What's up with the Chemical Industry!

June 2024

Hi there guys!

We are still going to talk about chips, which is a hot topic, but we're also going to cover some commodities, oil & gas, as well as textile industries!

Let's see how this develope in the Chemical Industry & Markets

Stocks & Markets

The News

• BUSINESS - Accenture hits $2 billion in bookings for Q3
  • Accenture's shares surged 7.29%.
  • The company reported over $900 million in bookings for generative AI in Q3.
  • This brings the fiscal year total to $2 billion.
  • The figures indicate robust growth in Accenture's AI segment.

• PHARMA - Gilead's HIV drug is 100% effective in trial
  • This followed a successful Phase 3 trial of its HIV prevention drug, lenacapavir.
  • Lenacapavir demonstrated 100% efficacy in women.
  • This marks a significant breakthrough in HIV treatment.
• MICROCHIPS- Nvidia's stock experienced a dramatic downturn.
  • This marked the largest single-day market cap loss on record.
  • Nvidia had briefly led as the largest U.S. company by market value.
  • The stock ended the day down 3.5%.
  • $246 billion was wiped off its market cap.

• USD-YEN going out of control!
  • The yen is approaching a critical 160 per dollar mark, trading around 158.90.
  • Japan's Masato Kanda asserts readiness for intervention.
  • There are no U.S. accusations of currency manipulation.
  • Rising inflation may prompt central bank rate hikes soon.

• SOLAR Power in the US Surging
  • Solar energy is rapidly expanding as the top electricity source in the U.S.
  • Big Tech's demand for sustainable power for data centers is driving this growth.
  • Solar installations are leading the growth in the energy sector.
  • Challenges include:
    • Grid connectivity issues.
    • The need for more affordable batteries to facilitate continuous renewable power.

• OIL in a 7-week high
  • Rising equity prices and investor optimism contributed to this increase.
  • Concerns about growing US crude stockpiles were tempered.
  • Brent crude peaked at $85.78 a barrel.
  • US crude inventories showed a third consecutive weekly rise.

• MICROCHIPS - TSM 1.38%
  • Taiwan Semiconductor Manufacturing Co. (TSMC) is approaching a $1 trillion market cap.
  • Wall Street raised price targets due to increased demand for AI.
  • TSMC may adjust its 2024 revenue and capital expenditure (capex) forecasts accordingly.
• COCOA (for chocolate and so...) reaching all time highs
  • Cocoa prices have reached all-time highs.
  • This is putting pressure on confectionery manufacturers.
  • Hershey and Mondelez are currently shielded by hedging strategies.
  • Future product pricing and innovation could be impacted.
  • Contributing factors include:
    • Crop disease in West Africa.
    • Delayed shipments from Ghana.
• COPPER- nice commodity to track?
  • Citi analysts forecast copper to outperform crude oil in the coming year.
  • They describe the upcoming period as a "spectacular year for commodities."
  • Copper is expected to continue its strong performance.
  • Copper recently reached all-time highs, similar to gold and cocoa.

• SOFTWARE - ORACLE Cloud services on the go with AI
  • The cloud services company's stock climbed following partnership announcements with Google and OpenAI.
  • Oracle will make its database services available on Google Cloud starting in November.
  • Oracle is planning to expand computing capacity through collaborations with Microsoft and OpenAI.
• OIL - Saudi Aramco - King of Oil
  • Saudi oil titan Aramco's shares increased following a stock sale.
  • The stock sale is poised to garner approximately $11.2 billion.
  • Aramco shares are trading at 28.85 Saudi riyals ($7.69) on the Tadāwul Saudi stock exchange.
  • This price exceeds the initial offer of 27.25 Saudi riyals.

• MICROCHIPS - ASML Chips on the rise... again
  • Shares of Dutch chip firm ASML surged 8.1%.
  • This marks ASML's highest close since March 7.
  • The surge followed a positive note from Jefferies.
  • ASML overtook LVMH in market value.
  • ASML is now Europe's second-largest listed company for the first time.

• TEXTILE & FASHION - Zara and Inditex Stock
  • Inditex, owner of Zara, saw a 7% sales rise in Q1.
  • Sales increased by 12% from May 1 to June 3.
  • Inditex stays ahead by quickly adapting to fashion trends.
  • The company is also investing in logistics to maintain its competitive edge.

Shorts:

• 10-Year Treasury Yield Climbs Above 4.6%
• BHP Group has decided not to pursue a firm offer for Anglo American.
• Salesforce shares dropped 16%; weaker-than-expected revenue of $9.13 billion vs $9.17 billion
• Costco expects earnings and revenue growth; forecast expected revenues of $57.97 billion.
• The U.S. economy expanded at a modest 1.3% annual rate in the first quarter, marking the slowest growth in almost two years.
• HP's stock soared on exceeding Q2 expectations with earnings and revenue beats ($12.8 bill)
• Oil prices fluctuated as OPEC+ announced phased production increases despite demand concerns and strong output elsewhere.
• GSK shares dropped over 9% due to U.S. court rulings linking Zantac to cancer risks.

Final thoughts

Now that we are in a global reorganization, the currencies of Japan and Europe are navigating the dynamics set by the USD, influencing trade and economic strategies worldwide.

Oil & Gas sectors are experiencing substantial growth alongside a surge in commodity prices, driven by increased global demand and supply chain challenges. This upward trend underscores the critical role these sectors play in global economic stability and energy markets.

In parallel, Microchips & Tech companies are emerging as dominant forces in global markets, leveraging innovations in artificial intelligence, cloud computing, and semiconductor technology.

This diverse landscape of successful enterprises underscores the dynamic nature of global markets and the opportunities present across various sectors amid ongoing geopolitical and economic shifts.

That will be it guys!

See you next month!

Is there anything in especial that you liked the most?

Just reply to this e-mail and let me know!

My best wishes!

Emmanuel Ortega

a.k.a. Chemical Engineering Guy

113 Cherry St, Seattle, WA 92768
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