Thematic (Sector/Industry)

• US stocks rose Friday with the S&P 500 notching its fifth consecutive record this week and the Nasdaq reaching a new all-time high
• Donald Trump struck a major trade deal with the EU, easing tariffs, boosting U.S. energy exports, and averting a transatlantic trade war after months of tense negotiations.
• Cross-Shareholding unwinding among Japanese listed companies accelerated significantly, with policy shareholding sales rising 50% to a record 9.2 trillion yen in fiscal 2025

• Although lower interest rates will benefit the technology sector more, many investors will still opt for high-yield stocks to protect their income stream.
• CNOOC Ltd (883 HK), Hang Lung Prop (101 HK), China Hongqiao (1378 HK), Hengan Intl Group (1044 HK), and Henderson Land (12 HK) are the top 5 high-yield HSI constituents.
• Mainland China banks no longer made the list, but ICBC (H) (1398 HK) and Bank Of China Ltd (H) (3988 HK) remain attractive at 5.7% and 5.6%, respectively.

• Screen numbers a headline miss but outlook for guidance hike over 2Q numbers remains.
• Shin Etsu drop on back of PVC weakness could be short lived on a more dovish outcome.
• Renesas down after numbers with market wanting more clarity over comments that 2026 remains “unclear”.

• Sino Biopharmaceutical initiated Phase 1 trial for innovative drug candidate TQB6411 targeting advanced malignant tumors in China. Wuxi Biologics announced that five manufacturing facilities passed the Pre-License Inspection by FDA.
• FDA drug advisory committee voted against Otsuka’s indication expansion application for Rexulti. Telix Pharmaceutical received a subpoena from the SEC regarding the development of prostate cancer therapeutic candidates. 
• Lupin received FDA approval for generic versions of Liraglutide and Glucagon injections. Sun Pharmaceutical announced positive top-line results from two Phase 3 trials of Ilumya in active psoriatic arthritis.

• A tectonic shift is reshaping Indian QSR. Homegrown QSRs are overtaking global giants by redefining taste rooted in local flavours, fuelled by digital agility and tier 2/3 dominance.
• Global QSR giants are fighting back by Indianising their menus. Half of Burger King and McDonald’s offerings now cater to local tastes, marking  strategic pivot to stay relevant in changing market.
• Markets have adjusted to this new paradigm as valuations derate across listed QSRs while local players witness improved access to capital. Will listed QSRs see their fortunes revive here on?

• AUCTUS PUBLICATIONS ________________________________________ New Zealand Energy (NZE CN)C; Target price of C$1.70 per share: Equity raise to progress Tariki gas storage – New Zealand Energy (NZE) has raised C$3 mm of new equity priced at C$0.18 per share.
• The proceeds of the raise will fund the desktop studies required to prepare the field development plan, derisking the gas storage project ahead of expected monetization within the next 12 months.
• It will also fund the repayment of the convertible note.

• The S&P 500 and Nasdaq Composite achieved record closes Thursday, rising 0.1% to and 0.2% to respectively
• Alphabet rising 1% after beating earnings and revenue expectations; Tesla declined 8% as auto revenue fell for the second consecutive quarter.
• Bandai Namco and Sony announced a strategic business alliance, with Sony acquiring 16 million Bandai Namco shares from existing shareholders for approximately 68 billion yen, giving Sony a 2.5% stake

• Discussion with Josh Lipton about the resolution of companies not being locked out of China
• Jensen and Lisa Su lobbying for their businesses in China
• Political implications and progress in US-China trade relations

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• There are some improvements in HK domestic credit growth, but not in the key property sector, which continues to see contraction, at worsening pace
• LDR contraction in HK is another concern, for NIM, core interest income, while China credit metrics remain a concern – not only domestic HK.
• Singapore banks also exposed to HK and to Mainland China, it is not only HK local banks which bear this risk. Chailease from Taiwan is another good example.

• STM adds to the gloom for power semis after surprise loss and -16% drop. Fuji Elec and Renesas report today in Japan.
• Dow -18% after tariff uncertainty hist exports sending peers lower. Watch Shin Etsu despite its more PVC focus.
• Intel’s new CEO struggling to turn the ship around with a competitive AI offering still a ways off.

• India’s GCCs evolved: 15% cost arbitrage, 50% skill arbitrage, 35% innovation-led growth model
• Market boom: 1,352 deals worth $56B in 2024, office space expanding from 245M to 300M+ sq ft by 2027
• Growth metrics: Revenue jumped from $11.5B (2010) to $64.6B (2024), talent pool reached 1.9M+ people

• U.S. stocks rose on trade optimism, Tesla missed earnings but reaffirmed product plans, while Alphabet beat estimates on strong ad and cloud growth, highlighting AI’s growing impact.
• Japan-US tariff agreement drives rally: Trump announces 15% reciprocal tariffs, Japan commits $550 billion US investment, auto tariffs reduced to 15%
• Listed Japanese companies are forecast to post an average ROE of 8.5% for FY2025, the lowest in five years

• While the 1H25 IPOs have gained an average of 38% YTD, their average share price change has been only 6.3% MTD.
• “Rising Suns” stocks are interesting: Hainan Drinda New Energy Technology (2865 HK), PegBio (2565 HK), CaoCao (2643 HK), and Anhui Conch Material Technology (2560 HK).  
• “Real Treasures” stocks are safe bets: Duality Biotherapeutics (9606 HK), Unisound AI Tech. (9678 HK), CATL (3750 HK), Jiangsu Hengrui (1276 HK), and Nanshan Aluminium (2610 HK). 

• Big capex plans for Google and good numbers for SK Hynix setting strong tone for AI related.
• Momo names slid yesterday, although Ishiba heading for door may pressure heavies further.
• Autos squeezed hard yesterday, but there should be more upside for names with elevated SI still.

• Antimicrobial resistance (AMR) is often framed as a public health crisis.
• But for investors, it represents a systemic, underappreciated risk that can quietly erode value across sectors and portfolios.
• As bacteria and viruses evolve to resist treatment, the effectiveness of antibiotics diminishes. 

• According to Gartner, PC unit shipments increased 4.1% YoY in Q225 to reach 63.2 million
• According to IDC, smartphone unit shipments grew 1% YoY in the second quarter, reaching 295.2 million units
• Global semi sales were up 20% YoY in May while SEMI now expects YoY growth in WFE spending of 7.5% in 2025 and a further 10% in 2026

• The Nasdaq fell 0.4%, its first decline in seven sessions, dragged down by chipmakers after reports of delays in SoftBank and OpenAI’s $500 billion AI initiative
• Treasury Secretary Scott Bessent indicated a likely extension of the China deal deadline, while Trump announced a tariff agreement with the Philippines
• Prime Minister Shigeru Ishiba’s Cabinet approval rating fell to a record-low 23% following the Liberal Democratic Party’s significant losses in the House of Councillors election

• Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.
• Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.
• If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!

• SOXX rose 1.3% as AMD, Nvidia, and Broadcom rallied on China access and upgrades, while Micron and ASML lagged on memory and High-NA concerns.
• ASML warned on 2026 as TSMC and Samsung delay High-NA EUV; newer designs instead boost demand for etch players over lithography.
• $136M ETF outflows and a 25% drop in options activity show gains remain narrow, with investors waiting on tariffs and real tech catalysts.

• Stargate delays hitting semi-caps, while Texas Instruments cautious tone hitting power-semi’s after hours.
• Medical tech solution names IQVIA and Medpace surge may aid M3.
• DR Hortons’s numbers beat sparking enormous short squeeze for Home Builders – Sumitomo Forestry to follow.

• China biotech has become the biggest valuation driver for the entire healthcare sector based on strong expectations on licensing cooperations. Other subsectors may still underperform due to lack of logic.
• The primary market still lacks confidence in long-term outlook. Some founders/shareholders have already reduced holdings and cash out. Valuation bubble may burst when turning point occurs.We analyzed the possible scenarios.
• At this stage, stock picking logic may need to focus on three directions. The next stage of the rise may come more from A-share market. We shared our top picks.

• Currency factors took their toll on AkzoNobel’s 2Q25 results. On a pure organic basis, sales were flat, which was the balance of lower volumes (-/-1%), higher prices (+2%) and a negative mix effect (-/-1%).
• Currency factors were -/-5% and in combination with hyperinflation accounting, this resulted in an almost 6% drop in reported revenue.
• Adjusted EBITDA was impacted by currency headwinds too. On a reported basis, adj. EBITDA came in at EUR 393m, or EUR 10m lower than the consensus average estimate. 

• Introducing Dr. David Mazzo and Dr. Kristen Buck.
• Both of our guests carry impressive résumés. Dr. Mazzo, a PhD-trained chemist, is a 40-year veteran of the pharmaceutical industry, of which a significant portion has been spent in R&D executive roles in big and emerging pharma companies that develop products across all therapeutic areas and development stages.
• Dr. Mazzo joined Lisata as its CEO in 2015. Dr. Buck, a physician by training, spent several years as an FDA medical officer before filling various senior and leadership roles in clinical R&D in the pharma industry across multiple therapeutic indications. She joined Lisata in her current role in 2021.

• Unusual Machines’ CEO Allan Evans highlighted a significant market shift in the drone industry, driven by geopolitical restrictions on Chinese manufacturers, creating a “market vacuum” for non-Chinese, Made-in-the-USA drone components.
• Unusual Machines aims to be a crucial Tier 1 supplier for backpack-sized, specialty, and FPV drones by leveraging a consumer channel to achieve competitive pricing and quality for US-made parts.
• Evans anticipates rapid growth and consolidation in the US drone market, fueled by upcoming defense budgets and existing legislation, with the primary challenge being the ability to match the price performance expectations set by Chinese companies.

• US stocks higher, with the Nasdaq rising 0.4% to its sixth straight record close and the S&P 500 gaining 0.14% to finish above 6,300 for the first time
• Japanese Prime Minister Shigeru Ishiba’s ruling coalition suffered a major blow in Monday’s upper house election
• Chief negotiator Akazawa heads to Washington ahead of Trump’s August 1 tariff threat, amid post-election pressure on PM Ishiba.

• LDP was trounced on Sunday, but the yen is already starting to pare weakness which priced in ahead.
• Power semi’s may be under pressure with NXP miss after-market and Stellantis surprise loss yesterday.
• Microsoft reeling from massive cyber attack positive for security software including Trend Micro.

• New H8 release from Fed shows another strong week of YoY loan growth at 4.22%
• The delta in C&I loans which are core to economy is exceptional, now at 3.68% YoY
• With loan loss reserves only growing at 1.15% YoY, credit metrics appear benign

• U.S. stocks ended mixed Friday as tariff tensions weighed on the Dow, earnings remained strong overall, and consumer sentiment improved with easing inflation fears.
• The Magnificent Seven megacap technology companies are set to begin reporting earnings this week, starting with Alphabet and Tesla,
• Japan’s ruling coalition lost its re-election majority in the Upper House, with PM Ishiba vowing to continue talks amid pressure from ongoing U.S. tariff negotiations.

• The 100bp rate cut cycle is transmitting unevenly, with Private Banks raising loan spreads to 415bp while PSBs cut more sharply, compressing margins. 
• This divergence is reshaping profitability, with NIMs under pressure through Q2–Q3 FY26 and relief delayed by slow deposit rate repricing.
• Margin recovery now hinges on H2FY26 onwards, aided by CRR liquidity, easing funding costs, and credit cost normalization.

• Shanghai Henlius Biotech initiated Phase 3 U.S. clinical trial for HLX22 for gastroesophageal junction and gastric cancer. CanSino Biologics obtained clinical trial approval in China for polio vaccine.
• FDA rejected Nippon Shinyaku’s new drug application for CAP-1002 for DMD. JCR Pharmaceuticals announced license agreement with Acumen Pharmaceuticals to develop Alzheimer’s disease drug using JCR’s BBB -penetrating technology platform.
• Mesoblast recorded $13.2M revenue from Ryoncil post-launch March 28 through June 30. Sun Pharma launched Leqselvi in the U.S. for the treatment of adults with severe alopecia areata.

• The potential dismissal of the Federal Reserve Chair by Trump has created uncertainty in the markets. In the short term, this situation is favorable for gold for multiple reasons.
• A declining U.S. dollar and increasing inflation expectations, fueled by worries regarding the independence of central banks, are expected to elevate gold prices.
• In spite of increasing prices and a rise in call options, the implied volatility for gold has continued to decrease, notwithstanding a mild uptick observed recently.

• The Nikkei 225 rose 0.6% last week, a measured gain underpinned by strength in technology and defensives, despite intensifying headwinds from U.S. trade policy, domestic political fragility, and currency volatility.
• The JPY weakened 0.8% vs USD, closing at 148.67. Japanese bonds came under pressure, with 10Y JGBs +3bps to 1.53%, reflecting nerves ahead of this weekend’s Upper House elections
• Seven & i shares fell 13% this week after Alimentation Couche-Tard (ACT) withdrew its ¥2,600 acquisition offer

• India is the largest exporter of generic medicines, contributing 20% to global supply, and accounts for 6% of the world’s API production.
• India’s pharma sector offers up to 75% savings in R&D and 55% in manufacturing versus the US, making it essential despite tariff threats.
• India’s CRDMO sector is expanding rapidly, with a projected market size of USD 14 billion by 2028, driven by increased demand for biologics and integrated manufacturing solutions.

• NBFCs are consistently delivering higher credit growth than the overall lending industry across most asset classes—driven by demand from underserved segments and enabled by tech-led agility.
• From FY20–25, NBFCs saw higher CAGR in 5 of the 7 loan segments, and this trend is projected to continue through FY26—reinforcing their systemic importance in India’s credit landscape.
• NBFCs are no longer niche lenders. With higher market share in fast-growing segments like personal loans, MSME, microfinance, and consumer durables, they are outgrowing the systemic pace—indicating stronger tailwinds

• AUCTUS PUBLICATIONS ________________________________________ Arrow Exploration (AXL LN/CN)C; Target price of £0.70 per share: AB wells deliver flow rates above expectations – Current production ranges between 4,600 and 4,800 bbl/d driven by strong performance from two new horizontal wells at Alberta Llanos (AB).
• AB-HZ5, onstream for ~2 weeks, is producing 1,790 bbl/d (895 bbl/d net to Arrow), while AB-HZ4, online for over a month, continues to produce 880 bbl/d (440 bbl/d net).
• Both wells are outperforming expectations in terms of flow rates and pressure, which may positively impact reserves estimates.

• Hong Kong’s booming IPO market is fueling a partial rebound in the city’s beleaguered office sector, with Central’s premium business district leading the recovery.
• However, persistently high vacancy rates citywide mean rents are expected to keep falling throughout 2025, according to a report released Monday by CBRE, the real estate services company.
• The report shows Hong Kong’s office net absorption — the net change in leased space accounting for new leases, expansions and vacancies — turned positive in the second quarter of 2025. The market recorded 147,700 square feet (13,700 square meters) of net take-up, breaking a two-quarter streak of negative figures and signaling an improvement in leasing activity.