Ideas
DeepSeek catalyst revives China tech.
After fatigue in the China AI trade, DeepSeek's new paper/model is a fresh catalyst that could renew momentum in China tech, and the market was already showing a strong bid in names like Alibaba and Hong Kong tech.
AI infrastructure, memory beneficiaries lead now.
For the first six months, the market should keep focusing on AI enablers and infrastructure providers. Memory prices have squeezed because of shortage, and these names could gain another 20-25% before he would book gains and rotate. Samsung and SK hynix are named beneficiaries of the infrastructure phase.
Rotate to AI adopters after infra.
After the AI infrastructure phase, bigger market gains should come from AI adopters, especially tech-savvy companies in consumer internet and healthcare that underperformed last year and offer value. AI adoption should lift productivity, engagement and margins, with category disruptors across China and India.
Chinese consumer internet AI adopters undervalued.
Within AI adopters, Chinese consumer internet names such as Baidu and Alibaba have underperformed for the last 12 months, offer decent value, and can win as they adopt AI.
India is a major overweight.
India is where China was in May 2024: most investors are dismissive, but the government is doing its part with GST rationalization and labor reforms, a trade deal resolution is likely, earnings revisions have turned positive from October-November, and recovery should build in a slow-growth world with 8-10% nominal GDP growth. He is overweight India.
Korea overweight on industrial revival.
He is overweight Korea with 20-25% exposure because Korea benefits from the revival of the industrial cycle and increasing defense spending. Despite last year's 70% gain, it trades at 10x earnings, around a 20-year average valuation, with improving governance and payout ratios, and he sees the start of an aggressive cycle.
China consumption rebalancing supports consumer theme.
China is shifting toward consumption-led growth, with recent government soundbites pointing to increased consumption, which he sees as a healthy rebalancing of the economy.
Korean culture ban easing opportunity.
During South Korea President Lee's visit to China, positive signs suggest Beijing may start opening the Chinese market to Korean cultural products, which have been effectively banned since 2017. This could be worth billions to the Korean entertainment and tourism industries, though timing and outcome remain uncertain.
Geopolitics favors defense stocks.
With the US and others asserting spheres of influence and rising geopolitical risk premium, defense stocks may gain the most as government spending and policy respond to a more fragmented geopolitical environment.
Long Middle East oil, avoid heavy Canada.
Venezuela's extra-heavy crude and inflated reserve claims are overhyped. Heavy oil is less useful as refineries decline and Saudi Arabia canceled a heavy crude project, so Canada and heavy oil producers are not likely winners. Middle East producers hold the right medium-sour quality and OPEC can calibrate crude and product flows, making them relative winners if heavy barrels leave the market.
Long Middle East oil, avoid heavy Canada.
Venezuela's extra-heavy crude and inflated reserve claims are overhyped. Heavy oil is less useful as refineries decline and Saudi Arabia canceled a heavy crude project, so Canada and heavy oil producers are not likely winners. Middle East producers hold the right medium-sour quality and OPEC can calibrate crude and product flows, making them relative winners if heavy barrels leave the market.
This Bloomberg Markets video, published January 05, 2026,
features David Ingles, Binky Chadha, Adam Farrar, Mukesh Sahdev
discussing KWEB, AI-SECTOR, 005930.KS, 000660.KS, AI adopters, BAIDU, BABA, INDA, EWY, Korean entertainment and tourism, ITA, Middle East oil producers, Canadian heavy oil producers.
11 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
David Ingles,
Binky Chadha,
Adam Farrar,
Mukesh Sahdev
· Tickers:
KWEB,
AI-SECTOR,
005930.KS,
000660.KS,
AI adopters,
BAIDU,
BABA,
INDA,
EWY,
Korean entertainment and tourism,
ITA,
Middle East oil producers,
Canadian heavy oil producers
