1. Stocks Waver as Traders Map Out Game Plan for CPI: Markets Wrap

    (Bloomberg) — Wall Street kicked off the week on a cautious note, with traders positioning for key inflation data that will help shape the outlook for Federal Reserve policy and global financial markets. Stocks, bonds and the dollar saw small moves just a few days ahead of the key consumer price index.

  2. Hong Kong Stocks Set for Gains on Tencent Optimism: Markets Wrap

    (Bloomberg) — Hong Kong stocks were poised for gains following a rally in US-listed Chinese shares overnight. Other Asian markets traded rangebound ahead of key US inflation data this week. Equity futures for Hong Kong rose after the Golden Dragon Index surged on Monday to the highest level since September, spurred by an 11% gain in Tencent Music Entertainment.

  3. Chinese Stocks Stage a Rally That’s Yet to Convince Global Funds

    (Bloomberg) — Chinese stocks may have bottomed, but money managers are reluctant to return en masse. The MSCI China Index’s 27% gain since a January low mostly reflects a rotational play on cheap valuations, and Chinese earnings are yet to convince, according to Lombard Odier, Pictet Asset Management, and Fidelity International.

  4. BlackRock Touts Japan Investment Opportunity After Policy Shift

    (Bloomberg) — Japan has become an attractive destination for global investors as its monetary policy shift and corporate governance reforms create opportunities, BlackRock Inc.’s head of Asia-Pacific Susan Chan said. “The market has turned and it’s gathering great momentum,” Chan said in the pilot episode of Tiger Money, a Bloomberg podcast.

  5. US Inflation, Home Price Expectations Pick Up in NY Fed Survey

    (Bloomberg) — US consumer expectations for inflation and home prices rose in April while perceptions of the labour market weakened, underscoring an uneasy backdrop for household finances and the cost of living. Consumers expect prices will climb at an annual rate of 3.3% over the next year after hovering around 3% for the past four months

  6. Yellen Says Major China Trade Retaliation ‘Always a Possibility’

    (Bloomberg) — Treasury Secretary Janet Yellen said she hopes China won’t mount major retaliation against any steps Washington takes to safeguard investments in critical new industries, while emphasizing the US cannot allow these emerging sectors to be “wiped out” by Chinese competition.

  7. Australia to Record a Second Surplus, Bucking Global Trends

    (Bloomberg) — Australian Treasurer Jim Chalmers will announce the government’s books are in the black for a second straight year, putting the nation’s fiscal standing near the top of developed-world counterparts. The underlying cash surplus will be A$9.3 billion ($6.1 billion), or 0.4% of gross domestic product, in the 12 months through June 30.

  8. Labour’s Lammy Vows ‘Ironclad’ Support for Ukraine on Kyiv Visit

    (Bloomberg) — Labour’s David Lammy and John Healey promised to maintain the UK’s “ironclad” commitment to supporting Ukraine in its war against Russia if the opposition party wins a looming general election, as the two senior members of the shadow cabinet visited Kyiv.

  9. Facebook Use May Have Helped Trump With Some Voters, Report Says

    (Bloomberg) — Using Facebook in the lead-up to the US 2020 presidential election might have increased the chances of someone voting for Donald Trump, university researchers said in a study published Monday in the academic journal Proceedings of the National Academy of Sciences.

  10. Stock futures are little changed as investors brace for key inflation reports

    Stock futures flickered near the flatline Monday evening as Wall Street braced for the release of key inflation reports. S&P 500 futures inched down 0.04%, while Nasdaq 100 futures slipped 0.08%. Dow Jones Industrial Average futures lost 5 points, or 0.01%.

  11. Japanese Bond Yields Climb to Decade Highs on BOJ Policy Bets

    (Bloomberg) — Japanese sovereign bond yields are surging to the highest levels in more than a decade amid signs the central bank is ready to reduce debt purchases to ease pressure on the ailing yen. The yield 20-year sovereign debt rose 3.5 basis points to 1.77%, the most since 2013, while that on 30-year bonds reached its highest since at least 2011.

  12. BofA’s Moynihan Says Consumers Still Strong Even With High Rates

    (Bloomberg) — Bank of America Corp. Chief Executive Officer Brian Moynihan told US consumers, helped by wage growth, remain in good shape even amid elevated interest rates, and that businesses are once again looking at mergers and acquisitions. Consumer spending has climbed 3% to 4% in May from a year ago.

  13. Hedge funds are once again targeting Qantas

    Hedge funds are once again targeting Qantas, driving short bets against the airline back to multi-year highs even as it attempts to repair its fractious relationship with customers and move on from regulatory troubles.

  14. US IPOs to Slow After Five Weeks of $1 Billion-Plus Volume

    (Bloomberg) — Initial public offerings in the US are poised to take a breather, with volume expected to snap a solid run of five consecutive weeks with more than $1 billion raised. Last week’s first-time share sales, led by electric vehicle maker Zeekr Intelligent Technology Holding Ltd.’s $441 million offering, capped the longest streak of $1 billion-plus.

  15. Maersk shares gained 7.7% as the shipping stock caught up after Danish markets were closed for holidays on Thursday and Friday last week. Analysts at Citi lifted their earnings estimates on the stock to reflect the recent rise in freight rates.

    Maersk shares sat out last week’s share-price gains across shipping peers such as Hapag-Lloyd, D’Amico and Frontline, which benefited from a sharp rise in freight rates. If sustained, this could lead to higher profits, Stifel analysts expect. Citi analyst Sathish Sivakumar has lifted his FY24 adjusted Ebitda forecast for Maersk to $5.6b from $5.1b to reflect the spike in freight rates. “We believe the recent spike is driven by a combination of capacity moderation in 2Q and expectations on rebound in demand.

  16. Shares of Arm rose 7.7% after the company was said to be seeking to launch its first AI products next year.

    The Nikkei reported the plan without saying how it got the information. The move is part of SoftBank’s broader ambition of creating a semiconductor conglomerate. SoftBank will help finance hundreds of billions of yen in initial development costs. Arm aims to build a prototype by the spring of 2025. SoftBank is in talks with TSMC about manufacturing, with production expected to start in the fall of next year.

  17. Intel shares gained 2.2% after the Wall Street Journal reported that the chipmaker is in advanced talks for a deal in which Apollo Global Management would provide more than $11 billion to help the company build a plant in Ireland, citing people familiar with the matter.

    The two firms are in exclusive discussions, and a deal could come together in the coming weeks, the WSJ reported.

  18. Shares of Incyte roses 8.6% Monday after the biopharmaceutical company said it is purchasing billions of dollars’ worth of its own shares.

    The company is offering to buy up to $1.672 billion worth of its stock in a modified “Dutch Auction,” according to a press release on Monday. It’s a type of auction where the company specifies a range of prices and shareholders can offer to sell whatever quantity they choose within that price range. Incyte will buy back shares at the lowest figure that would allow it to make the entire purchase.

  19. Apple Inc. saw its shares rise by 1.76%, following the company’s announcement that they have closed in on an agreement to use OpenAI’s technology on the iPhone.

    An OpenAI accord will enable Apple to offer a popular chatbot, among its other new AI features that will be announced during the Worldwide Developers Conference held in June.

  20. Tencent Holdings is set to report earnings today, as it shows the company’s recovery from a period of China’s regulatory scrutiny.

    Tencent is also expected to post its slowest pace of revenue growth since 2022, reflecting their struggle to drive expansion. The company is also projected on average to record 5.90% growth in sales for the first quarter.

  21. GameStop short sellers lost almost $1 billion in Monday’s monster rally

    Short-selling hedge funds suffered a mark-to-market loss of $838 million in GameStop, data firm S3 Partners said. “Expect short covering in this stock as it already had a 100/100 squeeze score prior to today’s trading,” said Ihor Dusaniwsky, S3 managing director of predictive analytics. The sudden advance in the stock was seemingly triggered by “Roaring Kitty,” who once encouraged an army of day traders to pile into the videogame retailer in 2021.

  22. China and India still rely heavily on coal, climate targets remain ‘very difficult’ to achieve

    While India and China have ambitious plans to cut emissions, heavy reliance on coal — the dirtiest fossil fuel — continues to be the most reliable and affordable way of meet rising electricity demand. Global electricity generation from coal has been consistently rising for the last two decades, with the highest increases coming from China (+319 TWh) and India (+100 TWh) last year, according to a study by energy think tank Ember.

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