- Asian Stocks Fall With Fed, BOJ Decisions Ahead: Markets Wrap
(Bloomberg) — Asian stocks were down following a mixed session on Wall Street as traders look ahead to
decisions from the Federal Reserve and the Bank of Japan this week. Equities in Sydney rose while those in
Tokyo declined. - S&P 500 inches closer to record, Dow touches all-time high ahead of Fed meeting
The S&P 500 ticked higher Monday as investors awaited the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020. Meanwhile, the Dow Jones Industrial Average rose to a new all-time high. The S&P 500 added 0.13%, ending at 5,633.09. The 30-stock Dow advanced 228.30 points, or 0.55%, ending at 41,622.08, notching a record close. Meanwhile, the tech-heavy Nasdaq Composite shed 0.52%, falling to 17,592.13. - Oil extends gains on U.S. output concerns, expected drop in stockpiles
Oil prices extended gains on Tuesday as the market eyed U.S. output concerns in the aftermath of Hurricane
Francine and expectations of lower U.S. crude stockpiles. Brent crude futures for November rose 16 cents, or
0.2% at $72.91 a barrel at 0120 GMT. U.S. crude futures for October climbed 34 cents, or 0.5%, at $70.43 a
barrel. Both contracts settled higher in the previous session as the ongoing impact of Hurricane Francine on
output in the U.S. Gulf of Mexico countered Chinese demand concerns ahead of this week’s U.S. Federal
Reserve interest rate cut decision, which should prove positive for investor sentiment in oil. More than 12%
of crude production and 16% of natural gas output in the U.S. Gulf of Mexico were offline, according to the
U.S. Bureau of Safety and Environmental Enforcement on Monday. - Gold hovers near record high ahead of Fed rate verdict
Gold prices hovered near a record high on Tuesday, ahead of the anticipated start of the U.S. interest rate
reduction cycle, which could see policymakers deliver an outsized cut. Spot gold was steady at $2,581.68 per
ounce as of 0254 GMT. Bullion rose to a record high of $2,589.59 on Monday. U.S. gold futures were also
steady at $2,608.60. - Hedge Fund Regal Seeks to Buy Platinum Asset in Growth Push
(Bloomberg) — Philip King’s Regal Partners Ltd. offered to buy rival Platinum Asset Management Ltd. as the
hedge fund presses on with an expansion push that’s seen assets more than triple in just two years. Sydneybased Platinum received an unsolicited and non-binding proposal from Regal to acquire all of its shares via a
scheme of arrangement, the company said in a statement. - Brainard Downplays Inflation Risk, Says Lower Rates Aid Housing
(Bloomberg) — President Joe Biden’s top economic adviser downplayed the risk of a re-emergence of inflation
as policymakers shift their focus toward protecting the job market. National Economic Council Director Lael
Brainard said Monday that the US economy had reached a turning point and suggested lower market interest
rates could help address housing costs. - Yen Strengthens Beyond 140 Per Dollar for First Time Since 2023
The yen advanced past the key psychological level of 140 against the dollar as the Japanese currency
extended its rally from the weakest point in nearly 38 years in July. It appreciated as much as 0.6% versus the
dollar to 139.96 on Monday, its strongest level since July 2023. The yen has been the best-performing Groupof-10 currency this quarter, with a 15% gain as investors position for a further narrowing of the interest-rate
gap between the US and Japan. - India’s central bank chief plays down fears of a deposit crunch
Speaking to CNBC in an exclusive interview, Reserve Bank of India (RBI) Governor Shaktikanta Das discussed
the issue of slowing growth in bank deposits underperforming an expansion in loans. When lending outpaces
deposits, net interest margins take a hit. In severe cases, it can lead to liquidity issues for banks. There is not
cause for concern currently, Das said, but there could be trouble ahead if the situation persists. - Trump Unveils Crypto Project, Says US Should Dominate Sector
(Bloomberg) — Donald Trump headlined an event billed as the unveiling a crypto platform promoted by the
Republican nominee and his sons, putting the spotlight on a niche digital-asset sector with a history of
controversy. The project, World Liberty Financial, will be part of the decentralized finance segment of digital
assets. - Biden administration awards Intel up to $3 billion under the CHIPS Act
The Biden administration awarded Intel up to an additional $3 billion under the CHIPS and Science Act for the
Secure Enclave program, designed to expand the supply of microelectronics for the Department of Defense.
Intel is building foundry plants in four states as part of its project to increase domestic semiconductor
manufacturing for other suppliers. In March, the Biden administration awarded Intel with up to $8.5 billion
under the CHIPS Act. - Trump Seeks to Gain 2024 Momentum After Golf Course Gunman
Donald Trump is poised to capitalize on the second attempt on his life in recent months, using the shocking
development to try to snatch back the political momentum that Vice President Kamala Harris has enjoyed.
By portraying Trump as a fighter and survivor, his campaign hopes to capture Americans’ fractured attention
and lay the blame for yet another assassination attempt on Harris and Democrats. - Blinken to Make 10th Trip to Mideast for Elusive Gaza Cease-Fire
(Bloomberg) — Secretary of State Antony Blinken plans to embark on his 10th trip to the Middle East since the
Israel-Hamas war began almost a year ago, as the Biden administration continues efforts to revive the stalled
cease-fire talks as the US elections approach. The top US diplomat will fly to Cairo to discuss the negotiations
for a cease-fire in Gaza. - Deutsche Bank Mulls Ways to Hinder Orcel’s Commerzbank Move
(Bloomberg) — Deutsche Bank AG is exploring options to make it harder for UniCredit SpA to buy
Commerzbank AG as it considers how, or whether, to react to a potential deal that would create a huge
competitor in its home market, people with knowledge of the matter said. Chief Executive Officer Christian
Sewing and his lieutenants have been analyzing the situation over the past few days, the people said. Options
that have come up included buying part or all of the German government’s remaining 12% stake in
Commerzbank, according to the people, who asked not to be identified because the information is private. - Intel Corp. Chief Executive Officer Pat Gelsinger has landed Amazon.com Inc.’s AWS as a customer for
the company’s manufacturing business, potentially bringing work to new plants under construction in the
US and boosting his efforts to turn around the embattled chipmaker
Intel and AWS will coinvest in a custom semiconductor for artificial intelligence computing, what’s known as a
fabric chip, in a multiyear, multibillion-dollar framework, according to a statement Monday. The work will
rely on Intel’s 18A process, an advanced chipmaking technology. Intel CEO Pat Gelsinger has lined up Amazon
as a customer for its outsourced manufacturing operations. The shares jumped more than 8% in late trading
after the announcement. They had been down 58% this year, closing at $20.91 on Monday. Today’s
announcement is big, Gelsinger said in an interview. This is a very discerning customer who has very
sophisticated design capabilities. The news was part of a flurry of announcements that followed a pivotal
board meeting last week. Intel also is postponing new factories in Germany and Poland, but remains
committed to its US expansion in Arizona, New Mexico, Oregon and Ohio. - Apple shares fall as much as 3.9% on Monday as analyst Ming-Chi Kuo notes that, based on his first
weekend pre-order analysis, demand for the iPhone 16 Pro series is lower than expected. However,
analysts from Bloomberg Intelligence and BofA note that the pre-order data might be too early to
accurately gauge iPhone 16 demand
If the losses hold, Apple is set to wipe off about $100 billion in market value. In the US, Cirrus Logic -6.6%,
Qorvo -5.8%, Skyworks -5.7%, Micron -3.3%, Broadcom -2.0%, TSMC ADRs -2.0%. ANALYST COMMENTARY: TF
International Securities analyst Ming-Chi Kuo says iPhone 16 series first-weekend pre-order sales are
estimated at about 37 million units, down about 12.7% YoY from last year’s iPhone 15 series first-weekend
sales. One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the
major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release, Kuo writes
in his report. Additionally, intense competition in the Chinese market continues to impact iPhone demand. - Ascendis Pharma stock rocketed Monday on promising test results for a growth treatment that could
rival BioMarin Pharmaceutical’s approved drug, Voxzogo
Ascendis tested its drug, dubbed TransCon CNP, in children ages 2 to 11 with achondroplasia. In this genetic
condition, an abnormal protein causes slow growth. Children who received TransCon CNP for a year grew an
average 5.89 centimeters, compared to 4.41 centimeters for placebo recipients. Ascendis Pharma’s results
look competitive with BioMarin’s Voxzogo, Leerink Partners analyst Joseph Schwartz said in a report.
Acknowledging the perils of cross-trial comparisons, it appears that TransCon CNP data are competitive vs.
the one approved product, he said. Moreover, considering TransCon CNP is a once-weekly injection vs. oncedaily for Voxzogo, we see this becoming a meaningful product for Ascendis, he said. In morning trades,
Ascendis Pharma stock surged more than 17% to 140. Shares bounded over their 50-day and 200-day moving
averages, according to MarketSurge. BioMarin stock tumbled more than 14% to 72.18. - Air Canada
Air Canada shares rose 3.47% on Monday in Toronto after the airline reached an agreement with its pilots to
avert a strike. The deal with the Air Line Pilots Association avoided grounding over 1,000 daily flights around
the world. Pilots will get a 42% compensation raise over a four-year contract with a C$1.9 billion ($1.4 billion)
cost to the carrier. Air Canada is the largest foreign carrier in the US with as many as 400 daily transborder
flights.
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