Welcome, Investing Kakis.

What a week for the US markets…

The Dow has plunged nearly 1,000 Points as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.

I will be covering my take on this bloodbath in a video below; scroll down all the way to watch it!

But first, here’s what to expect (Yes, we are planning to add in analyst reports on top of our news as well!):

• US Market News

• Asia Market News + Reports

• Editor’s Stock Pick*

• Video of the Week

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

Big Hits [U.S.] 📉

Here are the news that shocked the world…

• Intel ‘breaks down’: Investors on Friday watched shares of Intel (NASDAQ:INTC) plunge as much as 29.7%, after the chipmaker disappointed Wall Street with its Q2 results, suspended its dividend, and said it would lay off over 15% of its employees as part of a $10B cost-reduction plan. Source: Yahoo Finance

• Warren Buffett slashes stake in Apple: Warren Buffett's Berkshire Hathaway made a significant departure from its long-term investment strategy by dramatically reducing its Apple stake by over 49% of its previous position during the past quarter. Source: CNBC

• Nvidia under “investigation”: Nvidia (NVDA) was down nearly 6% in the week after The US Department of Justice (DOJ) has reportedly launched two separate probes into Nvidia regarding antitrust concerns about the computing giant’s AI-focused business dealings. The first investigation will see the DOJ examine Nvidia’s buyout of Run:ai, while the second will assess if Nvidia abused its dominance in AI chips to discourage customers from using competing products. Source: TheVerge

• Amazon’s Rare Revenue Miss: Amazon shares slipped around 8% as it joined other tech giants in disappointing investors. Despite accelerated growth in its cloud computing division, the company reported increased capital expenditures and declining profit margins, leading to a negative market reaction. Source: FT.

Big Hits [Asia] 📊

As they always say: When the U.S. sneezes, the world catches a cold.

In this case, Asian markets suffered their worst day in over 3 years on August 2nd, driven by a combination of factors i.e. sharp decline in Japanese equities, a global tech selloff, and signs of economic weakness in the United States.

• Seatrium marks turnaround but shares dive 11.3%: Ofshore and marine player Seatrium fell 11.3 per cent to S$1.49 despite posting a profit of S$36 million for 1HFY2024 on Friday, reversing from a loss in H1 FY2023. Source: [BT]

• A Good Start for MapleTree Industrial Trust: MINT reported strong performance in the first quarter of its fiscal year, with rental rates for all Singapore property types increasing by an average of 9.2% on renewed leases. The company is planning to expand its data center footprint across Asia Pacific and Europe. Source: [Analyst Report]

• Make SGX vibrant again~: MAS announced on Friday that a review group has been set up to give recommendations on how to strengthen the struggling SGX market. For 1H2024, there was only one IPO + SGX has also seen double-digit de-listings in recent years. In the first five months of 2024, data from SGX showed at least 10 exits. Source: CNA

• UOB net profit inched up 1% yoy: UOB's 2QFY2024 net profit stood at S$1.43 billion, a 1% increase from S$1.42 billion the previous year. Net interest margin was down seven basis points to 2.05 per cent for the quarter, from 2.12 per cent in the previous corresponding period. The bank declared an interim dividend of 88 cents per share for a payout ratio of around 51.6%, up from 85 cents in 1HFY2023. Source: [The Edge]

Editor’s Stock Pick* 🎲

With the US economy in doldrums, the probability of interest rate cuts are way up high now.

This bodes well for REITs which borrow to finance their property purchases. But in today’s newsletter, we want to offer the spotlight to Capitaland Invest (SGX: 9CI).

As a sponsor of various listed funds (i.e. CICT, Capitaland Ascott Trust) and private funds, you would know that interest rates cuts will be a great deal for the company. 

Despite a flat top-line, the company's ability to generate increasing fee income through commercial, lodging, and fund management is encouraging.

This asset-light model positions CLI for sustained growth and it has shown promising growth in its fee-related business, a key driver of its overall performance.

A highlight is CLI's aggressive capital recycling strategy. The company is on track to divest S$3 billion worth of assets this year, with a focus on China and the US. These proceeds will be reinvested to strengthen its balance sheet and fund growth initiatives.

With a robust pipeline of lodging projects and increasing fund under management, the company is well-positioned to capitalize on market opportunities.

Based on the image above, 11 analysts are projecting an upside potential of 35.6%. Investors looking for exposure to the real estate sector with a focus on fee-based income and capital appreciation can consider adding CLI to their watchlist.

*Disclaimer: This information is for general informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making any investment decisions.

Meme of the Week 😂 

If you haven’t catch the ‘Deadpool and Wolverine’ movie, you ought to do it…

The movie has surpassed many box office records and now counting at US$630.4M worldwide.

One of the crown jewels in the Disney empire is the MCU movies, and Disney’s boss Bob Iger boldly claims that Deadpool & Wolverine "will be one of the more successful Marvel movies we’ve had in a long time."

Iger went on to say that for films like Deadpool & Wolverine, he will watch the film "three to five times with the team and just create a culture of excellence and respect, which is really important with the creative community."

Potentially a good catalyst for Disney stock aye? You decide…