- Asian Stocks Slide on Rekindled Fed Rate Fears: Markets Wrap
(Bloomberg) — Stocks in Asia dropped after renewed concerns about higher-for-longer US interest rates fuelled a selloff on Wall Street and boosted Treasury yields and the dollar. Japan’s Nikkei 225 index slid Wednesday after recording its biggest monthly drop since December 2022. Australian shares also declined, with many markets in the region closed for a public holiday. - Bitcoin Sapped by Rising Rates in Worst Month Since FTX Crash
(Bloomberg) — The prospect of higher-for-longer interest rates is weighing on the cryptocurrency market, underlined by Bitcoin’s worst monthly drop since the collapse of Sam Bankman-Fried’s FTX empire in November 2022. The largest digital asset slumped almost 16% in April as a mania for US spot-Bitcoin exchange-traded funds flatlined after earlier lifting. - Senate Passes Russian Uranium Import Ban, Sending to Biden
(Bloomberg) — The Senate voted Tuesday evening to approve legislation banning the import of enriched uranium from Russia, sending the measure to the White House which has said it supports efforts to block the Kremlin’s shipments of the reactor fuel. The Prohibiting Russian Uranium Imports Act, approved by unanimous consent, would bar US imports 90 days after enactment while allowing temporary waivers until January 2028. - Yellen Defends Biden on Tax Cuts in Face of Republican Attack
(Bloomberg) — Treasury Secretary Janet Yellen came under fire from Republican lawmakers Tuesday over a quip from President Joe Biden about letting tax cuts enacted by predecessor Donald Trump expire. Yellen repeatedly emphasized that the administration’s principles on tax policy had not changed, and that Biden supports retaining tax reductions for families earning less than $400,000. - Fed to Signal Delay of Interest-Rate Cuts: Decision-Day Guide
(Bloomberg) — Federal Reserve officials are poised to keep interest rates steady for a sixth consecutive meeting and signal no plans for cuts in the near future after higher-than-expected inflation. The Federal Open Market Committee will hold the target range for its benchmark rate at 5.25% to 5.5% — a two-decade high first reached in July — at the conclusion of its two-day policy meeting Wednesday. - Rogoff Says Markets Will Thwart Any Political Pressure on Fed
(Bloomberg) — Harvard University economics professor Kenneth Rogoff said that financial markets would effectively impose restraint on any move by a US president to force the Federal Reserve into easing monetary policy. - Traders Expect Biggest Fed-Day Move in S&P Since 2023, Citi Says
(Bloomberg) — The options market is more concerned about a potentially big move in the S&P 500 Index off of the Federal Reserve’s interest-rate decision Wednesday than it’s been at any point in almost a year. The benchmark index is implied to move 0.95% on Wednesday, when the Fed gives its view on rates and Chair Jerome Powell holds his post-meeting press conference according to an options strategy known as an at-the-money straddle, where traders buy an equal number of calls and puts with the same strike price and expiration. The last time traders priced in an FOMC-day move this wide was in May 2023, data compiled by Citigroup show. - Extreme Bond Market Shorts Gamble on a Hawkish Powell Pivot
(Bloomberg) — Bond traders who’ve been stung by the market’s recent rout are turning more and more bearish ahead of what many expect will be a hawkish tilt by the Federal Reserve. US Treasuries had their worst performance in seven months in April, with mounting evidence of economic resilience and stubborn inflation causing investors to pare back bets. - HSBC CEO Quinn Unexpectedly Steps Down After Almost 5 Years
(Bloomberg) — HSBC Holdings Plc’s Chief Executive Officer Noel Quinn is stepping down, an unexpected move that comes as Europe’s largest lender tries to navigate the deterioration of ties between China and the US. The board has begun a formal process to find a successor, and will consider both internal and external candidates, according to a statement Tuesday. - ASX uranium boom lures secretive Canadian hedge fund
A flood of money into the ASX’s booming uranium sector has drawn a secretive Canadian hedge fund further into the local market. Toronto-based MM Asset Management disclosed a 5 per cent stake in uranium developer Deep Yellow on Monday, the latest development of the fund’s growing presence in the sector. - LVMH Is Said to Mull Options for Marc Jacobs Amid Buyer Interest
(Bloomberg) — LVMH Moet Hennessy Louis Vuitton SE is exploring options for its Marc Jacobs fashion brand amid interest from potential buyers, people with knowledge of the matter said. The fashion giant has been working with advisers to study possibilities for Marc Jacobs after getting approaches from suitors, the people said. - Cruise Line Viking Holdings IPO Is Said to Fetch $1.54 Billion
(Bloomberg) — Viking Holdings Ltd. priced its initial public offering near the top of a marketed range to raise $1.54 billion for the luxury cruise operator and two investors, according to people familiar with the matter. Viking and the investors sold 64.04 million shares for $24 apiece, said the people, who asked not to be identified because the information wasn’t public. - Amazon cost cuts drive operating margin into double digits for first time
Amazon’s operating margin jumped past 10%, topping a prior high of 8.2% in 2021.The company is simultaneously cutting costs and generating revenue growth in higher-margin businesses. Revenue in Amazon Web Services and the advertising division topped estimates. For most of its 27 years as a public company, Amazon investors have been asked to sacrifice profit for growth. That’s no longer necessary. In its first-quarter earnings report on Tuesday, Amazon’s operating margin reached double digits for the first time on record. The company’s margin climbed to 10.7% in the period, up from 7.8% in the fourth quarter and topping a previous high of 8.2% in the first quarter of 2021. - Gold subdued as traders ready for Fed rate verdict
Gold prices struggled for momentum on Wednesday as investors refrained from taking big positions ahead of a U.S. Federal Reserve policy decision that could offer for more cues on its rate-cut timeline. Spot gold was little changed at $2,286.53 per ounce as of 0136 GMT, after it fell as much as 2% on Tuesday to hit its lowest level since April 5. Bullion prices have fallen more than $140 after scaling a record high of $2,431.29 on April 12. - Starbucks shares sink 12% as coffee chain slashes 2024 forecast amid same-store sales drag
Starbucks on Tuesday reported weaker-than-expected quarterly earnings and revenue, fueled by a surprise decline in same-store sales. The coffee chain also slashed its forecast for its fiscal 2024 earnings and revenue, predicting that its cafes would keep underperforming for several quarters. Across all regions, Starbucks reported shrinking same-store sales and falling traffic.
16.Tesla shares drop nearly 6% after Musk cuts about 500 jobs in Supercharger team
Tesla is continuing a sweeping reorganization and laying off some 500 employees from its Supercharger team. As The Information first reported, Tesla is throttling plans to grow its U.S.-based Supercharger network, after striking partnerships with Ford, GM and others and agreeing to allow non-Tesla EV drivers to charge on its equipment. CEO Elon Musk said in a post that Tesla, “still plans to grow the Supercharger network, just at a slower pace for new locations” with more focus on uptime. - Clorox lifts annual profit forecast on pricing benefits
Clorox Co (CLX.N), opens new tab raised its annual profit forecast on Tuesday after beating quarterly earnings expectations, banking on effects of price hikes taken to offset escalating costs. Consumer good companies, including Clorox, have been increasing product prices steadily over the last few years to protect profits from costs tied to manufacturing and logistics. Peers Colgate-Palmolive (CL.N), opens new tab and Kimberly-Clark (KMB.N), opens new tab have also raised their respective sales and profit forecasts in recent weeks on the back of higher product prices. Benefits of pricing and easing commodity costs helped the company boost its margins by 40 basis points to 42.2%. - Trump Media shares rise again, jump 50% in the past week
Trump Media shares climbed nearly 7% Tuesday, continuing a rise that has seen the Truth Social owner surge about 50% in the past week. The stock has had several volatile days in the past month, trading at a high of about $60 a share and a low of just over $20 per share. In recent weeks, the company has targeted short sellers and urged Congress to investigate possible “unlawful manipulation” of its stock. - AMD says it will sell $4 billion in AI chips this year; stock drops on in-line forecast.
AMD reported first-quarter sales on Tuesday that were slightly ahead of Wall Street expectations and provided an in-line forecast for the current quarter. The company expects about $5.7 billion in sales in the current quarter, in line with Wall Street estimates of the same approximate total. That would represent about 6% annual growth. Shares dropped 7% in extended trading.
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