Market Trends & Economic Indicators - The market anticipates the August jobs report will support a Federal Reserve rate cut later this month [1][2] - Economists expect the US economy to have added 75,000 jobs in August, with the unemployment rate rising to 43% from 42%, and hourly earnings increasing 03% over the prior month [3] - The market is positioned for a weaker jobs number, but a strong number (e g, 100,000-125,000 jobs added) could make a September rate cut less certain, depending on the upcoming CPI figures [23][25] - Tariffs may be feeding through to core goods inflation, while the strength of the US economy has already impacted core services inflation [26] Company Performance & AI Investment - Broadcom and OpenAI are partnering to build AI chips, potentially challenging Nvidia [10][11] - Broadcom's valuation is approximately $145 trillion, with roughly $130 billion being traded overnight, and the company reported approximately $16 billion in revenue for Q3 [11] - Broadcom's stock has increased 450% since 2023 and over 700% in the past 5 years [11] - Meta plans to spend at least $600 billion through 2028 in the US to build data centers and infrastructure to power the next wave of innovation [9] - DocuSign beat expectations with 92 cents earnings per share on $8006 million in revenue and raised its full-year revenue outlook to $319 billion to $32 billion [37][38] Retail & Trade - Open Door shares are up approximately 8450% in the past 3 months, driven by retail investors and social media buzz [35] - Lululemon cut its annual profit and sales forecast due to tepid US demand and tariff costs, with comparable sales in America falling 1% while international sales rose 15% [40][41] - The Supreme Court may rule against President Trump's authority to impose emergency tariffs, potentially leading to $150 billion to $300 billion in refunds to domestic importers [48][56]

Core Insights - Graphjet Technology has significantly increased its production capacity by 7 times through the commissioning of new machinery and equipment, enabling the production of various types of graphite and graphene for multiple industries, including semiconductors [1][4][5] - The completion of a new laboratory enhances the company's ability to customize product properties, improve quality control, and conduct future research and development [2][3] - The company is well-positioned to benefit from the growing demand in the semiconductor industry, particularly for AI chip production, amid a recent graphite shortage [4][5] Company Developments - The new machinery and laboratory are expected to attract larger and more sophisticated customers, enhancing Graphjet's market position [2][3] - Graphjet's patented technology utilizes palm kernel shells, a waste product, to produce single-layer graphene and artificial graphite, promoting sustainable production methods [6] Industry Context - The semiconductor industry is experiencing a shift towards in-house AI chip manufacturing, with significant investments, such as SoftBank's $2 billion equity investment in Intel, indicating a favorable outlook for chip manufacturing in the U.S. [4][5] - Graphite and graphene are critical materials in semiconductor manufacturing, especially for processes requiring high temperature and precise control, positioning Graphjet to capitalize on this trend [5]

Market Dynamics - China is urging firms to avoid Nvidia's H20 chips [1] - This is happening even after President Donald Trump reversed an effective US ban on such sales [1] AI Chip Alternatives - The report questions how China's own AI chips compare to Nvidia's H20 [1] - The report explores whether China's AI chips are viable alternatives [1]

Geopolitical Strategy - The White House aims to leverage Nvidia to counter President Xi Jinping's global ambitions [1] - The US government previously attempted to restrict Nvidia's AI chip sales to China [1] Company Significance - Nvidia is considered key to thwarting China's global ambitions [1] - Nvidia is recognized as the world's most valuable company [1]

Government Regulations & Concerns - Chinese government has engaged with domestic firms like Tencent and ByteDance to inquire about their procurement of NVIDIA's H20 chips, expressing concerns over information risks [1] - Cyberspace Administration of China (CAC) along with other agencies, has held meetings with Baidu and other smaller Chinese tech companies [1] - CAC has instructed ByteDance, Alibaba, and Tencent to halt purchases of NVIDIA chips due to data security concerns [1] - China is urging local companies to avoid using NVIDIA's H20 processors, especially for government-related purposes [1] Procurement Inquiries - Companies have received inquiries about why they chose NVIDIA's H20 chips over domestic alternatives and whether such choices were necessary given the availability of local options [1] Impact on AMD - AMD's AI chips are also reportedly affected by the government's directive [1]

Company Overview - Decart, a new AI lab, is challenging OpenAI and Google [1] - Decart's initial focus is on enhancing the efficiency of AI chips for businesses [1] Personnel - Dean Leitersdorf, age 26, is the founder of Decart [1]

Core Viewpoint - The narrative surrounding the AI chip race has shifted from U.S. national security concerns to tariff implications, as Nvidia and AMD agree to pay 15% of their revenue from high-end AI chip sales to China in exchange for sales licenses [1][2]. Group 1: Company Agreements and Revenue Sharing - Nvidia will share revenues from its H20 AI chip sales in China, while AMD will share a portion of its MI308 chip sales [2]. - The U.S. government has begun issuing licenses for the sale of these chips by Nvidia and AMD [2]. Group 2: Historical Context and Policy Changes - The Trump administration initially restricted sales of certain high-performance AI inference chips to China in April but paused the ban after Nvidia committed to $500 billion in domestic data center investments [3]. - Nvidia announced in July that it would resume sales of its H20 AI chips to China, which were specifically designed for that market following earlier restrictions by the Biden administration [3]. Group 3: Trade Discussions and Criticism - Nvidia's decision to change its sales strategy is linked to trade discussions with China regarding rare-earth elements, essential for manufacturing components like electric vehicle batteries [4]. - The approval of Nvidia's H20 chip sales has faced criticism from national security experts and former officials, who have urged the government to reconsider its stance [4].

story though, because I'm still working through it. Today's top corporate story. Reports say Nvidia and AMD have agreed to give the US government 15% of the revenue that they generate from exporting AI chips to China.In return, the companies will receive export licenses to sell chips in China. The news followed follows a report that meeting between Nvidia CEO Jensen Huang and President Trump at the white House last week, 15% of Nvidia's revenue from selling H20 chips to China could amount to billions of dol ...

Core Viewpoint - Nvidia and AMD have agreed to pay 15% of their revenue from AI chip sales to China to the U.S. government as part of a deal to secure export licenses, leading to a decline in their stock prices [1][2][3] Group 1: Company Agreements - Nvidia will pay 15% of the revenue generated from H20 AI chip sales to China, which is a modified version of its H100 chip to comply with export regulations [1] - AMD has also agreed to a similar 15% cut on sales of its MI308 chip designed for the Chinese market [2] Group 2: Financial Implications - The U.S. government could potentially earn $2.25 billion from Nvidia based on projected sales, with Nvidia estimating $15 billion in revenue from H20 chip sales to China [3] - AMD reported an $800 million write-off due to export restrictions on its MI308 chips, suggesting that the U.S. government could earn an additional $120 million from AMD if sales projections are accurate [3] Group 3: Market Reaction - In premarket trading, Nvidia's shares fell by 1.16% to $180.61, while AMD's shares decreased by 2.3% to $168.79 following the news [3]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - LGFVs continued to consolidate, and investors turned to USD issues for higher absolute yields as lower-yielding CNH issues lacked catalysts to tighten further [2] - China's PMI indicates waning economic momentum, and the policy easing window may not open until Q4 2025. China may have stronger motivation to advance economic rebalancing after a potential trade deal with the US [3][11] - Moody's changed the rating outlook of SK Hynix to positive from stable and affirmed its Baa2 rating, and SK Hynix is favored for its strong global market position and solid operating cash flow [7][9] Summary by Relevant Catalogs Trading Desk Comments - VNKRLE obtained up to RMB869mn loans from SZ Metro, and YLLGSP further bought back YLLGSP 5 1/8 05/20/26. VNKRLE 27 - 29 were 0.4 - 0.5pts lower, and YLLGSP 26 was 0.1pt higher [1] - In China IG, MEITUA/WB/XIAOMI 30s ended with 1 bp tighter to 1bp wider. New CB 3 - tranche CNH issues dropped 0.2 - 0.375pts from RO, and there was better buying on the 30yr papers [1] - In HK, HYSAN/NANFUN were unchanged to 0.5pt higher, whilst MTRC perps remained unchanged [1] - For TW lifers, CATLIF 34/39 were 1bp tighter to 2bps wider amid PB selling, NSINTW was unchanged, and SHIKON widened 1bp amid two - way flows [1] - For Thailand banks, BBLTB sub curve tightened 2 - 4bps and KBANK tightened 2bps [1] - In KR, DAESEC 26/29 widened 1bp and NHSECS 28 - 30 was 2bps tighter to 1bp wider. LGENSO curve retraced 2 - 4bps while HYNMTR/HYUELE tightened 1 - 4bps amid PB/AM buying [1] - FRN space is in good demand across Asia and EU bank papers. Investors in the region remained better buyers of Japanese and Yankee AT1s while there were selling flows from London [1] Morning Market Update - The new UBS 6.6 Perp was unchanged from RO at par, the new UBS 7 Perp was 0.1pt higher from RO at par. HAOHUA widened 1 - 2bps. DAESEC tightened 1 - 2bps. STANLN/MIZUHO/SUMIBK FRNs tightened 1 - 2bps. ANZ/CBAAU T2 widened 1 - 2bps [3] Macro News Recap - S&P (-0.37%), Dow (-0.74%) and Nasdaq (-0.03%) were lower on Thursday. US latest initial jobless claims was +218k, lower than the market expectation of +222k. US Jun'25 Core PCE price index was +2.8% yoy, higher than the market expectation of +2.7%. UST yield was largely unchanged on Thursday, 2/5/10/30 yield at 3.94%/3.96%/4.37%/4.89% [6] Desk Analyst Comments - Moody's changed the rating outlook of SK Hynix to positive from stable and affirmed its Baa2 rating, expecting its adjusted EBITDA to increase and adjusted debt/EBITDA to improve in FY25 - 26 [7] - SK Hynix overtook Samsung to become the world's leading memory chipmaker by revenue in Q2 2025, driven by higher demand for AI chips [8] China Economy Analysis - Manufacturing PMI further contracted with fading export front - loading. New order and export order indexes dropped, production moderated, and deflation pressure eased [11][12] - Non - manufacturing PMI softened as both service and construction activities moderated. Service PMI edged down, and construction PMI dipped [11][13] Offshore Asia New Issues - Offshore Asia New Issues (Priced): Chengdu & Europe Industrial Zone issued 156 USD mn in 3 - year bonds with a 6.95% coupon and unrated [17] - Offshore Asia New Issues (Pipeline): No new issues pipeline today [18] News and Market Color - There were 66 credit bonds issued onshore yesterday with an amount of RMB35bn. Month - to - date, 2,097 credit bonds were issued with a total amount of RMB2,143bn raised, representing a 12.7% yoy increase [19] - China new home sales fell 24% yoy in Jul'25 as stimulus impact faded [19] - Various company financial results and events were reported, such as Adani Enterprises' 1QFY26 EBITDA fall, MGM China's 2Q25 net revenue rise, etc. [19]