In today’s briefing:
- Thematic Report- India-UK FTA: A Stitch in Time for the Indian Textile Sector?
- Japan Strategy Weekly | Tariff Relief
- AUCTUS ON FRIDAY – 09/05/2025
- [Blue Lotus Daily-TMT Update]:BIDU US/JD US/PDD US/AAPL US/BILI US/700 HK
- European IT Services: Q1 2025 Takeaways – Tariffs Hurt on Discretionary IT Spending
- What’s New(s) in Amsterdam
Thematic Report- India-UK FTA: A Stitch in Time for the Indian Textile Sector?
- The India-UK FTA, signed on May 6, 2025, provides Indian textile exports with zero-duty access to 99% of their products, removing tariffs as high as 12%.
- This landmark deal offers a substantial opportunity to increase India’s market share in the $19.7 billion UK apparel market and boosts competitiveness against Bangladesh and China.
- With enhanced pricing power, Indian textile companies like KPR Mill (KPR IN), Welspun India (WLSI IN), and S.P. Apparels (SPAL IN) are well-positioned to scale, increasing their export share.
Japan Strategy Weekly | Tariff Relief
- Japanese equities advanced in a holiday-shortened week, buoyed by global risk-on sentiment and a weaker yen
- Strangely, Services PMI rose to 52.4 in April, showing continued expansion with stronger new orders despite falling business confidence and other lead indicators
- NTT Data Corp (9613 JP) stock surged +41% this week following the announcement that parent company NTT will launch a tender offer to acquire all remaining shares
AUCTUS ON FRIDAY – 09/05/2025
- AUCTUS PUBLICATIONS ________________________________________ Panoro Energy (PEN NO)C; Target price of NOK49 per share: ~12 mbbl/d in 1Q25.
- Re-iterating FY25 guidance – 1Q25 production was ~12 mbbl/d, including 6,841 bbl/d in Gabon, 3,661 bbl/d in Equatorial Guinea and 1,492 bbl/d in Tunisia.
- Production in Gabon and Equatorial Guinea was previously reported by BW Energy and Kosmos Energy.
[Blue Lotus Daily-TMT Update]:BIDU US/JD US/PDD US/AAPL US/BILI US/700 HK
- BIDU US: Baidu Apollo Partners with CAR Inc to Pioneer Autonomous Ride-Hailing in Tourism Hubs (+)
- JD US: JD.com Launches Unlimited-Salary Tech Talent Program to Rival Google DeepMind (-)
- PDD US : Slight Increase in Technology Service Fees (+)
European IT Services: Q1 2025 Takeaways – Tariffs Hurt on Discretionary IT Spending
- Economic uncertainty, weak industrial demand, and tariffs have triggered a downturn for European IT services firms in Q1, marking their first recessive quarter since 2020 and causing them to underperform.
- Discretionary IT spending is declining again in manufacturing, while structural challenges in Europe around competitiveness and regulation, limit recovery prospects, prompting firms to shift focus toward defence and sovereignty.
- Generative and agentic AI are expected to drive a new growth cycle, with potential for significant productivity gains and reduced dependence on human labour, though current AI-driven revenues remain modest.
What’s New(s) in Amsterdam
- Having digested yesterday’s published 1Q25 solid set of results and information that was shared during the company’s earnings call, we decided to stick to our neutral stance on the stock.
- Although the company has proven to be rather resilient and performed better than expected in the current uncertain environment, we fear that the real test still lies ahead: the potential impact of the trade tariffs still has to kick in.
- After all, a lot of the tariffs that were announced on ‘Liberation Day’ have been postponed for 90 days.
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