Core Viewpoint - The recent surge in US technology stocks, particularly those associated with artificial intelligence, raises concerns about the potential formation of a market bubble, especially for Indian investors heavily exposed to US equities [1][2]. Group 1: Market Dynamics - The US market rally is increasingly narrow, driven by a small group of AI-linked mega-cap companies, with 10 US stocks each holding a market cap over $1 trillion [3]. - AI-related firms contributed nearly 80% of US equity gains in 2025, with the five largest AI mega-caps making up about 30% of the S&P 500 and 20% of the MSCI World Index, marking the highest concentration in nearly 50 years [4]. - The US technology sector now represents around 35% of total US market capitalization, with the 10 largest US companies accounting for over 20% of global equity value, indicating an extraordinary historical dominance [5]. Group 2: Valuation Concerns - The S&P 500 is trading at approximately 23 times forward earnings, suggesting one of the most stretched valuation phases since the dot-com boom [6]. - Despite high valuations, analysts argue that the US tech sector is not in a classic bubble, as some companies continue to generate strong cash flows that support their valuations [7][8]. - A Deutsche Bank report highlights that the rise in AI-driven valuations is accompanied by real earnings growth and robust profitability, contrasting with previous bubbles fueled by unproven business models [9]. Group 3: Risks for Indian Investors - Indian investors face unique risks due to their heavy reliance on US markets, with potential double-layered risks during a US market correction [10][11]. - The current market environment suggests that Indian investors should diversify globally rather than remain overly concentrated in US equities [10][12]. - Valuation opportunities outside the US appear more balanced, with Europe and Japan identified as attractive regions for investment [13][14]. Group 4: Investment Strategies - Indian investors are encouraged to diversify across developed markets like Europe and Japan, with a suggested allocation of 80% to these regions and 20% to emerging markets like Brazil [16]. - Mutual fund data indicates a growing trend among Indian investors to rebalance their portfolios towards non-US geographies, with significant growth in AUM for international funds outside the US [17]. - Experts recommend using mutual funds or ETFs for international exposure, as they provide better risk control and simpler taxation compared to direct stock ownership [21][22].

Group 1 - LG Electronics Inc is exploring overall business cooperation with Microsoft and its affiliates regarding data centres [1] - No specific deal has been signed between the parties at this time [1]

Core Viewpoint - Singapore REITs have faced challenges due to high financing costs and investor sentiment but are expected to recover as interest rates decline, making it a favorable time to consider quality REITs [1][14]. Group 1: Market Overview - Singapore REITs have been under pressure for the past two years due to high interest rates and dampened investor sentiment [1]. - The outlook is likely to improve with anticipated interest rate cuts, which typically boost distributions and support asset values [1][14]. Group 2: Individual REIT Analysis - **Mapletree Pan Asia Commercial Trust (MPACT)**: - Owns properties across multiple countries and reported a DPU of S$0.0201 for 2QFY2025/2026, up 1.5% YoY [3]. - Committed occupancy fell to 88.9% from 96.4% YoY, with NPI down 2.2% YoY to S$163.9 million [4]. - VivoCity achieved 100% commitment and 14.1% rental reversion [4][5]. - **Mapletree Industrial Trust (MIT)**: - Manages S$8.5 billion in assets and reported a DPU of S$0.0318 for 2QFY2025/2026, down 5.6% YoY [6]. - Occupancy rate was 91.3%, with a weighted average rental reversion of 6.2% for its Singapore portfolio [6][7]. - Average borrowing cost declined to 3.0%, with data center demand as a long-term growth driver [7]. - **AIMS APAC REIT (AA REIT)**: - Reported a DPU of S$0.0472 for 1HFY2026, up 1.1% YoY, with portfolio occupancy at 93.3% [9]. - Achieved positive rental reversions of 7.7% in 1HFY2026 and has stable income from essential industries [10]. - **CapitaLand Ascendas REIT (CLAR)**: - DPU dipped 0.6% YoY to S$0.07477 in 1H2025, with aggregate leverage rising to 39.8% by September 2025 [11][12]. - Achieved rental reversions of 7.6% for renewed leases in 3Q2025, supported by a strong sponsor [12][13]. Group 3: Investment Outlook - Lower interest expenses are expected to boost distributable income and attract investors back to REITs [14]. - REITs with strong sponsors and quality assets are likely to lead the recovery as interest rates decline [16]. - MPACT, MIT, CLAR, and AA REIT are highlighted as potential beneficiaries of the anticipated rate cuts [16].

Core Insights - Amazon.com Inc. has accused PacifiCorp of not providing sufficient electricity to support four new data centers in Oregon [1] Company Summary - Amazon.com Inc. is expanding its data center operations in Oregon, indicating a growing demand for cloud services and infrastructure [1] - PacifiCorp, owned by Berkshire Hathaway Inc., is facing allegations from Amazon regarding its inability to meet electricity supply needs for these new facilities [1] Industry Summary - The incident highlights potential challenges in the utility sector, particularly in meeting the energy demands of rapidly growing tech companies [1] - The situation may prompt discussions on energy infrastructure and capacity planning in regions experiencing tech industry expansion [1]

Core Insights - Westbridge Renewable Energy Corp is expanding its data centre portfolio with a new project in Alabama, aimed at diversifying its asset base and addressing the growing demand for AI-ready data centres [1][2] - The Alabama Data Centre Project is strategically located near major fibre routes and renewable energy sites, providing reliable power and low-latency connectivity [2] - The company aims to integrate renewable energy assets with data processing facilities, positioning itself at the intersection of renewable energy and artificial intelligence [3] Company Strategy - The expansion into Alabama aligns with Westbridge's long-term vision of creating a diversified platform that supports renewable energy transition and digital technologies [4] - The company is advancing a pipeline of solar, battery energy storage, and data centre projects across North America, focusing on locations with grid capacity and fibre connectivity [4] Market Position - Westbridge operates in four key jurisdictions: Canada, the U.S., the U.K., and Italy, delivering long-term returns through an international portfolio of renewable energy assets [5] - The company has a strong track record with over 40 development projects worldwide, providing investors access to early-stage greenfield solar and energy storage projects [5]

Market Performance - The Shanghai Composite index increased by 0.83% to close at 3,853.64 points, while the blue-chip CSI300 index rose by 1.02% [6] - The STAR50 index, focused on tech shares, jumped by 3.49%, and the CSI Info Tech sub-index bounced by 2.88% [6] - The CSI all share semiconductor sub-index rose by 4.68% [6] - In Hong Kong, the Hang Seng index gained 1.37%, and the Hang Seng Tech index increased by 2.53% [4] Company Developments - Alibaba announced plans to open its first data centers in Brazil, France, and the Netherlands, aiming to accelerate its global strategy for artificial intelligence [2] - Following this announcement, Alibaba's Hong Kong-listed shares rose by 9.16%, reaching the highest level since 2021 [2] Trade Relations - China will not seek benefits from its developing country status at the World Trade Organization, which may ease tensions with the U.S. [5] - Analysts noted that this move could signify an improvement in U.S.-China relations [5] Investment Trends - The Shanghai benchmark is trading near a 10-year peak, attracting investors from conservative assets to equities [6] - This shift indicates a movement of household wealth from deposits and wealth management products into the equity market [6]

Core Insights - Nvidia Corp. plans to invest up to $100 billion in OpenAI to enhance the development of new data centers and the necessary infrastructure for artificial intelligence workloads [1] Company Summary - The investment by Nvidia is aimed at supporting OpenAI's initiatives in artificial intelligence [1] - This substantial financial commitment indicates Nvidia's strategic focus on expanding its capabilities in AI technology [1] Industry Summary - The investment reflects a growing trend in the technology sector towards significant funding for AI infrastructure [1] - The collaboration between Nvidia and OpenAI may set a precedent for future partnerships in the AI industry [1]

Group 1 - Global InterConnection Group Ltd and Scale42 are in advanced discussions to create a joint venture [1] - The joint venture will focus on developing integrated digital and energy infrastructure [1] - Key components of the venture include sub-sea data cables and data centres [1]