US Downgrade Sounds Alarm for Hong Kong Funds Holding Treasuries
Funds operating under the city's HK$1.3 trillion ($166 billion) Mandatory Provident Fund system are only allowed to invest over 10% of their assets in Treasuries if the US has a AAA or equivalent rating from an approved agency. After last week's cut by Moody's, the only remaining such score is from Japan's Rating & Investment Information Inc.
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6 minutes ago
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Santos secures new LNG supply contract with QatarEnergy Trading
Global energy company Santos has entered a new mid-term agreement with QatarEnergy Trading (QET) to supply around 0.5 million tonnes per annum (mtpa) of LNG over two years, starting in 2026. The LNG will be sourced from Santos' portfolio and delivered on an ex-ship basis. This deal extends Santos' existing relationship with QET and enhances its presence in the Asian LNG markets. This contract also adds to Santos' portfolio of tier-one customers, which includes names such as Hokkaido Gas and Shizuoka Gas, among others. Santos has around 90% of its portfolio contracted and approximately 85% oil-linked between 2025 and 2029. The average contract pricing is estimated at a 14.7% slope to Brent from 2025 to 2027. The company's strategy involves leveraging charter LNG vessels. Santos managing director and CEO Kevin Gallagher said: 'This contract reinforces our ability to leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers. It further complements recent mid-term and long-term LNG sales and purchase agreements, underscoring Santos' robust LNG portfolio and strong customer relationships in the region. 'We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply. Santos remains committed to supporting the energy security and emissions reduction strategies of our valued customers across Asia.' In related news, last month Santos granted exclusive due diligence access to a consortium spearheaded by Abu Dhabi National Oil Company (ADNOC). "Santos secures new LNG supply contract with QatarEnergy Trading" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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10 minutes ago
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US Plans AI Chip Curbs on Malaysia, Thailand Over China Concerns
(Bloomberg) -- President Donald Trump's administration plans to restrict shipments of AI chips from the likes of Nvidia Corp. to Malaysia and Thailand, part of an effort to crack down on suspected semiconductor smuggling into China. Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Massachusetts to Follow NYC in Making Landlords Pay Broker Fees NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds What Gothenburg Got Out of Congestion Pricing A draft rule from the Commerce Department seeks to prevent China — to which the US has effectively banned sales of Nvidia's advanced AI processors — from obtaining those components through intermediaries in the two Southeast Asian nations, according to people familiar with the matter. The rule is not yet finalized and could still change, said the people, who requested anonymity to discuss private conversations. Officials plan to pair the Malaysia and Thailand controls with a formal rescission of global curbs from the so-called AI diffusion rule, the people said. That framework from the end of President Joe Biden's term drew objections from US allies and tech companies, including Nvidia. Washington would maintain semiconductor restrictions targeting China — imposed in 2022 and ramped up several times since — as well as more than 40 other countries covered by a 2023 measure, which Biden officials designed to address smuggling concerns and increase visibility into key markets. All told, the regulation would mark the first formal step in Trump's promised overhaul of his predecessor's AI diffusion approach — after the Commerce Department said in May that it would supplant that Biden rule with its own 'bold, inclusive strategy.' But the draft measure is far from a comprehensive replacement, the people said. It doesn't answer, for example, questions about security conditions for the use of US chips in overseas data centers — a debate with particularly high stakes for the Middle East. It's unclear whether Trump officials may ultimately regulate AI chip shipments to a wider swath of countries, beyond the Malaysia and Thailand additions. The Commerce Department didn't respond to a request for comment. The agency has offered few specifics about its regulatory vision beyond what Secretary Howard Lutnick told lawmakers last month: The US will 'allow our allies to buy AI chips, provided they're run by an approved American data center operator, and the cloud that touches that data center is an approved American operator,' he said during congressional testimony. Nvidia, the dominant maker of AI chips, declined to comment, while spokespeople for the Thai and Malaysian governments didn't respond. Nvidia Chief Executive Officer Jensen Huang has previously said there's 'no evidence' of AI chip diversion, in general remarks that didn't touch on any particular country. In response to earlier Bloomberg queries about curbs focused on smuggling risks, Thailand said it's awaiting details, while Malaysia's Ministry of Investment, Trade and Industry said clear and consistent policies are essential for the tech sector. Washington officials for years have debated which countries should be able to import American AI chips — and under what conditions. On one hand, the world wants Nvidia hardware, and US policymakers want the world to build AI systems using American technology — before China can offer a compelling alternative. On the other, once those semiconductors leave American and allied shores, US officials worry the chips could somehow make their way to China, or that Chinese AI companies could benefit from remote access to data centers outside the Asian country. Southeast Asia is a key focus. Companies including Oracle Corp. are investing aggressively in data centers in Malaysia, and trade data shows that chip shipments there have surged in recent months. Under pressure from Washington, Malaysian officials have pledged to closely scrutinize those imports, but the Commerce Department's draft rule indicates the US still has concerns. Semiconductor sales to Malaysia also are a focal point of a court case in neighboring Singapore, where prosecutors have charged three men with defrauding customers about the ultimate destination of AI servers — originally shipped from the island nation to Malaysia — that may have contained advanced Nvidia chips. (Nvidia is not the subject of Singapore's investigation and has not been accused of any wrongdoing.) Related: Malaysia Downplays Huawei Deal as US Checks China's AI Reach The export curbs on Malaysia and Thailand would include several measures to ease pressure on companies with significant business operations there, people familiar with the matter said. One provision would allow firms headquartered in the US and a few dozen friendly nations to continue shipping AI chips to both countries, without seeking a license, for a few months after the rule is published, people familiar with the matter said. The license requirements also would still include certain exemptions to prevent supply chain disruptions, the people said. Many semiconductor companies rely on Southeast Asian facilities for crucial manufacturing steps like packaging, the process of encasing chips for use in devices. --With assistance from Patpicha Tanakasempipat, Michael Shepard and Olivia Solon. 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19 minutes ago
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Lululemon Stock Is Beaten Down Now, But It Could 10X
Lululemon's revenue growth in North America should turn the corner soon. Its China and other international revenue has a lot of future potential for growth. The stock is trading at a cheap price, with management buying back shares. 10 stocks we like better than Lululemon Athletica Inc. › Recent years have been tough sledding for Lululemon Athletica (NASDAQ: LULU) investors. While the broad market indices are soaring, the apparel retailer's stock is down 20% cumulatively in the past five years -- and down 52% from all-time highs. Revenue growth has slowed significantly, with new competition entering the market amid slowing overall consumer spending on athleisure items. Pessimism has slowly crept into the share price, sending its price-to-earnings ratio (P/E) near a 10-year low. Despite this pain and underperformance, I believe Lululemon has a chance to 10x its stock for shareholders over the long haul. Here's why. In the first quarter of 2022, Lululemon's North America revenue grew 29% year over year. In Q1 2025, that figure has dipped to 4% on a constant currency basis. This is the key factor leading to Lululemon's falling stock price. Wall Street is highly concerned that the brand has reached saturation in the United States and Canada while facing stiff competition from upstart copycat brands. There may be some truth to new brands stealing some customers that would have instead gone to Lululemon, but the data doesn't support it being the majority reason for this huge revenue growth slowdown. Nike's revenue slipped 11% year over year last quarter, while Athleta's dipped 8%. Lululemon is growing while the competition is shrinking. That's why management stated that it gained share within its product category so far in 2025, which is categorized as premium athletic wear. So what is behind the revenue slowdown? In the pandemic and work-from-home peak, spending on athleisure apparel boomed, benefiting Lululemon. Now, that trend is partially reversing, which is affecting Lululemon's growth. Taking a longer view, more casual athleisure clothing has taken share from formal wear for decades. I expect this to continue once this pandemic reversion ends. As a market share taker in the category, Lululemon should be able to accelerate revenue growth in North America once this occurs. It is still a small player in the U.S. apparel market, which is estimated to have $359 billion in annual spending. The Americas are still 73% of Lululemon's net revenue, although the region is much smaller as a percentage of overall apparel sales globally. This gives Lululemon a clear path to grow internationally for years to come. Last quarter, China mainland revenue grew 22% year over year in constant currency to $368.1 million. This is just barely making a dent in the country's population of 1.4 billion people. At the same time, consumer spending in China has been hurt due to the collapse of a real estate spending bubble, which has affected popular international brands like Nike and Apple. Despite this, Lululemon's growth looks fantastic in China, which should be a positive signal for investors. Growth has been rock-solid in other markets, with revenue not in North America or China growing 17% year over year to $328 million. In areas like Australia, other Asian countries, and Latin America, Lululemon has plenty of room to grow its premium athleisure brand. Both China and the Rest of World segment should keep gaining as a percentage of Lululemon's overall revenue, which would be a tailwind to help reverse this slow revenue growth. Add up the potential of the North America, China, and Rest of World segments, and I believe Lululemon can generate consolidated double-digit revenue growth over the next decade, even though it only grew 8% on a constant currency basis last quarter. Today, Lululemon's revenue is just under $11 billion annually. Due to the factors discussed above, I think Lululemon's revenue can double or triple in the next 10 years. In order for the stock to 10x, we need some more factors to push the share price higher. For one, Lululemon has consistently raised the bar on its profit margins due to its pricing power in high-end athleisure. Tariffs on imports to the United States could pose a roadblock to this progress in the near term, but I see no reason why further scale won't lead to further profit margin expansion for the brand. Second, Lululemon is consistently repurchasing its outstanding shares at this cheap price. Its shares outstanding are down 6% in the last three years. This may not seem like much, but a steadily declining share count can be another way for the magic of compound interest to help boost stock returns, just with the compounding working in the negative direction. As Lululemon's shares outstanding keep coming down, its stock price should rise even more over the next 10 years. Lastly, Lululemon's shares are trading at a P/E ratio of 16.6, close to their lowest level in the last 10 years. As revenue growth accelerates, this earnings multiple should begin to normalize back to its long-term average, which will further juice stock returns. It won't occur because of any hypergrowth on the revenue line, but Lululemon can 10x for shareholders due to a combination of steady growth, margin expansion, share buybacks, and multiple expansion over the next 10 years. Before you buy stock in Lululemon Athletica Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lululemon Athletica Inc. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Lululemon Athletica Inc., and Nike. The Motley Fool has a disclosure policy. Lululemon Stock Is Beaten Down Now, But It Could 10X was originally published by The Motley Fool Sign in to access your portfolio
