- Euro Slips on French Vote Impact, Stocks Decline: Markets Wrap
(Bloomberg) — The euro fell after initial projections showed a left-wing coalition was set to win the French legislative election, sowing worries about the nation’s finances. Asian shares declined. The common currency slid as much as 0.4% in early trading as the left-wing New Popular Front was poised to garner the most seats in parliament. - PBOC to Add Temporary Repos Depending on Market Conditions
(Bloomberg) — The People’s Bank of China will carry out temporary bond repurchase or reverse repurchase operations depending on the market situation during working days between 4:00 p.m. and 4:20 p.m. The central bank aims to maintain reasonable and sufficient liquidity in the banking system, it said in a statement on Monday. - More House Democrats Want Biden Out of Race as Tension Rises
(Bloomberg) — Several influential congressional Democrats said privately on Sunday they want Joe Biden to step aside as the party’s White House nominee, as the US president enters a pivotal week for his teetering re-election campaign. The latest defections include several Democratic leaders of House committees. - France Set for Political Gridlock After Left-Wing Vote Win
(Bloomberg) — France looks headed for political instability after a surprise win by a left-wing coalition in Sunday’s legislative election offered no party a path to claim the majority needed to govern. The New Popular Front which includes the Socialists and far-left France Unbowed won 178 seats in the National Assembly. - Japan Base Wages Jump Most Since 1993 After Large Pay Deals
(Bloomberg) — Japanese workers’ base salaries rose the most since 1993, a jump that supports the case for the Bank of Japan to consider raising interest rates even as real wages continue to fall. Base pay increased 2.5% in May from a year ago, the fastest growth since 1993, outpacing the 1.9% gain in the headline figure. - UK’s Reeves to Unveil Labour’s Growth Plan in First Major Speech
(Bloomberg) — Rachel Reeves will lay out the new Labour government’s plans to spur private investment in her first major speech as Chancellor of the Exchequer on Monday, as the party tries to ride the momentum of its landslide UK election win last week in a dash for economic growth. - Hedge Funds Reshape Tokyo’s Exclusive Club of Bond Traders
(Bloomberg) — When Hiroyuki Kubota’s boat party for Japanese government bond traders and strategists restarted last autumn, after a pause of several years, there was reason to celebrate. The veteran group was suddenly back in vogue. The world’s top hedge funds had begun to focus on the Bank of Japan’s reversal of its ultra-loose monetary policy. - Traders Are Being Replaced by Algos Like Viper in New FX Era
(Bloomberg) — Inside BNP Paribas SA, a trader named Viper is now handling vast swaths of the French bank’s currency trading business. Viper, along with Iguana and Chameleon, are code names for algorithms that the lender developed to make life easier for the hundreds of hedge fund managers and corporate treasurers that rely on its systems. - Sky dance Is Inching Closer to Nailing a Deal for Paramount
(Bloomberg) — David Ellison inched closer to an acquisition of Paramount Global, the owner of MTV and CBS, as a special committee of the company’s board endorsed a merger with his Sky dance Media, according to a person with knowledge of the matter. An agreement would end one of the messiest and most dramatic mergers deals in recent history. - Market Chatter: DBS Hong Kong Hit with HK$10 Million Fine for Anti-Money Laundering Lapses
DBS Group Holdings’ (SGX: D05) Hong Kong unit was fined HK$10 million by the Hong Kong
Monetary Authority for anti-money laundering and counter-terrorist financing regulation breaches from April 2012 to April 2019, The Straits Times reported Sunday. DBS Hong Kong accepted the decision, noting the issues were historical and sporadic. - Second-quarter earnings kick off this week with major banks including JPMorgan and Citigroup reporting on July 12.
Investors will be watching whether profits from other companies are catching up with the “Magnificent 7” names, many of which rebounded from struggles in 2022. - Netflix shares are on track to close at a record for the first time in more than two years, as it extends a strong long-term rally.
The latest close price is at $690.65, reaching near its highest since late 2021. This milestone comes ahead of the company’s second-quarter results, which will be announced on 18 July 2024. - Macy’s shares climb as much as 8.8% to $19.51, marking the biggest intraday gain since March 4 after the Wall Street Journal reported that Ark house Management and Brigade Capital Management have raised their buyout offer for the department store operator to about $6.9 billion.
The investors are offering $24.80 for Macy’s shares they don’t already own, according to the newspaper A spokeswoman for Macy’s declined to comment. As of the last close, the stock has fallen 11% this year. - Arm shares have gained more than 30% over the past month, and the stock joined the Nasdaq 100 Index at the end of June. Arm CFO Jason Child highlighted the importance of Arm as industries adopt AI.
“In the age of AI, Arm is more relevant and important than ever. Our DNA in power efficiency is critical to providing foundational compute solutions for the world’s AI workloads that continue to grow both in size and complexity. With a staggering amount of energy being consumed by AI, the world is relying on Arm and our industry-leading ecosystem for fresh innovation,” Child wrote in a post announcing the company’s inclusion in the Nasdaq 100. - Meta Platforms, Inc (NASDAQ: META) stock hit a 52-week and all-time high of $535.69 on Friday. The U.S. Big Tech remains aggressively invested in its artificial intelligence ambitions to unlock shareholder value.
Meta has introduced a new approach to artificial intelligence by releasing pre-trained models that utilize a novel multi-token prediction method. This new technique, detailed in a Meta research paper in April, represents a significant departure from traditional methods of training large language models (LLMs) to predict the next word in a sequence, Venture Beat reports. Meta’s approach trains models to forecast multiple future words simultaneously, enhancing performance and drastically reducing training times. Meta’s models may achieve a more nuanced understanding of language structure and context by predicting multiple tokens simultaneously. - ABN Amro Fgr-Abn Amro Bnp Paribas Disruptive Technology Equities boosted its holdings in Shopify Inc.
Class A and reduced its holdings in First Solar Inc. in June, according to data analysed by Bloomberg. - Boeing to plead guilty to criminal fraud charge stemming from 737 Max crashes
Boeing pleaded guilty to a conspiracy fraud charge tied to the 737 Max crashes. Under the deal, Boeing agreed to pay a $243.6 million fine and for a third-party monitor to be installed to monitor the company’s compliance. The deal spares Boeing from a trial just as the plane maker is trying to turn a corner in its safety and manufacturing crises. - India’s Modi to meet Putin in Moscow as both sides seek to forge deeper ties
India’s Prime Minister Narendra Modi is set to meet President Vladimir Putin in Moscow on Monday, marking his first visit to the Kremlin since the invasion of Ukraine. The two leaders are set to reinforce the development of “traditionally friendly relations between Russia and India,” as well as discuss “topical issues on the international and regional agendas,” the Kremlin said last week. - Stock futures open lower as investors await inflation data, earnings this week:
Stock futures edged lower Monday morning as investors await key inflation data for further clues on the longevity of this year’s market rally. Earnings from some major financial giants and consumer companies are also on the docket. S&P futures were down more than 0.1%, while futures tied to the Dow Jones Industrial Average lost 74 points, or 0.19%. Nasdaq 100 futures dipped about 0.14%. - Southeast Asia’s IPO market fell drastically in the first half, but AI listings could revive it
The number of listings slid 21.2% year on year to 67, while the amount raised from these IPOs dropping 53.3% year on year to $1.4 billion, a Deloitte report showed. Indonesia saw the most pronounced drop among all Southeast Asian countries. “While Southeast Asia’s IPO market may appear subdued in 2024. - Asia markets slip as Japan real wages fall for 26th straight month; China stocks drop for fifth day
Investors await U.S. consumer price index reading, due Thursday stateside, to assess the Federal Reserve’s interest rate path. Data from the country’s ministry of health, labour and welfare indicated that real wages in Japan fell 1.4% year on year in May, its 26th straight month of decline. The mainland Chinese CSI300 slid 0.3%, on pace for a fifth day of losses and marking its lowest level since February. - Gold eases from May peak on profit taking
Gold prices slipped on Monday, as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of U.S. interest rate cuts in September. Spot gold fell 0.4% at $2,382.17 per ounce as of 0346 GMT, after rising to its highest level since May 22 on Friday. U.S. gold futures eased 0.3% to $2,391.10. Data on Friday showed that the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a softer U.S. labour market.
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