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☆ China's economy is on the rebound — and that's good news for 3 of the Club's consumer stocks
▼ + stars: | 2023-04-18 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

Estee Lauder (EL), Starbucks (SBUX) and Wynn Resorts (WYNN) are the Club's consumer discretionary stocks with the greatest exposure to the Chinese market. Shares of Estee Lauder, Starbucks and Wynn — up roughly 3.5%, 9.2% and 37.5% year-to-date, respectively — edged up on the news Tuesday. For Estee Lauder, a leader in luxury skin care, makeup and fragrances, China accounts for about a third of total revenue. The Club's take China's latest economic data highlights our investment case for our three big consumer companies doing business in the country. However, we're pleased to see a robust rebound in consumer activity in the world's second largest economy, signifying a positive growth outlook for Estee Lauder, Starbucks and Wynn Resorts.

The size of subsidies under the EU Chips Act, which aims to tempt the world's top chipmakers to build factories in the bloc and double its share of global output to 20% by 2030, lags the $52 billion CHIPS for America Act. Taiwan accounts for more than 60% of global chip production and concerns are growing about heightened tensions between Taipei and Beijing. But Europe's relatively modest subsidies could put a brake on its ambition, said Richard Windsor of research company Radio Free Mobile. GOOD STARTThe EU Chips Act is a good start given the EU has little choice but to join the subsidy race, but the bloc should play to its chipmaking strengths, said Christopher Cytera, research fellow at the Centre for European Policy Analysis. Catching up on the chips race is more than just building factories and the Chips Act acknowledges this with its focus on developing skilled labour for the future, said Anielle Guedes, senior research analyst at IDC Technologies.

☆ Porsche posts record Q1 sales rise boosted by China
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

[1/2] Porsche Head of Style Michael Mauer presents a new design study of a Porsche 357 during the 75 years Porsche sports car exhibition "Driven by Dreams" in Berlin, Germany, January 25, 2023. REUTERS/ Lisi Niesner/File PhotoApril 17 (Reuters) - Porsche AG (P911_p.DE) posted a record year-on-year sales increase of 18% in the first quarter, boosted by China sales, the company said on Monday. The German luxury carmaker delivered 21,365 cars in China, its largest single market, representing 21% growth over the previous year. Peer Mercedes (MBGn.DE) delivered 191,000 vehicles in China in the first three months of 2023, which is 3% higher over the previous year. Worldwide, Porsche delivered 80,767 cars during the period, with an increase posted in every region.

HONG KONG, April 17 (Reuters Breakingviews) - Hong Kong could use a shot of something. Yet compared to the $313 billion Shanghai-listed behemoth Kweichow Moutai (600519.SS), debutante ZJLD is a drop in the near-$100 billion baijiu industry: it logs less than 1% market share. At the top of the marketed price range, ZJLD could be worth $5.4 billion, or almost 24 times this year's forecast earnings, IFR reports. Revenue at the company, which will be the first baijiu distiller to list in Hong Kong, was up a healthy 15% last year, while its adjusted net profit margin topped 20%. For Hong Kong, consumer stocks will put the focus back onto classic risks.

April 17 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. The Asian calendar on Monday is light, with only Indonesian trade and Indian wholesale price inflation potentially moving markets. Indonesia's central bank begins a two-day meeting, and will announce its policy decision on Tuesday. chartInvestors will also have the first opportunity to react to two developments over the weekend - a policy steer from China's central bank chief, and Saturday's apparent attack on Japanese Prime Minister Fumio Kishida. Yi also said the central bank will seek to get real interest rates slightly below the potential growth rate.

☆ LVMH CEO Bernard Arnault's wealth soared to a record high of $210 billion on the same day protestors swarmed the company's headquarters in Paris
▼ + stars: | 2023-04-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

LVMH boss Bernard Arnault's fortune soared by $12 billion on Thursday to a record high of $210 billion, per Bloomberg. LVMH shares hit a record high in Thursday trade after a strong first-quarter earnings report. On Thursday, LVMH shares price on the Euronext Paris stock exchange hit a record high of 884.50 euros, or $979, before closing 5.7% higher at 883.90 euros a piece. LVMH's Arnault has featured frequently in protest slogans and chants, per Reuters on Thursday. LVMH shares are extending gains on Friday, trading 0.7% higher at 889.90 euros at 9:57 a.m. in Paris.

☆ Uniqlo parent raises full-year outlook; sees China recovering
▼ + stars: | 2023-04-13 | by ( Eimi Yamamitsu | ) www.reuters.com time to read: +2 min

After a "substantial decline" in first-quarter revenue and profit in mainland China, Uniqlo operations began to recover in January, resulting in a sharp increase in second-quarter profit there, Fast Retailing said in a statement. It said operating profit was 220 billion yen ($1.65 billion) in the six months through February, against 189 billion yen a year earlier, as Southeast Asia, North America and Europe logged strong revenue growth. Fast Retailing raised its full-year profit forecast to 360 billion yen from 350 billion yen forecast in January. That compared with a consensus forecast for annual profit to total 347 billion yen, according to a Refinitiv poll of 14 analysts. Japan's biggest retailer logged a 2% fall for the first quarter ending November as COVID-19 restrictions in China were a drag on growth.

April 13 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. The Asian/Pacific calendar is pretty light on Thursday, with Chinese trade and Australian unemployment figures for March the main events. Music to investors' - and Fed officials' - ears, but the feelgood factor was snuffed out by the Fed minutes. Fed officials are right to be worried about credit conditions. Recent public remarks from Fed officials suggest they are less worried now.

☆ Credit Suisse is getting even more bullish on Apple into earnings
▼ + stars: | 2023-04-13 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Credit Suisse is adding to bullish sentiment toward tech giant Apple . Credit Suisse also thinks the company will increase both dividends paid to shareholders and stock repurchases. Credit Suisse reiterated an outperform rating for the stock, and raised its price target to $188 per share from $184, which represents roughly 13% upside for investors from Thursday's close. AAPL YTD mountain Credit Suisse is even more bullish on Apple stock, and thinks the forthcoming earnings report will be a winner for investors. "Our revenue estimate is slightly higher than consensus and guidance on our belief that demand is improving in China," Cross said.

Higher costs and a shortage of available new parts are also delaying aircraft repairs, which risk pushing up air fares. Some makers of brand-name parts like General Electric Co (GE.N) stand to benefit because they also sell used parts, known as used serviceable material. Honeywell Aerospace Trading (HON.O), the U.S. conglomerate's used parts business, is among companies enjoying higher demand since 2021. Ultimately, the alternatives to new parts may bring relief but a congested supply chain must be fixed, said Benjamin Hockenberg, president of JSSI Parts & Leasing. "Certain models, certain situations, (used parts) will fill the void, but I think we also need to see a repaired supply chain," said Hockenberg.

☆ Column: Peak emissions hopes to be tested as China & Europe crank output
▼ + stars: | 2023-04-13 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +5 min

Industries in both regions were impaired in 2022 by repeated COVID-19 lockdowns in China and a power crisis in Europe, which resulted in sharp cuts to their combined industrial output. Even so, China and Europe still lifted fossil fuel power emissions of carbon dioxide (CO2) to a record 5.99 billion tonnes in 2022, Ember data shows, which is a testament to their combined polluting heft even during times of economic distress. Power sector emissions from fossil fuelsIn 2023, the economies of China and Europe are expected to return to growth paths as factories and production lines dial up output from the subdued levels of last year, resulting in higher overall energy use. That may lift emissions even higher, and confound expectations for drops in fossil fuel pollution levels going forward. German production of steel, chemicals and fertilizers have all climbed in early 2023 after having fallen precipitously during 2022 when power prices surged.

☆ Analysis: LVMH's caution points to Americans' waning lust for luxury
▼ + stars: | 2023-04-13 | by ( Mimosa Spencer | ) www.reuters.com time to read: +5 min

[1/2] A LVMH luxury group logo is seen prior to the announcement of their 2019 results in Paris, France, January 28, 2020. European labels including LVMH's Louis Vuitton and Dior, as well as Chanel and Hermes have been riding a wave of strong demand from Americans, who emerged from lockdowns with savings and a desire to splash out on designer labels. He added the group is taking a cautious approach to price increases this year -- not just for cognac. "It's probably the most emblematic luxury store in the world," said Guiony. Elliott Savage, portfolio manager of U.S.-based fund YCG Investments, which holds shares in LVMH and other luxury brands, said a weakening U.S. luxury market in the near term could present an opportunity for dominant players to take market share.

☆ LVMH Q1 sales lifted by strong Chinese rebound
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +2 min

PARIS, April 12 (Reuters) - LVMH (LVMH.PA), the world's largest luxury company, reported a 17% rise in first-quarter sales, more than double analysts' expectations, as China rebounded after COVID-19 lockdowns. LVMH said first-quarter sales grew by 14% in Asia, excluding Japan, and by 8% in the United States. That compared with flat revenues in Asia and 15% growth in U.S. sales for last year. "Asia experienced a significant rebound," the company said in a statement. LVMH made 27% of its 2022 revenues in the Americas, and 30% in Asia excluding Japan.

☆ China is home to one of the world's biggest luxury markets, and it's starting to make a comeback after the country's 3-year COVID lockdowns
▼ + stars: | 2023-04-12 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +3 min

China is an important luxury market. Bain expects these consumers will account for 46% of the global luxury market by 2025. However, Wu's comments echoed Bain's positive outlook for China's luxury market. China's consumer price index, or CPI — the monthly change in prices paid by consumers — showed bleak data for March. It could be the reason Bank of America's Wu told CNBC that strong recovery across China's consumer sector has not yet been seen.

LONDON, April 12 (Reuters) - The zinc market was defined by smelter woes last year with global refined metal production dropping by 4.1% relative to 2021, according to the International Lead and Zinc Study Group (ILZSG). But the smelter bottleneck was severe enough to generate a global supply shortfall of more than 300,000 tonnes, according to ILZSG. A sharp rise in the annual benchmark smelter processing fee should incentivise a turnaround in metal production. Annual "benchmark" zinc smelter processing feesOUT-OF-SYNCH SUPPLY CHAINThis year's benchmark treatment charge, the fee a smelter earns for converting mined concentrates into metal, has been set at $274 per tonne, up from $230 in 2022 and $159 in 2021. Global mined and refined zinc production annual changeSMELTER RECOVERY?

☆ Fact Check-Photo of Venezuelan bank notes on the ground is not new
▼ + stars: | 2023-04-11 | by ( Reuters Fact Check | ) www.reuters.com time to read: +2 min

A photo of Venezuelan bank notes scattered on the street has been shared by online users alongside claims it is a depiction of current monetary values in the country. Examples of users sharing the photo on Facebook saying it shows current bank notes in Venezuela, can be seen (here) and (here). This scene is missing context, however, as it shows now-worthless notes tossed on the street following a bank robbery in the town of Merida the year after the Bolivar Fuerte was replaced. The photos show the aftermath of a Venezuelan bank robbery in 2019. Thieves discarded worthless currency on the streets as the stolen money was of a retired currency.

REUTERS/Florence LoWASHINGTON, April 10 (Reuters) - The leader of a U.S. congressional committee on China said on Monday he was concerned about electric carmaker Tesla Inc's (TSLA.O) dependency on China, a day after the company revealed plans to open a Megapack battery factory in Shanghai. Mike Gallagher, the Republican chair of the House of Representatives' select committee on China's Communist Party, said he would like to know how Tesla's CEO Elon Musk balances U.S. government support for Tesla and its operations in China. "I'm concerned about this," Gallagher told Reuters when asked about the battery factory. "Tesla seems entirely dependent, A, on the largesse of the federal government via tax breaks, and B, upon access to the Chinese market," Gallagher said. Tesla generated $18.15 billion in revenue from China last year, accounting for over one fifth of its total revenue.

WASHINGTON, April 10 (Reuters) - World Bank Group President David Malpass said on Monday that the lender has revised its 2023 global growth outlook slightly upward to 2% from a January forecast of 1.7% but the slowdown from stronger 2022 growth will increase debt distress for developing countries. Advanced economies, including the U.S. and in Europe, are also doing a bit better than the World Bank anticipated in January, Malpass said as the World Bank's and International Monetary Fund's Spring Meetings week kicked off. But the departing World Bank chief warned that turmoil in the banking sector and higher oil prices could again put downward pressure on growth prospects in the second half of 2023. A bank asset maturity mismatch will take some time to work through and banks are likely to pull back credit for businesses, slowing growth, he said. The World Bank's forecasts tend to be a bit lower because they are based on market exchange rates, while the IMF's forecasts are based on purchasing power parity exchange rates.

☆ World Bank boosts 2023 global growth forecast slightly, Malpass says
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: 1 min

☆ China's car sales stay flat in March amid price war -CPCA
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +2 min

Car sales in March were 1.61 million units, the China Passenger Car Association (CPCA) said. In the first three months, sales had fallen 13.4% to 4.33 million units, it added. Sales of new energy vehicles (NEVs), which include pure battery electric cars and plug-in hybrids, rose 21.9% in March and accounted for 34% of the month's sales, the data showed. More than 40 brands have joined a price war started by Tesla this year, among them Nissan, Toyota and Volkswagen, which have started offering aggressive discounts on their best-selling ICE models to defend market share. Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ Singaporean actor Adrian Pang speaks about mental health and web series DBS Sparks
▼ + stars: | 2023-04-10 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSingaporean actor Adrian Pang speaks about mental health and web series DBS SparksSingaporean actor Adrian Pang tells CNBC about DBS' web series, DBS Sparks, which touches on mental health issues during the Covid-19 lockdowns.

☆ Square is changing its strategy to focus on larger sellers — here's why
▼ + stars: | 2023-04-08 | by ( Madeline Stone | ) www.businessinsider.com time to read: +4 min

Square is focused on engaging large sellers, says Christine Loh, the general manager of e-commerce. In recent months, other e-commerce software providers, including Shopify, have also placed more emphasis on larger sellers as a way to hedge their bets. To cater to larger sellers, Square doubled down on features like preordering capabilities and loyalty program integrations. "But then also larger sellers, I think especially during this challenging economic time, they don't want to deal with piecing together a bunch of complex solutions. Analysts say that supporting large businesses could offer good value at a time when many are tightening their belts.

The comments suggest a more muted stance on the prospect for significant orders of large Airbus jets compared with the planemaker's best-selling A320neo medium-haul model, for which it is doubling production capacity in China. It also welcomed an agreement giving delivery clearance for 150 A320neo and 10 A350 jets that Airbus had already sold to China. Airbus is marketing a freighter version of its A350 jet and is keen to sell more wide-body passenger jets to China. The statement also said European and Chinese regulators would accelerate certification involving the Airbus H175 helicopter, Dassault Aviation (AM.PA) 8X business jet and Harbin Y12F turboprop. The H175 was co-developed by Airbus Helicopters and Chinese aerospace conglomerate AVIC and is often used for ambulance or police service.

HONG KONG, April 6 (Reuters Breakingviews) - Alibaba's (9988.HK) worth may be hiding in plain sight. The $260 billion Chinese group wants to split off faster-growing, money-losing bets like its cloud and logistics units. It accounted for 9% of Alibaba's top line in the nine months to December, nearly double five years ago. Zhang would do well to focus investor attention back onto Alibaba's commerce operations in China. That’s some 30% more than the company’s entire market value as of Wednesday.

☆ Chip stocks posted their best quarter since 2020. What's next for the sector and why the rally may fade
▼ + stars: | 2023-04-06 | by ( Samantha Subin | ) www.cnbc.com time to read: +8 min

Chip stocks made a breathtaking comeback in the first quarter, but don't be surprised if the rally gives up some of its gains, investors warn. The semiconductor sector on Friday wrapped up its best quarter since 2020 as investors rotated back into the downtrodden industry, with names like Nvidia notching its best quarterly stretch since 2001. The recent tear in semiconductor stocks brings the sector into overbought territory versus non-financial cyclicals, said Credit Suisse's Andrew Garthwaite in a recent note. Like many investors, Niles views Nvidia as a dominant AI play despite its rich valuation . While the stock's given those gains, many investors viewed the print as a sign of a bottom.

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