What's up with the Chemical Industry!

May 2024

Hi there guys!

once again... is it me, or there are many Semiconductor/Nvidia news lately? Also, lots of Health Industry News!

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

Stocks & Markets

US ECONOMY: Stocks tumble
- US stocks and bonds fell sharply on Thursday due to strong economic data reducing hopes for a Federal Reserve rate cut this year
- Real estate and utilities taking the biggest hit, the 10-year Treasury yield rising significantly
- Nvidia soaring 9.3% after positive earnings despite the general market downturn.

US ECONOMY: CHINA TARIFFS
- The US government is doubling tariffs on $18 billion worth of Chinese goods, including semiconductor tariffs to 50% and electric car tariffs to 102.5%.
- Tariffs on lithium-ion batteries will rise to 25% and solar panels to 50%, aiming to safeguard US jobs and industries but risking retaliation from China, potentially harming US exports and adding economic strain.
- These higher tariffs could contribute to inflation, impacting consumer prices and potentially delaying Federal Reserve interest rate cuts.
MIRCOCHIPS: Chip stocks dip after Nvidia earnings
- Semiconductor stocks mostly declined on Thursday.
- Nvidia forecasted a $28 billion Q2 revenue, surpassing estimates, with an adjusted gross margin around 75.5%.
- AMD and Intel shares fell by 4% and 4.5%, respectively.
- Taiwan Semiconductor saw a slight increase.
- GlobalFoundries dropped 9% after announcing a $950 million secondary offering.
- Micron fell 1% following South Korea's $19 billion investment in its chip sector.

MICROCHIPS: NVIDIA
- Nvidia's shares surged after impressive fiscal first-quarter results, better-than-expected future guidance, and a 10-for-1 stock split announcement.
- The positive performance of Nvidia also lifted other AI and semiconductor stocks, including Super Micro Computer, which rose by 1.2%.
MICROCHIPS: TSMC stock
- TSMC's April sales surged by nearly 60% to $7.3 billion, driven by strong demand for AI chips.
- Its ADRs rose by approximately 5%, propelled by significant orders from companies such as Apple and Nvidia.

AIRLINES - BOEING in free fall
- Boeing's shares declined after CFO Brian West forecasted negative free cash flow and no recovery in aircraft deliveries for the second quarter.
- The outlook was influenced by ongoing production challenges with Boeing's leading aircraft models.

MINING - Anglo American not selling
- Anglo American has rejected a third takeover proposal from BHP Group, valued at about £38.6 billion, and extended negotiation talks by one week.
- The proposal includes demands for Anglo to unbundle key South African assets, a move deemed risky by Anglo American.

HEALTH INDUSTRY: The Health-Care Company stock dropping
- The health-care company's stock dropped 8% after market close subsequent to its announcement of a private offering of $525 million in convertible senior notes, due in 2029, targeted at qualified institutional buyers.
HEALTH INDUSTRY: Hims & Hers Health Inc
- Shares of HIMS, the telehealth company, surged over 30% after it started offering compounded GLP-1 injections, expanding on its weight loss program launched last December.
HEALTH INDUSTRY: Novovax on the move
- Novavax's stock surged following the announcement of a $1.4 billion agreement with Sanofi to market its COVID-19 vaccine and develop a flu-covid combination vaccine.
- Pfizer and AstraZeneca revealed nearly $1 billion investments in France, aimed at bolstering research and development efforts ahead of the 'Choose France' summit.

SOLAR ENERGIES: SOLAREDGE SHARES
- SolarEdge's shares declined following a Q1 loss of $1.90 per share, surpassing the expected loss of $1.55 per share.
- Although its revenue of $204 million exceeded forecasts, it notably decreased from last year's nearly $1 billion.
COMMODITIES - Geopolitical Tensions
- Renewed geopolitical tensions in the Middle East are fueling concerns in the commodity market.
- Gold and copper have reached new record highs amid expectations of supply shortages.
- Silver prices have also seen an increase.
- Explore the PanicMode portfolio for potential investment opportunities amidst market volatility.

AGRICULTURE - LiveCattle
- Due to the lowest beef cattle supply since 1961, dairy farmers are diversifying by breeding calves for meat rather than milk production.
- These hybrid calves, sired by beef bulls, are sold at a premium, offering a lucrative alternative to the oversaturated milk market.

INVESTMENT FIRMS MOVES:
- Scion Asset Management, under the leadership of Michael Burry, acquired stakes in BP and Cigna
  - while divesting from Oracle and CVS in the first quarter of 2024, as per its recent SEC filings.
- Berkshire Hathaway underwent notable portfolio changes in Q1, including acquiring a $6.7 billion stake in Chubb, closing its position in HP Inc.
  - reducing stakes in Apple, Paramount Global, and Sirius XM Holdings.

So, in summary: the health industry's abuzz with changes, while world economies are sidestepping recession, but inflation's still lingering.

In the US, the market's picking up. Meanwhile, commodities are adapting to geopolitical shifts, navigating choppy waters but staying resilient.

Regarding the Tech World, microchips and semiconductors are leading the markets and trends, most of them due to their crucial for AI development.

Generally speaking, we are going to see interesting shifts as geopolitical issues get solved in the following moths!

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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