Core Viewpoint - Singapore's manufacturing sector continued its growth momentum in April, driven by early shipments in the electronics and aerospace engineering industries, with a year-on-year increase of 5.9% and a month-on-month increase of 5.3%, marking the tenth consecutive month of positive growth [1] Group 1: Manufacturing Performance - The manufacturing sector, excluding biomedical, saw a year-on-year growth of 8.1% in April, with the electronics sector experiencing a significant increase of 15.2% and aerospace engineering growing by 22.9% [1] - The growth in the electronics sector was primarily driven by strong export demand for communications and consumer electronics (up 67.8%), semiconductors (up 11.7%), and computer peripherals (up 11.3%) [1] - The aerospace sector was boosted by robust demand for commercial aviation maintenance, repair, and overhaul (MRO), which surged by 39.5% year-on-year [1] Group 2: Future Risks and Concerns - Despite the strong data, analysts express caution regarding future trends, noting that the current manufacturing growth is influenced by an "early shipment effect" that may not be sustainable, especially after the end of the "90-day tariff buffer window" [1] - OCBC Bank predicts that Singapore's manufacturing growth for the entire year of 2025 may only reach 0-2%, with the possibility of negative year-on-year growth in the second half of the year [2] - UOB warns that the significant growth in April was largely due to export companies rushing to ship products to avoid potential tariffs, and future trade disputes, particularly between the US and Europe, could severely impact Singapore's relevant industries [2] Group 3: Subsector Performance - Some manufacturing subsectors in Singapore showed weak performance, with biomedical manufacturing declining by 1.1%, chemicals down by 3.2%, and general manufacturing (including food, printing, and furniture) experiencing a decline of 15.2% [2] - The chemical industry faced challenges due to high inventories of refined oil and petrochemical products, compounded by raw material supply issues and maintenance activities, leading to continued output declines [2] - The biomedical sector's output was affected by changes in the product structure of active pharmaceutical ingredients (API), resulting in a year-on-year decrease in pharmaceutical output of 1.6% [2]

Market Overview - The Hong Kong stock market has been on an upward trend since April 9, but showed signs of fatigue by the end of the month, with the Hang Seng Index dropping by 1.35% [1] - The U.S. is pushing for trade agreements with the EU and Japan, with Trump suggesting a 50% tariff on EU goods starting June 1, later postponed to July 9 to allow for further negotiations [1][2] - Japan's shipbuilding industry is facing a downturn, with new ship orders expected to decline significantly in 2024, making negotiations with the U.S. challenging [2] Industry Insights - The Chinese shipbuilding industry remains dominant, with China Shipbuilding Industry Group showing strong order volumes and profitability, leading to a stock price increase of over 6% [2] - Trump's tariffs on non-U.S. manufactured electronics, including a 25% tariff on Apple and Samsung, are expected to negatively impact the consumer electronics sector [2] - The automotive sector is experiencing intense price competition, particularly with BYD's aggressive discounting strategy, raising concerns about profit margins across the industry [3] Energy Sector Developments - The U.S. plans to initiate the construction of 10 large nuclear power plants by 2030, aiming to quadruple nuclear capacity by 2050, which has positively impacted related stocks in Hong Kong [4] - Domestic coal prices have decreased, benefiting thermal power companies, with major players like Datang Power and Huadian International seeing stock price increases of nearly 3% [4] Aviation Industry Performance - Major airlines in China reported increased passenger turnover and capacity in April, with the Civil Aviation Administration noting significant year-on-year growth in transport metrics [6] - The decline in international oil prices is improving the cost structure for airlines, enhancing profit margins [6][7] Company-Specific Highlights - China Resources Power reported a 7.9% increase in electricity sales in April 2025, with significant growth in renewable energy sales, although its renewable energy core profit saw a slight decline [9] - The company aims to add 10 GW of wind and solar capacity by 2025, with ongoing projects expected to contribute to future growth [10]

Core Insights - Greece's tourism industry is projected to grow in 2025, with international direct flights enhancing its appeal to long-haul travelers [1][5] - The number of travelers entering Greece by air increased by 10% year-on-year in the first four months of this year [1] - Greece is becoming a popular destination for Chinese tourists, driven by its historical sites and natural beauty [1][5] Tourism Growth Projections - Greece expects a 3% to 5% increase in international tourist numbers in 2025, potentially marking a third consecutive record year [1] - The Ionian Islands received approximately 3.8 million international visitors in 2024, reflecting a 5.5% increase year-on-year [3] Revenue Insights - Greece's tourism revenue reached €21.7 billion (approximately ¥177 billion) in 2024, surpassing €20.6 billion (approximately ¥168 billion) in 2023, marking a 5.3% growth [3] Chinese Tourist Market - Greece is one of the most favored destinations for Chinese tourists in Europe, attributed to its cultural and historical significance [4][5] - The number of Chinese tourists visiting Greece is expected to see significant growth in 2025, supported by increased flight routes and strategic partnerships [5][7] Flight Route Developments - Chinese airlines are planning to open new routes to Greece and increase flight frequencies, indicating a growing interest in Greece as a travel destination [7][8] - Spring Airlines has increased its Shanghai to Athens route to four flights per week, while other airlines are expanding their services to accommodate rising demand [8]

Core Viewpoint - The Eurozone economy unexpectedly contracted in May, with the services sector experiencing its worst performance in 16 months, overshadowing a slight improvement in manufacturing [1][5]. Group 1: Economic Activity - Eurozone private sector activity unexpectedly shrank in May, primarily due to weak performance in the services sector [5]. - France's economic activity has contracted for nine consecutive months, with a composite PMI rising slightly from 47.8 in April to 48 in May, still below the 50 threshold [4][7]. - Germany's PMI data also disappointed, with a decline in the services sector, although infrastructure reforms and military rebuilding plans by the new government may provide future support [10]. Group 2: PMI Data - The Eurozone composite PMI fell from 50.4 in April to 49.5 in May, below analysts' expectations of 50.6 [6]. - The services PMI preliminary value was 48.9, lower than the expected 50.5 and previous value of 50.1 [6]. - The manufacturing PMI preliminary value was 49.4, slightly above the expected 49.2 and previous value of 49 [6]. Group 3: Sector Performance - The weak performance of the services sector is the key factor leading to the overall PMI decline, indicating a more challenging road to recovery for the Eurozone economy [5]. - Despite the overall poor data, the Eurozone's manufacturing sector showed improvement, marking the first time since the pandemic began that manufacturing outperformed services [5]. - In Spain and other Southern European countries, performance was relatively better, with strong tourism demand reported by Ryanair Holdings Plc [13].

Core Insights - The U.S. airline industry is experiencing a significant decline in ticket sales, with a 4% year-over-year drop in April, marking the largest monthly decrease since June 2024 and the third consecutive month of revenue decline [1][3] - Consumer confidence in the U.S. has fallen to its lowest level in nearly three years, largely attributed to economic uncertainties stemming from the Trump administration's policies, leading to reduced spending on travel [1][3] - Major airlines, including American Airlines, Delta, Southwest, and United, are adjusting their growth strategies and reducing capacity plans due to weak domestic travel demand [5][6] Ticket Sales and Pricing - U.S. airline ticket prices fell by 2.8% in April compared to March, continuing a downward trend for three months, with a 7.9% decrease year-over-year and a 13.2% drop compared to ten years ago [3] - The overall cost of travel in the U.S. has decreased by 2% compared to the same period in 2024, indicating stagnation or decline in the tourism sector [3][6] Corporate Responses - American Airlines has withdrawn its financial performance forecast for 2025 and is adjusting its operational strategies due to declining leisure travel demand [4][6] - The CEO of American Airlines noted a significant drop in domestic leisure travel demand since February, which has impacted the company's performance [4][5] Economic Context - The decline in travel spending is linked to broader economic challenges, including rising inflation, shrinking household incomes, and a drop in consumer spending confidence [1][6] - Credit card spending on flights and hotels has decreased, indicating a cooling trend in the U.S. tourism industry, with many airlines retracting their annual growth forecasts [6]

Group 1: Aviation Industry - The aviation industry in China is expected to benefit from the easing of US-China trade tensions and improving supply-demand dynamics, leading to enhanced pricing power [2][1] - Recommended stocks include China National Aviation (00753), Eastern Airlines (00670), Southern Airlines (01055), and Spring Airlines (601021.SH) [2] - Guangzhou Baiyun Airport (600004.SH) is favored as a defensive choice due to its lower exposure to duty-free business and high dividend yield amid consumer pressure [2][1] Group 2: Shipping Industry - Geopolitical factors are impacting freight rates, but oversupply of capacity remains a primary concern for the next 12 to 24 months [3] - The oil tanker segment is expected to benefit from OPEC+ production increases and tighter regulations on "shadow fleets," with recommendations to increase holdings in China Merchants Energy (601872.SH) and COSCO Shipping Energy (01138) [3] - For dry bulk shipping, Pacific Basin Shipping (02343) is recommended for its stable shareholder returns, while container shipping stocks like COSCO Shipping Holdings (01919) and Orient Overseas International (00316) are advised to be reduced [3] Group 3: Express Delivery Industry - The express delivery sector is anticipated to face intensified price competition and ongoing industry consolidation from 2025 onwards [4] - ZTO Express (ZTO.US) is viewed as the most promising stock in the next 12 to 24 months, while SF Express (002352.SZ) shows strong profit growth potential [4] - Companies leveraging artificial intelligence, such as ZTO, SF Express, and YTO Express (600233.SH), are also highlighted for their growth prospects [4]

Group 1: Key Agreements and Economic Impact - The United States and the UAE have reached agreements worth over $200 billion, covering sectors such as aviation, aluminum, oil, and gas [1][3] - A significant part of the agreement includes a $14.5 billion aircraft procurement deal between Boeing, General Electric Aviation, and Etihad Airways for 28 Boeing 787 and 777X aircraft [3] - The total investment commitments from Trump's Middle East trip exceed $2 trillion, with notable agreements from Saudi Arabia and Qatar as well [5][6] Group 2: Focus on High-Tech and AI Collaboration - The U.S. and UAE have agreed to establish a "U.S.-UAE AI Accelerated Partnership" to enhance cooperation in key technologies, including the launch of a 1GW AI data center [6][7] - The AI data center will be part of a larger 5GW AI park in Abu Dhabi, marking it as the largest of its kind outside the U.S. [7] - The partnership aims to facilitate the purchase of advanced AI chips from companies like NVIDIA and AMD, with Gulf countries looking to integrate into the U.S.-led technology supply chain [7][8] Group 3: Geopolitical Context and Strategic Shifts - Trump's visit signifies a shift in U.S. foreign policy towards the Middle East, focusing on economic benefits rather than traditional diplomatic engagements [10][14] - The U.S. is reducing its military and political involvement in the region, aiming to transform Middle Eastern countries into economic partners rather than burdens [12][14] - The discussions with Syria and Iran during the visit indicate a potential recalibration of U.S. relations in the region, with an emphasis on resource acquisition and investment [12][14]

Group 1: Industry Performance - The healthcare ETF rose by 2.02%, while the biotechnology index ETF increased by 1.61% [1][3] - The global airline industry ETF saw a gain of 1.07%, and the consumer discretionary ETF rose by 0.95% [1][3] - The technology sector ETF and banking sector ETF had minimal increases, with gains of up to 0.19% [1][3] Group 2: ETF Specifics - The healthcare ETF closed at $133.09, with a change of +2.63 (+2.02%) and a total market value of $254.69 billion, down 2.88% year-to-date [3] - The biotechnology index ETF closed at $121.16, with a change of +1.92 (+1.61%) and a total market value of $96.20 billion, down 8.28% year-to-date [3] - The global airline ETF closed at $22.74, with a change of +0.24 (+1.07%) and a total market value of $716.31 million, down 10.30% year-to-date [3] Group 3: Sector Trends - The energy sector ETF decreased by 0.15%, while the semiconductor ETF fell by 0.29% [2][3] - The utilities sector ETF increased by 1.47%, closing at $82.18, with a total market value of $119.30 billion, up 9.35% year-to-date [3] - The consumer staples ETF rose by 1.15%, closing at $82.07, with a total market value of $138.88 billion, up 4.95% year-to-date [3]

Core Viewpoint - The U.S. stock market opened with mixed performance among major industry ETFs, with healthcare and biotechnology ETFs rising nearly 1%, while energy ETFs fell close to 1% [1] Industry Summary - **Healthcare ETF**: Current price at $131.42, increased by $0.96 (+0.74%), with a trading volume of 1.58 million shares and a total market value of $25.15 billion, down 4.10% year-to-date [2] - **Biotechnology Index ETF**: Current price at $120.06, up by $0.82 (+0.69%), with a trading volume of 99,650 shares and a total market value of $9.53 billion, down 9.11% year-to-date [2] - **Energy ETF**: Current price at $85.01, decreased by $0.60 (-0.70%), with a trading volume of 1.36 million shares and a total market value of $21.29 billion, up 0.02% year-to-date [2] - **Global Airline ETF**: Current price at $22.61, increased by $0.10 (+0.47%), with a trading volume of 121,200 shares and a total market value of $712.06 million, down 10.83% year-to-date [2] - **Technology Sector ETF**: Current price at $234.00, decreased by $0.45 (-0.19%), with a trading volume of 604,400 shares and a total market value of $74.43 billion, up 0.81% year-to-date [2] - **Financial Sector ETF**: Current price at $51.30, increased by $0.02 (+0.04%), with a trading volume of 3.65 million shares and a total market value of $57.10 billion, up 6.53% year-to-date [2]

Group 1 - German Chancellor Merz stated that there are currently no plans to supply "Taurus" cruise missiles to Ukraine, and this issue is not on the agenda [2] - Russian President Putin signed a presidential decree appointing Oleg Salyukov as the Deputy Secretary of the Russian Security Council, relieving him of his position as Commander of the Russian Ground Forces [3] - The official announcement regarding the new Commander of the Ground Forces has not yet been made by Russian authorities [4] Group 2 - The UAE and the US reached an agreement worth over $200 billion, covering cooperation in aviation, aluminum, oil, and natural gas [5] - The agreement includes a commitment from Etihad Airways to invest $14.5 billion in purchasing 28 Boeing 787 "Dreamliner" and Boeing 777X aircraft [5] - The UAE Global Aluminum will invest $4 billion in a smelter project in Oklahoma, and several US companies will collaborate with the UAE in semiconductor, cybersecurity, cloud services, and artificial intelligence development [5]