In today’s briefing:
- No, Hong Kong Won’t Abandon The Peg
- Ohayo Japan | Wall Street Rises on Trade Optimism
- Charted Insights: Capex Revival in India Inc; Which Sectors Are Leading the Investment Cycle?
- Japan Morning Connection: Trump Signals End to Biden Greenhouse Gas Emission Restrictions
- Biopharma Week in Review Large M&A and Licensing Deals Provide a Boost
- Furniture/Furnishings Weekly – GenAI Adoption Rates
- Sustainable Investing Surveyor Focus on Aemetis (AMTX)
No, Hong Kong Won’t Abandon The Peg
- A Bloomberg op-ed piece on the 5th June concludes it is time to move on from “from an archaic currency regime“. That conclusion appears presumptuous. And uninformed.
- A key tenent of this piece is that HK’s benchmark interest rates are (or were) significantly – and stubbornly – lower than US rates. Yet this “anomaly” is easily explained.
- The article fails to discuss the impact from CATL (3750 HK)‘s IPO on the peg; and even what would replace the peg (IF it were replaced).
Ohayo Japan | Wall Street Rises on Trade Optimism
- Stocks rose Tuesday as optimism over U.S.-China trade talks; S&P 500 advanced 0.55% and the Nasdaq climbed 0.63%
- Toyota and Daimler Truck have signed a business integration agreement for their subsidiaries Hino Motors and Mitsubishi Fuso Truck and Bus Corporation.
- Honda will invest in Rapidus to secure domestically produced cutting-edge semiconductors for next-generation vehicles
Charted Insights: Capex Revival in India Inc; Which Sectors Are Leading the Investment Cycle?
- Corporate India’s capex momentum is showing a healthy revival, marking a significant shift from the risk-averse investment behavior seen post-COVID.
- Based on FY25 data from 1,393 listed companies (excluding banks and NBFCs), total gross fixed assets rose 7.6% year-on-year to ₹28.5 lakh crore – the strongest expansion in recent years.
- This increase signals renewed investment intent across infrastructure, manufacturing, and select consumption-facing sectors
Japan Morning Connection: Trump Signals End to Biden Greenhouse Gas Emission Restrictions
- Hydrocarbon related names traded well with Trump set to remove limits on carbon and mercury emissions…watch MHI, Yokogawa and Chiyoda.
- Intel +7.8% may help Ibiden, Micron +2.9% positive for Micronics, while semi-cap and power-semi’s continued to move up.
- Lock-Up expiry for Kioxia fast approaching could see shorts increase in a Kokusai Elec type situation.
Biopharma Week in Review Large M&A and Licensing Deals Provide a Boost
- M&A and deal activity provided a much-needed tailwind for biotech last week.
- Exiting a positive, but mostly expected, ASCO weekend, we witnessed the second-largest biotech acquisition in 2025, with SNY buying BPMC for $9.1 billion, and a mega-licensing deal, as BMY will pay up to $11.1 billion for co- rights to BNTX’s PD-1/VEGF (read-across to TIL, SMMT, PFE, MRK).
- Gene and cell therapy (NTLA, BEAM, CRSP) got a boost, as the heads of the HHS, FDA, CBER, NIH, and CDC expressed support for faster rare disease approvals at an FDA roundtable.
Furniture/Furnishings Weekly – GenAI Adoption Rates
- Risk on as markets anticipate progress on trade deals.
- The WTR Commercial/Contract Furniture Index gained 1.8%, the Residential Manufacturers & Suppliers Index was up 3.1%, and the Home Goods Retailers Index increased 2.5%, while the large- cap indices gained 1.1% and the R2K was up 3.0%.
- GenAI discussions on quarterly earnings calls are taking off as the technology (and adoption rates) continues to advance at a rapid clip (1), at least for the S&P 500 (Figure 1).
Sustainable Investing Surveyor Focus on Aemetis (AMTX)
- The WTR Sustainable Index was up 1.8% W/W versus the S&P 500 Index (up 1.5%), the Russell 2000 Index (up 3.2%), and the Nasdaq Index (up 2.0%).
- Energy Technology (12.8% of the index) was up 5.2%, while Industrial Climate and Ag Technology (47.9% of the index) was up 1.9%, ClimateTech Mining was up 0.1%, and Advanced Transportation Solutions (21.0% of the index) was up 1.3%.
- Top 10 Performers: LEV, SPWR, BNRG, LOOP, VVPR, IRBT, FCEL, TGEN, FNI, ZAPP
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