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When the chips go up: Big banks bet on S. Korea, Taiwan stocks for 2023

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When the chips go up: Big banks bet on S. Korea, Taiwan stocks for 2023

Dec 1 (Reuters) – World banks are turning bullish on South Korean and Taiwanese shares, anticipating a revival in semiconductors to drive a rally subsequent yr, whereas they see Japan’s market as resilient thanks partly to its weak forex.

The calls come as U.S. charges are nonetheless rising, with most markets world wide eyeing their worst annual returns because the 2008 international monetary disaster and with chipmakers’ earnings cratering.

Goldman Sachs says South Korean shares are the financial institution’s prime “rebound candidate” for 2023 because of low valuations, made cheaper by a nosediving Korean gained, and as corporations profit from an anticipated restoration in Chinese language demand. It expects a 2023 return in greenback phrases of 30%.

Morgan Stanley additionally offers Korea prime billing. Along with Taiwan, it’s the finest place to be, says the financial institution, as the 2 markets have a fame as “early-cycle” leaders within the demand restoration.

Financial institution of America, UBS, Societe Generale and Deutsche Financial institution’s wealth supervisor DWS are all bullish on Korean shares, with analysts’ conviction in that commerce mendacity in sharp distinction to its divided view on India and China.

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“Within the semiconductor space, demand ought to backside within the first quarter of subsequent yr and the market all the time begins to run earlier than that,” stated DWS’ Asia-Pacific chief funding officer, Sean Taylor, who added Korean publicity in latest months.

“We expect (Korean shares) bought off an excessive amount of in September and August.”

South Korea’s benchmark KOSPI index (.KS11) has misplaced about 17% thus far this yr and the gained has declined 9%, although each have proven indicators of restoration in latest months.

Goldman Sachs additionally famous that 5 years of promoting has pushed international possession of Korean shares to its lowest stage since 2009, however inflows of about $6 billion since end-June “signifies a flip in international curiosity” that might carry the market additional.

Societe Generale’s suggestion for buyers to extend their publicity to Korea and Taiwan comes on the expense of China, India and Indonesia. Goldman’s desire for Korean shares comes because it has recommended a discount in Brazil publicity. Morgan Stanley downgraded its view on Indian publicity in October, when it upgraded its suggestion for South Korea.

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Morgan Stanley is most bullish on chipmakers turning out commoditised low-cost chips in addition to chips destined for shopper items – together with corporations resembling Samsung Electronics (005930.KS) or SK Hynix (000660.KS). Morgan Stanley has a worth goal for SK Hynix about 50% above the present share worth.

Semiconductors drive rebound

RISK-REWARD

Taiwan and Japan provide points of interest for some comparable and a few novel causes. Like South Korea, Taiwan (.TWII) is one other heavily-sold and chip-maker dominated market – although tensions with China make some buyers a bit much less enthusiastic.

Goldman Sachs is underweight Taiwanese shares, citing geopolitical danger, whereas Financial institution of America is impartial and its most up-to-date survey of Asian fund managers exhibits they’re bearish.

Japan (.N225) additionally provides chips publicity in addition to some safety and diversification, with the weak yen additionally a tailwind for exporters and sometimes a boon for equities.

“A sustained keep at such undervalued ranges, as anticipated by our FX strategists, augurs properly for Japan equities,” stated Financial institution of America analysts, who advocate obese allocation to Japan. Morgan Stanley, DWS, UBS are additionally optimistic, as is Goldman Sachs, particularly for the second half when it forecasts inflows.

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There may be much less settlement with regards to China, the place large buyers appear to be in a wait-and-see mode, or India the place funding homes really feel an 8% rally for the benchmark Sensex (.BSESN) has left valuations a bit expensive.

To make certain, a lot of the banks’ funding calls relaxation on assumptions that U.S. rates of interest ultimately cease going up and China ultimately relaxes its COVID guidelines.

In the meantime, Taiwan and South Korea are each geopolitical flashpoints – however analysts argue no less than a few of that’s already within the worth.

“There was some political concern in each Korea and Taiwan for a very long time,” stated Societe Generale’s head of Asia fairness technique, Frank Benzimra.

“Issues can all the time worsen,” he stated. “However when it comes to the risk-reward, what we discover is that a lot of the lowly valued markets, whether or not it is Korea or Taiwan … have extra restricted draw back due to the buildup of dangerous information that we now have seen during the last 12 months.”

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Reporting by Harish Sridharan in Bengaluru; Enhancing by Ana Nicolaci da Costa

Our Requirements: The Thomson Reuters Belief Rules.

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Walz calls Trump a 'tyrant' who is trampling Americans' rights and violating the rule of law

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Walz calls Trump a 'tyrant' who is trampling Americans' rights and violating the rule of law

Democratic Gov. Tim Walz of Minnesota assailed Donald Trump in a law school graduation speech Saturday, accusing the Republican president of creating a national emergency by repeatedly violating the rule of law.

Walz, the vice presidential nominee in 2024, used his remarks at the University of Minnesota’s law school commencement ceremony to call on graduates to stand up to abuses of power. Lawyers, he said, “our first and last line of defense.”

“Right now, more than any other time in my lifetime, we need you to live up to the oath that you’re about to make. Because, I have to be honest with you: You are graduating into a genuine emergency,” Walz told the crowd, which greeted him with loud applause. “Every single day, the president of the United States finds new ways to trample rights and undermine the rule of law.”

Walz pointed to Trump’s immigration crackdown, which includes deporting alleged gang members to a notorious prison in El Salvador without due process, and the offer of a gifted jet from the Qatari ruling family to the president.

“This is what the crumbling of rule of law looks like in real time. And it’s exactly what the founders of this nation feared: A tyrant, abusing power to persecute scapegoats and enemies,” he said.

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Since Kamala Harris’ loss to Trump in November, Democrats have been debating which direction to take the party amid deep frustrations from Democratic voters that its leaders are failing to do enough to check the new administration.

Walz is among a long list of potential 2028 candidates who have been traveling to early voting states.

Others include Illinois Gov. JB Pritzker, who sharply criticized “do-nothing” Democrats last month for failing to oppose Trump. Pritzker, who is scheduled to headline a Minnesota Democratic dinner in June, drew attention in February when he used part of his joint budget and State of the State address to draw a parallel between Trump’s rhetoric and the rise of Nazi Germany.

This past week, President Joe Biden’s transportation secretary, Pete Buttigieg, returned to Iowa for a town hall where he criticized Trump’s administration while demanding that Democrats make their agenda clear and reach out to people who disagree with them.

California Gov. Gavin Newsom has been hosting a high-profile podcast. Vermont Sen. Bernie Sanders and New York Rep. Alexandria Ocasio-Cortez have been drawing huge crowds to rallies across the country. Walz and Gov. Wes Moore of Maryland have scheduled stops in South Carolina at the end of May.

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In his commencement speech, Walz acknowledged his words were particularly pointed for a celebratory ceremony.

“Some would say, ’Boy, this is getting way too political for a commencement address.’ But I would argue: I wouldn’t be honoring my oath if I didn’t address this head on,” he said to applause and cheers.

Later, he scoffed at some Democrats who have urged the party to focus on issues such as trade, where Trump is polling badly, instead of the rule of law.

He also attacked “feckless” and “cowardly” big law firms that have acquiesced to Trump in the face of threats, with some offering millions in pro bono work and other benefits.

“It’s a flagrant betrayal of the oath they took as lawyers,” he said, urging graduates to refuse to work for or with those firms as they make their way into the workforce.

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Grandmother arrested at abortion clinic warns of expanding free speech 'buffer zones'

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Grandmother arrested at abortion clinic warns of expanding free speech 'buffer zones'

A grandmother in the U.K. who was arrested for holding a sign outside an abortion clinic is sounding the alarm against further attacks on free speech as lawmakers move to expand so-called “buffer zones” outside such facilities.

Rose Docherty, 74, was arrested in Glasgow, Scotland near the Queen Elizabeth University Hospital (QEUH) in February for holding a sign that read: “Coercion is a crime, here to talk if you want.”

Docherty was the first person to be arrested and charged under the Abortion Services (Safe Access Zones) Act, which went into effect in September, the BBC reported. 

The law prohibits any protests or vigils from taking place within 200m or 656ft of 30 clinics offering abortion services in Scotland, but the law specifies that the Safe Access Zone could be extended if considered appropriate. 

Docherty’s arrest came just days after Vice President JD Vance highlighted the law as an example of free speech being under attack in the U.K.

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Rose Docherty, 74, was arrested in Glasgow, Scotland near the Queen Elizabeth University Hospital (QEUH) in February for holding a sign that read: “Coercion is a crime, here to talk if you want.” (Rose Docherty)

UK WOMAN THREATENED WITH FINE FOR PRAYING WITHIN ABORTION FACILITY’S ‘BUFFER ZONE:’ ‘ GROSSLY ORWELLIAN’

Now, Gillian Mackay, the Green Party parliamentarian responsible for introducing the buffer zones legislation, has now suggested that the Scottish government consider expanding the area of prohibition on “influence” outside hospitals, according to ADF International, a Christian legal advocacy group.

Docherty has rejected a formal warning from the Crown Office – arguing that it was “unjust” – and is waiting to find out what action may now be taken against her.

In her first broadcast interview since her arrest, she told the BBC she had “no reason to regret” the incident, noting it was an “alarming” and “surreal” experience. 

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She said she had read the law and believed her actions did not violate the legislation. 

“I gave consideration to what I was doing…I looked at the law and saw what it said I couldn’t do, and thought, OK, well, this is what I can do…I can offer to listen, and if anyone wants to come and speak to me, they can do so, only if they want to come and speak with me,” she told BBC’s Scotcast.

She said she is prepared to go to prison over the offense.

Docherty has also said that the government essentially wants to stamp out any opposition to abortion.

“I believe it wouldn’t matter where we stood…it wouldn’t matter how far they pushed the ‘buffer zone,’” she told ADF International, a Christian legal advocacy group.

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Nicola Sturgeon (L) poses for a photograph with Scottish Green

Former First Minister Nicola Sturgeon, left, poses for a photograph with Scottish Green MSP Gillian Mackay, right, in the lobby of the Scottish Parliament, in support of Mackay’s “buffer zones” bill on June 27, 2023 in Edinburgh, Scotland. (Ken Jack/Getty Images)

NEW ONLINE ‘MISINFORMATION’ BILL SLAMMED AS ‘BIGGEST ATTACK’ ON FREEDOMS IN AUSTRALIA

“It wouldn’t matter where we stood –201 meters, or 500 meters away – it seems the authorities would still try to crack down harshly and unfairly on individuals because the government simply disagree with their point of view. This is unjust – of course, there should be laws against harassment, and we all condemn such behavior. But merely offering conversations near a hospital is not a crime.” 

Dr Greg Irwin, a doctor at the QEUH, was pictured confronting a group of protesters in February 2023, saying that they “cause emotional upset to patients, but also to staff members,” per the BBC. Groups have been protesting outside the hospital for 10 years, leading to the passing of the Safe Access Zones Act.

Mackay said patients and staff had told her that they still had to pass the protesters when attending the QEUH leading to distress.

“I think it’s appropriate that we take those concerns seriously and the government take a look at whether an extension is appropriate or not,” Mackay told the BBC.

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The act allows ministers to extend the size of a buffer zone if it is decided that the existing zone is not adequate, a Scottish government spokesperson told the outlet.

Portrait of Isabel Vaughan-Spruce

Isabel Vaughan-Spruce was arrested for praying silently outside an abortion clinic in Birmingham, England. (Alliance Defending Freedom UK)

Docherty isn’t the first person to be arrested outside abortion facilities. 

For instance, Isabel Vaughan-Spruce, a prominent pro-life activist, was arrested twice in Birmingham for silently praying without any signs near an abortion facility within a buffer zone. She was arrested under a local law known as a Public Spaces Protection Order (PSPO). She was later awarded $13,000 in compensation for wrongful arrests, according to Christian Today.

The U.K. has drawn international attention for its alleged clampdown on free speech. A number of people have been investigated and arrested for social media posts. 

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Tornadoes kill 21 in US states of Missouri and Kentucky

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Tornadoes kill 21 in US states of Missouri and Kentucky

The storms are part of a severe weather system sweeping across the Midwest, leaving thousands without power.

At least 21 people have died after tornadoes caused by severe storms swept through the states of Missouri and Kentucky in the United States, officials said.

Kentucky governor Andy Beshear on Saturday said on X that at least 14 people died in the Friday night’s storms.

At least seven others were killed in Missouri as authorities launched a search for people trapped in buildings.

A man sits in a chair after the storm in St. Louis, Missouri [Jeff Roberson/AP]

Kentucky authorities said there were severe injuries when a tornado tore across Laurel County late on Friday. “The search is continuing in the damaged area for survivors,” the office of Sheriff John Root said in a statement posted on social media.

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In Missouri, St Louis Mayor Cara Spencer confirmed five deaths in her city and said more than 5,000 homes were affected.

“Our city is in mourning tonight,” she told reporters. “The loss of life and destruction is truly, truly horrific.”

Another tornado struck Scott County, about 209km (130 miles) south of St Louis, killing two people, injuring several others and destroying multiple homes, Sheriff Derick Wheetley wrote on social media on Friday.

“Our first responders acted swiftly, even while the tornado was still active, putting themselves in harm’s way to provide immediate assistance and care to those injured,” he said.

US storm
Drivers navigate around debris after the storm in St. Louis [Jeff Roberson/AP]

The storms, which began on Friday, are part of a severe weather system that has also spawned tornadoes in Wisconsin, leaving thousands of people without power in the Great Lakes region and bringing a punishing heatwave to Texas.

A dust storm warning was issued around the Chicago area on Friday night. The weather service said a wall of dust extended along a 161km (100-mile) line from southwest of Chicago to northern Indiana that severely reduced visibility.

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In Texas, a heat advisory was issued for San Antonio and Austin cities, with temperatures at a blistering 95F (35C) to 105F (40.5C). Parts of the southern East Coast, from Virginia to Florida, also battled with heat in the 90s (32-37C).

The National Weather Service Office for Austin and San Antonio said humidity over the weekend was expected to make temperatures feel hotter.

“There are concerns of heat exhaustion for people that aren’t taking proper precautions when they’re outdoors,” meteorologist Jason Runyen said, advising those affected to take breaks and stay hydrated.

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