Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>
OVERSEAS: SPX +1.4% ahead of Fed/CPI; Energy and Tech lead with Industrials; Boeing +3.8% poised for massive Air India order; GS restructures its Consumer Banking biz 
</li>
<li>
JAPAN:  Nikkei Futures point +0.6% vs Cash; Yen weakens to ¥137.6;  Govt clarifiies NISA expansiion-positive flows to stock mkt; Nov Beer sales weak; Mach Tool order in Nov -7.8%YoY 
</li>
<li>
DAILY NUGGET: We are bullish IHI(7013) on the acceleration of Boeing's orders but highlight some industry risks coming out of Europe to short-haul flights. 
</li>
</ul>



OVERSEAS: SPX +1.4% ahead of Fed/CPI; Energy and Tech lead with Industrials; Boeing +3.8% poised for massive Air India order; GS restructures its Consumer Banking biz 


JAPAN:  Nikkei Futures point +0.6% vs Cash; Yen weakens to ¥137.6;  Govt clarifiies NISA expansiion-positive flows to stock mkt; Nov Beer sales weak; Mach Tool order in Nov -7.8%YoY 


DAILY NUGGET: We are bullish IHI(7013) on the acceleration of Boeing's orders but highlight some industry risks coming out of Europe to short-haul flights.  



Good Morning Japan |Positive Start Ahead of Fed/CPI; Energy Gets a Break

Equity Bottom-Up

<ul>
<li>Boeing’s stock price is recovering sharply as it benefits from recent multi-billion-dollar order wins</li>
<li>Japanese stocks (IHI, MHI, KHI &amp; Subaru) are highly geared into the Boeing supply chain</li>
<li>We highlight IHI as a top pick on this thematic and believe aero-engine revenues will continue to recover, driving a stock re-rating</li>
</ul>


Boeing’s stock price is recovering sharply as it benefits from recent multi-billion-dollar order wins
Japanese stocks (IHI, MHI, KHI &amp; Subaru) are highly geared into the Boeing supply chain
We highlight IHI as a top pick on this thematic and believe aero-engine revenues will continue to recover, driving a stock re-rating


<ul>
<li>
Good Morning Japan:  We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.
</li>
<li>
OVERSEAS.  US recession fears dominate,  SPX -0.7%/-3.7%WoW; Nov PPI print higher vs Cons, Cements +50bp Fed hike; China stocks win WoW amid COVID loosening + Property rescue;  Tech looks supported</li>
<li>
JAPAN.  NKY Futs -0.4% vs Cash, USDJPY ¥136.56;  US asks JP to help curb China chip access; More  Boeing orders, +ve JP related;  FY23 Defense to rise by ¥1trn</li>
</ul>



Good Morning Japan:  We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.


OVERSEAS.  US recession fears dominate,  SPX -0.7%/-3.7%WoW; Nov PPI print higher vs Cons, Cements +50bp Fed hike; China stocks win WoW amid COVID loosening + Property rescue;  Tech looks supported

JAPAN.  NKY Futs -0.4% vs Cash, USDJPY ¥136.56;  US asks JP to help curb China chip access; More  Boeing orders, +ve JP related;  FY23 Defense to rise by ¥1trn


Good Morning Japan |+50bp Fed Hike in the Bag, but Watching Tuesday's US CPI Print

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>JIP, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>'s preferred bidder, is reported to be under pressure from co-investors to cut its offer price. Securing financing continues to be troublesome.  </li>
<li>An offer valuing Toshiba less than JPY2.2 trillion would face pushback from the special committee, let alone shareholders. There are no signs of a JIC/Bain coming to the rescue. </li>
<li>While the Toshiba/peers price ratio remains undemanding compared to historical ratios, Toshiba looks expensive vs peers on multiples. With short-term newsflow likely to be incrementally negative, remain on the sidelines.</li>
</ul>


JIP, Toshiba Corp (6502 JP)'s preferred bidder, is reported to be under pressure from co-investors to cut its offer price. Securing financing continues to be troublesome.  
An offer valuing Toshiba less than JPY2.2 trillion would face pushback from the special committee, let alone shareholders. There are no signs of a JIC/Bain coming to the rescue. 
While the Toshiba/peers price ratio remains undemanding compared to historical ratios, Toshiba looks expensive vs peers on multiples. With short-term newsflow likely to be incrementally negative, remain on the sidelines.


Toshiba (6502 JP): JIP's Privatisation Bid Is Floundering

<ul>
<li>
 Good Morning Japan:  We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.
</li>
<li>OVERSEAS: STRONG Jobs numbers- dent in Fed pivot narrative; BUT Nov Manuf PMI supportive w/Contraction; SPX -0.1%, intraday-Lower left upper right day; Big airplane UAL order for BA. </li>
<li>JAPAN: Focus: WCup. JP vs Croatia tonight;  USDJPY 134 handle; Energy security: Govt wants LNG reserves+New plants; Weak Nov retail numbers; Retailer Nojima blazing the trail with +6% wage hike</li>
</ul>



 Good Morning Japan:  We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.

OVERSEAS: STRONG Jobs numbers- dent in Fed pivot narrative; BUT Nov Manuf PMI supportive w/Contraction; SPX -0.1%, intraday-Lower left upper right day; Big airplane UAL order for BA. 
JAPAN: Focus: WCup. JP vs Croatia tonight;  USDJPY 134 handle; Energy security: Govt wants LNG reserves+New plants; Weak Nov retail numbers; Retailer Nojima blazing the trail with +6% wage hike


Good Morning Japan | Fed Raised Hopes-Dashed by Jobs but PMI Supportive

Japan

IHI Corporation manufactures heavy machinery. The Company produces aircraft jet engines, rocket propulsion systems, and ships for military and commercial use. Ishikawajima-Harima also constructs petroleum refineries and nuclear power plants.

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IHI Corp (7013 JP)

Good Morning Japan |Positive Start Ahead of Fed/CPI; Energy Gets a Break

Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP...

Mark Chadwick

IHI (7013) | Boeing Orders Take Off

Boeing's recent order intake is a significant tailwind for the Japanese companies that are geared to the supply chain. We favour IHI, which is...

Mark Chadwick

Good Morning Japan |+50bp Fed Hike in the Bag, but Watching Tuesday's US CPI Print

Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP...

Mark Chadwick

Toshiba (6502 JP): JIP's Privatisation Bid Is Floundering

While Toshiba/peers price ratio remains undemanding compared to historical ratios, Toshiba looks expensive vs peers on multiples. With newsflow...

Arun George

Good Morning Japan | Fed Raised Hopes-Dashed by Jobs but PMI Supportive

Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP...

Mark Chadwick

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