In today’s briefing:
- Ohayo Japan | Trump’s Disappointment
- China’s AI Strategy Isn’t About Catching up to the West – It’s About Out-Deploying It.
- Japan Morning Connection: Dull Tone to Start as Musk Squabble Overshadows Trump’s Call with China
- Silver Market Snapshot: Rising Prices, Industrial Tailwinds, and Strategic Exposure
- South Africa Listed Property Review – May 2025
- Global and Indian Textile Industry-Shifting Supply Chains,Innovation in Materials,and Policy Support
- Circle IPO: Wall Street’s New Fintech Darling Prices Above Range
- #159 India Insights: Adani Enters Ground Handling, Palm Oil Imports 87% Surge, Zepto Delays IPO
Ohayo Japan | Trump’s Disappointment
- Stocks fell as Tesla plunged, Trump-Xi tensions resurfaced, and weak labor data fueled economic concerns ahead of Friday’s key nonfarm payrolls report.
- Suzuki suspends Swift production due to China’s rare earth export limits, disrupting global supply chains. This could get ugly.
- Palliser Capital opposes Keisei’s board, pushing for governance reform and a reduced Oriental Land stake to boost capital efficiency. Unlikely to sway other shareholders
China’s AI Strategy Isn’t About Catching up to the West – It’s About Out-Deploying It.
- China’s wiring AI directly into the real economy: across consumer platforms, supply chains, and public services. That real-world focus could power the country’s next growth wave.
- Valuations are cheap. Risks are well known. And if one macro domino falls the right way – a policy shift, demand recovery, geopolitics thaw – the upside could be substantial.
- So I built the China AI Deployment 10 basket. These stocks aren’t a moonshot: they’re a leveraged play on one of the most consequential tech shifts in China’s modern economy.
Japan Morning Connection: Dull Tone to Start as Musk Squabble Overshadows Trump’s Call with China
- Suzuki stopping production of the Suzuki swift due to lack of rare earth from China may be the new normal for autos.
- ISpace lunar lander fails to touch down on the moon (again), while Musk is threatening to decommission his Dragon rockets.
- Sekisui House numbers missed on poor margins and order outlook for its US detached housing business.
Silver Market Snapshot: Rising Prices, Industrial Tailwinds, and Strategic Exposure
- Silver prices have rallied 20% YTD to $35.60/oz, supported by strong industrial demand and a persistent market deficit.
- Despite being a small market compared to gold and copper, silver offers niche exposure through major producers like Hindustan Zinc, Fresnillo, and Pan American.
- Structural undersupply, driven by green tech and limited new mine capacity, positions silver as a high-beta hedge and a strategic long-term play.
South Africa Listed Property Review – May 2025
- Building upon the positive momentum in April, May was once again a positive month.
- All Property Index ended the month up 4.22% in total returns (key to note is that it was the last three trading days that saved Index from a down month).
- Overall market sentiment showed cautious optimism, supported by some encouraging company results, but was arguably saved by the SARB’s 25 bps interest rate cut injecting a shot of optimism.
Global and Indian Textile Industry-Shifting Supply Chains,Innovation in Materials,and Policy Support
- Global and Indian textile markets face shifting supply chains due to geopolitical tensions, driving sourcing diversification towards India.
- There’s a significant push for innovation in materials, focusing on man-made fibers, sustainable, and technical textiles globally and in India
- The Indian textile industry benefits from strong government policy support, including protective tariffs and various incentive schemes
Circle IPO: Wall Street’s New Fintech Darling Prices Above Range
- With an IPO valuation of roughly $8.2 billion and current forward P/E of ~32 ×, Circle still looks poised for multiple expansion as regulatory clarity and stable-coin adoption gather pace.
- Deal upsized from 32 m to 34 m shares, and priced $3 above the top of the original range, boosting total proceeds by >20 %
- Public float increases to ~13 % of the company, modestly improving trading liquidity while founders retain long-term control via Class B shares
#159 India Insights: Adani Enters Ground Handling, Palm Oil Imports 87% Surge, Zepto Delays IPO
- Adani Group enters the airport ground handling sector, expanding its operations after Celebi’s exit. It aims to bid for major contracts and compete with established players.
- India’s palm oil imports surged 87% in May due to low stocks and better prices, likely lifting global palm and soy oil prices in coming months.
- Zepto (1936629D IN) postpones its IPO to 2026, shifting focus to private fundraising and cutting cash burn amid growing competition and operational challenges.
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