Welcome, Investing Kakis.

A very warm welcome to the inaugural edition of our newsletter on Beehiiv!

We're excited to embark on this new journey with you, having recently migrated from Mailchimp to bring you an even better experience!

Here’s what to expect (more coming up~):

• Key Updates from the US Market

• Key Updates from the Asia (Singapore + HK) Market

• Editor’s [Random] Pick

• Video of the Week

Thank you for joining us, and we hope you enjoy the fresh new look and feel of our newsletter!

Big Hits [U.S.] 📉

The Big Tech has kicked off the earnings season and things aren’t living up to expectations…

• OpenAI vs Google: OpenAI has unveiled SearchGPT, an AI search engine capable of accessing real-time information. This marks a direct challenge to Google's search monopoly and places OpenAI in competition with its primary investor, Microsoft's Bing, and innovative startups like Perplexity. Source: CNA

• Big Tech not meeting expectations: Tesla’s stock plummeted by 12.3% in its worst single-day decline this year after the company announced a 40% profit drop. Meanwhile, Alphabet’s earnings exceeded expectations, but investor concerns over YouTube ad revenue and the company’s AI spending plans dampened enthusiasm. Source: Fortune

• Spotify Soar: Shopify’s stock price surged >10% after the company reported impressive 2nd-quarter results despite intense competition from industry titans like Apple and YouTube, attributed to subscription prices is paying off handsomely. Source: Prism

• Meta's new AI: Meta (META) has released Llama 3.1, the largest open-source AI model, saying that it outperforms rivals like OpenAI's GPT-4 on several benchmarks. Source: The Verge.

Big Hits [Asia] 📊

Hang Seng Index (HSI) and Straits Times Index (STI) are again following the US markets in their footsteps; but nonetheless, here are some key developments to know…

• Tech Giants woo China's Gaming Industry: ChinaJoy, the nation's largest digital entertainment expo, witnessed a surge of interest in artificial intelligence (AI) for video games. Tech giants, including Tencent Holdings, Microsoft, and Amazon.com, aggressively pitched their AI tools to Chinese gaming firms.. Source: SCMP

• REITs standardized → ICR 1.5x: The Monetary Authority of Singapore (MAS) has proposed easing financial restrictions for REITs: including increasing the maximum debt level to 50% of their assets and lowering the minimum interest coverage ratio (ICR) to 1.5 times. These changes aim to protect S-REITs from financial difficulties in an environment of persistently high interest rates. Source: Business Times

• Chinese Brands go Global through Olympics: Chinese companies are leveraging the Paris Olympics to bolster their global image and market presence. From dairy giants like Mengniu and Yili to tech behemoths like Alibaba and Vivo, Chinese brands are making significant investments in Olympic sponsorships. Social media analytics indicate that Anta, BYD, and Vivo have generated the most buzz among Chinese consumers related to the Games. Source: SCMP

• MAS Holds Steady, Cuts Inflation Forecast: Singapore’s central bank held its monetary policy unchanged for the fifth consecutive meeting on Friday, aligning with market expectations. The Monetary Authority of Singapore (MAS) anticipates stronger economic growth this year, forecasting GDP to reach the upper end of the official 2-3% range. While lowering its headline inflation forecast to 2-3%, the MAS maintained its core inflation projection at 2.5-3.5%. Source: Business Times.

Editor’s [Random] Pick 🎲

Nike, Inc. (NKE) has been a household name for decades, known for its innovative products and strong brand presence.

However, the past two years have been challenging for the company. As of July 23, 2024, Nike's stock is trading at $73.4, a staggering 40.15% below its 52-week high of $122.64 .

Despite these challenges, Nike is not sitting idly by. According to their latest earnings call, the company is executing a "comeback plan" that focuses on putting sports at the center, accelerating innovation, building speed capabilities, and strengthening the Nike brand.

They expect fiscal 2025 to be a "transition year" as they manage a product cycle transition and make adjustments to classic footwear franchises, which is expected to result in mid-single digit revenue declines.

And if you check out Nike's recent launch of their ad campaign for the Paris Olympics, it’s a clear sign of how Nike is standing on the shoulders of all their famous athletes to revitalize their branding again.

Can Nike really turn around?

I don’t know… but I know that Investors who are interested can wait for an update at their Investor Day in November.

Tweet of the Week 😲 

You have to either love or hate Elon Musk…

He tweeted a video that shows Chinese President Xi Jinping in a Winnie-the-Pooh costume using AI...

Is Elon reckless? Hell yes!

But at least he showcased the prowess of AI and why investors should continue to believe in Tesla in the future as they go big in this area.

Hopefully…