Dazodalibep met the primary endpoint in patients with systemic disease activity, and dosing every four weeks also improved patient-reported dryness symptoms. Morgan Stanley considers it highly competitive, although differences in placebo responses limit cross-trial comparisons.
Morgan Stanley expects China’s export share to keep rising and Industry 5.0 to create long-term investment opportunities. But weaker employment transmission, household deleveraging and excess capacity make it difficult for strong exports to translate quickly into broad-based reflation.
Management says demand from AI data centers, automotive and industrial applications is strong, while smartphone demand is relatively weak; overseas 2.5D packaging is scheduled for commercial production in the first quarter of 2027, while domestic progress depends on customer certification.
Asia’s investment cycle does not rely solely on AI, and exports and balance sheets also provide a buffer against high interest rates. But if oil prices remain above 120 dollars per barrel, central banks raise rates more than expected and AI investment declines, pressure on growth will increase markedly.
Morgan Stanley cut its 2026–2028 earnings per share forecasts for Shuanghui Development by 4%–5% and lowered its price target from 20.30 yuan to 19.40 yuan. New channels could generate revenue, but marketing spending and weak foodservice demand are constraining profit improvement.
Management plans to integrate research and development, sales, and manufacturing across the robotics business and sees overseas opportunities for coaxial gearboxes; revenue at the Hungarian plant grew, while its net margin was approximately 2% in the first three quarters.
Bond issuance by large technology companies remains concentrated in the investment-grade market, but a more regular issuance schedule could ease the pressure on the market to absorb it. Morgan Stanley also believes high interest rates are putting lower-quality borrowers to the test, while government bond yields are driven primarily by macroeconomic factors.
A Together AI expert interviewed by Nomura says DeepSeek 4.1 Flash is widely popular on the platform thanks to its sufficient capabilities for everyday tasks and lower costs. Agent applications and overseas compute demand from Chinese model developers also create opportunities for inference providers.
Nomura’s model forecast for the central parity rate on 28 October was 6.6711, 460 points below the previous fixing; with the counter-cyclical factor included, the forecast rises to 6.6923.
Global business growth accelerated in the third quarter, partly benefiting from the recovery of revenue delayed in the second quarter. The company raised its full-year revenue and profit guidance, and Goldman Sachs subsequently increased its earnings forecasts and price target.
Goldman Sachs expects fourth-quarter DRAM shipment growth and the ramp-up of HBM4 to continue lifting operating profit, and has raised its earnings-per-share forecasts for 2027–2028; however, investment asset losses reduced net profit quarter on quarter in the third quarter.
Search revenue growth fell from 17% in the previous quarter to 12%. Cloud revenue beat market consensus but fell short of some buy-side thresholds; services margins declined sequentially for a second straight quarter, and free cash flow turned negative.
The Federal Reserve held rates steady while the Bank of Canada raised them. Goldman Sachs expects the next rate hikes in both the US and Europe in December, while also monitoring the US midterm elections and returns on AI investment.
TE Connectivity’s fiscal-quarter results and guidance for the next quarter both exceeded market expectations, but the data center business’s beat was limited. Management expects the business to add at least 1 billion dollars in revenue annually over the next several years, with growth in fiscal 2027 weighted toward the second half.
Pharmaron’s third-quarter revenue came in slightly above the Bloomberg consensus, with CMC leading in revenue and new-order growth; exchange-rate effects and higher finance costs caused net profit attributable to shareholders to grow more slowly than revenue.
Bloomberg reports that the two companies are in advanced talks. Bernstein believes an acquisition fits Marvell’s optical strategy, but the size of the deal could make all-cash financing difficult and change laser customers’ purchasing choices.
Year-over-year search revenue growth fell from 17% to 12%, while rising AI search usage is temporarily weighing on monetization; cloud revenue grew 103%, but computing costs and capital expenditure are pressuring profits and cash flow. Bernstein lowered its price target to $325.
SK Hynix’s third-quarter profit beat expectations, driven by memory prices; Microsoft and Alphabet posted strong cloud growth, but Alphabet’s search revenue and overall profit fell short of Goldman Sachs estimates. Goldman also expects the Federal Reserve to raise rates once more in December.
Nomura estimates that Hengrui's third-quarter drug sales grew 4.9% year on year, reversing the previous quarter's decline. A sharp increase in collaboration revenue pushed total revenue and net profit attributable to shareholders above Bloomberg consensus estimates, although full-year growth in innovative drug sales may fall short of the company's target set at the start of the year.
Bernstein expects Democrats to be in a position to take control of the House, while the Senate outcome is too close to call. If some provisions of the healthcare legislation are delayed, pressure on Medicaid enrollment and insurer margins could ease. Hospitals would also benefit, but the firm believes much of the upside is already reflected in valuations.
