Core Viewpoint - The proposal involves SGH acquiring all shares of BlueScope and subsequently selling BlueScope's North American businesses to Steel Dynamics [1] Group 1 - SGH plans to fully acquire BlueScope [1] - The acquisition will include the divestiture of BlueScope's North American operations [1]

Core Viewpoint - U.S. stocks are starting the new year with strong momentum, driven by easing inflation, improving growth expectations, and positive earnings forecasts, particularly influenced by advancements in artificial intelligence [2][3] Market Overview - The stock market has experienced volatility due to trade concerns, policy uncertainty, and changing interest rate expectations, but has shown resilience with cooling inflation and better-than-expected earnings [3] - Heavy investments in AI, data centers, and cloud infrastructure are providing a strong underlying support for the market [3] Investment Strategy - A relative price strength strategy is recommended, focusing on stocks that are outperforming the market, as they are likely to continue their upward trend [4] - Stocks such as Jabil Inc. (JBL), Ciena Corporation (CIEN), Commercial Metals Company (CMC), and Plains All American Pipeline LP (PAA) are highlighted as potential investment opportunities [4] Stock Screening Parameters - Stocks should be evaluated based on their earnings, valuation ratios, and relative price performance compared to peers and industry averages [5][6] - Stocks that outperform their respective industries or benchmarks are more likely to yield significant returns [6] - A focus on stocks with positive earnings revisions and strong fundamentals is essential for identifying growth potential [7][8] Featured Stocks - **Jabil Inc. (JBL)**: Market cap over $25 billion, expected EPS growth of 18.5% year-over-year for fiscal 2026, shares up 58% in a year [12] - **Ciena Corporation (CIEN)**: Expected EPS growth rate of 41.8% over three to five years, shares up 191.2% in a year, with a fiscal 2026 EPS estimate indicating 97.7% growth [13][14] - **Commercial Metals Company (CMC)**: Market cap of $8 billion, expected EPS growth of 125.2% for fiscal 2026, shares up 42.4% in a year [15] - **Plains All American Pipeline LP (PAA)**: Market cap nearly $13 billion, with a 6.8% upward revision in earnings estimates for 2026, shares up 3.6% in a year [16][17]

Core Viewpoint - BlueScope Steel has received an indicative takeover offer from a consortium of Australian and U.S. companies, valuing the company at A$13.15 billion (approximately $8.78 billion) [1] Company Summary - The indicative takeover offer was made in December [1] - The valuation of A$13.15 billion reflects the interest from a consortium, indicating potential strategic moves in the steel industry [1]

Core Perspective - The EU carbon border adjustment mechanism (CBAM) aims to enhance the competitiveness of European manufacturers against non-EU companies with less stringent emissions regulations, with China being the first to threaten retaliation [1][4]. Group 1: Mechanism Overview - The CBAM was created to address the high costs associated with the EU's stringent emission-reduction standards, which have made European products like steel and cement less competitive compared to cheaper imports from countries like China [2][3]. - The mechanism imposes a price on carbon dioxide emissions from goods produced in exporting countries, establishing default emission values and benchmarks for specific products [6]. Group 2: Reactions from Major Exporters - China's Ministry of Commerce criticized the CBAM as "unfair" and "discriminatory," indicating that it would take necessary measures to counteract what it perceives as unfair trade restrictions [4]. - The CBAM is unpopular among major exporters to the EU, but it has been effective in encouraging countries to develop or expand their carbon pricing initiatives, marking a significant policy shift for the EU [5]. Group 3: Implications for Competitiveness - The implementation of the CBAM is intended to ensure that cheaper imported steel, cement, and electricity are not as competitively priced, thereby protecting European industries [3]. - China's existing carbon market, established in 2021, complicates the situation as it seeks to maintain its competitiveness in the face of the new EU regulations [5].

Core Insights - Warren Buffett is no longer the CEO of Berkshire Hathaway but remains chairman and involved in major decisions [1] - Buffett's investing wisdom continues to be relevant, particularly his two-step test for stock evaluation [2][4] Investment Strategy - The first step in Buffett's test is to determine if earnings can be estimated for at least five years [5] - The second step involves checking if the stock's valuation is reasonable relative to the lower end of the projected earnings range [6] - Buffett emphasizes focusing on stocks within one's "circle of competence" to improve the accuracy of earnings projections [8] Market Analysis - As of early 2026, there are limited stocks that pass Buffett's test, with Berkshire holding a record-high cash stockpile [10] - AbbVie is highlighted as a strong candidate, having navigated its Humira patent cliff and expected to deliver robust earnings growth, with a current market cap of $405 billion and a dividend yield of 2.86% [11][12] - Nucor is another potential stock, benefiting from data center construction and infrastructure investments, with a low forward price-to-earnings ratio of 14.5 [11][12]

Market Performance - Equity benchmark indices Sensex and Nifty increased nearly 1 percent on the final trading session of 2025, following days of range-bound trading due to sustained buying by domestic institutional investors [1] - The BSE Sensex rose by 545.52 points, or 0.64 percent, closing at 85,220.60, with an intraday high of 85,437.17, marking a surge of 762.09 points, or 0.90 percent [3] - The NSE Nifty climbed 190.75 points, or 0.74 percent, finishing at 26,129.60 after four consecutive days of decline [3] Yearly Performance - In 2025, the Sensex experienced a rally of 7,081.59 points, or 9 percent, while the Nifty increased by 2,484.8 points, or 10.50 percent [6] - The Indian equity markets concluded the year positively, with a bullish sentiment while respecting key resistance levels [6] Sector Performance - Among the 30 Sensex firms, Tata Steel, Kotak Mahindra Bank, Reliance Industries, Axis Bank, Titan, and Trent were the top gainers [4] - Conversely, Tata Consultancy Services, Tech Mahindra, Infosys, Bajaj Finance, and Sun Pharma were identified as laggards [4] Investor Activity - Foreign Institutional Investors (FIIs) sold equities worth ₹3,844.02 crore, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹6,159.81 crore [8] - The session reflected a gradual improvement in risk appetite driven by short covering and selective buying rather than aggressive new positions [7]

Core Viewpoint - Shares of major steel companies in India experienced a significant increase, ranging from 2% to 4.5%, following the imposition of import tariffs on certain steel products by the Indian government to limit low-cost imports from China [1] Group 1: Market Reaction - Major steel companies in India saw their stock prices rise between 2% and 4.5% on Wednesday [1] - The increase in share prices occurred a day after the government announced new import tariffs [1] Group 2: Government Action - The Indian government has implemented import tariffs on specific steel products [1] - The primary objective of these tariffs is to curb the influx of inexpensive steel shipments from China [1]

Core Viewpoint - Nucor Corp (NYSE:NUE) is currently trading at $166.17, close to its one-year high of $168.04, indicating potential for further price increases based on historical patterns [1]. Group 1: Historical Performance - Over the past five years, NUE has traded within 2% of its 52-week high on four occasions while the Schaeffer's Volatility Index (SVI) was in the 20th percentile or lower, a condition that is met again today with an SVI of 28%, in the 4th percentile of its annual range [2]. - Following similar setups, NUE has shown a 75% probability of being higher one month later, with an average gain of 7.1%. A similar increase from the current price would elevate shares to $177.96, marking the highest level since February 2024 [3]. Group 2: Support Levels - In the event of a short-term pullback, there is underlying support at the 30-day moving average, which could provide a safety net for the stock price [3].

Market Overview - Stock markets ended marginally lower amid thin year-end trading, influenced by persistent foreign fund outflows and a muted trend in global equities [1] - The 30-share BSE Sensex fell for the fifth consecutive day, decreasing by 20.46 points or 0.02% to settle at 84,675.08, with a daily high of 84,806.99 and a low of 84,470.94, resulting in a fluctuation of 336.05 points [2] - The 50-share NSE Nifty ended flat, slipping 3.25 points or 0.01% to 25,938.85 [3] Sector Performance - Among the 30-Sensex firms, the biggest laggards included Eternal, Infosys, Asian Paints, UltraTech Cement, Bajaj Finance, HCL Tech, and Titan [3] - Conversely, Tata Steel, Mahindra & Mahindra, Bajaj Finserv, and Axis Bank were noted as the biggest gainers [3] Foreign Investment Trends - Foreign Institutional Investors (FIIs) sold equities worth Rs 2,759.89 crore, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 2,643.85 crore, indicating a net outflow from foreign investors [4] Commodity Prices - Brent crude, the global oil benchmark, increased by 0.47% to $62.23 per barrel [4]

Market Overview - Sentiment in Asian markets remains mixed as they brace for year-end, with focus on FOMC minutes and geopolitical developments in China, the Middle East, and the Russia-Ukraine conflict [1] Stock Indices Performance - China's Shanghai Composite Index closed flat at 3,965.12, ending a nine-day winning streak, with a trading range of 3,947.42 to 3,979.99 [2] - The Shenzhen Component Index increased by 0.50 percent to close at 13,604.07, up from 13,537.10 [2] - Japan's Nikkei 225 fell by 183 points or 0.36 percent to 50,343.50, with a trading range of 50,208.50 to 50,549.00 [2] - Korea's Kospi Index decreased by 6 points or 0.15 percent to 4,214.17, trading between 4,186.95 and 4,226.36 [4] - Hong Kong's Hang Seng Index rose by 219 points or 0.86 percent to 25,854.60, with a range of 25,930.22 to 25,611.23 [4] - Australia's S&P/ASX200 closed at 8,717.10, down 9 points or 0.10 percent, with a trading range of 8,706.60 to 8,751.90 [5] - New Zealand's NZX 50 gained 22 points or 0.16 percent to close at 13,548.13, trading between 13,518.17 and 13,569.85 [6] - Wall Street closed negatively, with the Dow Jones Industrial Average down 0.51 percent to 48,746.93 and the Nasdaq Composite down 0.50 percent to 23,474.35 [7] Company Performance - Fujitsu and Nidec Corp both rallied more than 2.2 percent [3] - Dainippon Screen Mfg Co, Murata Mfg Co, and Nitori Holdings Co gained over 1 percent [3] - Sumitomo Metal Mining led losses with a decline of 4.8 percent, followed by Rakuten, Japan Steel Works, Mitsubishi Materials Corp, and TOTO, all losing more than 2 percent [3] - Netwealth Group rebounded by 2.1 percent, while Temple & Webster Group, Mirvac Group, Santos, and Centuria Capital Group all rallied more than 1.5 percent [5] - Silex Systems and Liontown both plunged more than 4.7 percent, with Newmont Corp losing 4.1 percent and Catalyst Metals and Evolution Mining losing more than 3 percent [5] - Synlait Milk topped gains with a surge of 3.2 percent, while Pacific Edge, NZX, Scales, and Sanford all rallied more than 2 percent [6] - KMD Brands, Summerset Group, Serko, and Genesis Energy all declined by more than 1 percent [6]