David Fuller and Eoin Treacy's Comment of the Day
Category - Technology

    TSMC Raises Sales Outlook, Affirming Global Chip Kingpin Role

    This article by Debby Wu for Bloomberg may be of interest to subscribers. Here is a section:

    TSMC, chipmaker to Apple Inc. and a key partner to many of the world’s biggest carmakers, expects semiconductor supply to remain tight into 2022, Chief Executive Officer C.C. Wei said Thursday. The company will ramp up production of microcontrollers by close to 60% this year, which will help to greatly boost supplies for its automobile clients starting in the current quarter. Executives also for the first time confirmed the company was weighing plans for a fabrication plant in Japan.

    Read entire article

    Moderna's Next Act Is Using mRNA vs. Flu, Zika, HIV and Cancer

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    The speed with which Moderna and its primary mRNA competitor, a partnership between Pfizer Inc. and BioNTech SE, devised their shots has made a major contribution to the fight to end the pandemic. With strong efficacy, steady supply, and no show-stopping safety scares (officials are carefully monitoring rare heart inflammation cases in teenagers and young adults), mRNA shots have become the vaccines of choice, at least in countries that can get them.

    But for Moderna Chief Executive Officer Stéphane Bancel, the Covid vaccine is just the beginning. He’s long promised that if mRNA works, it will lead to a giant new industry capable of treating most everything from heart disease to cancer to rare genetic conditions. Moderna has drugs in trials for all three of these categories, and Bancel says his company can also become a dominant vaccine maker, developing shots for emerging viruses such as Nipah and Zika, as well as better-known, hard-to-target pathogens such as HIV.

    Read entire article

    Chinese Tech Stocks Jump After Tencent Gets Deal Approval

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    The gauge of the city’s tech stocks had fallen as much as 10% this month after China vowed to increase scrutiny over data collection and overseas listings.

    “Regulators are still considering each deal case by case and not rejecting all of them. The sentiment is not that negative now,” said Castor Pang, head of research at Core Pacific Yamaichi. “Any good news will trigger buying on dips in the sector.”

    Elsewhere, internet giant Meituan rose 3.4% after Caijing reported Monday that the company re-launched a ride-hailing app after industry leader Didi Chuxing was barred from offering new downloads. Short-video streaming platform Kuaishou Technology jumped 5.7% and Alibaba Group Holding Ltd. gained 4%.

    Read entire article

    Branson's Space Jaunt Worth $841 Million for Virgin Galactic

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    The suborbital journey kicks off a landmark month for the future of space tourism, with Branson demonstrating Virgin Galactic’s capabilities nine days before Amazon.com Inc. founder Jeff Bezos plans to fly on a rocket made by Blue Origin, his space venture. Both companies envision businesses catering to wealthy tourists willing to pay top dollar for a short period of weightlessness and an unforgettable view of the Earth and heavens.

    Virgin Galactic’s test flight demonstrated that such trips -- once the stuff of science fiction -- are becoming increasingly realistic.

    While mostly accessible only to a tiny number of super- wealthy customers, they would add a new dimension to a burgeoning industry of private-sector space companies with plans for voyages to the International Space Station and new human outposts.

    Branson and his fellow crew members experienced a few minutes of weightlessness as the Unity reached its peak altitude.

    “So I looked out the window and the view is just stunning,” operations engineer Colin Bennett said afterward. “It’s very Zen; it’s very kind of peaceful up there as well.” Branson, who founded Virgin Galactic in 2004, said the memories of seeing the Earth from space will stay with him. “I’m never going to be able to do it justice,” he said. “It’s indescribably beautiful.”
     

    Read entire article

    Orocobre June Quarter Output 3,300 Tonnes of Lithium Carbonate

    This note covering Orocobre’s production results today may be of interest.  

    About 66% of production was battery grade lithium carbonate vs 21% a year earlier.

    Sales of Olaroz lithium carbonate were 2,549t at $8,476/t FOB, with pricing up 45% on the March quarter

    Inventory has increased due to Covid-19 related transport delays and the requirement to hold additional safety stock in Japan to guarantee delivery into the Prime Planet Energy and Solutions contract

    Read entire article

    Rare Griffon vulture saved with help from a military drone

    This is a fascinating video which may be of interest to subscribers.

    Email of the day - on Ethereum as a crypto panacea:

    I value the input you provide Eoin. I however disagree with your comment that cryptos will next be of interest in 2023. Ethereum is a disruptive technology platform with strong network effects which is growing rapidly. In addition, the supply of ETH will diminish by about 85% (a triple halving) when Ethereum transitions from Proof of Work to Proof of Stake (POS), likely in December or early next year. Electricity required to power Ethereum simultaneously goes down by 99.99%. In addition, EIP1559 goes live at the end of this month, which both improves the user experience and burns the bulk of the fees (paid in ETH) - the combination with POS probably results in the number of ETH declining on a consistent basis. Holders of ETH can stake their ETH to own an attractive yield. In short, it is the most compelling opportunity I’ve come across in my decades as a money manager.

    I have no strong opinion on Bitcoin. I think its security model is flawed and I doubt it will stand the test of time. I however think the odds favour most crypto assets having a strong run over the next 6 months, perhaps driven by the growing understanding that blockchains are a disruptive new technology that is far more efficient and decentralized than the financial systems of the past.

    Read entire article

    SoftBank, Biggest Investor in Didi, Sinks After China Blocks App

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    It’s inevitable to see selling from investors who had been pinning their hopes on Didi,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. in Tokyo. “If it’s deleted from app stores, it’ll be a very difficult situation.”

    China’s cyberspace regulator announced the Didi ban on Sunday, just two days after revealing a review of the company. The decision effectively requires the largest app stores in China to strike Didi from their offerings, though the current half-billion existing users can continue to order up rides and other services. Didi said the regulatory move may have “an adverse impact” on its revenue in China.

    On Monday, regulators expanded the probes further to target Full Truck Alliance, which runs an Uber-like platform for truck-hailing, as well as Kanzhun Ltd. Full Truck Alliance, backed by Tencent Holdings Ltd. as well as SoftBank, raised $1.6 billion in its U.S. offering last month.

    Read entire article

    Deadly Delta Variant Starts to Ripple Through Emerging Markets

    This article from Bloomberg may be of interest to subscribers. Here are some soundbites from regional analysts:

    "The U.K. has shown that the variant is not such a health challenge if people have been vaccinated. We are concerned that Australasia and the smaller markets in Asean could continue to be impacted. We remain cautious on Asean equities. Watching for any sharp increase in Covid cases in Asean”

    Kelvin Wong, an analyst at CMC Markets (Singapore) Pte.: “Tactically, it is likely to be more of a rotation play that may last into the upcoming third quarter where high-quality technology stocks may outperform over cyclicals”

    “Hence for Southeast Asian equities that tends to be heavily weighted toward cyclical/financials and the external sector such as tourism are likely to underperform, for example Singapore’s Straits Times Index”

    “The major key support to watch on the STI will be at 2,950/2,920 which also coincides with the 200-day moving average”

    Alan Richardson, a senior portfolio manager at Samsung Asset Management (HK) Ltd. “It’s a speed bump that could slow the speed of the recovery but doesn’t change the direction to a post-Covid economy. The delta variant should increase the urgency for countries to reach three-quarters immunization”

    Paul Mackel, global head of FX research at HSBC Holdings Plc in Hong Kong: Market is watching closely the recent Covid resurgence as it has caused short-term depreciation of some currencies

    “But the elephant in the room is whether the dollar has bottomed or not” and “it’s not yet. But if the dollar is indeed getting stronger and the Fed is becoming more hawkish, it could challenge the outlook of some Asian currencies”

    Read entire article