Daily Brief Financials: NTT DC REIT, Robinhood Markets , USD, Jilin Jiutai Rural Comm Bank, Dexus Property, Karnataka Bank, Shanghai Stock Exchange Composite Index, Yes Bank, Yorkville Acquisition, Nikkei 225 and more

• NTT DC REIT (NTTDCR SP) is the exclusive S-REIT vehicle sponsored by NTT Group. It has launched an SGX IPO to raise proceeds up to US$864 million. 
• The IPO portfolio comprises six data centres – three located in California, one in Virginia, one in Vienna, and one in Singapore.
• NTT DC REIT offers an attractive value proposition, comprising a blue-chip tenant base, a staggered lease expiry profile, a robust growth pipeline, and sizable debt headroom.

• The culture of trading has shifted, with people enjoying losing money and constantly looking for prices on various assets
• Robinhood caught the wave of this cultural shift with its user-friendly interface and introduction of free stock trading during the pandemic

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• FX volumes expected to remain steady in the next month and a half before potentially increasing later in Q3
• Dollar risk reversals are priced expensively for puts, suggesting the need for alternative option structures
• Consideration of bullish yen option trades in lower beta crossian underlyings like CNH as alternatives to dollar yen positions due to stretched spec positioning and high carry costs

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• Jilin Jiutai Rural Comm Bank (6122 HK) has disclosed a voluntary conditional offer and delisting proposal by Jilin Province at HK$0.70 per H Share, a 70.7% premium to the undisturbed price.
• The key conditions are H Shareholder approval of the delisting proposal and a minimum acceptance condition (50% of outstanding and 90% of H shares).
• Minorities are caught between a rock and a hard place, as the offer is unattractive, but the timeline for lifting the trading suspension is uncertain.  

• A global perspective on what happened overnight

• Karnataka Bank (KBL IN)‘s top two executives resigned under unclear circumstances, with boardroom friction, unauthorized spending, and weak financial performance raising concerns.
• Even audit report also suggests some red flags of minuscule amounts in unauthorized expenses, raising governance issues.
• The bank’s leadership shakeup and declining financials suggest instability; while governance reforms are needed along with new and strong leadership and governance realignment.

• We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).
• We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 5700-5785 and $119-$121.
• $125-$126 and $123-$123.50 are short-term supports to watch on ACWI-US; we will maintain our near-term bullish outlook as long as $123 support holds.

• Context: The Yes Bank (YES IN) vs. IDFC First Bank (IDFCBK IN) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Yes Bank (YES IN) and short IDFC First Bank (IDFCBK IN) targets a 9% return to the statistical mean reversion level.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Yorkville Acquisition and Lutnick’s SPACs are politically connected, targeting speculative capital tied to Trump’s administration and crypto.
• Mayne Pharma’s merger with Cosette faces legal challenges over a material adverse change, with a court hearing set.
• Lifeway Foods may be sold to Danone; shareholder campaign aims to overhaul the board for negotiations.

• Seasonal weakness and failure at highs support a tactical short.
• July has historically been weak for the Nikkei in both price and realized vol; Trump-era data showed summer vol was suppressed.
• We propose a tactical trade that aligns with the current setup and supportive price and volatility seasonals.