- Asian Stocks Recoup Losses From Last Week’s Rout: Markets Wrap
(Bloomberg) — Asian stocks rose, fully recovering their losses from last week’s rout, bolstered by an advance in Japanese shares. Japan’s equities rose after a holiday, as a weaker yen supported exporters. MSCI’s Asia-Pacific gauge rose as much as 1% to erase losses from last week’s tumble. - S&P 500, Nasdaq eke out small gains to hold last week’s momentum ahead of key inflation data
Stocks seesawed Monday but managed to maintain the momentum from late last week as investors braced for key inflation data. The S&P 500 ended flat, up a mere 0.23 points, at 5,344.39. All day, the broad-based index had alternated between small gains and losses. The Nasdaq Composite advanced 0.21% to close at 16,780.61. Shares of Nvidia gained 4% to help the technology-heavy index climb. The Dow Jones Industrial Average pulled back 140 points, or 0.36%, at 39,357.01. The forthcoming batch of inflation data will be essential for markets that remain jittery following increased volatility. Wednesday’s consumer price index
report for July will be a pivotal clue as to the health of the U.S. economy, and determine if investors will remain uneasy following July’s weak nonfarm payrolls report that contributed to the recent sell-off. - Oil prices ease as markets refocus on demand worries
Oil prices edged lower on Tuesday, breaking a five-day streak of gains, as markets refocused on concerns about demand after OPEC on Monday cut its forecast for demand growth in 2024 due to softer expectations in China. Global benchmark Brent crude futures dipped 41 cents, or 0.5%, lower to $81.89 a barrel at 0005 GMT. U.S. West Texas Intermediate crude futures fell to $79.63 a barrel, down 43 cents, or 0.5%. Brent had gained more than 3% on Monday, while U.S. crude futures had risen more than 4%. - Gold dips as investors book profits, U.S. inflation data in focus
Gold prices eased on Tuesday as profit-taking kicked in after bullion hit a more than one-week high, while market players awaited key U.S. inflation data that could provide further insight into the Federal Reserve’s next policy decision. Spot gold fell 0.4% to $2,462.19 per ounce by 0259 GMT, after hitting its highest level since Aug. 2 earlier in the session. Prices rose more than 1% in the previous session. U.S. gold futures were little changed at $2,502.40. - Oil Rebound Is Insufficient to Lure Hedge Funds Off Sidelines
Hedge funds have taken up the most bearish stance on Brent crude on record as the macro gloom well and truly hit risk sentiment. While some traders are hoping a recovery may be on the cards as prices start to rebound and the technical picture improves, others think it may be a while longer before a rally fully emerges. Macro funds are showing limited appetite for oil as most of the bearish sentiment looks to have already been priced in. Meanwhile, interest-rate markets and even other commodities such as metals appear to offer more avenues for traders to profit from a downturn in the economy. The depths of the summer months also make it difficult for oil traders to take on positions with conviction as this time of year comes with a greater likelihood of being caught wrong-footed in a low-liquidity, high-volatility market. Implied volatility in oil is below the peak seen last week but is still near the highest level in months. - GM Cuts China Jobs as it Resets in World’s Biggest Car Market
(Bloomberg) — General Motors Co. has been laying off staff in China and will soon meet with local partner SAIC to plan a larger structural overhaul of its operations there, a recognition the Detroit automaker is unlikely to see its sales return to 2017 peak levels. GM is cutting staff in Chinese market-related departments, including research and development. - Musk, Trump Conversation on X Begins After Lengthy Delay
(Bloomberg) — Elon Musk’s conversation with Republican presidential nominee Donald Trump on the X social-media platform started some 40 minutes after it was scheduled, with the billionaire tech mogul blaming the delay on a cyber attack. This massive attack illustrates there’s a lot of opposition to people just hearing what President Trump has to say, Musk said. - China Goes to New Extremes in Crackdown on Bond-Market Frenzy
(Bloomberg) — Chinese authorities are going to extraordinary lengths to tighten their grip on the world’s third-largest government bond market. In a highly unusual move on Friday, regulators told rural banks in China’s Jiangxi province not to settle recent purchases of government bonds, an order to effectively renege on their market obligations. - Carlyle Delays Asia Buyout Fund Close as Japan Pool Saps Demand
(Bloomberg) — Carlyle Group Inc. has delayed closing its new pan-Asian buyout fund as demand for a Japan-focused vehicle has siphoned off investor interest, according to people familiar with the matter. The Washington-based firm has asked for an extension in the closing of its sixth regional buyout fund, the people said. - US, Israel View an Attack by Iran as Increasingly Likely
(Bloomberg) — The US believes an Iranian attack against Israel has grown even more likely and may come as soon as this week, officials said, as allied leaders sought to head off all-out war and the Pentagon deployed more forces to the region. - Putin Cuts Off Governor Detailing Ukraine’s Inroads Into Russia
(Bloomberg) — Vladimir Putin abruptly interrupted an acting regional governor who said Ukraine’s military had taken control of 28 towns and villages in Russia’s Kursk border region, prompting a sixth of its population to flee. Alexey Smirnov said Ukrainian forces had penetrated at least 12 kilometers (7.5 miles) into the region and controlled a border area 40 kilometers. - Middle East Trillions Force New Concessions From Wall Street
(Bloomberg) — Within the moneyed circles of the Middle East, there’s increasing talk of a shifting power dynamic in the upper echelons of high finance. Gone are the days of private equity bigwigs and hedge fund honchos flying to the Gulf, shuttling between five-star hotels and gleaming office towers in Abu Dhabi, Doha and Riyadh. - Hong Kong’s Collapsing Land Sales Threaten City’s Funding Model
(Bloomberg) — Hong Kong’s real estate slump is choking off one of the financial hub’s most important sources of government revenue. For decades, the city’s government generated massive income from auctioning off land to cash-rich developers as prices soared. That helped enable Hong Kong’s low-tax system, which has been crucial to its business hub status. - Yen-Hedged ETF Suffers Exodus of Cash From Carry-Trade Fiasco
(Bloomberg) — Investors spooked by the yen carry-trade blowup have pulled cash from a Japan-focused stock ETF that strips out moves in the country’s currency. The WisdomTree Japan Hedged Equity Fund, ticker DXJ, saw an outflow of more than $400 million last week, the most since 2018, data compiled by Bloomberg show. - FBI Probing Alleged Iran Hack Attempts Targeting Trump, Biden Camps
The FBI is investigating suspected hacking attempts by Iran targeting both a Trump associate and advisers to the Biden-Harris campaign, according to people familiar with the matter, as the agency formally acknowledged Monday it has opened a high-stakes national security investigation months before Election Day. - Democrats Aim to Woo Jewish Voters Alienated by Protests
(Bloomberg) — Democratic politicians are kickstarting an effort to turn out progressive Jewish voters for Kamala Harris. Pennsylvania Senator John Fetterman and New Jersey Senator Cory Booker are among at least a dozen lawmakers who will headline an Aug. 19 launch event for an advocacy group seeking to engage progressive, pro-Israel voters. - Pro-Trump PAC Plans $100 Million Ad Blitz as Harris Gains Steam
(Bloomberg) — A super political action committee backing Republican Donald Trump plans to spend $100 million on advertising between now and Labor Day in seven swing states in what polls show is a newly competitive race against Vice President Kamala Harris. The spending figure marks more than half of the total $198 million the super PAC, Make America Great Again Inc.. - Stocks Halt Rebound as Oil Hits $80 on War Angst: Markets Wrap
(Bloomberg) — Stocks struggled for direction ahead of US inflation data, with the latest geopolitical developments curbing the appetite for risk. Just a week after the panic selling that shook trading around the globe, the S&P 500 was flat. - Japan’s Producer Inflation Quickens for Sixth Straight Month
(Bloomberg) — Inflation as measured by Japan’s producer prices quickened in July, marking six consecutive months of acceleration, as the end of utility subsidies drove up energy costs. The measure of input prices for Japanese firms gained 3.0% from a year earlier, the BOJ reported Tuesday. The gain missed exceeded economists’ expectations of a 3.1% increase. - Key Fed Facility Seen Stagnating at $300 Billion Amid Pressures
(Bloomberg) — The amount of money at a key Federal Reserve facility could stall at around $300 billion amid ongoing pressures in the overnight dollar funding markets, according to Citigroup Inc. A combination of factors have kept levels essentially the same, elevated Treasury issuance and primary dealer capacity issues. - Scotiabank Follows Through On Growth Plans With KeyCorp Deal
(Bloomberg) — Bank of Nova Scotia is making good on plans to invest more capital in the US with a $2.8 billion deal for a minority stake in KeyCorp, which was among the US regional banks hit hardest in last year’s tumult. Scotiabank will acquire 14.9% of Cleveland-based KeyCorp in two separate tranches by buying shares at $17.17 each. - Starbucks Is Said to Near Pact to Give Elliott Board Seat
(Bloomberg) — Starbucks Corp. is discussing a settlement with Elliott Investment Management that would give the activist investor representation on the board of the coffee shop chain, people familiar with the matter said. Seattle-based Starbucks is in talks to add Jesse Cohn, a managing partner at Elliott, to its board of directors, according to the people. - India’s Bharti Swoops In to Buy 24.5% of BT From Troubled Altice
(Bloomberg) — Bharti Global has agreed to buy a major stake in BT Group Plc, a deal that will bolster the Indian company’s international expansion while giving the British carrier more investor stability. Bharti, an affiliate of conglomerate Bharti Enterprises, is buying the 24.5% stake from shareholder Altice UK, part of Patrick Drahi’s troubled telecommunications empire. - Starbucks shares gain as much as 4.5% on Monday after the Wall Street Journal reported on Friday that activist investor Starboard Value has taken a stake in the coffee chain
Wells Fargo analyst Zachary Fadem leans positive on the news, noting this isn’t Starboard’s first restaurant rodeo, which adds credibility to the activist effort. If Starboard takes an operating focus, Fadem sees potential to accelerate initiatives, improve the customer and store associate experience, and sharpen innovation. Rates overweight with PT $90. - Qualcomm Inc. shares are down 3% on Monday, after Wolfe Research downgraded the chipmaker to peerperform from outperform
The downgrade reflects the view that AAPL’s internal modem will finally have an impact, premium Android has by now normalized, and AI handset and IOT growth will likely be a tougher sell to investors, writes analyst Christopher Caso. The loss of AAPL revenue creates a headwind that’s not fully in estimates with uncertain catalysts elsewhere, making it difficult for us to continue defending the bull case. QCOM gets 27% of its revenue from Apple, according to supply-chain data compiled by Bloomberg. - Eutelsat shares rise as much as 4.6% Monday after the satellite operator said it’s exploring a sale of a majority stake in its satellite ground infrastructure to EQT
Eutelsat is considering carving out its ground infrastructure that supports satellites, and potentially selling an 80% holding of this new entity to EQT, according to a statement. The company said the transaction would value the new business at an enterprise value of €790m; it didn’t disclose the entity’s EV/Ebitda multiple. After the transaction, Eutelsat would hold a 20% stake in the ground infrastructure assets and sign a long-term framework master service agreement with the entity. - Monday.com shares surged 14.78% after it reported upbeat second-quarter results that beat
expectation
Adjusted earnings per share came in at 94 cents, beating estimates of 56 cents. Revenue was at $236.1 million, while estimates were at $228.9 million. The company also upgraded its outlook for its revenue for the full year, forecasting a revenue between $956 million and $961 million. - SpaceX repeatedly polluted waters in Texas this year, regulators found
Elon Musk’s SpaceX violated environmental regulations in releasing pollutants into or nearby bodies of water in Texas, a state environmental agency said in a notice last week. The report from the Texas Commission on Environmental Quality (TCEQ) came five months after the Environmental Protection Agency also notified SpaceX that it had violated the Clean Water Act. The violations could threaten SpaceX’s ambitions to increase Startship launches from its Starbase facility in South Texas. - Apartments, hockey rinks and Amazon warehouses: Macy’s closures will set off a wave of change at shopping malls
Macy’s will set off a wave of change at malls, as it closes about 150 namesake stores across the country by early 2027. The department store operator has long been a mall anchor, with stores that range between 200,000 and 225,000 square feet. Mall owners could convert the former Macy’s boxes into smaller retail spaces or make more significant changes, such as adding apartments or demolishing the mall for a completely new development. - Adani Group shares shed billions after Hindenburg allegations against regulator
Shares of Adani Group companies fell Monday, after a new report from U.S. short seller Hindenburg accused the chair of India’s capital markets regulator of having conflicts of interest that prevented an in-depth probe of fraud allegations. Adani Group companies lost roughly $2.4 billion in market value Monday, recovering by the end of the session from an earlier reported fall of as much as $13.4 billion. The Indian group’s flagship firm Adani Enterprises slipped as much as 5% in early morning deals, before paring losses. Shares of Adani Total Gas, Adani Power, Adani Wilmar and Adani Energy Solutions also fell sharply on the news.
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