Aurelia Butler

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(Reuters) – A look at the day ahead in Asian markets.An interest rate decision in China kicks off the week in Asia on Monday with investors hoping – forlornly, perhaps – that the central bank will provide some much-needed relief for the country’s sluggish economy and creaking markets.This will be followed by the Bank of Japan’s policy decision and guidance the next day – an equally-anticipated event, but for different reasons – meaning trading activity and volume should start the week on a strong note.Especially in foreign exchange.The Chinese yuan and Japanese yen both go into their respective central bank meetings on the defensive against the dollar. The yuan last week touched a two-month low and the yen’s accumulated year-to-date losses reached 5%.Indeed, out of nine Asian currencies only the Indian rupee is up against the dollar this year. And even then, only by a whisker. The dollar is also up against every one of its rival G10 currencies even though the Fed is still expected to cut rates by more than any other major central bank in the world this year, despite the recent pullback.Asian stocks should have a decent spring in their step on Monday after the S&P 500 hit a new all-time high on Friday.The rise in global stocks was sparked by Taiwanese chipmaker Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker. On Thursday it projected more than 20% growth in 2024 revenue on booming demand for high-end chips used in AI. The MSCI Asia Pacific ex-Japan index rose more than 1% on Friday but still fell for a third consecutive week, and is down more than 5% year-to-date. Chinese stocks are languishing around five-year lows, foreigners are pulling money out of the country, and the yuan is falling. Beijing is under pressure to act, but is nervous about the debt and FX risks associated with more stimulus.The central bank on Monday is expected to leave the benchmark one- and five-year loan prime rates (LPR) unchanged at 3.45% and 4.20%, respectively. More disappointment for investors, or is it already priced into the currency and stocks?Meanwhile, the BOJ is also expected to leave policy unchanged on Tuesday, and with inflation continuing its downward slide towards the BOJ’s 2% target, the pressure to ‘normalize’ policy and reverse negative interest rates is easing.The yen is on the defensive and, despite an understandable wave of profit-taking after hitting 34-year highs, Japanese stocks could be set to rise again on Monday.Other key events on the Asia/Pacific economic and policy calendar this week include South Korean GDP, Tokyo inflation, an interest rate decision in Malaysia, and consumer inflation figures from New Zealand, Vietnam, Singapore, Hong Kong and Malaysia.Here are key developments that could provide more direction to markets on Monday: – China interest rate decision- Malaysia CPI inflation (December)- Hong Kong CPI inflation (December) (By Jamie McGeever; Editing by Deepa Babington) More

Nvidia Corporation (NASDAQ:NVDA), the behemoth in the accelerated computing and graphics processing unit (GPU) market, continues to make headlines on Wall Street with its strategic positioning and innovative product offerings. Known for its GPUs for gaming and professional markets, as well as system on chip units (SoCs) for mobile computing and automotive applications, Nvidia’s influence spans across various sectors including gaming, data centers, automotive, and cryptocurrency markets.Analysts have cast a favorable eye on Nvidia, with many maintaining a strong outlook on the company’s stock. The consensus among several top financial research firms is that Nvidia is poised for continued growth, with ratings ranging from “Outperform” to “Buy.” Notably, Nvidia has been included in BMO Capital Markets’ Top 15 List Member as a U.S. Large Cap Stock, reflecting confidence in its market dominance and financial health.Despite some firms holding a “Neutral” stance, citing concerns about overly optimistic future estimates and potential competition, the prevailing sentiment is bullish. Price targets set by these firms suggest substantial upside potential, with figures reaching as high as $750, indicating strong confidence in Nvidia’s growth trajectory.Nvidia’s financial health appears robust, with significant growth in its data center revenues, attributed to the H100-based HGX platforms. The company has reported a 41% increase quarter-over-quarter and a staggering 279% increase year-over-year, totaling $14.51 billion. This growth is a testament to Nvidia’s strong presence in the AI and data center space, with projections indicating continued revenue expansion across various segments.The competitive landscape for Nvidia remains favorable, with the company maintaining a dominant share of the discrete graphics market. Nvidia’s strategic moves to comply with U.S. government restrictions, such as developing DC AI chips for the Chinese market, have kept it resilient in the face of geopolitical tensions. The company’s upcoming product launches, including the highly anticipated X100 GPU and the development of Arm-based CPUs for Windows PCs, are expected to bolster its competitive edge further.While Nvidia’s performance is strong, external factors such as U.S.-China trade restrictions and the possibility of market saturation present potential risks. However, Nvidia’s ability to navigate regulatory challenges effectively and its leadership position in AI technology may mitigate these concerns. The company’s focus on energy-efficient solutions also aligns with environmental sustainability trends, which may provide additional tailwinds.While Nvidia’s current market position is robust, the bear case revolves around the sustainability of its growth. Analysts express concern over the intense competition from various processor companies and internal chip designs by internet giants. With substantial revenue derived from gaming and data center markets, Nvidia faces concentration risks. Additionally, its fabless business model’s reliance on third-party manufacturers like TSMC and Samsung (KS:005930), coupled with geographic exposure risks due to global operations, particularly in China, could pose challenges.Regulatory challenges, especially the U.S. government’s restrictions on shipments to China, could impact Nvidia’s long-term growth. While the company has shown adaptability by developing compliant alternatives, there is a bearish perspective that these restrictions could lead to a market digestion period where valuation might compress before presenting a buying opportunity.Nvidia’s stronghold in the AI and data center markets is expected to drive its future growth. Analysts are bullish about the company’s strong AI-related order momentum, particularly with products like the H100. With minimal competition expected for Nvidia in AI enterprise and sovereign investments in AI presenting a multi-billion dollar opportunity, the company’s growth prospects remain bright.New product launches are anticipated to maintain Nvidia’s market dominance. The launch of the X100 GPU and the introduction of Nvidia’s Grace CPU have garnered high interest from hyperscalers and enterprise customers. These innovations, along with Nvidia’s strategic production shifts to higher-margin products, are expected to drive revenue growth and expand its market share.Strengths:Weaknesses:Opportunities:Threats:This deep-dive analysis uses information from analyses dated from October 2023 to January 2024.Nvidia Corporation (NVDA) stands out in the technology sector with a series of positive indicators that may interest investors looking for growth and stability. According to the latest data from InvestingPro, Nvidia boasts a substantial market capitalization of $1.47 trillion, underscoring its heavyweight status in the industry.InvestingPro Tips highlight Nvidia’s perfect Piotroski Score of 9, which suggests that the company is financially healthy and has sound business operations. This is particularly noteworthy for investors who prioritize financial strength and stability in their investment choices. Additionally, analysts predict that Nvidia will experience net income growth this year, reinforcing the optimistic outlook on the company’s profitability.From a valuation perspective, Nvidia’s P/E ratio stands at 77.24, which, when paired with its PEG ratio of 0.35 for the last twelve months as of Q3 2024, indicates that the company may be trading at a low price relative to its near-term earnings growth. This metric could be appealing for value investors seeking growth at a reasonable price.For those interested in more detailed analysis and additional insights, InvestingPro offers an extensive list of tips, with 25 more available to subscribers. These tips can provide a deeper understanding of Nvidia’s stock performance and potential investment opportunities.InvestingPro subscription is now on a special New Year sale, with discounts of up to 50%. To get an additional 10% off a 2-year InvestingPro+ subscription, use coupon code SFY24, or use SFY241 for an additional 10% off a 1-year subscription.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Eli Lilly and Company (NYSE:LLY) has been a topic of interest among Wall Street analysts, with a focus on its biopharmaceutical offerings, particularly in the diabetes care and obesity treatment sectors. The company’s strategic positioning, product pipeline, and recent launches have painted a picture of a firm with strong growth prospects in a competitive landscape.Eli Lilly holds a notable presence in the healthcare sector, with its market capitalization reaching upwards of USD 587.194 billion as of early January 2024. Analysts have consistently given the stock an “Overweight” rating, indicating a bullish stance on the company’s performance and future prospects. The price target for Eli Lilly has been set at USD 630.00 by multiple firms, reflecting confidence in the company’s growth trajectory.Eli Lilly’s diabetes care products, particularly the GLP-1 class drugs like Mounjaro (tirzepatide) and the newly approved Zepbound, have been the stars of the show. Mounjaro has seen a consistent increase in total prescriptions (TRx), indicating strong uptake and market share gains. Zepbound, too, has shown an upward trend in prescriptions, signaling expanding reach and acceptance ahead of broader availability.The company’s strategic move to launch LillyDirect, a direct-to-consumer platform in partnership with Form Health, has been a significant development. This program is expected to drive uptake of Zepbound by lowering barriers for new patient starts and improving margins by cutting out intermediaries like PBMs and pharmacies.Analysts have projected substantial revenue and earnings per share (EPS) growth for Eli Lilly. For the fiscal year 2023, EPS estimates hover around 6.60, with a significant jump to 12.42 for FY2024. This growth is attributed to the strong performance of key products and the company’s robust pipeline. Eli Lilly also offers a dividend of $5.20, maintaining a yield of 0.8%, which adds to its attractiveness for investors seeking both growth and income.Eli Lilly faces competition from other pharmaceutical giants, particularly in the GLP-1 drug class. However, its products have outperformed competitors like Novo Nordisk (NYSE:NVO)’s Wegovy, which has faced supply challenges. Eli Lilly’s reliable supply and differentiated offerings in the metabolic space have provided it with a competitive edge.The company’s strategic investments in gene editing technology and partnerships, such as the acquisition of rights to VERV’s ASCVD programs from BEAM, showcase its commitment to expanding its cardiovascular drug portfolio. Eli Lilly’s resources and expertise in this domain are expected to aid in advancing these programs.While Eli Lilly has seen success with its diabetes and obesity drugs, the broader GLP-1 drug class has shown signs of a slowdown. This could indicate emerging competition or saturation in the market, which may challenge Eli Lilly’s ability to maintain its growth pace.The pharmaceutical industry is heavily regulated, and any potential regulatory hurdles could affect the approval or commercial success of Eli Lilly’s products. This risk is ever-present and could impact the company’s future performance.The launch of LillyDirect is expected to significantly boost Zepbound sales by making it easier for patients to access the medication. This innovative approach to drug distribution could set a new standard in the industry and drive Eli Lilly’s revenue growth.Eli Lilly’s promising pipeline, including upcoming submissions like the Alzheimer’s drug donanemab, positions the company for sustained growth. The anticipated approval and launch of these drugs could lead to significant market impact and further bolster the company’s financial stability.Strengths:Weaknesses:Opportunities:Threats:The analysis provided spans from January to October 2023, offering a comprehensive view of Eli Lilly’s position and prospects within the pharmaceutical industry.Eli Lilly and Company’s (NYSE:LLY) performance has drawn significant attention, with its stock trading near its 52-week high at 97.04% of the peak value. The company’s robust market capitalization of 565.29 billion USD underscores its significance in the pharmaceutical industry. Investors have taken note of Eli Lilly’s financial health, as indicated by its high Price / Book multiple of 50.35 as of the last twelve months ending Q3 2023, suggesting a premium valuation in the market.On the dividend front, Eli Lilly has demonstrated a strong commitment to its shareholders. It stands out with a track record of raising its dividend for 9 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This consistent performance is a testament to the company’s financial stability and its status as a prominent player in the Pharmaceuticals industry, which aligns with the company’s strategic positioning highlighted in the article.For investors looking for additional insights, the InvestingPro+ platform provides a comprehensive array of metrics and analysis. Currently, there are 17 additional “InvestingPro Tips” available for Eli Lilly, offering deeper dives into the company’s financials, market performance, and industry standing. Interested readers can explore these tips to inform their investment decisions, especially now that InvestingPro subscription is on a special New Year sale with a discount of up to 50%. Use coupon code “SFY24” to get an additional 10% off a 2-year InvestingPro+ subscription, or “SFY241” to get an additional 10% off a 1-year InvestingPro+ subscription, enhancing the value of this investment tool.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More