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Smartkarma Daily Briefs

Oct 20
0

Daily Brief Health Care: China Traditional Chinese Medicine, 10X Genomics, Halozyme Therapeutics, Teladoc Health, Inc. and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • TCM (570 HK): Likely Rush for The Exits As Deal Busts
  • Weekly Deals Digest (20 Oct) – China TCM, GA Pack, Tokyo Metro, Rigaku, CR Beverage, Horizon Robotic
  • 10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers
  • Halozyme Therapeutics Inc.: New Launches
  • Teladoc Health Inc.: Expansion into Insurance for BetterHelp & Other Major Drivers

TCM (570 HK): Likely Rush for The Exits As Deal Busts

By David Blennerhassett

  • China Traditional Chinese Medicine (570 HK)  (TCM) has been a frustrating deal, for a deal that shouldn’t be frustrating.
  • As feared from its 16th October monthly update, the inability to secure investor group consents appears to have torpedoed the transaction. Will we eventually find out why this got stonewalled?
  • This deal lapse changes the Hong Kong M&A landscape; if you can’t rely on SOE transactions to get up, what next?  The immediate question now is downside support on Monday.  

Weekly Deals Digest (20 Oct) – China TCM, GA Pack, Tokyo Metro, Rigaku, CR Beverage, Horizon Robotic

By Arun George

10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers

By Baptista Research

  • 10x Genomics, a leader in single-cell and spatial technologies, presented a mixed financial and operational report for Q2 2024, characterized by modest revenue growth alongside strategic advancements and evident pressures from the external economic environment.
  • On the financial front, 10x Genomics reported a revenue increment of 4% year-over-year, reaching $153 million, driven particularly by robust demand for spatial consumables and a sequential increase in single-cell consumables.
  • Notably, the company achieved a free cash flow positive status during the quarter.

Halozyme Therapeutics Inc.: New Launches

By Baptista Research

  • Halozyme’s recent quarterly performance underscored a strong trajectory in its financial and operational fronts.
  • The company, which specializes in the ENHANZE drug delivery technology, reported robust second-quarter earnings, with total revenue hitting $231 million, showing a growth that aligns with the company’s full-year expectations of 13% to 22%.
  • Notably, royalty revenues increased by 12%, reaching $125 million.

Teladoc Health Inc.: Expansion into Insurance for BetterHelp & Other Major Drivers

By Baptista Research

  • Teladoc Health’s second quarter 2024 financial results present a complex yet promising terrain as the virtual healthcare provider continues to navigate challenges while identifying avenues for growth and improvement.
  • Despite reporting a net loss, Teladoc Health demonstrated strategic areas of strength, particularly in its Integrated Care business, which noted a revenue increase and solid EBITDA performance.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Oct 20
0

Daily Brief Energy/Materials: China Oilfield Services H, Crude Oil and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More
  • OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More

By Travis Lundy

  • Huge volumes traded on the mainland, Southbound volumes dropped, AH Premia contracted a little bit, but not much. Things are starting to stabilise.
  • Average AH pairwise volatility is super high. Intracorrelation of spreads quite low. Lots of room to market-make wide spreads/high premia. High premia may continue to contract on speculation.
  • Continuing different onshore and offshore opinion regarding the nature and vibe of Chinese stimulus will continue to lead to interesting dispersion. Identify the trend, then market make around it.

OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

By Suhas Reddy

  • OPEC cuts demand growth estimates for the third consecutive month, lowering its 2024 and 2025 forecasts by 4.9% and 5.7%, respectively, citing demand weakness in China.
  • Total production of OPEC members obliged to implement supply cuts averaged 21.32m bpd in September, exceeding the target by 180k bpd.
  • The EIA reduced its 2024 and 2025 oil price forecasts due to September’s sharp decline but expects prices to rise from current levels on declining oil inventories.

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Oct 20
0

Daily Brief Industrials: Evergreen Marine Corp, Sensata Technologies Holding P and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)
  • Sensata Technologies Holding plc: Will Its Expansion into High-Value Sensing and Electrical Protection Be A Game Changer? – Major Drivers

Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)

By Daniel Hellberg

  • In the September data are clear signs of slowing momentum & price moderation
  • Seasonality, NAM de-stocking, anniversary of Red Sea re-routes all contributing
  • Without catalysts, we would AVOID holding shares of global container names

Sensata Technologies Holding plc: Will Its Expansion into High-Value Sensing and Electrical Protection Be A Game Changer? – Major Drivers

By Baptista Research

  • Sensata Technologies repoted its Q2 2024 earnings with positive insights alongside challenges reflected in their financial outcomes.
  • During Q2 2024, Sensata reported revenue of approximately $1.036 billion compared to $1.062 billion in the same period in 2023.
  • Despite the decline, the company executed product elimination strategies targeting underperforming products, which, adjusted for, would depict a stable revenue curve slightly ahead of guidance.

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Oct 19
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Oct 18th): AIA and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly (Oct 18th): AIA, Swire Pacific, Kuaishou Technology

Hong Kong Buybacks Weekly (Oct 18th): AIA, Swire Pacific, Kuaishou Technology

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Oct 18th based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), Swire Pacific (19 HK), Kuaishou Technology (1024 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Meituan (3690 HK), AIA (1299 HK).

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Oct 19
0

Daily Brief ECM: K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback and more

By | Daily Briefs, ECM

In today’s briefing:

  • K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback

By Sanghyun Park

  • The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.
  • Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.
  • K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.

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Oct 19
0

Daily Brief Thematic (Sector/Industry): Old E-Commerce Names Are The Biggest Winners of New Stimulus and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Old E-Commerce Names Are The Biggest Winners of New Stimulus
  • Here Is a Trillion Rmb Stimulus
  • AUCTUS ON FRIDAY – 18/10/2024
  • [Blue Lotus Daily]:1585 HK/NIU US/603529 CH/1211HK/1810 HK/XPEV US/NIO US/LI US/Real Estate Industry

Old E-Commerce Names Are The Biggest Winners of New Stimulus

By Robert McKay

  • China consumption shows rebounding demand following appreciation in asset values and home appliance subsidies. A record number of parcels were delivered last week, while home appliance sales grew rapidly;
  • We’ve raised 4Q estimates for online shopping growth given the recent demand trends which we expect to sustain through the quarter, so long as stimulus remains forthcoming;
  • JD and BABA remain our top ecommerce picks given their exposure to recent home appliance subsidies, as well as benefiting from a longer-term improvement in consumer sentiment.

Here Is a Trillion Rmb Stimulus

By Andy Fu

  • Minister of MOHURD (Ministry of Housing and Urban Development) said on October 16th that MOHURD planned to renovate 1mn more shanty houses via 100% cash exchange by year end;
  • We estimate this would inject Rmb0.5-1tn to the hands of shanty town residents. If all these money are putt into the property market, it can drive up transaction by 3-7%;
  • However, property transaction showed existing home sales growth slowed in September and new home sales remained in negative. The real estate market is in dire need of further stimulus.

AUCTUS ON FRIDAY – 18/10/2024

By Auctus Advisors

  • We have launched our new website with a revamped research portal – Home | Auctus Advisors.
  • We’d be very interested to receive any feedback you may have.
  • AUCTUS PUBLICATIONS ________________________________________ Criterium Energy (CEQ CN)C; Target price C$0.35 per share: Encouraging drilling results.

[Blue Lotus Daily]:1585 HK/NIU US/603529 CH/1211HK/1810 HK/XPEV US/NIO US/LI US/Real Estate Industry

By Eric Wen

  • Real Estate Industry Update: Press Conference of the Ministry of Housing and Urban-Rural Development: Restarting Monetized Resettlement May Drive a 3%-7% Increase in Property Transactions Value(+)
  • 1585 HK/NIU US/603529 CH: Shanghai announces trade-in subsidy for electric bikes (+/+/+)
  • 1211HK/1810HK/XPEVUS/NIOUS/LIUS:Electric vehicle sales surged in the 41st week of 2024, BYD,Xiaomi,andXpeng took the lead, Tesla was unexpectedly weak,and Aion did not enter the top ten for the second week (/////////)

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Oct 19
0

Daily Brief Event-Driven: China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price
  • Thematic Report : Investment Opportunities in Indian Markets Led by Promoter Buying
  • Need a Game Plan to Tackle Korea Zinc’s Buyback Tender with a 20% Proration Risk
  • ABC/TI Fluid Systems: 10% Gross Spread on a Highly Likely Deal
  • Align Partners Goes Activist on Doosan Bobcat
  • EQD | Upcoming ASX200 Pullback in 1-2 Weeks

China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

By Arun George

  • Shockingly, the Sinopharm-led consortium’s offer for China Traditional Chinese Medicine (570 HK) has lapsed as the precondition long stop date has not been extended.
  • This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. 
  • Shareholders will have a bruising Monday. Our analysis suggests a deal break price of around HK$3.44, a 10% downside to the last close.

Thematic Report : Investment Opportunities in Indian Markets Led by Promoter Buying

By Nimish Maheshwari

  • In the overheated Indian markets where selling spree by promoters is going at record pace.
  • We identified certain interesting companies where promoters are buying giving confidence in their business
  • We further delve into the thesis and key triggers for these companies

Need a Game Plan to Tackle Korea Zinc’s Buyback Tender with a 20% Proration Risk

By Sanghyun Park

  • NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
  • We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
  • MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura’s talks

ABC/TI Fluid Systems: 10% Gross Spread on a Highly Likely Deal

By Jesus Rodriguez Aguilar

  • TI Fluid Systems (TIFS LN) is trading at 10% gross spread to ABC (Apollo)’s Proposal, which the Board of TIFS would be minded to recommend if made firm.
  • Although TIFS has made notable strategic progress recently, and maintained margins despite tough conditions over the last years, the short-term car picture has gotten progressively worse.
  • 200p implies 4.6x EV/NTM EBITDA versus global auto suppliers trading on a median of 4.4x and represents a good-value exit. I believe the deal will complete. Long.

Align Partners Goes Activist on Doosan Bobcat

By Douglas Kim

  • On 18 October, a local activist fund Align Partners Asset Management started its “corporate activism” on Doosan Bobcat Inc (241560 KS).
  • Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets. 
  • We believe that Align Partners’ corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat’s share price.

EQD | Upcoming ASX200 Pullback in 1-2 Weeks

By Nico Rosti

  • This week the S&P/ASX 200 INDEX entered WEEKLY OVERBOUGHT status intra-week, peaking at 8384.50, then pulling back to 8283.20 at Close.
  • In this insight we will examine resistance levels the index will have a hard time to clear, without pulling back first at least 1 week.
  • According to our quantitative models, a pullback is highly likely to happen this week, or the next.

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Oct 19
0

Daily Brief Credit: Morning Views Asia: Lippo Karawaci and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Lippo Karawaci
  • Weekly Wrap – 18 Oct 2024

Morning Views Asia: Lippo Karawaci

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Weekly Wrap – 18 Oct 2024

By Felix Fischer

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Vedanta Resources
  2. Longfor Properties
  3. Anton Oilfield
  4. Adani Green Energy
  5. Reliance Industries

and more…

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Oct 19
0

Daily Brief Equity Bottom-Up: TSMC: Trading as if Valuations Don’t Matter and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • TSMC: Trading as if Valuations Don’t Matter
  • Tech News This Week. ASML, TSMC, Intel, SiC Capacity, MCU in China
  • TSMC Shares Surge 11% as Q3 Earnings Soar on AI Demand, Revenue Up 39% YoY
  • Taiwan Tech Weekly: IPhone 16 Sales Surge in China; Samsung’s Strength Diluted Against TSMC’s Focus
  • Bangkok Bank – BBL Sees 29% Higher NPLs YTD and Core Manufacturing & Commercial Loans -4% YTD
  • Tech Supply Chain Tracker (19-Oct-2024): ATE Energy boosts green energy & marine projects in PH.
  • TEGNA Inc.: Leveraging Advanced Advertising Platforms & Focus on Premion! – Major Drivers
  • Dana Inc. – The Latest Acquisition Target Heating Up Wall Street!
  • Five9 Inc.: An Insight Into Its Competitive Advantage & Go-To-Market Strategy! – Major Drivers
  • Accenture plc: How Is Its Approach Towards Strategic Bolt-On Acquisitions Working Out? – Major Drivers

TSMC: Trading as if Valuations Don’t Matter

By Pyari Menon

  • Shares of Taiwan Semiconductor (TSMC) – ADR (TSM US) surged on a robust results and raised revenue outlook, driven by strength in AI related demand.
  • Markets are overlooking the fact that many AI companies and solutions are unnecessary, unsustainable and will lead to blowups and consolidation.
  • We make the case for why TSMC is over valued and investors will likely get better entry levels.

Tech News This Week. ASML, TSMC, Intel, SiC Capacity, MCU in China

By Nicolas Baratte

  • The price of ASML EUV machine is increasing as thruput (wafer / hour) is increasing. 
  • TSMC 3nm is fully booked in 2025. Here is the list of clients / chips. 
  • SiC and MCU over-investments in China? Very likely. China is limiting SiC investments. 

TSMC Shares Surge 11% as Q3 Earnings Soar on AI Demand, Revenue Up 39% YoY

By Uttkarsh Kohli

  • TSMC reported Q3 revenue of NT$759.69 billion, marking a 39% year-over-year increase, surpassing the guidance range of NT$724-750 billion, driven by strong AI demand.
  • The company’s net income reached NT$325.3 billion, up 54% from last year and exceeding LSEG’s estimate of NT$300.2 billion, reflecting strong operational performance.
  • TSMC’s gross margin improved to 57.8%, an increase of 4.6% from Q2, highlighting enhanced profitability from advanced chip production amid growing AI applications.

Taiwan Tech Weekly: IPhone 16 Sales Surge in China; Samsung’s Strength Diluted Against TSMC’s Focus

By Vincent Fernando, CFA

  • Hua-Where? Hua-Who? Report: Apple’s iPhone 16 Pro & Pro Max Sales Surge 44% in China; A Strong Start Amidst Competition
  • Samsung Under Siege: Facing Major Challenges Across Verticals as TSMC Tightens Foundry Grip
  • TSMC 3Q24: Guidance Remains Strong; Explains Why AI Demand Not Overhyped; Stay Long… TSMC is Working with All AI Innovators

Bangkok Bank – BBL Sees 29% Higher NPLs YTD and Core Manufacturing & Commercial Loans -4% YTD

By Daniel Tabbush

  • Where there are many other areas of interest in Asia, globally, the figures just out for Bangkok Bank are incredible to us, not in a positive way.
  • The bank has seen its NPLs rise from THB71bn to THB85bn to THB92bn from 4Q23 to 2Q24 to 3Q24, putting YTD growth at 29%
  • The bank has more than 1/4 of its loans in manufacturing & commercial where loan balances are down 4.0% YTD and down 4.3% QoQ

Tech Supply Chain Tracker (19-Oct-2024): ATE Energy boosts green energy & marine projects in PH.

By Tech Supply Chain Tracker

  • ATE Energy is leading green energy and marine projects in the Philippines to support sustainability efforts and protect the environment. Taiwan is seeking to import green energy from the Philippines to meet its goal of achieving net-zero emissions by 2050.
  • The US faces challenges in expanding nuclear power as part of its efforts to reach net-zero emissions targets. Japan and Taiwan are teaming up to produce the Lean3 EV, promising a compact design and high efficiency for urban areas.
  • The new iPad mini features advanced Apple Intelligence technology with four major upgrades for top-tier performance and functionality. Joo-Sun Choi is returning to Samsung’s DS division after a successful term as SDC president. Taiwan is focusing on low-carbon power to drive industrial growth, while ESL adoption is on the rise with retailers like Simple Mart Taiwan and Walmart leading the way in a retail revolution for lower prices.

TEGNA Inc.: Leveraging Advanced Advertising Platforms & Focus on Premion! – Major Drivers

By Baptista Research

  • TEGNA Inc. reported their Q2 2024 financial results, reflecting a mix of challenges and opportunities which present a balanced view for potential investors.
  • In this earnings review, a detailed assessment of the company’s performance and strategic initiatives provides insights into its emerging trends and operational focus.
  • During the quarter, TEGNA noted a decline in total company revenue compared to the previous year, which primarily stemmed from decreases in subscriber counts and national advertising revenues.

Dana Inc. – The Latest Acquisition Target Heating Up Wall Street!

By Baptista Research

  • In a notable development, Dana Incorporated (NYSE:DAN) has recently emerged as a potential acquisition target, sparking rumors across Wall Street.
  • The company’s stock rose by 0.5%, following reports of takeover interest as mentioned in a Betaville “uncooked” alert.
  • The timing of this speculation coincides with a strong earnings performance for Q2 2024, where Dana posted $2.7 billion in sales and a solid $244 million in adjusted EBITDA.

Five9 Inc.: An Insight Into Its Competitive Advantage & Go-To-Market Strategy! – Major Drivers

By Baptista Research

  • In the latest earnings discussion of Five9, Chairman and CEO Mike Burkland relayed a mixed set of results, presenting a blend of successes and challenges.
  • The company achieved an annual revenue run rate exceeding $1 billion, primarily driven by a 21% year-over-year growth in LTM Enterprise subscription revenue.
  • Alongside, the adjusted EBITDA margin improved sequentially to 17% of revenue, contributing robustly to a strong LTM operating cash flow of $126 million, which is 13% of revenue.

Accenture plc: How Is Its Approach Towards Strategic Bolt-On Acquisitions Working Out? – Major Drivers

By Baptista Research

  • Accenture recently reported its fourth quarter result for fiscal 2024, showcasing a mixture of strengths and setbacks.
  • As a multinational professional services company known for its capabilities in digital, cloud, and security, Accenture’s continued focus on embracing technological transformations, particularly Generative AI (GenAI), and adapting to market demands are pivotal points observed from the earnings report.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Oct 19
0

Daily Brief Macro: HK/China: DOOM AND GLOOM? DON’T GET FOOLED AGAIN and more

By | Daily Briefs, Macro

In today’s briefing:

  • HK/China: DOOM AND GLOOM? DON’T GET FOOLED AGAIN
  • Market Commentary Snapshot: Delaying EUDR Likely To Bring Supply Glut Back
  • [ETP 2024/42] WTI Falls as Supply Disruption Fears Subside, Nat-Gas Slides on Weaker Demand Outlook
  • China September GDP Rotates Higher
  • Regional Economics: Can Asian Economies Innovate?
  • HEW: European Doves Are Too Stretched
  • Heard From Fortress Hill: Weekly Market Observations (18 Oct 2024)
  • Chile: 25bp Rate Cut To 5.25% (consensus 5.25%) in Oct-24

HK/China: DOOM AND GLOOM? DON’T GET FOOLED AGAIN

By David Mudd

  • As HK/China markets complete their retracements after the best rally in more than a decade, the exaggerated pessimism from the media and analysts returns.
  • The government continues to roll out measures to relieve the pressure on the property market in what is a multi-year process with no quick fix.
  • Even after a historic rally, the HSI still trades at a significant valuation discount which will narrow in the coming months.

Market Commentary Snapshot: Delaying EUDR Likely To Bring Supply Glut Back

By Arusha Das

  • Requests for retraction in contracts by buyers 
  • Oversupply of spot cargoes feeds pessimistic expectations

[ETP 2024/42] WTI Falls as Supply Disruption Fears Subside, Nat-Gas Slides on Weaker Demand Outlook

By Suhas Reddy

  • For the week ending 11/Oct, US crude inventories decreased by 2.2m barrels, diverging from expectations of a 1.8m barrel build. Additionally, gasoline and distillate stockpiles also declined more than anticipated.
  • US natural gas inventories rose 76 Bcf for the week ending 11/Oct, lower than analyst expectations of an 80 Bcf buildup. Inventories are 4.6% above the 5-year seasonal average.
  • Halliburton, Schlumberger, and Occidental’s target prices were cut. Notably, analysts kept their Buy ratings on Reliance despite its net profit falling by 4.8% YoY.

China September GDP Rotates Higher

By Alex Ng

  • Q3 GDP and September figures were slightly better. With a speed up of government spending in Q4 , we change our 2024 GDP forecast to 4.8% from 4.6%. 
  • However, despite a further Yuan1.5-2.0trn of fiscal stimulus to come, we still see 4.5% 2025 GDP.  
  • Stimulus is not focused on the consumer, while the residential housing market has not bottomed in construction or sales terms.  

Regional Economics: Can Asian Economies Innovate?

By Manu Bhaskaran

  • The latest Global Innovation Index shows that Asian economies are not yet fully reaping the benefits of innovation-led growth. 
  • Despite their strong performance in the overall rankings, Asian economies, including frontrunner Singapore, underperform in translating their considerable input investments into tangible outputs. 
  • As the conventional growth drivers of trade, demographics, and physical capital start running out of steam, Asian economies need to catch up to the innovation frontier to promote future growth. 

HEW: European Doves Are Too Stretched

By Phil Rush

  • A consecutive ECB rate cut and the UK’s unexpected disinflation have led to an extension in dovish pricing, which appears stretched both in absolute terms and relative to the US. Despite this, Europe’s resilient labour markets continue to influence medium-term inflation.
  • The Bank of Canada is predicted to implement a 50bp cut next week, following the Fed’s lead in the primary policy event.
  • Flash PMIs, set to be released on Thursday, are considered the most significant data release, particularly due to the stark contrast between US highs and Euro area lows.

Heard From Fortress Hill: Weekly Market Observations (18 Oct 2024)

By Alex Ng

  • HSI declined sharply in the beginning of the week and recoup half of the losses towards end-week.
  • S&P500 rose by 1.15% and broke new record. Dow-jones also broke record high
  • On the whole we hold the same portfolio throughout the week, loosing in the beginning and gaining back in the end of the week.

Chile: 25bp Rate Cut To 5.25% (consensus 5.25%) in Oct-24

By Heteronomics AI

  • The Central Bank of Chile reduced the policy rate by 25 basis points to 5.25%, in line with market expectations, reflecting a cautious approach to inflation management amid global volatility.
  • External factors, including the Federal Reserve’s rate cuts and China’s stimulus measures, have contributed to higher long-term interest rates and a stronger US dollar, exerting downward pressure on the Chilean peso.
  • Future rate cuts are likely, but their pace will depend on domestic inflation trends, global economic developments, and the central bank’s assessment of financial stability risks.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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