- Asian Stocks Fall After US Tech Slump; Yen Swings: Markets Wrap
(Bloomberg) — Asian equities fell as fresh signs of slowing US inflation bolstered rate cut bets and spurred a rotation out of big tech stocks on Wall Street. The yen was volatile. Japanese shares fell more than 1% after Thursday’s rally in the yen prompted speculation that authorities had stepped in with official support. - BOJ Conducts Rate Check on Yen Against Euro, Nikkei Says
(Bloomberg) — The Bank of Japan conducted a rate check on yen against the euro, Nikkei reports, citing an unidentified person. Rate check signals that Japan is preparing to intervene in the fx market - Japan Kanda Keeps Traders in Dark Over Yen Intervention
(Bloomberg) — Japan’s currency chief continued to keep market players guessing over whether Tokyo stepped into the foreign exchange market to prop up the yen, playing down the validity of a local media report that said a government official confirmed intervention. “We haven’t given any answer at all regarding if intervention happened. - China’s Growth Likely Slowed Ahead of Key Economic Meeting
(Bloomberg) — China’s economic growth likely weakened in the second quarter, with headwinds adding pressure on Chinese leaders to lift confidence at a twice-a-decade policy meeting next week. Data due Monday is expected to show the world’s second-largest economy grew 5% in the last quarter compared to the same period in 2023, according to economists surveyed. - Fed’s Goolsbee Says CPI Data Indicate Inflation on 2% Path
(Bloomberg) — Federal Reserve Bank of Chicago President Austan Goolsbee described the latest inflation data as “excellent,” adding the figures provided the evidence he’s been waiting for to be confident the central bank is on a path to its 2% goal. Goolsbee declined to offer guidance on the timing of the first interest-rate cut. - Oil Rises for Third Day on Improving Demand and Weaker Dollar
(Bloomberg) — Oil climbed for a third day on signs of stronger demand, and signals the Federal Reserve is getting close to its much-anticipated pivot. Brent crude rose toward $86 a barrel and West Texas Intermediate neared $83. Data this week showed improved consumption of gasoline and jet fuel in the US over the summer travel season. - Biden Says Allies to Cut China Investment Over Russia Policy
(Bloomberg) — President Joe Biden said European allies are prepared to cut investment to China if it keeps up its support for Russia, offering a warning after NATO accused Beijing of enabling the invasion of Ukraine. Biden reiterated that China was not directly supplying weapons to Russian President Vladimir Putin’s forces but also underscored. - Boeing Warns Customers of Further Delays on 737 Max Amid Crisis
(Bloomberg) — Boeing Co. has notified some 737 Max customers in recent weeks that aircraft due for delivery in 2025 and 2026 face additional delays, another reminder that production of its cash-cow jetliner faces a long road to recovery. The plane maker has cautioned that delivery timelines continue to slip by three to six months on top of already-late handovers. - Biden Confuses Leaders, Harris for Trump at Vital Moment
(Bloomberg) — President Joe Biden downplayed concerns about his presidential campaign, but a series of high-profile gaffes during the NATO summit on Thursday renewed concerns about his age and acuity. Biden drew gasps and instant mockery online when he mistakenly introduced Ukrainian President Volodymyr Zelenskiy as Russian President Vladimir Putin. - How Macron’s Gambit Thrust France into Economic Uncertainty
(Bloomberg) — Emmanuel Macron’s surprise call for a snap election wasn’t just a political shock it was a financial shock, too. The unexpected move by an unpopular French president pushed all-important spreads on the country’s bonds to their highest level in more than a decade. - Trump Asks to Toss Hush Money Verdict Over Immunity Ruling
(Bloomberg) — Donald Trump asked a New York judge to toss out his hush money conviction because of the US Supreme Court ruling that presidents have at least some immunity from criminal charges, setting up a fresh fight with Manhattan prosecutors as his campaign to take back the White House heats up. - Jefferies Winds Down Hedge Fund 352 Capital in Wake of Lawsuit
(Bloomberg) — Jefferies Financial Group Inc. is winding down trading positions at its hedge fund 352 Capital, after the fund sued its former portfolio manager over an alleged fraud, according to people with knowledge of the matter. - Private Equity’s Creative Wizardry Is Obscuring Danger Signs
(Bloomberg) — As Pete Stavros addressed the private equity industry’s yearly shindig in Berlin last month, the KKR & Co. executive’s words were slightly less headline grabbing than those of Apollo Global Management’s co-president Scott Kleinman. But they were just as troubling. - Ackman Touts Berkshire as Model for Closed-End Fund: ECM Watch
(Bloomberg) — Billionaire hedge fund manager Bill Ackman is marketing the initial public offering of Pershing Square USA Ltd., a US closed-end fund that could raise as much as $25 billion. In a briefing Thursday with prospective investors, he wasn’t talking about a rival closed-end fund provider instead it was Warren Buffett’s Berkshire Hathaway Inc. - FTC Delays Chevron-Hess Decision to After Exxon Arbitration
(Bloomberg) — The US Federal Trade Commission plans to delay its decision whether to block Chevron Corp.’s $53 billion takeover of Hess Corp. until after an arbitration case with Exxon Mobil Corp. is settled, according to people familiar with the matter. The case with Exxon, which claims to have a right of first refusal over Hess’s biggest asset in Guyana. - Yen Jumps 2% After US Inflation, Spurring Talk of Intervention
(Bloomberg) — The yen rapidly soared more than 2% against the dollar after a softer-than-expected reading of US inflation, prompting speculation that Japan stepped into the market to support its currency. The currency abruptly rallied by as much as four yen to 157.44 per dollar in the minutes after data showed US core consumer prices rose the least in almost three years. - Tesla shares tumbled 8.44%, after it postponed the unveiling of its robotaxi from August to October.
This move came to allow teams working on the project to have more time to build additional prototypes, while the design team was told this week to rework certain elements of the vehicle. - Delta Airlines shares fell 3.99%, after it reported its second quarter financial results and its third quarter forecast.
For the second quarter, adjusted earnings per share came in at $2.36, while estimates were at $2.38. Adjusted revenue was at $15.41 billion, short of estimates of $15.43 billion. For the third quarter, Delta Airlines forecasted an adjusted earnings per share between $1.70 and $2, which fell short of estimates of $2.04. The company attributed its underperformance to the heavy competition in the domestic market, which drove airfares down. - Interactive Brokers Group shares slide as much as 4.3%, the most intraday since November, after Keefe, Bruyette & Woods analyst Kyle Voigt cut the recommendation to market perform from outperform after shares had rallied 51% this year through Wednesday’s close.
Analyst cites “our expectation of slower NII and EPS growth over the next two years with global central banks beginning to cut interest rates”. Raises price target to $135 from $128. - Pfizer shares rise as much as 3.1%, the most intraday since May, after the drugmaker said it is advancing the development of its once-daily weight-loss pill, danuglipron.
Analysts see the news as positive for Pfizer but note that additional data is needed to address the drug’s potential. Pfizer plans to conduct dose optimization studies in the second half of 2024 evaluating multiple doses of the preferred modified release formulation to inform the registration enabling studies. Truist, Sri Kripa Devarakonda (buy, PT $36): “We view this as a positive for Pfizer who aims to enter the lucrative weight loss space”; Says if Pfizer can show tolerable gastro-intestinal issues with danuglipron while not compromising efficacy, “they could have a competitive program”. - Bayer shares rise as much as 2.9% after securing US FDA fast track designation for AB-1005, which is being developed for moderate Parkinson’s disease.
AB-1005 has also been awarded the Innovation Passport by the UK MHRA, according to an emailed statement. AB-1005 is an investigational adeno-associated virus 2 glial cell line-derived neurotrophic factor (AAV2-GDNF) neurorestorative gene therapy. - Inflation falls 0.1% in June from prior month, helping case for lower rates
The CPI, a broad measure of costs for goods and services, declined 0.1% from May, putting the 12-month rate at 3%, around its lowest level in more than three years. Excluding volatile food and energy costs, the so-called core CPI increased 0.1% monthly and 3.3% from a year ago. The annual increase for the core rate was the smallest since April 2021. A 3.8% slide in gasoline prices held back inflation for the month, offsetting 0.2% increases in both food prices and shelter. - Gold reclaims $2,400 mark after U.S. inflation data lifts rate-cut bets
Gold prices jumped more than 1% on Thursday to break above the $2,400 per ounce level after data showed U.S. consumer prices unexpectedly slipped last month, boosting bets for interest rate cuts by the Federal Reserve. Spot gold was up 1.8% at $2,414.40 per ounce, its highest since May 22. U.S. gold futures rose around 1.6% to $2,418.70. - Stock futures are flat Friday after S&P 500 suffers worst day since April
U.S. stock futures were little changed Friday morning after the S&P 500 had its worst session since April, dragged lower by investors’ rotation out of mega cap tech stocks. S&P 500 futures were marginally higher. Futures linked to the Dow Jones Industrial Average were up around 0.1%, while Nasdaq 100 futures fell 0.11%. - China gears up for next week’s Third Plenum meeting. Here’s why real estate isn’t likely the main focus
The much-anticipated policy meeting, scheduled for Monday to Thursday, is a major gathering of the top members of the ruling Communist Party of China that typically happens only once every five years. This plenum was widely expected to be held last fall but has been delayed. - Thursday was a historically strange day in the stock market.
That may be good news The Russell 2000 rose more than 3%, while struggles for Big Tech stocks weighed on the S&P 500 and Nasdaq Composite. Much of the recent rally has been driven by large tech stocks, leading investment pros to worry about a narrow group of market leaders. The split trading came after the June report for the consumer price index early Thursday showed that headline inflation actually declined last month and is now up about 3% over the past year.
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