BTC iShares China Large-Cap ETF
Aging Population May Keep Global Growth Muted
An aging population is likely to keep global economic growth muted in the years to come. This is primarily because the dynamics of the population are rapidly changing.
Why HP Sold Its 51% Stake in H3C Technologies This Month
On May 21, 2015, HP (HPQ) officially announced the sale of its 51% share in H3C Technologies to China-based Tsinghua Holdings subsidiary, Unisplendour.
How to Counter China: Steel Could Show the Way
China (FXI) exported 5.56 million metric tons of steel in December, a yearly fall of 1.9%.
Why Competition Is Heating up for NVIDIA in the AI Space
Many companies are shifting their focus toward AI, which has been increasing the competition for NVIDIA (NVDA).
US-China Talks: Can ‘Miles and Miles’ Be Covered in Five Weeks?
With about five weeks remaining in the trade truce, Commerce Secretary Wilbur Ross said yesterday that the US was “miles and miles” away from a trade deal with China.
NVIDIA Stock Rose 9% despite Lower Revenues in Q4
On February 14, NVIDIA stock rose as high as 9% in the after-hours session. The company expects strong growth in the second half of 2019.
US–China Tariffs Could Hurt US Companies and Consumers
Micron (MU) can’t pass on the cost of these tariffs to customers, as it operates in a price-sensitive memory chip market.
Fiscal 3Q17: An Activity-Filled Quarter for Nvidia
Nvidia (NVDA) took the stage in the past three months by launching a series of Pascal GPUs aimed at high-end and mainstream customers. Nvidia’s fiscal 3Q17 earnings are expected to be released in the first week of November.
Can Cisco’s Switching and Routing Revenue Continue to Fall?
Cisco Systems’ (CSCO) Switching business revenue has fallen 4.0% YoY (year-over-year) to $10.5 billion in the first nine months of fiscal 2017.
How US-China Trade Talks Are Progressing
Previously in this series, we saw that after seven months of the trade war and failed negotiations, the United States and China (FXI) are finally showing some concrete commitments.
China’s Industrial Production Rises: Is Investor Confidence Back?
On a year-over-year basis, China’s industrial production increased to 6.0% in May 2016. That’s the same pace as April.
Why market reactions to the China-Vietnam tensions are mixed
Though the recent tensions in the South China Sea seem to have gathered much attention, the markets don’t seem to have factored in the conflict.
Apple Ranks 4th in China while China’s Smartphone Shipments Fall
China’s (FXI) smartphone market saw its first annual decline in 2017, according to research firm Canalys. Total shipments declined 4.0% in 2017 to 459.0 million units.
Can China Recover Like It Did in 2016?
In some aspects, 2018 looked like 2015 for investors. Like in 2015, China’s (BABA) slowdown spooked investors in 2018.
Iran Could Become OPEC’s Leading Natural Gas Producer
The market is expecting that after the ban is lifted, Iran will be the leading natural gas producer in OPEC. The cartel has been led by Saudi Arabia.
What Will Drive Services Revenue for Apple?
Emerging markets such as China and international markets such as Japan have contributed significantly to Apple’s Services segment over the years.
New Probe Shows Fault Line in Trump’s Tariffs
After the imposition of Section 232 steel and aluminum tariffs last year, several observers warned that we could see a spike in downstream imports.
US and China avoid contentious issues at the APEC meeting
Both China and the US decided to steer clear of more contentious issues at the meeting. Accordingly, the disputes over Hong Kong and cyber space were not even brought up.
How Things Are Going for Intel in the Memory Market
Intel (INTC) is expanding its data-centric business beyond data centers into the IoT (Internet of Things), 5G, FPGAs (field-programmable gate arrays), and memory.
What Could Drive NVIDIA’s GeForce Unit Sales
Growth opportunities in the gaming market NVIDIA’s (NVDA) GeForce business unit has a history of strong growth. The company expects the growth to continue in coming years as the gaming market evolves with the increasing popularity of eSports, AAA games, gaming notebooks, and VR (virtual reality). At NVIDIA’s 2017 Investor Day, GeForce senior vice president […]
Why SunTrust Upgraded Colgate-Palmolive Stock
On October 11, 2017, SunTrust Robinson Humphrey upgraded Colgate-Palmolive (CL) stock to a “buy” from “hold” and increased the target price.
Why China’s Slowdown Couldn’t Have Come at a Worse Time
The global economy is closely watching China for fresh signs of a slowdown, which could threaten global growth.
Cisco and Ericsson Join Hands to Take on Huawei
On November 9, Cisco and Ericsson announced a major partnership where both companies would develop new products. Both face competition from nokia and Huawei.
The Strengthening US Dollar Has Affected Oil Prices
Weak global demand and a strengthening dollar have affected oil prices.
Election Over, Market Still Undecided
We know the nation is politically divided, and now the market is showing us its split personality as well.
Europe and China ready to jump-start their economies
Unconventional stimulus measures from central banks usually end up injecting liquidity in global financial markets. They’re especially relevant to emerging market economies.
Must-know: Which safe havens are truly safe?
Although not considered safe haven assets, in the current context of high geopolitical risk and consequently volatility, investors could consider investing in sectors like energy and large cap companies.
Can China Manage Growth without Fueling a Debt Crisis?
While there is no denying that China (FXI) needs stimulus measures to kickstart its slowing economy, any propping up needs to be done in a way to avoid another debt-fueled crisis.
Are the Markets Too Optimistic?
Market participants were caught by surprise when they read that the Federal Open Market Committee’s members were concerned about slowing growth in the US economy during 1Q17.
Apple to Roll out Second Generation Watch amid Falling Smartwatch Sales
After the Apple Watch (AAPL) was launched in April 2015, Apple is largely expected to unveil its second generation watch on September 7, 2016.
Will economic growth raise Chinese equities like FXI in 2014?
This article considers China’s prospects to see its equity market rally once again after a few years of soft landing–induced tightening.
Slower Growth Has a Silver Lining!
Slower growth has a silver lining: the potential for greater monetary and fiscal stimulus.
What Factors Make Nvidia Appeal to Investors?
In 1Q16, Nvidia’s gaming revenue stood at $587 million—an increase of 25% on a YoY basis. For 2Q16, Nvidia expects revenue of $1.01 billion.
Is China’s real estate bubble getting out of control again?
With new properties developing slower, the current price levels in China could in fact be supported. The risk for the future of housing prices is more likely to be associated with China’s GDP.
China’s Steel Production Outlook Pressures Iron Ore Prices
According to the China Iron and Steel Association, China’s 2015 crude steel output could decline by as much as 2%. This estimate is lower than CISA’s March estimate of a 1.1% decline.
Google Could Put Self-Driving Cars on the Roads by Summer 2015
With a fleet of almost 20 self-driving cars, Google now averages ~10,000 self-driving miles per week. Google claims that its cars have 75 years of US adult driving experience.
Why a Chinese Market Slump Won’t Affect the Economy
The Chinese market slump is not likely to dampen consumer spending or affect the economy. Stocks make up a mere 15% of Chinese household financial assets.
Why emerging markets offer value to your portfolio
Truth: Emerging markets offer value. Given that they’re generally growing faster than their developed world counterparts, emerging markets still look cheap by most metrics.
What Can Investors Expect from Qualcomm’s 1Q16 Earnings?
According to the Qualcomm’s fiscal 1Q16 guidance, non-GAAP EPS is expected to be in the range of $0.80–$0.90, lower than the fiscal 4Q15 EPS of $0.91.
What Analysts Expect of Walmart’s Top Line in Fiscal 1Q18
Analysts expect Walmart (WMT) to report sales of $117.8 billion in fiscal 1Q18, representing an improvement of 1.7% compared to fiscal 1Q17.
Twitter’s Project Lightning Could Be Called ‘Moments’
Twitter’s Project Lightning will let users view a collection of tweets with images and videos of a specific event without following individual accounts that have tweeted on the event.
Where’s HP in the PC Market Now?
Market research firm IDC has estimated worldwide PC shipments of 70.2 million units in 4Q16—a fall of 1.5% YoY.
Intel’s Revenue Guidance Suffers Setback due to Demand Weakness
In the first quarter, Intel (INTC) saw demand pressure in the data center market as its customers, especially in China (FXI), shifted to absorbing the excess capacity they purchased in the first nine months of 2018.
IMF Provides a Positive Assessment of China’s Economy
In a press conference on June 14 on its annual Article Four Staff Report, the IMF provided a positive assessment of China’s economy.
Texas Instruments’ Q4 Earnings Might Hint at Cyclical Slowdown
TSMC is set to report strong revenue in the fourth quarter of 2018, but its first-quarter 2019 earnings will likely be hit by weak sales of Apple’s (AAPL) iPhones.
Progress Report: Intel’s Mobileye Business
Mobileye reported 37% year-over-year growth in the company’s second-quarter revenues as the adoption of its ADAS solutions increased.
China Still Offers Some Opportunities
China still offers some bright spots of opportunity for investors. The equity market slump in China (YINN) is not likely to affect the Chinese consumer.
Will “Abenomics” bring real growth to Japan’s economy?
Japan’s economy versus the U.S. economy The below graph reflects trends in Japan’s gross domestic product (GDP) measured in U.S. dollars as of 2005 and 2013. Japan’s Gross Domestic Product (GDP) in 2012 was approximately $6 trillion USD, versus the U.S. GDP of approximately $16 trillion USD (so Japan’s economy is approximately 38% the size […]
What Do Hedge Fund Managers Have to Say about China?
Hedge fund managers have expressed mixed opinions about the Chinese economy. China’s total debt-to-GDP ratio is currently in the range of 240%–270%, compared to 150% a decade ago.
How Will AMD’s Price Strategy Impact its Earnings?
In fiscal 1Q16, Advanced Micro Devices reported strong guidance for fiscal 2Q16, whereas behemoths Intel and Qualcomm reported weak guidance.
Chinese Yuan Will Benefit from Being a Reserve Currency
The monetary authority in China (FXI) (YINN) worked to get greater international recognition for the yuan. There are benefits to being a reserve currency.
Why consumer confidence in China has declined long-term
This series explores the implications of China’s gradual transition to a more consumer-oriented economy.
Are There Parallels in China’s Stock Market Bubbles?
The bubbles created in China’s stock market in 2007 and 2015–2016 show that stocks fell ~65.0% and ~41.0%, respectively.
US-China Trade Threats Continue to Escalate
On September 14, Donald Trump indicated that he wants to move ahead with tariffs on $200 billion in Chinese imports.
Can Under Armour’s Growth Model Cope With These Threats?
Key threats to the company include higher labor costs and greater regulation. After the Bangladesh factory tragedy, stricter regulations can be expected.
Improved Manufacturing in India, But Recovery?
The Nikkei India Manufacturing PMI for April 2017 matched its reading for the previous month.
How Worried Should We Be about China?
From the fastest-growing emerging market to casting a shadow over global growth, the Chinese economic story has indeed come a long way.
How Did AMD Boost Adoption of EPYC Server CPU?
Advanced Micro Devices (AMD) developed an EPYC server CPU (central processing unit) that offered a better price-to-performance ratio than Intel’s (INTC) Xeon server CPUs.
Micron’s Technology Transition Is Evident in Gross Margin
Micron Technology’s (MU) second-quarter revenue guidance suggests that the memory industry is entering a cyclical downturn.
STM and NXPI Fall on Infineon’s Reduced Fiscal 2019 Guidance
The semiconductor industry is set to report its worst quarterly results in a long time in the second quarter.
Nasdaq Flirts with Down 10%…in October
So this is painful. Very few were perfectly positioned into this selloff.
Why we could see a new trend in Japan’s exports and imports
Japan’s import and export dynamics The below graph provides a clearer picture of the import and export dynamics of the Japanese economy. By using 2005 as a base year and adjusting for inflation or deflation, the graph shows how exports and imports have changed on a “real” basis, as opposed to a “nominal” basis. Viewing […]
Christine Lagarde of the IMF sees a 3-speed economy (Part 1)
Christine Lagarde, the managing director for the International Monetary Fund, sees a three-speed global economy In her speech at Brookings Institution in early June, Lagarde mentioned that the global economy has shifted this year towards a three-speed economy, versus the two-speed economy coined by PriceWaterhouseCoopers half a year ago. You can broadly categorize the three […]
Why China’s slowing consumption demand is an important threat
Real estate and construction are the two important drivers of China’s economic growth. They account for more than 20% of China’s gross domestic product (or GDP) when you also factor in cement, steel, chemicals, furniture and other related industries.
Semiconductor Stocks Fall as Trump Imposes Ban on Huawei
Semiconductor stocks fell once again as President Trump played another card in the United States’ trade war with China.
How the Qualcomm-Apple Licensing Dispute Is Coming Along
Qualcomm is currently in a lengthy licensing lawsuit with its largest customer, Apple (AAPL), and there seems to be no sign of resolution.
Gauging Qualcomm’s Position to Tap the Data Center Space
Qualcomm expects data center to provide an $18-billion opportunity by 2020. The US would be the largest market, and China would be the second-largest.
Markets Look at US-China Trade Talks as Slowdown Concerns Multiply
Today, another round of trade talks started in Beijing.
ArcelorMittal’s Key Risks in 2H15: Investor Must-Knows
ArcelorMittal faces certain macro risks. We’ll discuss these risks in this part of our series.
eBay Posts Better-Than-Expected 1Q15 Earnings
eBay (EBAY) announced better-than-expected 1Q15 earnings last week. The company’s overall revenues increased by 4% to $4.45 billion year-over-year.
Why Fitbit Continues to Lead the Wearables Market
IDC expects the wearables market to grow 20.3% from 2016 to 2020. Total shipments are projected to rise from 79 million in 2015 to 101.9 million in 2016.
Why China’s trade is good for Apple’s sales in China
China is becoming a relatively less expensive manufacturing base, although it’s also becoming a source of stronger revenues for companies like Apple.
How’s Natural Gas Correlated to Crude Oil?
In the past year, the correlation rose between natural gas and crude oil. During August 2015 and December 2015, the 30-day correlation rose significantly.
What Revenue Synergies Would a Fairchild-ON Merger Bring?
Looking at revenue synergies, we see that Fairchild’s strong portfolio in the high voltage and medium voltage power semiconductor market complements ON’s low voltage and small-signal market.
Skechers’ China Sales Rise: What’s the Growth Outlook?
China has been an important element in Skechers’ success in international markets. Sales from China rose to $220 million in 2015 from $86 million in 2014.
EWT Rises 1.78%, Taiwan’s Unemployment Rate Holds Steady at 3.75%
On June 22, the National Statistics Office of the Republic of China reported unemployment figures for the economy of Taiwan.
What’s behind Malaysia’s Large Trade Surplus in June 2017?
Malaysia’s trade surplus jumped to 9.9 billion Malaysian ringgit (MYR) (about $2.3 billion as of August 11, 2017) in June 2017—an 80% rise YoY.
Delhivery Raises $85 Million: Signifies India’s E-Commerce Growth
According to a May 6 report from TechCrunch, Indian e-commerce logistics startup Delhivery raised $85 million in funding a few months after it raised $35 million.
Analysis: Why China’s export growth rates are slowing
China’s export growth declines The below graph reflects an apparent decline in the rate at which Chinese exports and imports have been growing. The red line reflects the rate at which exports exceed imports (trade surplus). Though growth rates in trade declined in the wake of the year 2000’s dot com bubble and the 9/11 […]
Are we seeing the end of Japan’s 30-year investment collapse?
This series explains why Japan’s investment decline happened and what might happen in the future under “Abenomics.”
Why Druckenmiller Is Optimistic about Chinese Consumer Stocks
Druckenmiller’s firm bought 710,200 shares of Alibaba (BABA) in 2Q17. The holding accounted for nearly 5.4% of the firm’s portfolio in 2Q17.
NVIDIA’s Gaming Revenue Declines May Be Temporary
NVIDIA’s (NVDA) revenue declined due to weakness in the Gaming and Data Center segments.
The US–China Trade War Impacts Apple
A study by Bank of America Merrill Lynch noted that US labor is 2.6 times more expensive than Chinese labor, which could increase Apple’s product prices by 20%.
The Falling Demand For Oil, Impact On Prices
With China in a less oil-intensive stage of development, the demand for oil could stay low for a while.
Does “Abenomics” mean a new era of yen depreciation?
A change in yen appreciation? The below graph reflects a potential big change in Japan post-2012—has yen appreciation turned the corner as a result of post-2012 “Abenomics“? In the mid 1970’s, the U.S. dollar bought 300 yen, and by the mid-1980’s, the U.S. dollar bought 250 yen. By the end of the 1980s, the dollar […]
Here’s What’s Driving Iron Ore Prices through the Roof
Iron ore prices reached a six-month high of $62.7 per ton on October 26, 2016, bringing the YTD (year-to-date) gains for the commodity to an impressive 46%.
US-China Trade War: Tariffs despite Continued Talks
The US (SPY) and China (FXI) have imposed tariffs on $16 billion worth of goods. The tariffs were imposed despite talks in Washington, DC.
How China’s Manufacturing and Auto Industry Are Impacting Crude Tankers
In May 2017, the Markit China Manufacturing PMI was 51.2 (MCHI)—similar to the previous month.
Are the US and China Inching towards a Trade Deal?
Since the mid-term elections, we’ve seen some traction in US-China trade talks. The two sides are contemplating a meeting.
China’s New Yuan Loans Rose in May, but Its Debt Pile Increased
According to the People’s Bank of China, new loans issued by Chinese banks rose to 985.5 billion yuan ($150 billion) in May from 555.6 billion yuan ($85.2 billion) in the previous month.
Intel Stock Falls despite the Company’s Strong Fundamentals
In this series, we’ll look at Intel’s headwinds and tailwinds and how they could affect investors.
What Chile’s Mining Strike Means for a Highly Privatized Economy
Chile had been known as the best-managed economy in Latin America—until recently.
Understanding the Impact of US Tariffs on Qualcomm
The alternate sourcing of communication chips would adversely impact US-based Qualcomm (QCOM), Intel (INTC), and Broadcom (AVGO), which supply communications chips.
China tightens monetary policy: Will this be a Japan 1990 redux?
Interbank lending rates The below graph reflects the effects of the China Central Bank’s monetary tightening policies on interbank lending rates. The interbank seven-day lending rate spiked in June. Rates on government bonds have also risen, with the three-month yield on Chinese bills rising from 2.65% to 3.50%, and the ten-year bond yield rising from […]
How Do Aluminum Inventories Work?
Aluminum inventories with London Metal Exchange (or LME) registered warehouses have declined this year. Aluminum inventories have been on a decline for almost two years.
China’s MNI Business Sentiment Expanded in April, Caution Prevails
China’s MNI Business Sentiment Indicator expanded to 50.5 in April due to stimulus measures from Chinese authorities to boost economic growth.
Goldman Sachs Warns against Six Semi Stocks due to China Exposure
The second half of January 2019 has been turbulent for tech sector companies, especially semiconductors.
How Successful Has Qualcomm’s $30 Billion Buyback Been?
Qualcomm (QCOM) is a leader in the mobile market, with its chips powering 95% of the world’s smartphones.
Intel Penetrates China’s 5G and AI Markets
As Intel (INTC) is facing delays in its core CPU (central processing unit) market, it’s important for the company to secure a large share of the optical photonics market and other 5G (fifth-generation) and AI markets.
Weak Demand Outlook Drags Down Semiconductor Stocks
The semiconductor industry has been badly hurt by the economic downturn caused by the US-China (FXI) trade war.