- Dollar Up, Bond Futures Down on Trump-Win Bets: Markets Wrap
(Bloomberg) — The dollar rose and Treasury futures fell as traders took stock of the likelihood of Donald Trump winning the US presidential election after an assassination attempt. A Bloomberg gauge of the greenback’s strength against peers climbed 0.2%, the Mexican peso slipped and Bitcoin touched its highest in more than a week. - Oil Declines with Dollar Strength in Focus After Trump Shooting
(Bloomberg) — Oil fell as an assassination attempt on Republican presidential contender Donald Trump brought political risk squarely into focus, with China’s Third Plenum also kicking off on Monday. Brent traded near $85 a barrel after paring an early gain, while West Texas Intermediate was below $82. - Global Markets Ramp Up the ‘Trump Trade’ After Rally Attack
(Bloomberg) — As world financial markets started to reopen after the attempted assassination of Donald Trump, one thing seemed likely: The Trump trade will get even more momentum. The series of wagers based on anticipation that the Republican’s return to the White House would usher in tax cuts, higher tariffs and looser regulations. - Big Take: Bold and Bloodied Trump Seizes Moment After Being Shot
(Bloomberg) — Donald Trump’s instinct for showmanship kicked in immediately after a moment of absolute terror. The Secret Service was urging him to flee after a shooter’s bullet missed his head and clipped his ear. But Trump, with blood streaking across his face, wasn’t going to let the moment go to waste. - ECB May Prime Investors for September Rate Cut: Eco Week
(Bloomberg) — European Central Bank officials may be about to prime investors for another interest-rate cut, though only after one of the Governing Council’s longest-ever summer breaks between decisions. With a move on Thursday effectively ruled out as policymakers take time to assess the strength of lingering inflation pressures. - Third Plenum to Set China Reform Path – Why It’s Key: Economics
(Bloomberg Intelligence) — China’s top leadership will gather on July 15-18 for the Third Plenum, a major policy meeting that at times has marked pivotal shifts – famously in 1978, when Deng Xiaoping set the economy on a fresh path for opening and development. - How Beijing Could Fill 8% of GDP Property Crater: Economics
(Bloomberg Economics) — From peak to trough over 2018-2026, the contraction in the property sector will blow an 8% of GDP hole in China’s economy. The question is, can policymakers build new growth engines big enough to fill it? Our sectoral analysis of emerging high technology and green industries suggests they could pull it off. - Trump Shooting Changes Biden’s Plan to Revive 2024 Campaign
(Bloomberg) — President Joe Biden had just begun to turn the tables in his re-election bid when the attempt on Donald Trump’s life took away his most powerful tool: drawing attention to his opponent’s behaviour and second-term agenda. Battered by doubts about his mental fitness and pressure to step aside, Biden fought back on Friday with an energetic speech in Detroit. - PBOC Conducts 100B Yuan MLF; 103B Yuan Due in July: Details
(Bloomberg) — Following is a table showing net position of cash liquidity of People’s Bank of China, which accounts for repurchase notes, reverse repurchase notes and medium-term lending facility (MLF). PBOC injects 129b yuan with reverse repo; total maturity amounts to 2b yuan today. Net injection of open market operations is 127b yuan. PBOC conducts 100b yuan of MLF ops. - Foreign Banks Are Snapping Up Short-Term Indian Bonds, BofA Says
(Bloomberg) — Global banks are targeting shorter maturities in their purchases of India’s sovereign bonds, tapping improved liquidity amid limited supply, according to Bank of America Corp.’s head of India fixed income. Foreign banks bought nearly 600 billion rupees ($7.2 billion) in all maturities since the start of June even as state-run banks and mutual funds sold. - Trump shooting live updates: Biden says politics must never become ‘a killing field
President Joe Biden addressed the nation from the White House, where he condemned all political violence and called for unity. “Disagreement is inevitable in American democracy,” Biden said. “It’s part of human nature. But politics must never be a literal battlefield, or God forbid, a killing field.” The attempted assassination of former President Donald Trump at a rally in Pennsylvania on Saturday has left one attendee and the gunman dead, and two more attendees still in critical but stable condition. Trump was grazed by a bullet and treated at a local hospital, but released late Saturday night. - Elon Musk and Bill Ackman Endorse Trump’s 2024 Bid for President After Shooting — WSJ
Billionaire entrepreneur Elon Musk and hedge-fund manager Bill Ackman formally threw their support behind Donald Trump in the wake of Saturday’s assassination attempt, endorsing him for president in the upcoming U.S. election. Musk, who leads multiple businesses, including electric-car company Tesla and rocket-maker SpaceX. - Wall Street Pushes Back After Activists Escalate Summer Protests
(Bloomberg) — Against a backdrop of intensifying climate protests targeting Wall Street, the heavyweights of US finance are pushing back against what they characterize as a fundamentally flawed debate. For more than a month now, scores of activists have mounted near-daily protests outside the Manhattan headquarters of Citigroup Inc. - Google Parent Nears $23 Billion Deal for Startup Wiz: WSJ
(Bloomberg) — Google parent Alphabet Inc. is in advanced talks to buy cybersecurity startup Wiz in a deal that could fetch $23 billion, the Wall Street Journal reported, citing people with knowledge of the matter. The deal would be Alphabet’s largest acquisition ever and could come together “soon,” the newspaper said. - Market Chatter: Equinix Plans Minority Sale in Hong Kong Data Centres
Equinix, a global data centre operator, plans to sell a minority stake in its assets in Hong Kong, Reuters reported, citing two sources with direct knowledge of the matter. The company could divest a 25% stake in the data centres to cash in on the artificial intelligence wave, the report said, citing one of the sources. - Shares in European shipping companies extended their slide, with Denmark’s Maersk shedding 3.5%, as economic uncertainty and excess capacity concerns continued to pressure freight rates.
Maersk shares have now slumped 17% since early July highs and are trading at their lowest price since mid-May. Its stock fell earlier in the week after Hamas was said to have dropped its objections over a US-backed ceasefire proposal to halt the conflict with Israel. - Ericsson shares rose 4.4% after its earnings beat analysts’ expectations in the second quarter, helped by cost cutting measures.
Adjusted earnings before interest and taxes rose 14% from a year earlier to 3.23 billion kronor ($307 million), excluding impairments. That compared to an average 2.7 billion kronor forecast. Ericsson and its Nordic competitor Nokia, which reports next week, have faced a dismal telecom equipment market for years as anticipated spending on 5G technology never materialized. There are some indications that sales will stabilize this year, and Ericsson expects its $14 billion network deal with US operator AT&T Inc. will begin to pay off in the second half. - JPMorgan reported record profit as investment bankers and equities traders at the biggest US bank beat expectations and the firm took a multibillion-dollar gain tied to a Visa Inc. share exchange.
JPMorgan earned $18.1 billion in net income in the second quarter, up 25% from the previous record a year earlier. Fees from investment banking rose 50%, while the firm’s equity traders notched a 21% revenue jump. The Visa transaction added $7.9 billion to second-quarter profit. - Wells Fargo shares fell 6% after the lender’s second-quarter results were marred by higher-than-expected costs.
Expenses for the quarter climbed 2% to $13.3 billion. That was higher than the 0.2% increase that analysts had expected, with the vast majority of the increase coming from operating losses. The lender now expects non-interest expenses to fall just 2.8% to $54 billion this year, up from an earlier forecast of $52.6 billion. Wells Fargo said the increase was driven by higher revenue-related compensation expenses, more operating losses and customer remediation costs than expected, and a Federal Deposit Insurance Corp. special assessment tied to last year’s regional-bank failures. Reducing costs has been a key part of Chief Executive Officer Charlie Scharf’s turnaround plans since he took the helm, though those efforts have often been hamstrung by hefty losses tied to regulatory sanctions over the years. - Citigroup said costs for the year are now likely to be at the high end of the range it previously provided after the bank faced a series of regulatory penalties in recent months.
In the second quarter, Citigroup was able to whittle expenses down 2% to $13.35 billion, which was slightly better than the $13.4 billion average estimate. Still, for the year, expenses are now likely to be at the higher end of the previously provided range of $53.5 billion to $53.8 billion, the bank said. Citigroup’s shares fell 1.8%. In the second quarter, all five of Citigroup’s major divisions notched gains in revenue compared with the same period a year ago. That helped boost net income for the quarter to $3.2 billion, or $1.52 a share. - Bank of New York Mellon surged 5.2% after reporting better-than-expected net interest income and offering a “cautiously optimistic” forecast for the rest of the year.
Net interest income was $1.03 billion in the three-months through June, beating estimates by about $20 million. The higher-than-expected figure—down 6% year over year—came amid a slowing decline in non-interest-bearing deposits. “While we are cautiously optimistic, we remain humble as we head into the seasonally low summer months,” Chief Financial Officer Dermot McDonogh said. “For now, we will therefore keep our NII outlook for the full year 2024 unchanged: down 10% year-over-year.” - Snowflake shares fell 1.8% after AT&T disclosed a massive hack of customer data. Bloomberg News reported that the information was illegally downloaded from a Snowflake cloud platform, citing an AT&T spokesperson.
Bloomberg Intelligence: “The sequence of breaches at Snowflake appears worse than initially feared,” and AT&T’s disclosure “is likely to hurt net expansion rates. “Baird (outperform, PT $200): “While negative headlines aren’t great and could add reputational risk, we aren’t currently expecting any meaningful financial impact.” Baird remains positive on SNOW’s market position and growth potential, and “would be much more concerned by a breach of its enterprise environment, which doesn’t appear to have been the case.” Piper Sandler (overweight, PT to $165 from $240): The lower target reflects “rising macro risk factors and elevated budget battles.” - Stock futures rise slightly as investors look to earnings to keep lifting market to records
Stock futures were slightly higher in overnight trading Sunday as investors gear up for a big week of key corporate earnings. Futures on the Dow Jones Industrial Average rose 60 points, or 0.2%. S&P 500 futures added 0.1% and Nasdaq 100 futures added 0.1%. Investor attention is shifting to second-quarter earnings reports, which could be the catalyst to extend the market’s rally to new records this year. The blue-chip Dow just hit a fresh all-time high above 40,000 Friday, bringing its 2024 gains to 6.1%. - China reports second-quarter GDP growth of 4.7%, missing expectations
China’s National Bureau of Statistics on Monday said the country’s second-quarter GDP rose by 4.7%. That’s slower than the 5.3% year-on-year GDP increase in the first quarter. Retail sales for June missed expectations, while industrial production figures beat. - Asia markets mostly slip as investors assess China GDP miss and assassination attempt on Trump
David Roche, president of Quantum Strategy, said in a note on Sunday that Trump would win the presidency, with an increased probability of a Republican clean sweep of both the House of Representatives and the Senate. China’s economy grew 4.7% in the second quarter, missing expectations of a 5.1% expansion forecast by Reuters and lower than the 5.3% growth seen in the first quarter. - World leaders condemn assassination attempt on Trump: ‘Tragedy for democracy’
Canadian Prime Minister Justin Trudeau said he was “sickened by the shooting” while the UK’s newly elected Prime Minister Keir Starmer said he was “appalled by the shocking scenes” at the rally.
In the U.S., both Republicans and Democrats alike came together to criticize the attack and expressed their well wishes to the former president. In an Oval Office address on Sunday evening, President Joe Biden emphasized the importance of lowering the temperature in U.S. politics and urged Americans to remember: “We are not enemies.
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