifying from its reliance on Boeing
Union Budget 2024 Expectations: The Modi 3.0 Era and Its Impact on India’s Economic Growth
- The Union Budget 2024 expectations: Focuse on job creation, rural support, and domestic manufacturing, aiming to drive economic growth and self-reliance.
- Employment, housing and Manufacturing will be the key priorities for Modi 3.O.
- This Budget can see some Taxation benefits for middle-class salaried individuals by offering improved tax incentives and a simpler tax system.
Mapping Indian Market Performance Around Past 10 Budgets
- FM Nirmala Sitharaman prepares to unveil the Union Budget for the fiscal year 2024-25 on July 23rd.
- Movement of Sensex and Nifty around the Budget day and post that.
- What sectors performed best and worst during the last 10 budget days?
Japan Morning Connection – 22 July, 2024
- Markets fell with Russell -0.63%, SPX -0.71%, Nasdaq -0.93% and SOX -3.11%. UST10 rose 0.88% and the yen weakened to Y157.48. Commodoties fell.
- CRWD -11.1%, MSFT -0.74%, and power semis (Wolfspeed -7.17%) fell due to a CrowdStrike IT outage and Trump-related EV concerns respectively, showing sector vulnerability.
- Stocks with China exposure fell sharply due to US export restrictions, with Disco -23.1%, TEL -18.1%, Screen -17.8%. Intuitive Surgical surged on strong Q2 results and da Vinci 5 launch.
Biopharma Week in Review – Jul 22, 2024
- We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
- Roche Holding Ltd. (RHHBY) reported initial Phase 1 data for oral GLP-1R agonist CT-996 in obesity patients, showing a 6.1% placebo-adjusted weight loss (p<0.001) at four weeks.
- While the weight loss compares favorably with approved injectables at four weeks (1-3% adjusted), the lack of details in the CT996 data, like baseline body weight, limits any cross-trial comparison.
The Highlights – Cannabis News for the Week Ending July 19, 2024
- Cannabis stocks started strong last week but faded on Friday. MSOS dropped 2.50% over the five sessions, while YOLO fell 1.73%.
- Ascend (CSE: AAWH, OTCQX: AAWH) rallied 12.18% following its debt refinancing, while Jushi (CSE: JUSH, OTCQX: JUSHF) lost the most at -9.84%.
- Ascend (CSE: AAWH, OTCQX: AAWH) announced on Monday it successfully refinanced its debt.
Furniture/Furnishings Weekly – Another Good Week for Stocks
- Rotation into smaller-cap and value stocks continues.
- The Water Tower Research Commercial/Contract Index (+1.2%) and Residential Manufacturers & Suppliers Index (+2.4%) benefited, while the Home Goods Retailers Index (-2.1%) was weighed down, in part, by bankruptcy concerns for CONN.
- The Mass Retailers Index (-2.4%) was affected by weakness in growth stocks, giant caps, and technology components of the market.
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