In today’s briefing:
- Thematic Report: AI Wave- Big Tech’s Spending Spree
- Thematic Report: India’s Capex Growth Ambitions Vs. Reality
- Singapore Banks – Domestic Credit Growth Rising Substantially, Credit Cost May Follow With A Decline
- Japan Weekly | Deals and Activism Drive Stocks
- AUCTUS ON FRIDAY – 22/11/2024
- US EV Charging Infrastructure Tracker: Update – October 2024
Thematic Report: AI Wave- Big Tech’s Spending Spree
- Big Tech companies are already generating significant revenue from AI. Microsoft expects to reach $10 billion in AI revenue by the next quarter, making it their fastest-growing area.
- In the third quarter of 2024 alone Microsoft, Google, and Meta collectively spent over $42 billion on AI infrastructure, primarily on building data centers and purchasing computing equipment.
- Companies are projecting continued high spending on AI into 2025 to meet growing demand. However, challenges remain, including supply constraints for AI chips
Thematic Report: India’s Capex Growth Ambitions Vs. Reality
- India is experiencing a slowdown in capital expenditure (capex), both in the government and private sectors. This slowdown, largely attributed to the general elections in the Q1 of FY25.
- The central government has set an ambitious target of 50.5% capex growth in the second half of FY25 to compensate for the sluggish first half.
- The capex slowdown has resulted in reduced investment in crucial infrastructure projects, impacting key sectors such as defense, roads, and railways.
Singapore Banks – Domestic Credit Growth Rising Substantially, Credit Cost May Follow With A Decline
- Singapore domestic credit growth is expanding upward over several months, where there are positive implications for net interest income growth
- Growth of local loans was negative YoY in past months last year, so the delta pick up of net interest income can be strong
- Accelerating growth likely means better credit metrics, and this is what MAS data shows too; this means that credit costs can come in, improving profit growth
Japan Weekly | Deals and Activism Drive Stocks
- The Japanese stock market experienced a lacklustre week, with the Nikkei 225 and Topix indexes closing lower by 0.9% and 0.6%, respectively
- Kadokawa’s stock surged 42% this week following a Reuters’ report that Sony is in advanced talks to acquire the company
- Tokyo Gas shares rose 19% after Elliott Investment Management disclosed a 5.03% stake in the company
AUCTUS ON FRIDAY – 22/11/2024
- ADX Energy (ADX AU) C : Portion of deeper target at Welchau flows water on test – Two intervals (total of ~16 m) in the Steinalm formation were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.
- Gas was initially observed at surface. While the achieved flow rate highlights the high permeability of the natural fractures, the absence of hydrocarbons is disappointing and surprising given the results of the logs, the inflow of gas while drilling, the analysis of the retrieved cores (with indication of hydrocarbons) and the fact that oil samples were recovered from this interval.
- The well is now being flowed while ADX is running a downhole production logging tool to analyse the contribution of the various sections of the well to flow.
US EV Charging Infrastructure Tracker: Update – October 2024
- Total public EV charging stations (incl. temporary unavailable locations) were 73,535 as of October 30, 2024. Compared to the end of FY23, it is an increase of 13.8%.
- Total EVSE charging ports (including the temporary unavailable ports) were 202,179, up nearly 20.1% compared to the end of 2023 and up 2.6% over September 2024.
- US considerably lags behind China which had 3.39 million public charging stations at the end of October 2024.
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