【True Zoom Finance】April 10 noon brief: Buffett suddenly issued yen bonds! Market speculation: Borrow yen to buy Japanese stocks?
"Berkshire Hathaway, led by Warren Buffett, has officially applied to issue yen-denominated preferred notes. This latest move by Buffett has instantly sparked market speculation that he may further increase his investments in the Japanese stock market.; Blizzard's Chinese server is set to return this summer, with NetEase games likely to be available on Xbox; JD.com encourages third-party merchants to offer 'door-to-door delivery' service with a fee starting at 1 yuan."
Key News
Blizzard's Chinese Server to Return This Summer; NetEase Games Likely on Xbox$NTES-S(09999.HK)
l At 9:00 AM on April 10, Blizzard China's official Weibo announced that Blizzard Entertainment and NetEase are pleased to announce a renewed game publishing agreement, building on their 15-year partnership, to bring Blizzard games back to Chinese players.
l Blizzard China stated that Blizzard Entertainment's popular games, loved by millions of local players, will gradually return to the Chinese mainland market starting this summer under the updated publishing agreement.
l Blizzard China mentioned that after a year of continuous discussions, Blizzard Entertainment and NetEase are delighted to have reached an agreement to continue serving Chinese players in the future, reaffirming their commitment to delivering exceptional gaming experiences. Building on their 15-year partnership, Blizzard and NetEase are working on a return plan, with more details to be announced later.
l Additionally, Microsoft Gaming and NetEase have reached an agreement to bring new NetEase games to Xbox and other platforms.
l Johanna Faries, President of Blizzard Entertainment, said, "The Blizzard team is thrilled to partner with NetEase again to deliver outstanding gaming experiences to Chinese players. We deeply appreciate the passion the Chinese gaming community has shown for Blizzard games over the years, and we are committed to bringing our game worlds back to players with excellence and dedication."
l Ding Lei, CEO and Director of NetEase, said, "Celebrating our renewed partnership, we are excited to open a new chapter based on trust and mutual respect, serving our users in this unique community we've built together. We remain steadfast in our commitment to delivering more exciting and creative entertainment experiences. We are pleased to see both parties actively collaborating to bring the joy of gaming to the broader community."
l Phil Spencer, CEO of Microsoft Gaming, said, "Blizzard and NetEase have done an outstanding job reaffirming their commitment to players. Blizzard's game worlds have been a part of local players' lives for years. Bringing Blizzard's legendary games back to China while exploring ways to bring more new games to Xbox demonstrates our commitment to delivering more games to players worldwide."
Buffett's Surprise Move: Issuing Yen Bonds! Market Speculates: Borrowing Yen to Buy Japanese Stocks?$ISHRS Jpx Nikk 400(JPXN.US)
l Latest reports indicate that Berkshire Hathaway, led by Warren Buffett, has officially applied to issue yen-denominated preferred notes. This latest move by Buffett has instantly sparked market speculation that he may further increase his investments in the Japanese stock market.
l The market's focus is now on which stocks Buffett might add to his portfolio. Some investors believe that if Buffett further invests in Japanese stocks, he is likely to target the 'Big Five' trading houses. Fundamentally, the 'Big Five' continue to show strong performance, with increasing dividends and buybacks, aligning with Buffett's investment style.
l Notably, while Buffett is making this move, foreign investors are selling Japanese stocks. According to the latest data from Japan Exchange Group, foreign investors net sold 1.18 trillion yen (approximately 56.2 billion yuan) in Japanese stocks and futures in the week ending March 29, the highest level since the last week of September 2023.
l On April 9, Bloomberg reported that Berkshire Hathaway had officially applied to issue yen-denominated preferred notes.
l This latest move by Buffett has instantly sparked market speculation that he may further increase his investments in the Japanese stock market.
l As a result, the stock prices of Buffett's 'Big Five' trading houses (Itochu, Marubeni, Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp.) surged on the 9th, with Mitsubishi Corp. and Mitsui & Co. both rising over 3%, while Sumitomo Corp., Marubeni, and Itochu gained 2.8%, 2.2%, and 1.4%, respectively.
JD.com Encourages Third-Party Merchants to Offer 'Door-to-Door Delivery' Service with Fee Starting at 1 Yuan$JD-SW(09618.HK)
l On April 9, JD.com issued an announcement to merchants, encouraging third-party sellers to voluntarily offer 'door-to-door delivery' service, with merchants required to pay a 'delivery fee' for this service.
l According to JD.com, merchants offering 'door-to-door delivery' will need to pay fees based on package weight. Delivery orders are divided into small/medium-sized and large items. For small/medium-sized items, five couriers—ZTO, YTO, STO, J&T, and Yunda—support 'door-to-door delivery,' with merchants paying an additional 1 yuan for packages under 5 kg and 0.2 yuan per extra kg. For large items, merchants can choose any courier and negotiate fees. Most e-commerce packages are under 5 kg, meaning the delivery fee is typically 1 yuan.
l To ensure compliance, JD.com has set compensation rules. For small/medium-sized items, if delivery is not made to the door (not the merchant's fault), consumers will receive 300 JD Beans, paid by the courier. For large items, merchants will compensate 1,000 JD Beans.
l JD.com is using system features and fee incentives to encourage third-party merchants to offer 'door-to-door delivery.' For small/medium-sized items, five couriers—ZTO, YTO, STO, J&T, and Yunda—provide support. Image from Jingmai Merchant Center's WeChat public account.
l JD.com stated that its self-operated or third-party goods delivered by JD Logistics have long adhered to 'door-to-door delivery' standards. Recently, JD Logistics upgraded its personalized services, allowing consumers to choose preferred delivery methods. For example, 'Do Not Disturb' mode avoids knocking, doorbells, or calls; delivery can be left at the doorstep, in lockers, or at designated spots like property offices; and specific pickup/delivery times can be selected.
l The issue of whether and how couriers deliver to the door has long been a hot topic, especially after the implementation of the 'Express Market Management Measures' (Order No. 22 of 2023) on March 1, which has intensified discussions and disagreements.
Today's Forex and Commodities News
EUR/USD: Dollar Falls Against Euro, Rises Against Yen
l The dollar fell against the euro. Recent U.S. economic data showed further declines in manufacturing and construction spending, raising concerns about potential Fed rate cuts, which weighed on the dollar. Meanwhile, the eurozone's February HICP rose 2.6% year-on-year, down 0.2 percentage points month-on-month but still above expectations. The core index (excluding food and energy) rose 3.1%, also above expectations and the ECB's 2% target. Markets expect eurozone rates to remain high for longer, supporting the euro. EUR/USD was above 1.083 earlier. GBP/USD was around 1.266. USD/JPY rose, trading above 150.1 earlier. BOJ Governor Kazuo Ueda said it's too early to conclude that inflation will sustainably reach the 2% target, emphasizing the need for more wage data. Markets are watching for signs of an exit from negative rates.
Precious Metals: Central Banks Buy Gold for 17th Straight Month; Focus on Long-Term Value
l Gold hit another record high. Last week, London spot gold closed at $2,329.57/oz (up 4.30% week-on-week), while domestic AU9999 gold closed at 537.5 yuan/gram (up 1.89% week-on-week). U.S. 10-year yields rose 20 bps to 4.40%, with gold and yields rising simultaneously—a rare occurrence.
l Recent gold gains reflect strong fund flows. COMEX non-commercial net long futures positions are around 200,000 contracts (source: Wind, April 8, 2024), indicating high bullish sentiment.
l China's central bank added gold reserves for the 17th straight month. Official data showed gold reserves rose by 160,000 oz in March to 72.74 million oz.
l Fundamentally, strong U.S. jobs data delayed rate-cut expectations, with gold now driven by geopolitical risks and de-dollarization. March non-farm payrolls surged to 303,000, far above the 200,000 forecast, while unemployment fell to 3.8%. Gold and yields rose together, reflecting demand for risk and long-term inflation hedges.
l Gold's rally is largely fund-driven, reflecting optimistic market sentiment. However, crowded long positions raise short-term correction risks. For the full year, Hua An Fund's index team remains bullish on gold's role in central bank 'de-dollarization.'
Crude Oil: Is Oil Heading Back to $100? Supply Shocks Rattle Markets
l Oil prices surpassed $90/barrel last week amid escalating tensions between Israel and Iran. However, deeper factors—global supply shortages and commodity-driven inflation fears—are at play.
l Mexico's recent export cuts exacerbated supply tightness, prompting U.S. refiners to buy more domestic crude. U.S. sanctions on Russian seaborne oil and potential renewed sanctions on Venezuela's oil further disrupt supply. Houthi attacks on Red Sea tankers delay shipments. Despite chaos, OPEC+ maintains output cuts.
l These disruptions have surprised traders. With the U.S. summer driving season approaching, tight supply could push Brent crude toward $100/barrel—a first in nearly two years—reigniting inflation worries and complicating Fed rate-cut plans.
l Amrita Sen, founder of Energy Aspects, said, "The key driver now is supply. We're seeing weak supply in several regions, while global demand remains robust."
Source: Goldhorse Capital Extramile
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