Daily Brief United States: Copper, Bitcoin, Cadence Design Sys, USD Coin, Procter & Gamble Co, Csx Corp, Schlumberger Ltd, Gold, Equifax Inc, Dr Horton Inc and more

• Copper market may be running ahead of a fundamental story, with extreme tightening in the copper concentrate market
• Chinese demand has stepped back due to surging copper prices, but expected to acclimatize to higher price levels
• Supply side challenges may take a couple more quarters to resolve, leading towards a tighter refined market in the future and potential supply shortfalls by 2030.

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• It is no surprise that we have maintained a bullish stance in crypto over the past month, given the uptick in US dollar liquidity and the easing tensions between Israel and Iran.
• Despite these factors, the market adopted a predominantly pessimistic view, highlighted by a negative futures funding rate.
• This suggested to us that the market was misaligned with the outside environment.

• Cadence demonstrated a robust start to 2024 with a strong first quarter that exceeded its guidance range on all critical financial metrics.
• Due to this exceptional performance, Cadence is increasing its financial outlook for the year.
• Cadence finished the first quarter with an unexpected record backlog of $6 billion, placing the company in a strong position for the remainder of 2024 and beyond.

• We have been of the opinion that tokenized real world assets (RWAs), especially tokenized debt will represent a more understandable underlying value of tokens or cryptocurrencies than Bitcoin.
• We are positive on tokens backed by risk-free assets such as US Treasuries or even investment-grade bonds as rates products for crypto funds and fractional investments for retail investors.
• Private debt could be the next in line to enjoy mass adoption if the legal elements and credit protection have been put in place to gain trust of institutional investors.

• Proctor & Gamble’s recent earnings reveals a company navigating a complex yet profitable environment.
• The company announced strong sales and market share results, largely driven by the execution of its integrated strategy.
• Impressively, the figures for the first three quarters of fiscal ’24 indicate a raise in its outlook for core earnings per share, keeping it within fiscal year guidance ranges for organic sales growth, cash productivity and cash return to shareholders.

• CSX Corporation had a solid start to 2024, dealing with a number of challenges, including severe weather in January and the Francis Scott Key Bridge collapse.
• Despite these difficulties, the corporation managed to maintain a consistent momentum with a volume performance that kept moving forward.
• The company’s management remains committed to mitigating the impact of these challenges for its customers.

• During Schlumberger’s (SLB) first quarter 2024 earnings, the company’s evenue grew by 13% YoY, and EBITDA grew in the mid-teens, in line with SLB’s full-year financial ambitions.
• International activity fuelled the growth, with revenue increases observed in 21 of the 25 international GeoUnits.
• North America, however, showed a decrease in activity, resulting in a 6% YoY fall in revenue.

• Going forward, Energy could face some selling flows from CTAs according to the latest CTA flow update by UBSS

• UBS ‘Contrarian’ trades: bullish Agriculturals and LME Lead, bearish Energy, Cocoa, Lean Hogs and Platinum

• UBS ‘Go with momentum’ trades: bullish Zinc, Aluminium, bearish Cotton, Sugar and Palladium

• Equifax Inc.’s strong start in 2024 is evident from its Q1 reported revenue of $1.389 billion, up 7%, resulting from sustained strength in mortgage revenue and global non-mortgage businesses.
• Equifax’s adjusted EBITDA margins of 29.1% were also slightly above expectations.
• Moreover, their adjusted earnings per share (EPS) of $1.50 a share exceeded the high end of their guidance.

• D.R. Horton, the largest builder in the United States, presented its strong results from the second quarter of fiscal 2024, with its earnings per diluted share summing to $3.52.
• The company managed to increase its consolidated pretax income to $1.5 billion, a 23% increase and basis for a reported 14% increase in revenues, amounting to $9.1 billion.
• The pretax profit margin came in at 16.8%.