As investors worry about the latest round of tariff announcements, maybe this war footing and so forth, but there's another concern maybe can take off the list or push down a little bit. My next guest says inflation is slowing way more than the markets think. Let's bring in Matt Mskin.He's the co-chief investment strategist at Manulife, John Hancock Investments. Matt, it's great to see you. And this is precisely the moment you just heard Jimmy and others have talked about this, like is the hard data going t ...

Investment Rating - The report maintains a "Buy" rating for Hysan Development (14 HK), Link REIT (823 HK), and Wharf REIC (1997 HK) [5][32][32] Core Insights - Hong Kong's retail sales grew by 2.4% year-on-year in May 2025, marking the end of a 14-month decline, with expectations for a full-year decline of only 3% in 2025 [2][8] - The positive wealth effect from financial markets and an increase in visitor arrivals, which rose by 12% year-on-year to approximately 24 million in the first half of 2025, are expected to support domestic spending [2][4] - Retailers focusing on discretionary spending, such as CTF Jewellery and Sa Sa International, have shown improved sales, while mall operators like Link REIT are expected to face ongoing rental pressures despite some tenant sales resilience [3][4] Summary by Sections Retail Market Overview - Retail sales in Hong Kong turned positive in May 2025 after a prolonged decline, with a 2.4% year-on-year increase, reversing a 2.3% decline in April [2][8] - The retail market is anticipated to stabilize, with a projected narrowing of the sales decline in the second half of 2025 [2][8] Retail Performance by Category - The largest increase in retail spending was seen in Cosmetics, which rose by 8.7% year-on-year, followed by Other categories at 7.6% and Department Store Sales at 6.3% [9][13] - Certain categories, including Jewellery and Fuels, experienced declines, with Jewellery down 3.2% year-on-year [9][13] Company-Specific Insights - Hysan Development's mall portfolio is expected to benefit from the positive wealth effect, with a target price of HKD 18.60, implying a 28.3% upside from the current price [5][32] - Link REIT is projected to maintain a resilient distribution per unit (DPU) supported by lower borrowing costs and its diversified portfolio, with a target price of HKD 45.00, indicating a 6.6% upside [5][32] - Wharf REIC is also rated as a "Buy," with a target price of HKD 30.00, reflecting a 33.0% upside, driven by expected growth in tourist spending [5][32]

Investment Rating - The report indicates a continued downturn in China's property market, with expectations of a decline in property activities in 2025, albeit less severe than in 2024 [51]. Core Insights - Home purchase intentions have weakened overall, with tier 1 cities stabilizing while lower-tier cities, particularly tier 2 and tier 3, have seen a more significant decline [2][7]. - The survey reveals that 42% of respondents expect housing prices to decline further in the next 12 months, with a notable increase in homeowners reporting paper losses [3][30]. - The report emphasizes the need for government intervention through pro-growth policies, further mortgage rate cuts, and support for developers to boost market sentiment [4][51]. Summary by Sections Home Purchase Intentions - The latest survey shows a decrease in home purchase intentions, with only 20% planning to buy in the next two years, down from previous surveys [7]. - Among current renters, 73% prefer to rent rather than buy, marking the highest inclination since the survey began [7][40]. Housing Price Outlook - 42% of respondents anticipate further declines in housing prices, with 47% expecting a drop of less than 10% and 37% expecting a decline of 10-20% [3][23]. - Official data indicates a 10% decline in new residential prices and a 17% decline in secondary residential prices from peak levels [22]. Market Confidence and Economic Factors - The report notes that government policy easing has slightly improved market confidence, with fewer respondents expressing a lack of confidence compared to previous surveys [18]. - Key factors affecting confidence include lower mortgage rates, reduced down payment requirements, and expectations of further price declines [18][49]. Consumer Sentiment and Wealth Effect - The negative wealth effect from declining housing prices is likely to suppress household consumption, as 47% of homeowners report paper losses [30]. - The report highlights that housing stock value constitutes a significant portion of household assets, further impacting consumer sentiment [30]. Policy Recommendations - The report suggests that the government should implement more supportive policies to address stalled projects and enhance financing for both developers and home buyers [4][51]. - It emphasizes the importance of addressing bottleneck restrictions in the destocking program to improve market conditions [51].

Summary of RxSight (RXST) Q1 2025 Conference Call Company Overview - **Company**: RxSight (RXST) - **Industry**: Medical Technology, specifically focusing on ophthalmology and cataract surgery Key Points Q1 2025 Financial Performance - Q1 revenue grew by **28% year-over-year**, but fell short of market expectations [3][17] - LAL (Light Adjustable Lens) sales were impacted by macroeconomic factors, while LDD (Light Adjustable Lens Delivery) sales exceeded expectations [3][11] Macroeconomic Impact - The demographic typically resistant to economic downturns (60+ age group) showed signs of deferring treatments due to equity market shocks and changes in administration [5][6] - Patients cited economic concerns as reasons for deferring or canceling surgeries, a trend not seen since COVID-19 [6][14] Market Dynamics - The premium IOL market has been flat to declining, with RxSight's growth primarily driven by LAL sales [9][10] - The company noted a generational shift in ophthalmology, with a growing emphasis on work-life balance among physicians, impacting practice productivity [8][9] LDD Sales Performance - LDD sales remained strong throughout 2024 and continued into Q1 2025, indicating a robust demand for capital equipment [11][12] - LALs offer significantly better outcomes for patients compared to monofocal lenses, which incentivizes practices to adopt them despite economic pressures [12][13] Future Expectations - The company anticipates a **20% growth in LAL sales** for Q2 2025, with expectations of a stronger second half of the year as economic conditions stabilize [17][19] - Guidance for 2025 is wide-ranging, reflecting uncertainty in consumer behavior and macroeconomic conditions [20][21] International Market Opportunities - Recent approvals in international markets (e.g., Korea, EU) are expected to contribute modestly to sales, with a focus on building clinical data and key opinion leaders in these regions [28][44][49] Education and Support Initiatives - RxSight plans to enhance education and marketing support for practices to optimize the implementation of their technology, driven by feedback from customers [30][32] - The company aims to address utilization challenges and improve patient outcomes through systematic dissemination of information [32][34] Utilization Trends - There has been a slowdown in the growth of LDD procedures, attributed to macroeconomic factors affecting patient confidence [36][38] - The installed base of LDDs is growing, but the ramp-up in utilization has not met expectations compared to previous years [36][40] Physician Demographics - The adoption of RxSight's technology spans a range of physician experience levels, with younger doctors more inclined to adopt new technologies for career advancement [41][42] Conclusion - RxSight is navigating a challenging macroeconomic environment while maintaining strong sales in LDDs and LALs. The company is focused on education, international expansion, and adapting to market dynamics to drive future growth [44][49]