- Asian Stocks, Yuan Rise on Optimism About China: Markets Wrap
(Bloomberg) — Asian shares gained for a fifth day as a rally sparked by support measures from Beijing
continued, while US stocks set fresh highs, with investors preparing for further rate cuts. Equity benchmarks
rose in South Korea and Australia, while those for Japan slipped after the yen strengthened against the dollar
in the prior two sessions. - S&P 500 rises to new record high Tuesday, posts back-to-back gains
The S&P 500 rose to a fresh record on Tuesday and largely shook off a weak consumer confidence reading,
thanks to a sharp rise in Nvidia. The broad market index advanced 0.25% to 5,732.93. The Dow Jones
Industrial Average added 83.57 points, or 0.20%, to close at 42,208.22. Both indexes hit intraday all-time
highs and closed at records. The Nasdaq Composite added 0.56% and ended at 18,074.52. Shares of artificial
intelligence darling Nvidia climbed nearly 4% after a regulatory filing showed that CEO Jensen Huang
wrapped up his sales of the chipmaker’s stock for the time being. - Oil prices steady as China stimulus hopes fade, U.S. crude stockpiles fall
Oil prices steadied on Wednesday after rising in the previous session on fading excitement for the economic
stimulus in China, the world’s biggest crude importer, though an industry report showing falling U.S. crude
and fuel inventories supported the market. Brent crude futures gained 3 cents at $75.20 a barrel by 0004
GMT. U.S. West Texas Intermediate crude lost 2 cents at $71.58 per barrel. Prices rose about 1.7% on
Tuesday after China announced its most aggressive economic stimulus since the COVID-19 pandemic, with
interest rate cuts and government funding. - Middle East tensions, rate cut bets power gold to record high
Gold rose 1% and hit a record high on Tuesday, building on its recent rally as Middle East tensions fed its
safe-haven appeal, while investors latched on to fresh cues for more U.S. interest rate cuts. Spot gold was up
1.1% to $2,656.38 per ounce after earlier hitting a record of $2,654.96. U.S. gold futures gained 1% to
$2,680.00. Gold has risen 28% so far in 2024, as fears of an all-out war in the Middle East escalated. - This NYC Hedge Fund Will Reap A $90 Million Profit In The $8.4 Billion Smartsheet Deal
(Forbes) Smartsheet, an enterprise work management software platform, announced Tuesday that it will be
acquired by Blackstone and Vista Equity Partners in an all-cash deal worth $8.4 billion. Shareholders will
receive $56.50 per share, a 41% premium over the stock’s average closing price for the past three months,
according to a press release. - China’s Shadowy Crypto Brokers Lure $75 Billion as Economy Toils
(Bloomberg) — China’s over-the-counter cryptocurrency brokers are attracting unprecedented inflows, a
study shows, reflecting a hunger for alternative investments amid weak equity and property markets in a
struggling economy. The inflows topped $20 billion in each of the three quarters through June, a record
streak in data going back to 2021. - China Cuts One-Year Rate, Withdraws Cash From Banking System
(Bloomberg) — China’s central bank lowered the interest rate charged on its one-year policy loans while net
withdrawing liquidity via the lending facility, as the monetary authority shifts toward a short-term tool in an
overhaul of its policy framework. The People’s Bank of China cut the rate of the medium-term lending facility
to 2% from 2.3%. - Traders Boost Fed Bets With November Cut Size Seen as a Toss-Up
(Bloomberg) — The debate over the magnitude of the Federal Reserve’s expected interest-rate cut in
November is intensifying, with traders ramping up wagers in futures keyed to the central bank’s path as
officials start to weigh in on their next move. - Yuan Strengthens Past 7 Per Dollar for First Time Since May 2023
(Bloomberg) — The yuan rallied past the 7 per dollar milestone for the first time in 16 months as investors
digested a raft of measures to support the Chinese economy and the recent Federal Reserve rate cut kept the
dollar on the back-foot. The offshore yuan rose as high as 6.9951 per dollar on Wednesday, extending a
rebound of some 4% from a year-to-date low. - Israelis Targeting Hezbollah Forces Kill Over 500 in Lebanon
(Bloomberg) — Israel carried out more air strikes on Hezbollah targets in its heaviest and deadliest
bombardment on Lebanon since 2006, when the two sides fought a devastating war. Lebanese officials said
strikes on Monday and Tuesday killed at least 558 people, including 50 children, and wounded more than
1,800. - Trump Told of Specific Iran Assassination Plot, Campaign Says
(Bloomberg) — Republican presidential candidate Donald Trump was briefed by Biden administration officials
Tuesday on real and specific threats from Iran to assassinate him, his campaign said in a statement. A
representative of the Director of National Intelligence told Trump that Iran was plotting an effort to
destabilize the US, Trump spokesman Steven Cheung said. - Biden Hails US Economic Gains From Confronting Climate Change
(Bloomberg) — President Joe Biden cast the climate crisis as a new economic opportunity for the US, saying
his policies in office had developed a new formula to fight global warming while also creating jobs and
bolstering domestic industries. - OpenAI Pitched White House on Unprecedented Data Center Buildout
(Bloomberg) — OpenAI has pitched the Biden administration on the need for massive data centers that could
each use as much power as entire cities, framing the unprecedented expansion as necessary to develop more
advanced artificial intelligence models and compete with China. - Sanofi Said to Get Binding Bids from CD&R, PAI for Consumer Arm
(Bloomberg) — Sanofi has received binding offers for its consumer health division from private equity firms
Clayton Dubilier & Rice and PAI Partners, as the French drugmaker inches closer to one of the largest
European deals this year, according to people familiar with the matter. The two buyout firms made separate
bids for the business by Monday’s deadline. - Visa shares slid 5.5% after Bloomberg News reported that the US Justice Department is set to file a
lawsuit accusing the payments company of illegally monopolizing the US debit card market
Analysts view the development as relatively unsurprising given an ongoing Justice Department investigation,
but some see it as an incremental regulatory overhang for Visa. Citi, Andrew Schmidt: Says the development
isn’t a complete surprise given the DOJ investigation has been ongoing since 2021. Anticipates Visa likely has
a reasonable argument for increasing debit market competitiveness, noting Mastercard’s debit portfolio
wins, Regulation II clarifications supporting e-comm routing and greater availability of account-to-account
payments. However, there is likely to be an incremental regulatory overhang for V, and developments may
stretch out with variable outcomes. While Visa can likely work through this, the development prompts him to
switch his network preference to Mastercard. Rates V buy with PT $319. - European sectors with high exposure to China, including miners and luxury-goods makers, gained after
China announced measures to boost growth and shore up its property market
People’s Bank of China governor Pan Gongsheng cut a short-term key interest rate and announced plans to
reduce the amount of money banks must hold in reserve to the lowest level since at least 2018. Miners rose
in reaction to a spike in iron ore and gains in other metals, with the Stoxx Europe 600 Basic Resources sector
up 4.2%, the best-performing sector. Luxury stocks and spirit makers also gained as optimism around China
counters recent bearish sentiment around the sector. - Alibaba Group is partnering with Nvidia Corp to take autonomous driving to the next level
By integrating Alibaba’s Qwen large language models (LLMs) with Nvidia’s Drive AGX Orin platform, this
collaboration not only enhances in-car AI capabilities but also showcases Alibaba’s strategic maneuvering
amid U.S. sanctions on advanced semiconductor chips. In a display of synergy, Alibaba Cloud’s partnership
with Nvidia aims to enhance the driving experience for smart vehicle owners, equipping cars with intelligent
voice assistants capable of executing commands and offering recommendations. Alibaba shares gained 7.9%
alongside other Chinese stocks after the nation released a slew of stimulus measures earlier. - Novo Nordisk A/S
Novo Nordisk A/S shares rose 0.60%. The healthcare company’s top executive faced a Senate grilling on 24
September over the high prices of the company’s weight loss drug Wegovy and diabetes treatment Ozempic,
as demand for both injections soars in the US. Ozempic is currently in short supply in Denmark due to
delivery difficulties, according to the Danish Medicines Agency. Shortage of the diabetes treatment started in
early August and is expected to last until middle of October, the agency said in a supply warning. - Nvidia Corp
Nvidia Corp shares rose 3.97%. The technology company’s CEO Jensen Huang is done selling the chipmaker’s
stock for the time being, cashing in more than $700 million under a prearranged plan. The 61-year-old
executive adopted a trading plan in mid-March for the sale of up to 6 million Nvidia shares by the end of Q1. The sales were made under a 10b5-1 plan, which allows insiders to sell shares under a preplanned structure.
