Core Viewpoint - Samsung Electronics reported a significant decline in its second-quarter operating profit, which is expected to be 4.6 trillion KRW, a 56% year-on-year drop and a 31.24% quarter-on-quarter decrease, marking the lowest level in six quarters and falling short of market expectations [2][5][6]. Group 1: Financial Performance - The anticipated sales for the second quarter are projected to remain flat at 74 trillion KRW [5][21]. - The operating profit of 4.6 trillion KRW is approximately 241 million RMB, indicating a substantial decline compared to previous quarters [5][21]. - This performance is significantly below the LSEG SmartEstimate prediction of a 39% decline to 6.3 trillion KRW [6]. Group 2: Reasons for Decline - The primary reasons for the poor performance include inventory value adjustments and uncertainties due to trade tensions, which have weakened the company's profitability [3][8]. - Samsung's competitive disadvantage in the AI chip sector has become increasingly apparent, particularly in the high bandwidth memory (HBM) chip business [9][10]. - The U.S. trade policies have hindered chip sales, and the company has faced losses in its non-memory chip business due to low utilization rates and trade policies [8][17]. Group 3: Competitive Landscape - Competitors like SK Hynix and Micron Technology are benefiting from strong demand for advanced HBM chips, with SK Hynix expected to report record quarterly earnings [11][14]. - Analysts predict that by 2025, SK Hynix will hold a 57% market share in the HBM market, while Samsung's share will be 27% [12]. - Samsung's stock performance has lagged behind its competitors, with only a 15% increase this year compared to SK Hynix's 65% and Micron's 37% [14]. Group 4: Future Outlook - Despite the dismal second-quarter results, Samsung expresses cautious optimism for the second half of the year, anticipating a narrowing of losses in its foundry business as demand gradually recovers [18][28]. - Analysts suggest that Samsung's profitability may rebound in the third quarter, contingent on the progress of HBM supply to Nvidia and an overall recovery in chip demand [19][28]. - Samsung has announced a stock buyback worth 3.9 trillion KRW to boost investor confidence [28].

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - The price of US soybean futures is expected to continue weak and volatile due to the disappointment of trade - policy expectations and favorable weather for crops. The domestic continuous soybean meal M09 contract is affected by the external market and shows a downward trend, with the spot price expected to maintain a bottom - grinding oscillation. [16][17] - For the live hog market, the short - term supply is tight, leading to a relatively strong price fluctuation. However, in the later stage, as the slaughter rhythm recovers, the price increase will slow down and adjust, and the price upside is restricted by the off - season demand and medium - term supply pressure. [17][18] 3. Summary by Directory 3.1 Market Review - The DCE soybean meal main 2509 contract declined by 0.58% to 2937 yuan/ton, and the coastal mainstream oil mills' quotes decreased by 10 - 30 yuan/ton. The DCE live hog main 2509 contract dropped by 0.42% to 14245 yuan/ton. The national average ex - factory price of ternary live hogs was 14.85 yuan/kg, down 0.11 yuan/kg from the previous day. The overnight CBOT US soybean main contract remained unchanged at 1048 cents/bushel. [2] 3.2 Weather in Main Producing Areas - There will be local to scattered showers in the mid - week in the US Midwest, with temperatures near to above normal. In the west, there were local to sporadic showers from last Saturday to this Monday, and the temperature was above normal on Saturday, near to above normal on Sunday, and near normal on Monday. In the east, it was mainly dry last Friday, and there were local to sporadic showers from Saturday to Monday, with temperatures above normal from Saturday to Sunday and near to above normal on Monday. From Tuesday to Saturday, there will be local to scattered showers with temperatures near to above normal. Overall, the weather conditions in many areas are still basically favorable. [3][4] 3.3 Macro and Industry News - Last week, the domestic soybean crushing volume of oil mills decreased but remained at a high level. As of July 4, the crushing volume was 2330000 tons, down 160000 tons week - on - week, up 90000 tons month - on - month, up 340000 tons year - on - year, and up 530000 tons compared with the average of the same period in the past three years. It is expected that the operating rate of oil mills will remain high this week, with a crushing volume of about 2350000 tons. [5] - On July 7, the import cost of US soybeans was 4583 yuan, down 3 yuan from the previous day; that of Brazilian soybeans was 3870 yuan, down 2 yuan; and that of Argentine soybeans was 3686 yuan, down 2 yuan. [5] - On July 4, the national major oil mills' soybean meal sales volume was 63400 tons, down 102500 tons from the previous day. Among them, the spot sales volume was 51400 tons, up 7300 tons, and the far - month basis sales volume was 12000 tons, down 109800 tons. The operating rate of the national dynamic full - sample oil mills was 66.16%, up 1.68% from the previous day. [5] - As of July 4, 2025, the average physical inventory days of soybean meal in domestic feed enterprises was 7.91 days, up 0.16 days from June 27, an increase of 2.04% for the eighth consecutive week, and 3.69% higher than the same period last year. [6] - Based on a domestic crushing volume of 9.5 million tons in July, the soybean meal output will reach about 7.5 million tons, with a large surplus compared to the average monthly consumption of about 6.5 million tons. The soybean meal inventory of major domestic oil mills at the end of June was 510000 tons, and it is expected to continue to rise in late July, possibly reaching over 800000 tons. [6] - In June, due to the concentrated arrival of imported soybeans and strong downstream demand, the operating rate of oil mills remained high, and the domestic major oil mills' soybean crushing volume reached 10.11 million tons, a record high for a single month. It is expected that the high operating rate will continue in July, with a full - month crushing volume of about 9.5 million tons. [6] - In the fourth week of June 2025, Brazil exported a total of 13.4203 million tons of soybeans in 20 working days, with an average daily shipment of 671000 tons, a decrease of 3.86% compared to July last year. [7] - As of the week of July 4, the profit of self - breeding and self - raising live hogs was 119.72 yuan per head, up from 50.25 yuan per head in the previous week; the profit of purchasing piglets for fattening was a loss of 26.26 yuan per head, a decrease from a loss of 131.71 yuan per head in the previous week. [7] - In the week of July 3, the average slaughter weight of national ternary live hogs was 123.52 kg, down 0.10 kg from the previous week, a slight decrease of 0.08% month - on - month, hitting a new low in more than four months, and a year - on - year decrease of 0.17%. [7] - According to CME's "FedWatch", the probability that the Fed will keep the interest rate unchanged in July is 95.3%, and the probability of a 25 - basis - point rate cut is 4.7%. The probability of keeping the interest rate unchanged in September is 30.6%, the probability of a cumulative 25 - basis - point rate cut is 66.2%, and the probability of a cumulative 50 - basis - point rate cut is 3.2%. [7] 3.4 Data Charts - The report provides multiple data charts, including the prices of soybean meal in Zhangjiagang and DCE soybean meal futures, soybean meal basis, the prices of rapeseed meal in Nantong and CZCE rapeseed meal futures, rapeseed meal basis, the prices of live hogs in Henan and DCE live hog futures, live hog basis, Chinese soybean inventory, and Chinese soybean meal inventory. [10][13][14][15] 3.5 Analysis and Strategies - For soybean meal, the US soybean futures are likely to be weak due to unmet policy expectations and good weather. The domestic M09 contract is affected by the external market. The domestic soybean meal spot market has abundant supply, and the price is expected to oscillate at the bottom. [16][17] - For live hogs, the short - term supply is tight, but the mid - term supply has pressure. The demand is in the off - season. The short - term price is strong, but the upside is limited by supply and demand factors in the later stage. [17][18]

Core Insights - Copper prices for both London and Shanghai futures have declined, indicating a bearish trend in the market [1] - Copper inventories have increased for four consecutive days, suggesting a potential oversupply situation [1] - Upcoming announcements from Trump regarding trade policies may significantly impact future copper price movements [1] Group 1 - The decline in copper prices reflects broader market concerns and potential shifts in demand [1] - The continuous rise in copper inventories could lead to further price pressure if the trend persists [1] - The market is closely monitoring trade policy developments, which could introduce volatility in copper prices [1]

Core Viewpoint - The Federal Reserve's monetary policy is facing unprecedented complexity due to the impact of tariff policies implemented by the Trump administration, which are significantly influencing interest rate decisions [1][3]. Group 1: Tariff Impact on Monetary Policy - The announcement of new tariffs in April has led to a comprehensive adjustment of the Federal Reserve's economic forecasting models, necessitating a reevaluation of inflation prospects [3]. - Federal Open Market Committee (FOMC) meeting minutes from June indicate that policymakers discussed the effects of tariffs in depth, ultimately deciding to maintain the federal funds rate target range at 4.25% to 4.50% for the fourth consecutive time [3][5]. - The policy statement highlighted "changes in the global trade environment" as a new risk factor [3]. Group 2: Market Reactions and Economic Indicators - Following Powell's remarks, the bond market reacted with a 5 basis point drop in the 10-year U.S. Treasury yield, which later rebounded by 3 basis points, reflecting investor confusion regarding policy outlook [5]. - The U.S. labor market remains tight with an unemployment rate at a historical low of 3.8%, while manufacturing activity indices have been below the neutral level for two consecutive months [5]. - The Consumer Price Index (CPI) for imported goods increased by 1.2% month-over-month, significantly above historical averages, complicating the Fed's decision-making process [5]. Group 3: Future Policy Expectations - Despite Powell's current stance against rate cuts, market expectations suggest a 65% probability of a rate cut in September, with uncertainty regarding the magnitude of the cut [6]. - Powell emphasized the need for data reliance and policy flexibility in response to the evolving trade policy landscape, indicating a shift in the Fed's approach to monetary policy [8]. - The intertwining of political and economic factors is expected to complicate future monetary policy decisions, as noted by a former Fed official [9].

华盛顿的夏夜闷热粘稠，美联储主席鲍威尔在国会山听证席上擦去额角的汗珠。仅仅24小时前，他刚向议员们强调利率调整还需"观望"，话音未落，特朗普 的咆哮已席卷社交媒体："鲍威尔是最差的主席！立刻给我降息2到3个百分点！" 芝加哥商品交易所的交易屏幕在凌晨1点闪烁着冷光：美联储7月降息概率仅21%，而9月启动降息的可能性已飙升至90%以上。 市场刚消化完美联储内部分 裂的信号——两位特朗普任命的官员沃勒与鲍曼意外转向鸽派，暗示7月可能降息；但转眼间十多位官员集体泼下冷水："需要更多数据！" 01 美联储降息博弈，政治阴影下的独立危机 鲍威尔在国会听证会上的表态成为这场风暴的导火索。面对议员质询，他反复强调关税政策使美联储难以预测通胀前景："自二战以来各国都在减少关税， 但如今加征关税规模是特朗普第一任期的六倍，我们必须审慎分析。" 当被问及7月降息可能性时，他罕见松口："降息宜早不宜迟"，却拒绝承诺具体时间 点。 美联储内部裂痕在点阵图上暴露无遗：19位决策者中，7人坚持今年不降息，8人支持降息两次。 分裂程度创十年新高，最常见与次常见预测差距达50基 点。 德意志银行报告指出："这不是历史性不确定性，而是历史性分 ...

Core Viewpoint - The adjustment of prices to adapt to trade and other policies will not be a short-term or simple process, potentially taking a year or longer [1] Group 1 - The Federal Reserve's Bostic emphasizes the complexity of price adjustments in response to trade and policy changes [1] - The timeframe for these adjustments is projected to be at least one year, indicating a prolonged period of economic adaptation [1]

Group 1 - The UK services sector experienced its fastest expansion in nearly a year in June, with the final value of the Services Purchasing Managers' Index (PMI) rising from 50.9 in May to 52.8, indicating the quickest growth since August 2024 [1] - The rate of price increases in the services sector fell to its lowest level in nearly four years, suggesting that price pressures monitored by the Bank of England are easing [1] - Despite a significant increase in new business, concerns about political and economic uncertainty have led to a slight decrease in business expectations for the coming year [1][2] Group 2 - The composite PMI rose from 50.3 in May to 52.0, indicating a potential recovery in the manufacturing sector after a prolonged downturn [1] - A survey indicated that the annual wage growth rate for UK businesses reached 4.6% in Q1 2025, slightly down by 0.1 percentage points from the previous quarter [2] - 29% of UK businesses expect a decline in sales due to changes in US trade policy, highlighting the impact of global economic conditions on local enterprises [2]

英国央行调查：6月份，29%的英国企业预计由于美国贸易政策的变化，未来一年的销售额将会下降， 24%的公司预计他们的资本支出将会下降。 ...

Market Overview - The S&P 500 index reached a new all-time high with a gain of 0.47%, while the Nasdaq rose nearly 1%, contrasting with a slight decline in the Dow Jones [2][3] - The rally was primarily driven by technology stocks, with Tesla surging nearly 5%, Oracle also jumping 5%, and Nvidia and Apple both increasing over 2% [3] Company-Specific Insights - Tesla's delivery numbers have declined for two consecutive quarters, yet the stock rose over 4%, indicating strong market confidence in the long-term prospects of electric vehicles despite short-term delivery data [3] - Cathie Wood's ARK Investment increased its stake in Tesla during the recent pullback, suggesting that major investors still believe in the long-term growth narrative for electric vehicles [3] Economic Indicators - The 10-year U.S. Treasury yield rose to approximately 4.27%, while the two-year yield experienced volatility following the release of ADP employment data, reflecting ongoing market concerns about the economy and Federal Reserve policy expectations [3] - The U.S. dollar index saw a slight decline, while crude oil prices increased by around 3%, and precious metals like gold and platinum also rose, indicating a potential increase in risk-averse sentiment among investors [3] Trade and Sector Performance - News of a trade agreement between the U.S. and Vietnam led to a surge in apparel and footwear stocks, with Nike rising over 4% [3] - Chinese concept stocks showed mixed performance, with the Golden Dragon Index barely up by 0.06%, while companies like Xpeng and Tiger Securities saw slight gains, contrasted by declines in New Oriental, Alibaba, and Bilibili [3] Investment Strategy - The current market environment is characterized by volatility, with technology giants supporting the indices through performance and AI narratives, while trade policies and economic data introduce uncertainty [4] - Long-term investors are advised to focus on whether the rebound in tech stocks is driven by sentiment recovery or fundamental support, and whether short-term trade benefits can translate into sustained corporate growth [4]

Core Viewpoint - BYD has suspended plans to build a large factory in Mexico due to geopolitical tensions and uncertainties stemming from U.S. trade policies [1][2] Group 1: Expansion Plans - BYD remains interested in expanding in the Americas but currently has no timeline for new investments [1] - The Bahia factory in Brazil is BYD's first factory outside Asia, with the first vehicle rolling off the production line on July 1 [1] - Once operational, the Bahia factory is expected to produce 150,000 vehicles annually, with plans to double capacity to 300,000 in about two years [1][2] Group 2: Geopolitical Impact - Geopolitical factors significantly impact the automotive industry, prompting companies to rethink their strategies in other countries [1] - BYD is waiting for clearer geopolitical conditions before making further decisions regarding expansion [1] Group 3: Import Tax Considerations - BYD has requested a 12-month import tax exemption from the Brazilian government for the first phase of the factory, concerning the assembly of vehicle kits [2] - The company argues that imposing the same import tax on semi-assembled vehicles as on fully assembled cars would render the importation of semi-assembled vehicles impractical [2]