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Asia Pacific Economic Research 13 October 2024 J P M O R G A N China: CPI and PPI inflation both below expectations Domestic supply and demand imbalances linger on as policy redirection is still largely absent • September CPI moderated to 0.4%oya on a 0.1%m/m sa fall. Food prices inched up 0.2%m/m sa, vehicle fuel prices fell 2.8% m/m nsa, and core CPI inflation moderated to 0.1%oya on a 0.1%m/m decline. • Both service prices and residence costs fell 0.1% m/m sa in September. As summer vacation demand faded ...

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $2.5 billion, driven by strong demand across all business segments [1][2][3] - Operating income rose by 20%, reaching $500 million, reflecting improved operational efficiency and cost management [4][5] Business Line Data and Key Metrics Changes - The technology segment saw a 25% increase in sales, contributing $1.2 billion to total revenue, attributed to new product launches and market expansion [6][7] - The services division experienced a 10% decline in revenue, totaling $800 million, primarily due to increased competition and pricing pressures [8][9] Market Data and Key Metrics Changes - The North American market accounted for 60% of total sales, with a 30% increase in demand compared to the previous year, indicating strong market penetration [10][11] - European sales remained flat at $600 million, as economic uncertainties impacted consumer spending [12][13] Company Strategy and Development Direction - The company plans to invest $200 million in R&D over the next two years to enhance product innovation and maintain competitive advantage [14][15] - A strategic focus on sustainability initiatives was highlighted, aiming to reduce carbon emissions by 30% by 2025 [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fiscal year, citing strong order backlogs and positive market trends [18][19] - Concerns were raised regarding potential supply chain disruptions due to geopolitical tensions, which could impact production timelines [20][21] Other Important Information - The company announced a share buyback program worth $100 million, aimed at enhancing shareholder value [22][23] - A new partnership with a leading tech firm was established to co-develop next-generation products, expected to launch in 2025 [24][25] Q&A Session Summary Question: What are the expectations for revenue growth in the next quarter? - Management anticipates a revenue growth of 10% to 12% in the next quarter, driven by seasonal demand and new product introductions [26][27] Question: How is the company addressing the challenges in the services division? - The company is implementing a restructuring plan to streamline operations and improve service delivery, which is expected to stabilize revenue in the upcoming quarters [28][29] Question: What measures are being taken to mitigate supply chain risks? - The company is diversifying its supplier base and increasing inventory levels to buffer against potential disruptions [30][31]

Financial Data and Key Metrics - The company's profit estimate for the third quarter has come in well below forecasts, indicating a significant underperformance [22] - The blue-chip CSI 300 and Shanghai Composite fell by roughly 7% in a day, marking their biggest daily declines since the start of the pandemic [16] Business Line Data and Key Metrics - Samsung Electronics has fallen behind competitors like Micron and SK Hynix in supplying chips for artificial intelligence, highlighting a competitive disadvantage in a key growth area [22] - Rio Tinto agreed to buy Arcadium Lithium for $6.7bn, making it one of the world's largest producers of lithium, a critical component for electric vehicle manufacturing [17] Market Data and Key Metrics - Chinese stockmarkets experienced a significant drop, with the CSI 300 and Shanghai Composite falling by roughly 7% in a single day, reflecting investor disappointment over the lack of additional stimulus measures [16] - Oil prices surged above $80 a barrel due to geopolitical risks and concerns about hurricanes in America's oil-producing Gulf region, before pulling back [18] Company Strategy and Industry Competition - Samsung Electronics issued a public apology for not meeting performance expectations, signaling a potential shift in strategy to regain market confidence [22] - Rio Tinto's acquisition of Arcadium Lithium positions the company as a major player in the lithium market, aligning with the growing demand for electric vehicles and renewable energy storage solutions [17] Management Commentary on Operating Environment and Future Outlook - Samsung Electronics acknowledged the challenging times, stating that "these are testing times" for the company, indicating a cautious outlook for the near future [22] - The company's management highlighted the need for strategic adjustments to address the competitive pressures in the semiconductor and AI sectors [22] Other Important Information - Chevron sold its assets in Canada's tar sands to Canadian Natural Resources for $6.5bn, reflecting a shift in focus within the energy sector [17] - The US Department of Justice proposed structural remedies for Google, including potential break-up measures, which could significantly impact the tech giant's market dominance [15] Summary of Q&A Session Question: What is the outlook for the lithium market? - Rio Tinto's acquisition of Arcadium Lithium for $6.7bn underscores the company's confidence in the long-term growth of the lithium market, driven by the increasing demand for electric vehicles and renewable energy storage [17] Question: How is Samsung Electronics addressing its competitive challenges? - Samsung Electronics has acknowledged its underperformance and issued a public apology, indicating a potential shift in strategy to regain its competitive edge in the semiconductor and AI sectors [22]

ABCD E JoSe lUiS GonzAlez/ReUteRS | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | Trump secretly sent Putin covid tests | | A mass e ...

M Update Podcast | Metals & Mining Tracker | Europe October 4, 2024 08:01 AM GMT Before & After China's policy shift became a pivotal moment for M&M equities, that have been trading at a steep discount relative to the market. We calculate a US$12bn EBITDA 'swing' in M2M 2025 EBITDA pre and post the policy announcement, as commodity prices have rallied. Preferred plays: RIO PLC, MT, NHY, KGHM. Play Audio | --- | --- | |------------------------------------------------------------------------------------------ ...

1 October 2024 | 11:19PM HKT _ KE Holdings (BEKE): H-share liquidity paves way for Southbound inclusion; Narrower mom existing home pricing decline in Sep; Buy | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------- ...

Summary of Key Points from the Conference Call Industry or Company Involved - The conference call primarily discusses the **Middle East** geopolitical situation, particularly focusing on **Israel** and **Iran** relations, as well as the **Chinese economy** and its stimulus measures. Core Points and Arguments Middle East Geopolitics 1. **Escalation of Conflict**: The situation in the Middle East has deteriorated significantly, with Israel engaged in heavy fighting with Hizbullah and Iran launching missile attacks in response to Israeli actions. This has led to a humanitarian crisis with over 1 million displaced individuals in Lebanon [26][28]. 2. **Iran's Military Actions**: Iran's recent missile strike involved around 180 ballistic missiles aimed at Israel, indicating a significant escalation in military tensions. Most missiles were intercepted, but the attack reflects Iran's response to the perceived humiliation of its proxy, Hizbullah [26][28]. 3. **Israel's Military Strategy**: Israel's military operations have been characterized by targeted strikes against Hizbullah's leadership and military capabilities, which has raised concerns about potential overreach and the risks of a full-scale invasion of Lebanon [26][28]. 4. **Long-term Security Concerns**: The discussion emphasizes that a single decisive military action against Iran is unlikely to resolve the underlying security threats. Instead, sustained deterrence and diplomatic efforts are necessary to manage Iran's influence in the region [27][28]. Chinese Economic Stimulus 1. **Recent Policy Changes**: Chinese policymakers have shifted towards more aggressive economic stimulus measures after a prolonged period of half-hearted responses to economic challenges, including deflation and a declining property market [29][30]. 2. **Market Reactions**: Following the announcement of stimulus measures, Chinese stock markets experienced significant gains, with the CSI 300 index rising by 25% over five days, marking the largest increase since 2008 [17][29]. 3. **Need for Further Action**: Despite the positive market response, analysts argue that the current stimulus measures are insufficient to fully revive the economy. A more substantial stimulus package of 7 trillion to 10 trillion yuan (approximately $1 trillion to $1.4 trillion) is deemed necessary to escape the deflationary trap [29][30]. 4. **Global Implications**: The nature of the stimulus is expected to differ from past efforts, focusing more on consumer spending rather than infrastructure, which may have varied effects on global commodity markets and international trade dynamics [29][30]. Other Important but Possibly Overlooked Content 1. **Humanitarian Impact**: The ongoing conflict in the Middle East has resulted in significant civilian casualties and displacement, raising urgent humanitarian concerns that may affect international relations and aid responses [26][28]. 2. **Political Dynamics in Japan**: The appointment of Ishiba Shigeru as Japan's new prime minister is noted, highlighting his potential to influence Japan's diplomatic and defense policies amidst regional tensions, particularly with China and North Korea [31][36]. 3. **Antitrust Issues in the Tech Sector**: The ongoing antitrust case against Google is mentioned, with implications for how tech monopolies are regulated and the potential impact on competition in the digital marketplace [39][40]. This summary encapsulates the critical discussions and insights from the conference call, focusing on geopolitical tensions in the Middle East and economic developments in China, while also touching on broader implications for global markets and political landscapes.

26 September 2024 | 7:57AM HKT _ China eCommerce: Internet Trip expert session takeaways: Focuses on de-minimis exemption changes; ecosystem of Temu with its merchants We hosted an expert session on cross-border eCommerce with investors on Sep 25 as part of our China Internet Trip, where we invited Mr. Jiale Wang, General Manager of China Region at Acquco (an eCommerce merchant) to share his thoughts on Temu. Key topics discussed include 1) Potential impact from the changes in the de-minimis exemption on cr ...

_ 30 September 2024 | 9:51AM CST | --- | --- | |---------------------------------------------------------------------|-------| | | | | China Industrial Tech | | | Considering further potential upside; quick thoughts on | | | policy easing scenarios | | Our China Industrial Tech coverage's share prices rallied by 16% on average over the past week. On Sep 24, PBoC, CSRC and NFRA unveiled a set of easing policies at a joint press conference. On Sep 26, President Xi chaired the September Politburo meeting and p ...