CN Wirereportsthe Chinese real-estate giant Evergrande, reportedly to have asked the local govt for help in its material asset restructuring. They write Evergrande warns of systematic risks if the restructuring cannot finish on time. The failure of restructuring may lead to a capital chain rupture of Evergrande and trigger financial systemic risks.
Are these further cracks in the Chinese debt mountain?
The SPAC boom has not shown any signs of slowing down. Now Axiosreportsthat famed investor Peter Thiel is joining the party launching a SPAC focusing to purchase a tech, financial services, or media company in Southeast Asia.
The antitrust suit is around the corner and is expected to focus on GOOGL's agreements with OEMs like AAPL, where they pay to be the default search engine. The complaint is expected to be filed by end-September. Europe offers precedence following a 2018 ruling, and GOOGL started offering EU users a choice screen on new Android devices.
Sanford Bernstein consider three scenarios:
1) A choice screen for Android only – likely limited impact for GOOGL
2) The choice screen ruling extends to iOS – If there's a choice screen and users pick Google, it could lead to windfall profits for GOOGL from TAC savings
3) AAPL signs an exclusivity deal with a competitor – potentially cutting Google out. We caveat that a ruling on any DOJ suit could take years to play out, and may ultimately result in a different outcome than the choice screen in Europe.
MS Research now forecasts global EV penetration rising to 26% by ’30 based on higher China and European EV penetration. However, noted that this could rise as high as 50% (potentially boosting annual EV sales by >20mm units to 45mm units annually) if the EU’s planned CO2 regulations become law, and are followed by other regions.
US Hedge Funds are now the least overweight TMT they have been in over a year. Net exposures to Tech down to the 44th percentile in the last 12 months. Interestingly, Software exposures have come all the way down to the 33rd percentile over the last 12 months, although still at the ~90th percentile since 2010.