Daily Brief Thematic (Sector/Industry): Briefing. Investor Doubt Creeps into Constellation Software and Copart and more

• Strong second quarter performance driven by service spending and business investment, particularly in intellectual property like R&D and software
• Mixed economic indicators show resilient consumer demand but slowing hiring and persistent inflation pressure
• Housing market remains strained with low inventory and high prices, while new home sales see a significant increase in August due to incentives like mortgage buy downs

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• US stocks rose modestly Monday (S&P 500 +0.3%, Nasdaq +0.5%) as investors assessed government shutdown risks potentially delaying Friday’s jobs report and other economic data.
• EA acquired by PIF/Silver Lake/Affinity for $210/share ($55bn enterprise value, 25% premium); PIF rolls 9.9% stake, transaction closes Q1 FY27.
• Trump secured Netanyahu’s backing for Gaza peace proposal but Hamas acceptance uncertain; warned militants of full US support for Israeli action if rejected. 

• Activist investor City Index’s stake in Takashimaya is pressuring management to unlock value through asset sales and buybacks, potentially closing the stock’s valuation gap with higher-rated peers.
• Mandom’s founding family and CVC propose a ¥1,960 MBO, but activists Hibiki Path and City Index oppose it as undervalued, seeking closer to ¥3,030 per share.
• Silchester raised its Santen stake to 8.2%, signalling confidence in the ophthalmology company’s growth targets and disciplined capital returns of ¥30–40bn annually.

• Memory names surging after bullish broker upgrades as mkt refuses to sell off into the shutdown.
• Boeing taking a break but outlook for CF suppliers such as Toray ahead of the announcement for now Chinese orders looks positive.
• Oil takes a sizeable hit with OPEC signalling supply increases on the way.

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• PhillipCapital begins coverage on TeleChoice, rating it ‘buy’ with a 21.5¢ target.
• PhillipCapital’s Chan boosts Prime US REIT target price to 30 cents after placement.
• DBS keeps $3.80 target price on Yangzijiang after $180M order cancellation.

• Indian drugmakers re call medicines in US over quality concerns
• Gold prices touch all-time high amid weak dollar, rate cut expectations
• India targets to be among top 2 auto manufacturers globally