Thematic (Sector/Industry)

• US stocks fell Monday as renewed tariff threats from President Trump rattled markets. The Dow dropped over 400 points, or nearly 1%
• Trump’s announcement of 25% tariffs on imports from Japan and South Korea starting August 1, part of a broader escalation
• Nissan announced it will raise 150 billion yen through a Euroyen-denominated convertible bond issue, targeting overseas markets

• Trump extending the implementation deadline leaves plenty of wiggle room for further negotiation.
• Renesas should be helped by the Wolf’s new restructuring hire and TPX FFW buying this month.
• Samsung numbers weak with failed NVDA accreditation weighing on outlook.

• Progress on at least some trade deals (Vietnam) was seen as a positive in a holiday-shortened week of trading.
• The WTR Commercial/Contract Furniture Index gained 6.1%, the Residential Manufacturers & Suppliers Index was up 2.1%, and the Home Goods Retailers Index gained 7.0% as the broader market indices were up 1.7% and the R2K was up 3.6%.
• New home construction, on a per capita basis, in the US (and other anglophone countries) has effectively flatlined since the 1990s, leaving us with just as many dwelling units on a per capita basis as we had in the early 1990s, despite the fact that the total US population has increased by roughly 80 million (1).

• Three candidates remain for the purchase of dsm-firmenich’s Animal Health & Nutrition (AHN) division: private equity firms CVC and Apollo, and Dutch feed producer Nutreco.
• This is reported by Dutch financial daily FD, citing anonymous sources. This deal, which has an estimated value of approx.
• EUR 2.8bn, is among the largest Dutch transactions of the year, though the acquisition environment remains subdued.

• US markets reached record highs last week, with the S&P 500 and Nasdaq closing at all-time highs
• US President Trump has announced that letters will be sent to trade partners, including Japan, notifying them of impending tariffs
• Yaskawa Electric expects its operating profit for the fiscal year ending February 2026 to fall 14% year-on-year to ¥43 billion, reversing its earlier forecast of a 20% gain

• Shionogi applied for indication expansion of its oral COVID-19 drug for pediatric patients. Simcere Pharmaceutical received approval of Enzeshu for the treatment of ovarian cancer in China.
• WuXi XDC has completed its manufacturing site in Singapore. The site to commence operation this year. Sino Biopharma got marketing approval in China for its inhouse congenital hemophilia drug Anqixin.
• Apollo Hospitals is demerging its omni-channel pharmacy and digital health business. Torrent Pharmaceuticals is acquiring controlling stake in J. B. Chemicals at an equity valuation of INR 257B.

• SEBI has cracked down on Jane Street Group, a global trading giant, for manipulating the BANKNIFTY index during expiry days using coordinated cash and F&O trades.  
• The Group allegedly pushed up prices in morning sessions to create misleading signals, and then profited massively by taking opposite positions in options.  
• SEBI estimates illegal gains of INR 43,289 crore in Index Options over a two-year period, primarily through this strategy.

• Japanese equities reversed early gains to close lower on the week (Nikkei -0.8%, Topix -0.4%) after breaching the 40,000 level on Monday
• Trade friction is re-emerging as a key geopolitical overhang ahead of the July 9 tariff deadline
• Yaskawa’s profit guidance cut (FY26 OP -14% YoY to ¥43bn vs prior +20%) signals subdued industrial capex ahead, with tariff policy weighing on visibility in FA demand

• RBI’s latest report shows India’s consumption growth is increasingly driven by the wealthy, using more credit, while lower-income groups show stress.
• This K-shaped recovery raises concerns about inclusive growth, as benefits are concentrated, limiting broad-based economic stability and job creation.
• While overall growth may appear strong, the uneven distribution of consumption highlights the need for policies promoting broader financial access for sustainable development.

• Chariot (CHAR LN)C; Under review: Potential demerger – The management of Chariot is considering splitting the company in two entities, one focusing on upstream oil and gas and the other on renewable power.
• The latter will also house the hydrogen and water assets.
• Pending further details, we are placing the company under review.

• Once driven by domestic infrastructure and shipbuilding, Japan’s steel industry is now navigating aging demand and declining consumption by pivoting to exports and specialty steel.
• Japanese steelmakers are embracing high-grade flat steel exports, electric arc furnace (EAF) transitions, and decarbonization-linked innovation — while deepening select offshore bets like AM/NS India and JSW Steel.
• JFE offers deep value via JSW exposure; Kobe adds margin stability through EAF and engineering, while Nippon faces capex strain and U.S. Steel integration risk.

• U.S. stocks rose, with S&P 500 and Nasdaq hitting records after strong jobs data boosted confidence in economic resilience.
• The Japan Semiconductor Equipment Association (SEAJ) forecasts Japanese semiconductor manufacturing equipment sales will rise 2% to 4.9 trillion yen in FY2025
• Daikin Industries plans to increase global air conditioner production by 11% to 9.64 million units in FY2025

• Shiseido: Weak sales in China and Travel Retail hurt performance, but cost-cutting and deep-value appeal raise potential for turnaround or takeover.  
• Ricoh: Effissimo bets on Ricoh’s slow pivot to digital services; low valuation offers downside protection despite unclear timeline for ROE recovery.
• Orico: Strategic Capital targets Mizuho affiliate for underperformance and insider-led governance, pushing for reform and better capital discipline.

• Coreweave rolling out NVDA’s Blackwell Ultra GB300 may help the likes of Ibiden and Advantest.
• Intel moving away from in-house glass substrate production may see the likes of AGC pick up new demand.
• Trade deal deadline looms with Japan still playing it ‘tough’, and with momo up defense may rise.

• Discussion on IperionX a titanium tech play mining adjacent company, and TNR Gold with royalty activist drama on Twitter
• Introduction of Hank Rule from Sierra Morena Capital to explore US insight on mining sector
• Analysis of the escalating bidding war between Kinterra and CAML for New World, with Kinterra matching CAML’s offer, signaling price discipline and potential for further escalation.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• More than 130 Albert Heijn franchisees, operating nearly 300 stores, have reached a settlement with supermarket chain Albert Heijn after over a decade-long legal dispute.
• The core issue was the franchisees’ claim that Albert Heijn retained too many financial benefits, including purchasing bonuses and online sales profits from AH.nl, without fair distribution.
• In 2014, the franchisees initiated legal proceedings, claiming EUR 200m after failed negotiations. 

• S&P hit a record as Trump’s Vietnam deal lifted sentiment, despite weak jobs data raising Fed rate cut speculation; Nike rose 4% on Vietnam exposure.
• Microsoft will lay off 9,000 employees—under 4% of its workforce—as part of a reorganization to streamline management and focus on strategic growth areas.
• Fast Retailing’s UNIQLO domestic same-store sales rose 6% in June, driven by summer apparel demand, though unit price per customer dipped 1% on calendar effects.

• Oracle order for millions of homes worth of power consumption sends DC and server related higher.
• Power semis also up as analysts continue to take a more constructive view.
• Gaming names may bounce after yesterdays dip given they are seen as ‘tariff proof’ ahead of deadline.

• China’s steel industry faces significant oversupply and weak domestic demand, driving aggressive exports and financial losses amidst rising global trade barriers
• India’s steel growth remains robust, driven by domestic demand, government support, product diversification, cost control, and ESG focus
• Indian steelmakers note easing import pressure, leveraging quality norms and value-added products, expanding capacity, with JSW Steel Ltd (JSTL IN) targeting 50 MT by 2030 from 27 MT currently.

• We think the US DC market is on a transformational path – the growth of AI workloads creating huge demand that significantly outpaced supply
• AI data centers are highly unique, combining with supply constraints has resulted in record low vacancy rate and rental growth across key markets
• We think Equinix is well positioned to capture this huge opportunity.  EQIX also collaborated with AI leaders like NVDA which gives it a competitive edge

• The Dow gained 0.91% to close at 44,494.94 on Tuesday as investors rotated out of technology and into health care stocks
• President Donald Trump expressed scepticism on reaching a tariff agreement with Japan, emphasizing his intent to impose duties
• Kirin Holdings completed the sale of Kyowa Hakko Bio’s amino acid business

• Homebuilders starting to stir, watch Sumitomo Forestry for upside squeeze potential.
• Este Lauder continues to climb but JP names still languish as slow to react to changing trends.
• Trump’s brinkmanship continues as the 9th July tariff deadline looms.

• China/HK real estate developers used to operate on “asset heavy” business model, where they build, own and operate the assets on balance sheet
• We think a new “asset light” model is emerging: the new model is charactered by minimized asset ownership, reduced financial risk and improved ROE
• In particular, we like CLI, Link REIT and China Resources Land.  We think they are on a transformational path and will provide further upside to shareholders

• Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&A and MBOs. 
• The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven & I, shrink.
• Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.

• SEBI approved cash-settled electricity futures on MCX and NSE in June 2025, bringing energy derivatives under regulation. 
• These critical financial tools will deepen power markets, enabling risk management and aligning with global practices. 
• Their transformative impact will bridge physical and financial power trading, boosting investment and market participation.

• Following a 20% rally in 1H25, the market has built in excessive optimism on the HSI. Historically, average returns for Jul-Oct are negative, suggesting caution is needed.
• The top 10 best-performing constituents are sitting on 24x FY25F PER, much higher than 11x for the Index, implying that earnings excitement has been well factored in. 
• Among the worst-performing ones in 1H25, BYD Electronics (285 HK), Haier Smart Home (6690 HK), and Techtronic Industries (669 HK) look appealing in 2H25.

• The WTR Sustainable Index was up 2.7% W/W versus the S&P 500 Index (up 3.4%), the Russell 2000 Index (up 3.0%), and the Nasdaq Index (up 4.2%).
• Energy Technology (13.1% of the index) was up 4.8%, while Industrial Climate and Ag Technology (48.2% of the index) was up 3.8%, ClimateTech Mining was up 1.4%, and Advanced Transportation Solutions (20.8% of the index) was up 2.7%.
• Top 10 Performers: QS, HYSR, AEVA, EFOI, COMM, WAVE, FTEK, AYRO, ENVX, AMSC

• The risk of power cuts in the UK, for a variety of reasons, remains real.
• Low plant margins (i.e. limited spare capacity at peak) in the UK are obvious enough.
• However, the events of 28 April 2025 ‒ when Spain, Portugal and parts of France were plunged into lengthy power outages ‒ were very disconcerting.

• Credit growth expected to rise to 13–13.5 percent in FY26, led by industrial lending and public sector bank support.
• Reliance Industries (RIL IN) ’s RISE Worldwide partners with Denmark’s BLAST to launch Jio BLAST eSports, signaling a major push into India’s booming gaming industry.
• Sona Comstar plans to manufacture EV magnets in India, aiming to reduce China dependence and strengthen domestic capabilities in the electric mobility sector.

• U.S. stocks closed at record highs Monday, capping a volatile first half as optimism over trade negotiations lifted markets.
• Takashimaya and Line Yahoo Japan announce fresh share buyback plans
• Honda has postponed production of its next-generation fuel cell system due to high costs

• Wolfspeed formally goes into Chapter 11, but the upside for Renesas makes its recent write off look excessive.
• Short interest for some Japanese autos has surged which points to a squeeze once US trade deal reached.
• Space names should be back in  focus ahead of next week’s ‘Space Tide Conference’ in Tokyo. Watch iQPS, Synspective and Sky Perfect JSAT for upside.

• RBA has recently shifted its monetary policy, and is expected to continue its easing over the future.  Real estate assets will benefit
• The office sector in Australia is impacted by the “flight to quality” trend, while the retail sector is under pressure, with slowing retail sales growth
• We see value in DEXUS and Dexus Convenience Retail REIT, driven by both top down macro tailwinds and structural bottom up drivers

• 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!

• India’s steel sector faced severe margin compression and trade imbalances due to a surge in low-cost imports and collapsing exports.
• To combat structural stress, the Government of India imposed a 12% safeguard duty and expanded quality norms to shield domestic producers.
• While short-term recovery is visible, the long-term outlook depends on global oversupply resolution and India’s shift from curbs to core reforms.

• New CEO of RISC V International focusing on continuity with previous CEO’s roadmap
• Prioritizing commercialization of RISC V in key industries like HPC, Data center, AI, Automotive, and Space
• Key takeaways from RISC V Summit Europe include engagement from global attendees, important panels with industry leaders, and upgrades in software ecosystem membership.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• U.S. stocks closed at record highs Friday despite volatility sparked by President Trump’s abrupt termination of trade talks with Canada
• Investors are waiting for Thursday’s June nonfarm payrolls report, which could sway Federal Reserve policy.
• Independent Franchise Partners (IFP), a British investment firm, increased its stake in Shiseido to 8.3%, up from 7.28%

• US Homebuilders starting to show signs of life should help sentiment for Sumi Forestry and Sekisui.
• Boeing move may already be priced in for Heavies but Momo still rules in Japan.
• Softbank signaling buybacks to take a back seat over investments in ASI.

• In this research, we look at the latest landscape regarding application of PropTech in Asia, and evaluate which companies have an edge
• PropTech is widely adopted in order to 1) enhance valuation process 2) improve efficiency to reduce costs and 3) green and sustainability buildings
• Among all real estate companies in Asia, we think CapitaLand Investment (CLI) and Sun Hung Kai Properties (16 HK) are leading in the application of PropTech

• New weekly data from US banks are now out, the first time since 13 June events, so important
• There remains loan acceleration in total loans and also the important bucket, C&I loans
• LDR expansion good, new CP outstanding data shows a surge in growth rate, new highs

• RemeGen granted exclusive rights to develop and commercialize Telitacicept worldwide (excluding Greater China) to Vor Biopharma for $125M. Innovent Biologics received a first-in-class weight loss drug approval in China.
• Daiichi Sankyo received FDA approval for Datroway for the treatment of certain types of non-small cell lung cancer (NSCLC). SanBio now expects Akuugo approval in H2FY26, instead of Q2FY26.
• Otsuka in-licensed HBM7020 from Harbour BioMed for an upfront payment of $47M and near-term milestones. Glenmark Pharmaceuticals has launched Beigene’s Tevimbra in India for NSCLC.