Caixin Futures: Most agricultural products strengthen, palm oil cautiously bullish

Amid the sell-off of French government bonds, 215 billion euros worth of corporate bonds now yield less than government bonds, with the scale increasing 18 times this year as investors turn to high-quality corporate debt for risk aversion.

Samsung Electronics’ preliminary operating profit for the third quarter reached 10.74 trillion KRW, up 20% quarter-on-quarter and surging 782% year-on-year. Citi stated that the core driving force behind this explosive performance is the strong recovery of its semiconductor business, which is sufficient to offset the negative impact of unfavorable currency exchange rates, bonus expenses, and losses in the mobile division. With the ramp-up of HBM4 production and a significant increase in ASP, Citi is optimistic about Samsung’s earnings flexibility in 2027 and maintains its buy rating.

Republishing the BUZZ report released on Wednesday without modification: October 8 - PepsiCo (PEP.O) shares fell 1.4% on Wednesday, closing at $124.02. The company is set to release its quarterly earnings before the market opens on Thursday, with investors closely watching whether tighter consumer budgets are exerting pressure. According to data from London Stock Exchange Group (LSEG), Wall Street expects the carbonated drinks and snack giant’s third-quarter revenue to rise about 4% year-over-year to $24.96 billion, with adjusted earnings per share (EPS) at $2.29, flat compared to the same period last year. In the previous quarter, PEP’s revenue exceeded expectations, but the company warned that performance in North America would slow due to tighter consumer budgets. Facing cost pressures and the threat from GLP-1 weight loss drugs, PepsiCo is running out of time to meet the growth and profit margin targets set after activist investor Elliott Management invested approximately $4 billion a year ago. (link) So far this year, PEP’s share price has fallen about 14%, underperforming the S&P 500 Soft Drinks & Non-alcoholic Beverages Index (.SPLRCBEVS), which is up about 8%, and the S&P 500 Consumer Staples Index (.SPLRCS), up 6%. The stock’s recent price-earnings ratio is 14, below its five-year average of 21. Among 25 analysts, 7 recommend “strong buy” or “buy”, 17 recommend “hold”, and 1 recommends “sell”. The median target price is $152, down from $170 on July 7. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may be inaccurate or may not capture the required context, Reuters does not guarantee the accuracy of automated translation texts and provides them solely for readers’ convenience. Reuters accepts no liability for any damage or loss caused by the use of the automated translation feature.)

October 8th - ** Shares of U.S. cruise company Royal Caribbean (RCL.N) rose 1.2% in pre-market trading to $285.85 ** Jefferies upgraded RCL from "Hold" to "Buy" and raised its price target from $305 to $330 ** The firm also raised its price target for Lindblad Expeditions Holdings (LIND.O) from $29 to $32; LIND shares were flat pre-market ** "We are optimistic about the long-term prospects of the cruise industry as its share in the global vacation market continues to grow," said Jefferies ** The firm noted significant upside in the sector given strong revenue performance ** "We also believe that in the 2027 fiscal year, cruise stocks will be very attractive value investments under various macroeconomic scenarios, with land-based travel products providing additional growth momentum for earnings," Jefferies added ** As of the previous trading day’s close, RCL shares had risen 1.2% and LIND is up 143% year-to-date