Member Info for Jatw

Maybe HCM should argue it was ahead of the curve……operate in China and take licence fees from RoW…..but that is making a silk purse out of a sows ear……failed with its Hogg driven global ambitions.

Or bad if a serious fracture between China and the West is imminent.

Should we be worried by AZ preparing to semi-detach China operations?

Yes - it does show they are taking seriously the possibility of global trade fracturing into regional zones. What they cannot afford to happen is China (or others) confiscating the in-market assets and being left holding the western debt obligations that paid for those assets.

Hence there is a need to move financing arrangements closer to the operations…..and they will need locally rated holding companies to raise the funds.

Bit of an unexpected bounce on the EU MAA news…..you would think that is only to be expected given the US priority review……maybe the Japanese will pile in when the application is made there?

It would seem positive approval will be a big win.

On Beigene - probably oversold on the news and a buying opportunity…but we will have to read about the merits of the Abbvie case.

Any idea why Beigene is down 12% today?

What they want is for VOD to sell them their African businesses.

It seems that telecoms businesses although very large find it hard to make decent returns….constant capital investment and licence fees (a tax on consumers and companies alike) have weighed them down with debt….CKHH having made money with Orangehas lost it all on Three and is gradually getting out of being lead operator consigning itself to minority shareholder status - thereby keeping the debt off its balance sheet.

SCMP reports Pru has opened its Macau branch…..an additional channel to target Chinese visitors who go to Macau to gamble rather than HK for business. They are the 13th insurer to set up there. No doubt Macau is much smaller than HK which has been a power base for Pru….but it should provide an additional revenue stream.

Pru now has branches across the 12 cities making up the Greater Bay Area.

When will the fund raise be announced now they have the authority in place?

My guess is with the annual results.

Still jam tomorrow, but atleast it is no longer a jam on the never never company

Impressed with Karen Atkin COO, she knows her stuff

Less convinced by Mark Lee

Good for weiguo to let the wider management have their say.

Trotsky

I am comparing with other Q1 AUM announcements

Schroder +3% (ignoring JVs), overall +1%

Quilter +2%

SJP +1.5%

Jupiter +1%

Overall average at best….

They are not spectacular results…..they are very average

AUM flows contain some brighter elements, it seems the UK investment market is perking up for M&G with increased PruFund and Wholesale retail sales…..

Overall in the pack of asset managers for steady to low growth in AUM….reassuring on capital position….shareholder returns look set to continue

Nothing to get too excited /worried about in this update…..steady as she goes.

Don’t expect any favours from OFCOM or CMA…they will be lobbied hard by the competition…and in the run up to the election the politicians will make a lot of noise.

However, the landscape has changed a lot since Three / O2 combination was vetoed (incorrectly per the courts) and the regulators need to recognise that running a network and providing a telephone service are two different things….there are plenty of low value customer offers from virtual operators that mean a merger will not create higher customer bills…..

This needs to be seen for what it is…..creating a new strong player from two subscale operations (subscale because their competitors were allowed to merger).

It should give a boost to VOD and CKHH and result in a better service for their customers in the UK.

Back at the bottom of its recent trading range. Time to buy?

Things to watch:

Uptick in sales / test rates

Cost run rate

Cash levels

I expect a fresh round of fund raising with the FY report in September.

FDA decision shortly - but I have seen quite a few extensions with recent due dates and would not be surprised by another 3m being added on.

I doubt management would have offered an AUM Q1 update unless they know it is going to show some favourable movements compared to competitors who have already announced.

The update is a sweetener to offset any disappointment in the H1 results moving back by 5/6 weeks to late september from early/mid August.

On the company website, the articles of association can be found under Companies Act and AIM compliance….

From the Youngs articles of association (can be found on web)

P3

Differences between A Shares and Non-Voting Shares

Subject to these articles, the holders of the A Shares have the right to receive notices of general meetings and to attend, speak and vote at them. Those rights do not apply to holders of the Non-Voting Shares. The A Shares and the Non-Voting Shares must be treated equally for all purposes of participation in profits or assets.

I read that as proof the n/v shares get the same dividends, same value in a takeover/liquidation.

Good for PHNX in dumping UK gilts over the last 18m.

The govt cannot rely on investors buying their paper if they continually devalue it.