- Asian Stocks Dip as US Presidential Debate Unfolds: Markets Wrap
(Bloomberg) — Asian stocks slipped Wednesday on growth concerns ahead of a US inflation report and as
markets prepared for the knock-on effects of a presidential debate. A gauge for the region’s equities fell for
a third session, with Japanese stocks leading the declines. Futures for Hong Kong and US shares also dipped. - S&P 500 rises for a second straight day as investors try to shake September doldrums
The S&P 500 posted a second winning session on Tuesday as Wall Street sought to find its footing in a
turbulent September. The broad market index added 0.45% to end at 5,495.52, and the Nasdaq
Composite gained 0.84%, closing at 17,025.88. The Dow Jones Industrial Average slipped 92.63 points, or
0.23%, settling at 40,736.96. - Oil prices rebound on fears of supply disruption from tropical storm
Crude prices bounced on Wednesday as concerns about Tropical Storm Francine disrupting supply
of oil outweighed worries about demand. Brent crude futures climbed 39 cents, or 0.6%, to $69.58 a barrel
by 0031 GMT while U.S. crude futures were at $66.19 a barrel, up 44 cents, or 0.7%. Both benchmarks fell
nearly $3 on Tuesday, with Brent hitting its lowest level since December 2021 and WTI falling to a May 2023
trough, after OPEC+ revised down its demand forecast for this year and 2025. - Gold prices holds steady with U.S. CPI data on radar
Gold prices steadied on Wednesday, as investors keenly awaited the U.S. inflation data for hints on the size of
the Federal Reserve’s potential interest rate cut next week. Spot gold held its ground at $2,518.22 per ounce
by 0319 GMT. U.S. gold futures rose 0.2% to $2,547.10. - Trump, Harris Open Debate Sparring Over Economic, Tax Plans
(Bloomberg) — Democrat Kamala Harris opened her presidential debate with Republican Donald Trump by
touting her economic agenda, saying she was the only candidate on stage with a plan focused on lifting up
the middle class and working people of America. Harris addressed one of her biggest electoral vulnerabilities,
high prices and costs that have hammered US households. - Presidential debate recap: Harris attacks Trump over abortion, immigration, crimes
Republican presidential nominee Donald Trump and Vice President Kamala Harris, the Democratic nominee,
squared off in a prime-time debate in Philadelphia that may have altered the course of an already
unprecedented race for the White House. The two candidates quickly launched into a bitter, fast-moving,
energized and occasionally angry back-and-forth. Trump soon appeared to veer off script, insulting Harris
and repeating false conspiracies about immigrants who eat dogs. - European Central Bank set to cut interest rates just days before the Fed’s big decision
Traders are widely anticipating an interest rate cut at the Federal Reserve’s Sept. 17-18 meeting, as well as at
the ECB’s meeting this week. Euro zone inflation has come down. Headline figures hit a three-year low in
August with a reading of 2.2%, while core inflation by contrast is still more elevated at 2.8% with services
prices pulling up that metric. - BOJ Is Said to See Little Need to Hike Key Rate Next Week
(Bloomberg) — Bank of Japan officials see little need to raise the benchmark rate when board members
gather next week, as they’re still monitoring lingering volatility in financial markets and the impact of the July
hike, according to people familiar with the matter. The BOJ is likely to keep borrowing costs unchanged at
0.25% at the Sept. 20. - China’s $6.5 Trillion Stock Rout Worsens Economic Peril for Xi
(Bloomberg) — A deepening selloff in Chinese stocks is exacerbating a crisis of confidence in the world’s
second-largest economy, heaping pressure on policymakers to halt the downward spiral. A benchmark index
of the nation’s onshore shares is near the lowest levels since January 2019, yet another reflection of the
depth of the market gloom. - Real US Household Income Increases for First Time in Four Years
(Bloomberg) — US households’ inflation-adjusted incomes rose last year for the first time since 2019, yet they
still have not fully recovered to pre-pandemic levels. The median income increased 4% last year to $80,610,
according to the Census Bureau’s annual report on income, poverty and health insurance coverage. - US CPI to Show Another Muted Rise as Fed Debates Rate-Cut Size
(Bloomberg) — Forecasters expect a monthly report on US consumer prices to show another month of muted
increases, possibly playing into a Federal Reserve debate over how much to cut interest rates. The figures, to
be published Wednesday by the Bureau of Labor Statistics, will probably show the consumer price index and
a core gauge excluding food and energy both rose 0.2%. - Traders Still See at Least Two Jumbo Fed Cuts Coming Soon
(Bloomberg) — Traders in the US interest-rate options market are still betting on at least one super-sized
Federal Reserve interest-rate cut this year, just probably not before the Nov. 5 US election. Ahead of next
week’s central bank policy gathering, Fed swaps reflect expectations for a quarter-point cut, with only a scant
possibility for something bigger. - Fed to Cut Biggest Banks’ Capital Hike by Half in Overhaul
(Bloomberg) — US regulators will make extensive changes to their bank-capital rules proposal, cutting the expected impact to the largest banks by half and exempting smaller lenders from large portions of the measure, a top Federal Reserve official said. - Israel Offers Hamas Leader Safe Exit From Gaza in Bid to End War
(Bloomberg) — Israel proposed giving Hamas leader Yahya Sinwar safe passage out of Gaza in exchange for
the group freeing the hostages it holds and giving up control of the strip, a senior official said, even as doubts
deepen about the two sides’ ability to reach any cease-fire accord. - Rightmove Rebuffs $7.3 Billion Takeover Bid From Murdoch’s REA
(Bloomberg) — Australian real estate listing provider REA Group Ltd. presented a £5.6 billion ($7.3 billion)
takeover proposal for Rightmove Plc that was rejected by the UK’s biggest property portal by market value.
REA, part of media mogul Rupert Murdoch’s empire, made a preliminary cash-and-stock proposal valued at
705 pence per share. - Market Chatter: Samsung SDI to Sell Polarizing Film Division to China’s Wuxi Hengxin Optoelectronic
Materials
South Korean battery maker Samsung SDI (KRX:006400) plans to sell its polarizing film division to China’s
Wuxi Hengxin Optoelectronic Materials for 1.12 trillion won, Pulse News reported Monday. The sale covers
all of Samsung SDI’s polarizing film operations at Cheongju, Suwon, and its Wuxi unit in China. - Amazon makes £8 billion UK investment to build cloud and AI infrastructure
Amazon Web Services (AWS), the U.S. e-commerce giant’s cloud division, announced plans to invest £8
billion ($10.45 billion) over the next five years to build and operate data centers in the U.K. as it ramps up its
cloud computing efforts in the country. The investment, announced early Wednesday London time, comes as
cloud players talk up the benefits of generative artificial intelligence (AI) and as companies look to integrate
the tech into their businesses. - BMW AG shares fell 11.2% after it warned that profits will get hit by a costly brake problem
BMW disclosed the spiraling cost of a recall affecting 1.5 million vehicles due to faults with their Continental
AG braking systems. Separately, Volkswagen confirmed plans to end employment guarantees in Germany,
lamenting the nation’s loss of competitiveness. The one-two punch on Tuesday dealt a further blow to the
German economy, which has been reeling since Russia cut off cheap gas supplies. The country’s carmakers
have struggled with the transition to electric vehicles, and BMW said tepid demand in China poses a further
threat to sales and profits. BMW expects earnings to fall significantly below last year’s €17.1 billion while
forecasting its auto-making operating margin would be as low as 6%, compared to a previous low of 8%. - Apple Inc. lost its court fight over a €13 billion Irish tax bill and Google lost its challenge over a €2.4
billion fine for abusing its market power, in a double boost to the European Union’s crackdown on Big Tech
The EU’s Court of Justice in Luxembourg backed a landmark 2016 decision that Ireland broke state-aid law by
giving Apple an unfair advantage. In another victory for the EU’s antitrust chief Margrethe Vestager, the same
court ruled that Google illegally leveraged its search-engine dominance to give a higher ranking to its own
product listings. Apple’s Chief Executive Officer Tim Cook previously blasted as total political crap the EU’s
2016 move to order the firm to pay €13 billion in back taxes, while the commission’s 2017 fine against Google
was leveled for abusing its search dominance to give a higher ranking to its own product listings. Vestager
ordered Ireland to claw back the sum, which amounts to about two quarters of Mac sales globally. The
money has been sitting in an escrow account pending a final ruling. Ireland must now decide what to do with
its unwanted windfall. - JPMorgan Chase & Co. shares fell 5.2%, leading bank stocks lower, after President Daniel Pinto said
analysts are being too optimistic in projecting next year’s expenses and net interest income
The current NII estimate of $89.5 billion is not very reasonable given interest-rate expectations, Pinto said at
an industry conference Tuesday. The figure will be lower, he said. The remarks added to a more pessimistic
outlook for the biggest US banks after David Solomon, Goldman Sachs Group Inc.’s chief executive officer,
said Monday that trading revenue at his firm is on track to drop 10% in the third quarter. JPMorgan reported
NII that missed analysts’ estimates for the second quarter as well as higher-than-expected costs. Pinto said
Tuesday that expectations for 2025 expenses were also too optimistic. Adding to the pressure, he said third-
quarter investment-banking fees could rise 15% and markets revenue may increase just 2%, both below what
analysts had been anticipating. - Oracle Corp
Oracle Corp shares rose 11.44% after the infrastructure software company reported quarterly profit and
bookings that topped estimates as AI demand boosted its cloud computing business. The Austin-based
company, known for its database software, is focused on expanding the cloud infrastructure business of
renting computer power and storage to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s
Google. Oracle’s cloud had developed a reputation for success with generative artificial intelligence
workloads. - Under Armour Inc
Under Armour Inc shares fell 8.71% after the sportswear company said its restructuring plan would cost more
than previously expected. It also increased its forecasts for fiscal 2025 operating loss and loss per share. The
athletic-wear brand said it decided to close a distribution centre in Rialto, California by March 2026, which
would add about $70 million in extra expenses to its turnaround strategy.
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