Asian Macro Initial Thoughts: Japan inflation eases but concerns remain about Sunday's elections. China needs to address the structural issues but loan prime data out Sunday is unlikely to change.
NZX opened lower testing down to 12,825 before seeing a bounce. Currently rebounding from the lows; -50pts -0.39% at 12,855
Overview.
Another cautious day of trading in Asia, Japan’s inflation but there is more concern about Sunday’s elections.
Trump is still seeking a meeting with President Xi to thrash out a trade deal, but that is not the way Xi works, he will want to know the details of the outcome of the meeting before sitting down with Trump; The Economist has a good podcast on the topic of language that highlights why, under Drum Tower.
Most commentators view of Trump firing Powell as being negative for US markets, leading to an equity sell off and a spike in yields. Interestingly yesterday Powell rebutted the Trump administration’s accusations that he misled Congress over a $2.5bn refurbishment of the central bank’s headquarters, saying it did not inform government planners of changes to the project because they were not “substantial” enough to warrant it.
Foreign holdings of U.S. Treasuries increased in May to top $9 trillion for a third straight month, data from the Treasury Department showed on Thursday, with buyers, other than China, flocking back in after tariff turmoil led to outflows in April. Holdings of U.S. Treasuries rose to $9.045 trillion, up from April's level of $9.013 trillion, and up 11.2% from a year earlier. In March, Treasuries held by foreigners hit a record $9.049 trillion.
Quarterly earnings reports released this week have exceeded Wall Street’s expectations, fueling investor confidence. Around 50 S&P 500 components have reported thus far, with 88% of those exceeding analysts’ expectations, FactSet data shows.
Earnings Friday include Telenor Q2, Burberry Q1, Danske Bank Q2, Charles Schwab Q2
Worth noting 79 year President Trump underwent a comprehensive medical exam that revealed he has a common vein disorder but cleared him of more serious illnesses, the White House said.
Housekeeping
OnThursday afternoon I will be on RTHK’s The Close, with Nitan Dialis and fellow guest Samuel Faveur, CEO, Mandarin Capital. We discussed Powell and Trump’s dispute, along with tariffs and the failed M&A for Seven & 1 and the outlook for Japan If there is a topic you want discussed next week please message me or them via the link, which can also be used to listen to the programme
https://www.rthk.hk/radio/radio3/programme/the_close
On Monday I was on RTHK’s Money Talk with host Chloe Feng and Nigel Foo, Head of Asian Fixed Income, First Sentier. Looking at the Global markets and tariffs, China economy and whether this months Politburo meeting will announce more stimulus; in realty they actually do not have much scope at the present; confidence, the property market and discounted sales remain key issues.
Click the link below if you have a topic you would like discussed this coming Monday or if you just want to listen to the programme use the link below.
https://www.rthk.hk/radio/radio3/programme/money_talk
Looking for good Independent Research, Showcase Events, Introductions & Marketplace, Reports, blogs, trials, podcasts then click the link
https://www.eri-c.com/
It is MiFID II compliant, you can try Before You Buy, there is Research Evalution. and information can be shared across team or firm. It has Different Views at the Best Price. Buyers transact at offered prices or with vendor permission, by agreement. ERIC's industry low commission rates - charged only to sellers - allow both buyers and sellers to realise better net pricing simulataneously. The differentiated price discovery mechanism entertains private bids and negotiation (on or offline) to broaden demand capture and liquidity.
If you have any problems connecting, call or message me and I will sort your issue out.
For Example last recently Russell Napier was in conversation with Andy Rothman on the topic of Will Trump make China great again. Russell has covered Asia for year and Andy has a unique perspective on China, having lived and worked there for more than 20 years as an American diplomat and a sell-side macro strategist. Andy first went to China as a student in 1980, returned as Foreign Service Officer in 1984, joined CLSA in Shanghai in 2000, and then went to the buy side with Matthews Asia in 2014. This year, Andy founded Sinology LLC, advising institutional investors and corporate directors on the risks and opportunities in the Chinese economy, and on navigating the rising tensions in US-China relations. This follows on from Andy’s recent webinar after a recent visit to China in early April you can still go to the website to listen to that recording if you didn’t hear it live.
Mark Tinker recently posted the Latest thoughts from Market Thinker - Class Dismissed....
Britain's new Class structure is a key to its new problems. 'As the Chattering Classes head to their villas in Tuscany and Provence for the next six weeks and the Chartering Classes head to the Med for the next leg of their perpetual party, the British Middle Class are left with the Meddle Class and the Muddle Class, who, well intentioned or not, continue to mess up the economy'
You can find the whole article here
Market opening indications and data
New Zealand
NZX opened lower testing down to 12,825 before seeing a bounce. Currently rebounding from the lows; -50pts -0.39% at 12,855
Data out later the open
Credit Card Spending Jun YoY vs 2.2% May (F/cast is 2.4%)
Australia - No Data Due
ASX to open higher, futures indicate up 32pts 0.37% at 8,650 with support from Miners and Energy names along with Tech. Sentiment +VE after Thursday’s unemployment data hit a four year high and raised expectations of a rate cut ahead.
Watch for the BHP Group Q2 update
Japan
Market to open higher but expect caution ahead of the this weekend’s election.
Nikkei 225 Futures indicate up 130pts 0.33% at 40,060
Chicago Futures up 20pts 0.05% at 40,115
Singapore Nikkei Futures up 155pts 0.4% at 40,040
Yen closed 148.35 in US. Trading 148.31 in early trades
Data Out 30 mins before the market opens
Inflation Rate Jun 3.3% YoY vs 3.5% May (F/cast was 3.3%)
Inflation Rate Jun MoM vs 0.3% May (F/cast was 0.1%)
Core Inflation Rate Jun 3.3% YoY vs 3.7% May (F/cast was 3.4%)
Inflation Rate Ex Food & Energy Jun 3.4% YoY vs 3.3% May (F/cast was 3.4%)
Lunchtime
3-Month Bill Auction vs 0.4054% prior
BoJ JGB Purchases
Sunday Upper House Election
S Korea - No Data Due
Market to open higher with +VE sentiment on Tech following the good earnings and outlook from TSMC.
Stocks closed higher Thursday trade volume was moderate at 416.29 million shares worth 14.95 trillion won (US$10.7 billion). Decliners outnumbered gainers 470 to 390. Institutions and foreigners net bought while individuals net sold. Profit taking in SK Hynix was a drag on gains. Samsung rallied as the Supreme Court upheld the acquittal of its chairman.
The local currency was quoted at 1,392.60 won against the greenback at 3:30 pm. Thursday, down 6.9 won from the previous session.
Taiwan - No Data Due
Market to open higher following good earnings and 2025 outlook from TSMC, boosting confidence in the global AI spending spree. It forecast sales growth of about 30% in US dollar terms this year, up from a previous outlook of mid-20% growth. TSMC ADR closed up 3.38%
China - No Data Due
Market to open higher after the Golden Dragon China Index closed 94pts 1.23% at 7,682. But expect some caution as Wells Fargo has suspended all travel to China after Chenyue Mao a banker was blocked from leaving the country.
FTSE A50 China Futures up 38pts 0.28% at 13,739
MSCI A50 China Futures up 4.6 pts 0.21% at 2,163.4
Spot USD/CNY opening up 0.0011 pt 0.02% at 7.1855
Spot USD/CNY lost 20 bps to close at 7.1796 Thursday (17th). As of 4:43 pm, USD/CNY in the night session gained 5 bps. USD/CNH dipped 51 bps to 7.1826, 30 bps below USD/CNY.
Sunday
Loan Prime Rate 1-Year 3% currently no changer expected
Loan Prime Rate 5-Year 3.5% currently no changer expected
Hong Kong
Market to open higher, ADR’s closed up 236pts 0.95% at 24,734 with only CLP, CCB, Bank of China and CK Hutch in the red.
Futures indicate up 181pts 0.7% at 24,679
Turnover on Thursday HK$236.412B vs HK$258.951B Wednesday Short selling 15.8% vs 17.1% Wednesday
Data Due
Business Confidence Q3 vs -9 Q2 (F/cast is -5)
Out After Market Thursday
Unemployment Rate Jun 3.5% vs 3.5% May (F/cast is 3.5%)
Macau - Data Due
Tourist Arrivals Jun YoY vs 25.3% May
Singapore - No Data Due
Malaysia - Data Due
Balance of Trade Jun vs MYR 0.8B May (F/cast is MYR 8 B)
Exports Jun YoY vs -1.1% May Consensus is 5.6%)
Imports Jun YoY vs 6.6% May (Consensus is 9.7%)
GDP Growth Rate Prelim Q2 YoY vs 4.4% Q1 (F/cast is 4.2%)
Indonesia - No Data Due
Philippines - No Data Due
Thailand - No Data Scheduled this week
Myanmar - No Data Scheduled this week
Cambodia - No Data Scheduled this week
Vietnam - No Date Scheduled this week
India - Data Due
Bank Loan Growth 4 Jul vs 9.6% prior
Deposit Growth 4 Jul vs 10.4% prior
Foreign Exchange Reserves 11 Jul vs $699.7B prior
Europe
Eurozone Current Account, Construction Output
Germany PPI
France No Data Due
United Kingdom No Data Due
United States
Futures Dow 49pts 0.1%, S&P 0.08% and NDX 0.07%
After Market
Netflix reported better than expected earnings but traded lower in after hours trading
Data Due Building Permits, Housing Starts, Michigan Prelim (Consumer Sentiment, 5-Year Inflation Expectations, Consumer Expectations, Current Conditions, Inflation Expectations) Baker Huges Oil Rig Count.
HEADLINES & NEWS
AUSTRALIA & NEW ZEALAND
Developers vying to build Australia’s first offshore wind farms fear deadlocked negotiations between governments could derail the financial support needed to keep the launch of the industry “on track”.
‘You live your life on these things’: The King assembling the ‘Rolls-Royce’ of furniture. Not even Trump’s tariffs faze King Living founder David King, who is building a 100-year furniture empire he hopes will last long after he has left the business.
Diggers Club does $230m facelift; Charter Hall chiefs offload $20m site; DroneShield expands. Property giant Charter Hall’s top chaps – chief executive David Harrison and finance director Sean McMahon – are part of a syndicate offloading a major site on Military Road.
Catholic Church selling prime East Melbourne terraces. One was purchased for £6000, 76 years ago. A slew of prime Catholic-owned East Melbourne terraces opposite St Patrick’s Cathedral on Albert Street have hit the market, worth potentially more than $25 million.
JAPAN
Japan's shaky minority government is poised for another setback in an upper house vote on Sunday, an outcome that could jolt investor confidence in the world's fourth largest economy and complicate tariff talks with the United States. Prime Minister Shigeru Ishiba's Liberal Democratic Party (LDP), which has ruled for most of the post-war period, and its partner Komeito, are forecast to lose their majority in a repeat of last year's election for the more-powerful lower house. The ruling coalition needs to win 50 seats of the 125 up for grabs in order to retain its majority. While the vote will not directly determine whether Ishiba's government falls, investors are nervous it will leave him beholden to opposition parties advocating fiscal largesse that could exacerbate mass selling of Japan's government bonds. In a worst case scenario, some analysts say Ishiba may have to resign, unleashing political drama as Tokyo heads for an August 1 deadline to win reprieve from punishing import levies set by its largest trading partner, the United States. "If he had an overwhelming loss, I think he would have to resign," said David Boling, director for Japan and Asian Trade at political risk consultancy Eurasia Group. "That then creates a lot of questions about who replaces him and what impact that has on the US-Japan trade negotiations."
Finance Minister Katsunobu Kato on Thursday called for vigilance against excessive foreign exchange volatility at the meeting of finance leaders from the Group of 20 major economies in South Africa. "I told the meeting that based on the existing G20 foreign exchange commitments, we should continue to be cautious about excessive volatility driven by speculative movements," he told a press conference after the first day of the meeting. Japan's currency this week touched its weakest level since early April against the dollar and a one-year low against the euro, as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house. Kato also said he had expressed concerns to his G20 counterparts about the impact of U.S. tariffs on global economies and financial markets. "Tariffs are not an appropriate measure to correct the current account imbalance," he said, adding that G20 should address the issues of imbalance though calm and constructive dialogue.
Japan must be mindful of the risk of a credit rating downgrade if an expansion in public debt runs out of control, the head of the country's banking lobby said, as lawmakers ramp up calls for big spending ahead of an upper house election on Sunday. Japanese government bond (JGB) yields rose to multi-decade highs this week on market expectations that a strong performance by opposition parties calling for big spending and tax cuts could lead to an increase in Japan's already huge debt-pile.
Global rating agency S&P downgraded Nippon Steel (5401.T), opens new tab to 'BBB' from 'BBB+' with a 'negative' outlook on Thursday, citing an increasing financial strain following the Japanese steelmaker's acquisition of U.S. Steel last month. The downgrade reflects concerns over Nippon Steel's financial position, which S&P expects to remain weak over the next one to two years due to debt-raising efforts and large-scale investments into U.S. Steel assets. "We believe that the negative effects of the increased financial burden will far outweigh the positive effects of the company's expansion and strengthened geographic diversification of its earnings base in the growing North American market," S&P said.
Nippon Steel plans to raise 800 billion yen ($5.4 billion) through two subordinated loans to partially fund the deal and to refinance previous loans. In June, Nippon Steel closed its $14.9 billion acquisition of U.S. Steel after an 18-month struggle to obtain U.S. government approval for the deal, which faced scrutiny due to national security concerns. The acquisition involves $14 billion in new investments, including $4 billion for a new steel mill. The deal is key to Nippon Steel's global growth strategy and its goal of 100 million tons of global crude steel production capacity. The U.S. steel market, including demand for high-grade steel - Nippon Steel's specialty - is growing amid rising global trade tensions, whereas demand in Japan is falling. Nippon Steel shares closed 0.87% down in Tokyo on Thursday, weaker than the overall Nikkei index which was up 0.6%.
SOUTH KOREA
Hanwha Galleria, the retail arm of Hanwha Group, is reportedly exploring the sale of FG Korea, operator of US burger franchise Five Guys in South Korea, two years after bringing the brand into the country. According to sources on Thursday, FG Korea, a wholly owned subsidiary of Hanwha Galleria, recently circulated documents to private equity firms through local accounting firm Samil PwC signaling a potential sale process. Although no deal terms or valuation have been finalized, a full sale of the 100 percent stake appears likely if a deal materializes, the sources explained.
Kolmar Korea, South Korea’s leading cosmetics contract manufacturer, said Thursday it completed construction of a second US factory, reinforcing its tariff-safe production base for clients looking to sidestep American import duties. The new factory, spanning 17,805 square meters in Scott Township, Pennsylvania, enables full-spectrum original design manufacturing in the US, including color cosmetics, skin care and sunscreen, in contrast to its first US facility, which focused solely on color cosmetics. As the first Korean beauty company to build a full-scale manufacturing facility in the US, Kolmar explained the plant will help address tariff concerns through localized production and thus allow for faster response to the needs of global clients. The company also holds over-the-counter certification from the US Food and Drug Administration to manufacture sunscreens, a necessary step due to their classification as over-the-counter drugs.
Samsung Electronics Chair Lee Jae-yong was acquitted by the Supreme Court on Thursday, clearing him of all charges tied to a contentious 2015 merger between Samsung affiliates that helped tighten his grip on the country's largest conglomerate. The ruling, which is final and cannot be appealed, ends years of legal battles that have shadowed the Samsung boss, freeing him to focus on turning around the tech giant's struggling operations. The country's highest court dismissed the prosecution’s appeal and upheld an appellate court's not-guilty verdict for Lee and 13 other former Samsung officials, including Choi Gee-sung and Jang Choong-ki, former executives of the group’s now-disbanded control tower, the Future Strategy Office.
TAIWAN
President William Lai yesterday thanked Guatemalan Congress President Nery Abilio Ramos y Ramos for his country’s continued support for Taiwan’s participation in international bodies. Lai and Minister of Foreign Affairs Lin Chia-lung met with Ramos and his delegation yesterday morning at the Presidential Office in Taipei. Ramos has signed pro-Taiwan resolutions on behalf of the Guatemalan Congress and issued a statement rejecting China’s misinterpretation of UN Resolution 2758.
The Chung-Hua Institution for Economic Research (CIER) yesterday raised its GDP growth forecast to 3.05 percent this year on a robust first-half performance, but warned that US tariff threats and external uncertainty could stall momentum in the second half of the year. “The first half proved exceptionally strong, allowing room for optimism,” CIER president Lien Hsien-ming said. “But the growth momentum may slow moving forward due to US tariffs.” The tariff threat poses definite downside risks, although the scale of the impact remains unclear given the unpredictability of US President Donald Trump’s policies, Lien said.
TSMC yesterday raised its revenue growth forecast for this year to 30 percent in US dollar terms, thanks to exceptionally strong demand for artificial intelligence (AI) and high-performance computing (HPC) applications. The new revenue growth forecast surpasses the 25 percent expansion estimated by TSMC three months ago and beat almost all industry analysts’ expectations. Booming AI demand helped propel the chipmaker’s net profit by 60.7 percent last quarter to a record high of NT$398.27 billion (US$13.54 billion), from NT$247.85 billion a year earlier. That represented a sequential increase of 10.2 percent from NT$361.56 billion. The company’s revised revenue growth forecast did not factor in potential increases from Nvidia’s H20 chips after the US this week removed the export restrictions on such chips to China.
China Steel Corp (CSC), Taiwan’s largest integrated steelmaker, yesterday announced it would maintain domestic prices of all products unchanged next month, as US tariffs and foreign exchange rates keep downstream clients sidelined. The move came after the US on June 4 raised steel and aluminum tariffs to 50 percent from 25 percent, while the New Taiwan dollar surged 9.88 percent against the US dollar in the second quarter. The US market is the main export destination for downstream steel vendors — including those making screws, hand tools and API oil pipes — but the tariffs and the NT dollar’s sharp appreciation are to weigh on outbound sales of the local steel sector. Against this backdrop, CSC said that its downstream partners are conservative in material procurement.
CHINA
Chinese Premier Li Qiang has called for tighter pricing regulation in the electric car sector during a high-level meeting Wednesday, as Beijing sought to rein in the cut-throat price wars that are fuelling deflationary pressures in the economy.
China’s government is threatening to block a deal that would transfer ownership of dozens of seaports to Western investors unless Cosco, China’s largest shipping company, gets a stake, the Wall Street Journal reported Thursday.
The U.S. Commerce Department said on Thursday it will impose preliminary anti-dumping duties of 93.5% on anode-grade graphite imported from China after concluding that the materials, which are a key component for electric vehicle batteries, are being sold in the U.S. at less than fair market value. A Commerce Department fact sheet seen by Reuters shows a single anti-dumping margin and cash deposit rate of 93.5% for all Chinese producers.
A record share of US firms froze investments in China, as trade ties worsened earlier this year, a recent survey suggested. Fewer than half of the companies surveyed by the US-China Business Council (USCBC) from March to May said they planned to invest in China this year, a drop from 80 percent last year and a record low since the group began asking a similar question in 2006, a report released on Wednesday showed. While the annual survey was conducted before the easing of tensions following the countries’ talks in London last month, the sharp fall in sentiment underscores the damaging effect of the trade war on investment in the world’s second-largest economy. Companies are in a “wait-and-see mode,” USCBC business advisory services vice president Kyle Sullivan said in a briefing. “They are riding out the uncertainty in trade policy.” The survey covered large, US-headquartered multinational companies, with more than 40 percent of respondents representing companies that generated at least US$1 billion in revenue in China last year. While the country remains an appealing hub for manufacturing and innovation, 75 percent of respondents cited China’s retaliatory tariffs as their top cost concern, as they often rely on inputs from the US. A record 27 percent of companies said they moved or planned to move some operations out of China, the highest since at least 2016.
NVIDIA (NVDA.US) CEO Jensen Huang, currently visiting China, attended the third China International Supply Chain Expo (CISCE) today (17th) and remarked that China is one of the largest markets in the world for NVIDIA. He described the Chinese market as magical and vibrant, with clients and partners like BABA-W (09988.HK) (BABA.US) who possess strong computer science capabilities. They can create amazing services using NVIDIA's products, making it an incredible and unique market. Speaking of DeepSeek, Huang praised its paper as well-written and noted that AI computing performance magnified 100,000 times over the past decade. However, most AI research is not yet fully disclosed. China's strategic positioning in the open-source engineering field is exceptionally wise, as its open-source models not only support local ecosystem development but also bolster the global ecosystem.
China's National Bureau of Statistics (NBS) released unemployment rate statistics by age group for June. The unemployment rate of the country for the 16-24 age group in urban areas, excluding students, was 14.5%, down 0.4 ppts from May. Notably, the unemployment rates for the 16-24 age group in urban areas, excluding students, declined for four consecutive months.
Days of record-breaking heat across large swathes of China pushed power demand to an all-time high in excess of 1.5 billion kilowatts on Wednesday, energy officials said, with temperatures forecast to feel like 50 degrees Celsius (122 degrees Fahrenheit) in some areas on Thursday. An arc of sweltering heat stretching from the densely populated city of Chongqing in the southwest to Guangzhou on the coast has enveloped an area home to over 200 million people in recent days.
The food delivery wars among China's e-commerce platforms have further eroded dine-in restaurants' profits, while the surge in orders has piled on operational pressure in terms of staffing and inventory, according to the Cailian Press. Those restaurants' struggles prompted multiple associations, including the China Cuisine Association and the China Chain Store & Franchise Association, to speak out, urging platforms to regulate low-price subsidy competition, uphold fair market order, and protect reasonable profit margins for businesses. It is understood that dine-in orders have nosedived as food delivery orders skyrocketed. For small-scale restaurant owners, leaving food delivery platforms would mean losing a large portion of their customer base. The owner of a small eatery in Jiangsu shared that the proportion of dine-in orders has plummeted from 40% last year to just 10% after the delivery war. Recently, the China Cuisine Association issued a statement saying that high subsidies from platforms have brought delivery prices below dine-in prices, which in turn drove a large number of consumers toward online ordering. As a result, restaurants received orders that failed to generate any profits, further straining their already challenging operations.
HONG KONG
Economy
The Hong Kong government announced that legislative amendments on the low-altitude economy development will come into effect today (18th) to facilitate the development of the low-altitude economy. The amendments to the Small Unmanned Aircraft (SUA) Order (Cap. 448G) serve to extend the existing regulatory regime to cover SUA weighing over 25 kilograms but not exceeding 150kg. Meanwhile, the amendments to the Air Navigation (Hong Kong) Order 1995 (Cap. 448C) serve to facilitate the trials of various unconventional aircraft in Hong Kong. New articles are added under Cap. 448C to empower the Chief Executive to permit the trials of unconventional aircraft under specified conditions.
National Security
A hearing for 12 pro-democracy activists appealing their conviction and sentencing for subversion in Chinese-ruled Hong Kong ended on Thursday with a judgement due within nine months. The case stems from the "47 democrats", dubbed by Hong Kong media for the number of activists arrested and charged with conspiracy to commit subversion in 2021.
Buybacks None Announced
HSI Short Selling Thursday 15.8% vs 17.1% Wednesday
Top shorts Henderson Land (12) 47%, New Oriental (9901) 41%, SHKP (16) 41%, Bidu (9888) 39%, Wharf REIC (1997) 39%, MTRC (66) 35%, China Shenhua (1088) 34%, Hengan (1044) 34%, Bud APAC (1876) 34%, HK & China Gas (3) 33%, CK Asset (1113) 33%, Zijin Mining (2899) 33%, Haidilao (6862) 30%, Hansoh Pharma (3692) 30%, CSPC Pharma (1093) 28%, BYD (1211) 27%, Zhong Sheng (881) 27%, Xinyi Solar (968) 26%, Chow Tai Fook (1929) 26%, Hang Seng Bank (11) 26%, Lenovo (992) 25%, China Res Power (836) 25%, Nongfu Spring (9633) 25%.
WATCH
Lu Weibing, President of XIAOMI-W (01810.HK) announced on Weibo that the Xiaomi Shenzhen Tower located next to Shenzhen Bay, will officially open today (18th). The building also houses the largest Mi Home integrated store in China, where users can experience the full "Human x Car x Home Ecosystem”.
A HK Government spokesman said Thursday (17th) that, during the precautionary grouting works for the socketed steel H-pile works of the proposed MTR CORPORATION (00066.HK)'s Oyster Bay Station project at Lantau Island, upheaving of 22 to 48 mm was recorded on July 15 at five monitoring checkpoints installed on the section of the MTRCL's Tung Chung Line railway tracks near Siu Ho Wan Depot, exceeding the pre-set trigger level for works suspension (i.e. 20mm). In accordance with the established procedures, the relevant works of the project were suspended on the same day.
GAC GROUP (02238.HK) (601238.SH) announced that it has recently signed a joint venture agreement with global top dealership group Abdul Latif Jameel, officially dabbling into the UK market. Abdul Latif Jameel will act as GAC's partner to sell GAC's new energy passenger vehicles in the UK. According to the plan, GAC's two global strategic models, AION V and AION UT, will be introduced to the UK market as a head-start and will officially launch and begin delivery in 1Q26.
BABA-W (09988.HK) (BABA.US)'s logistics flagship, Cainiao Group, announced that the Cainiao Hong Kong Supply Chain Center is officially opened to global brands and local Hong Kong merchants, providing integrated services such as global transshipment, cross-border B2B and B2C warehouse distribution, so as to be able to support regular goods like fast-moving consumer goods, 3C electronics and food, as well as special items like magnetic and electric products. The above center is located within the Cainiao Smart Gateway, which is only 10 minutes away from the Hong Kong International Airport, according to introduction. Over 30% of flights are operated in cooperation with Cainiao, and within a 4-hour flight, it can reach key Asia-Pacific cities such as Seoul, Tokyo, Singapore and Bangkok.
Manulife has released the latest Manulife Asia Care Survey 2025, which shows that most respondents no longer solely pursue longevity or an illness-free life. Instead, they would rather place greater importance on living their own ideal life marked by independence, purpose, and meaning. In its survey with 1,000 Hong Kong adults aged 25 and above from January to February 2025, Manulife found that 77% of respondents believe that being healthy is less about being illness-free but more about being able to live independently and do all the things important to them. Many also expressed a preference for living a fulfilling life until 75 rather than living to the average age of 80 without meaning, reflecting Hong Kong people's equal emphasis on longevity and life satisfaction.
Thursday’s closings in EUROPE & US
DAX 1.51%, CAC 1.29%, FTSE 0.52%
European markets opened higher and worked higher through the day, boosted by good earnings.
UK Unemployment rose to 4.7%, whilst the employment change at 134k was higher than expected while Average Earnings (3month/Year) dropped more than expected. EuroArea Inflation was inline with forecasts.
Ocado 15% after it said its “core priority” was turn cash flow positive during the next financial year.
Easyjet weak after saying strike action by French air traffic controllers and higher fuel prices dented quarterly performance.
Novartis Q2 beat profit expectations, raised its FY core operating income guidance to 'low teens' and announced a $10b buyback.
Johnson Matthey named Andrew Cosslett as its new chairman following a period of pressure from an activist investor.
EQT said it had divested 13 billion euros’ ($15.05 billion) worth of investments in the first half of the year; three times as much as in the same period of last year. Pitchbook data for the first three months of 2025 showed exit values in Europe dropped 19% quarter-on-quarter, as exit count fell 25.2%. It also said management fees rose by 10% with carried interest and investment rising more than threefold for the first half of this year to 191 million euros, compared to the 41 million euros recorded for the same period last year.
DOW 0.52%, NDX 0.75% (new closing high, S&P 0.54% (new closing high), Russel 2K 1.2%
US markets opened higher and worked higher on higher retail sales (up 0.6% MoM vs 0.2 F/cast or 3.5% YoY) and a lower than expected initial claims number sank to a three month low (221k) and good earnings. Signalling a strong economy and easing pressure on the Fed to cut rates. Although House builders are cutting their prices at the fastest pace in 3 years.
Trump’s three crypto regulation bills moved forward in the House of Representatives; the GENIUS Act, which passed the Senate in June, and two others that are moving through the House first: The CLARITY Act and a bill that would bar the Federal Reserve from establishing a central bank digital currency.
PepsiCo 7% and TSMC 7% rallied as Q2 earnings beat but GE Aerospace -2.22% also beat.
United Airlines 3.1% having dipped initially as Q2 earnings beat but lowered its FY guidance. Whilst demand is picking up but the world is a less certain place than it was in the 1H 2025.
Archer-Daniels-Midland -0.9% off lows after President Trump said that Coca-Cola has agreed to reformulate its drinks with real cane sugar in the U.S.
Banks JPMorgan Chase 1.43%, Citigroup 3.41% Wells Fargo -0.25%, Amex 1.11%
Ecommerce Meta -0.21%, Apple -0.07%, Amazon 0.31%, Netflix 1.91%, Disney 1.99%, Zoom Comms 0.21%, Alphabet 0.51% and Microsoft 1.2%,
Tech NXP Semi 1.78%, Nvidia 0.95%, Micron -2.72%, AMD 0.21%, Skyworks -0.92%
Industrial/Discretionary Boeing 0.48%, Caterpillar 1.26%, Simon Property 0.78%, Kohl’s 2.56%, Gap 0.64%, United Airlines 3.11%, Carnival 1.41%, Wynn Resorts -0.37%,
Auto Ford -0.8%, GM 0.06%, Tesla -0.7%,
Energy Chevron 0.97%, Exxon Mobil -0.51%,
Consumer Staples Campbell Soup 1.1% General Mills 0.4%, JM Smucker 1.21%
DAILY DATA
USD gains, Bitcoin 0.34% at 119,588, VIX -3.73% at 16.52,
US T10 flat at 4.455% and T2 up 3 bpts at 3.91% with T30 lower less than 1 bpt at 5.007%
OIL Brent 1.23%, WTI 1.63% on low inventories and rising Middle East risks
Gold -0.3% but opening firmer, Silver 0.3%, Copper -0.13% Platinum 3.1%, Palladium 3.8%.