- Asia Stocks Track US Decline, Yen Weakens Past 150: Markets Wrap
(Bloomberg) — Asian stocks tracked a drop on Wall Street following hotter-than-expected US inflation data, while a slump in the yen past 150 per dollar triggered a warning from Japan. Shares fell in South Korea, Japan and Australia while US equity futures steadied after the consumer price index report led US stocks to drop from near all-time highs. - Massive Office Tower Losses Reveal Hidden Risks Across the Globe
(Bloomberg) — The shakeout in the $20 trillion US commercial real estate market has long been delayed for a simple reason: No one could figure out just how much properties were worth. And, more crucially, few wanted to. Since the Covid-19 pandemic upended the use of real estate around the world, lenders have had little incentive to get tough on borrowers squeezed by soaring interest rates and take on loans that had lost value. - Apple’s Longest-Serving Designer to Depart, Adding to Exodus
(Bloomberg) — Apple Inc.’s longest-serving senior industrial designer is leaving the company, marking the near-complete turnover of a team once led by Jony Ive. Bart Andre, who joined Apple in 1992 alongside Ive, told colleagues this month that he is retiring, according to people familiar with the matter. Andre was one of the last remaining designers from the Ive era and helped create the aesthetic for Apple products released over the past three decades — even prior to Steve Jobs returning to the helm in the late 1990s. - Ukraine Aid Crashes Headlong Into US House Standoff Over Border
(Bloomberg) — Any relief felt in Kyiv over the US Senate’s pre-dawn passage of Ukraine war aid will almost certainly be short-lived. The legislation has no chance of advancing in the US House anytime soon. House Speaker Mike Johnson has refused to act on Ukraine until a Republican-only bill to address the migrant crisis at the US-Mexico border is enacted. Democrats, who endorsed a short-lived bipartisan immigration deal last week, say the price of that ransom is simply too high. - US Inflation Tops Forecasts in Blow to Fed Rate-Cut Hopes
(Bloomberg) — US consumer prices jumped at the start of the year, stalling recent disinflation progress and likely delaying any Federal Reserve interest-rate cuts. The consumer price index rose by more than forecast across the board in January — on a monthly and annual basis — as did the core measures, which strip out food and energy costs. A key subset of services prices advanced by the most in nearly two years, and shelter costs heated up, government data showed Tuesday. - Momentum Slams Into a Wall in S&P 500’s Worst CPI Day In Years
(Bloomberg) — The S&P 500 Index blew past a series of troubling markers in its relentless rally to 5,000. Now, after Tuesday’s rout, investors are staring at a potentially long way down before they find support. Signs of over exuberance are everywhere: The S&P 500s 15-week rally, in which it gained 22% through Monday’s close, pushed the gauge 13% above its 200-day moving average, something that has occurred on just 5% of the trading days this century. - Activist Carl Icahn Takes Stake in JetBlue, Eyeing Board Seat
(Bloomberg) — Activist investor Carl Icahn took a 9.91% stake in JetBlue Airways Corp. with plans to seek at least one spot on the board, aiming to boost shareholder value in the wake of the near-collapse of the carrier’s deal to buy Spirit Airlines Inc. Shares in the airline were more than 18% higher Tuesday afternoon. - Lyft stock up 17% on cost cuts after wild ride on company’s forecast error
Reuters) -Lyft beat estimates for quarterly profit on Tuesday and said it would generate positive free cash flow for the first time in 2024, as it cut costs and became more competitive with larger rideshare rival Uber (NYSE: UBER). Shares were up 17% in late afterhours trade, despite a major gaffe: Lyft (NASDAQ: LYFT)’s said incorrectly in a statement that a key margin metric was expected to rise by 500 basis points this year. On a conference call later, Chief Financial Officer Erin Brewer corrected the forecast to an increase of 50 basis points. - Consumer prices rose 0.3% in January, more than expected, as the annual rate moved to 3.1%
Inflation rose more than expected in January as stubbornly high shelter prices weighed on consumers, the Labor Department reported Tuesday. The consumer price index, a broad-based measure of the price’s shoppers face for goods and services across the economy, increased 0.3% for the month, the Bureau of Labor Statistics reported. On a 12-month basis, that came out to 3.1%. - Risk-Parity Quants Reel as CPI-Fuelled Rout Spreads Across Assets
(Bloomberg) — Tuesday’s hot inflation data sparked a fresh rout for a diversified quant strategy made famous by Ray Dalio, evoking memories of the pain on Wall Street during the hawkish monetary era. After the core consumer price index climbed the most in eight months, the RPAR Risk Parity ETF (ticker RPAR) dropped 1.7% as stocks and bonds fell in tandem.
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