- Asian Stocks Climb on Bullish Wall Street Cue: Markets Wrap
(Bloomberg) — Asian stocks rose, following a buoyant session on Wall Street amid bets the Federal Reserve
will soon signal it’s ready to start cutting interest rates. Shares advanced in Japan, South Korea and Australia.
The MSCI Asia-Pacific index headed for a third day of gains while Hong Kong futures also pointed to a rise. - S&P 500, Nasdaq post eighth positive session as stocks extend their winning run
Stocks advanced on Monday, building on the market’s comeback as investors readied for the closely watched
Federal Reserve symposium later this week. The Dow Jones Industrial Average added 236.77 points, or
0.58%, to finish at 40,896.53. The S&P 500 rose 0.97% to close at 5,608.25, while the Nasdaq Composite
jumped 1.39% and ended at 17,876.77. The S&P 500 and Nasdaq notched their eighth straight winning day, a
first for both indexes in 2024. Monday’s moves mark an extension of the recent recovery rally, which has
been the latest turn amid a choppy stretch for equities. Notably, last week ushered in the biggest gains for
the three major indexes this year. - Oil prices tick down as hopes of Middle East ceasefire eases supply worries
Oil prices edged lower on Tuesday as Israel accepted a proposal to tackle disagreements blocking a ceasefire
deal in Gaza, helping ease worries about a supply disruption in the Middle East. Brent crude fell 12 cents,
$2.02, or 0.15%, to $77.54. Front month U.S. West Texas Intermediate crude futures, which expire on
Tuesday, were at $74.23 a barrel, easing 14 cents, or 0.2%. The more actively traded second month contract
was down 15 cents or 0.2% at $73.52. Brent had fallen about 2.5% on Monday, while WTI eased 3%. - Gold steady near record high as investors seek more Fed cues
Gold held steady near its record high on Tuesday as investors awaited U.S. Federal Reserve minutes and Chair
Jerome Powell’s speech for indications on how much the central bank will cut rates this year. Spot gold edged
0.2% higher to $2,500.08 per ounce by 0254 GMT, trading slightly below an all-time high of $2,509.65 hit on
Friday. U.S. gold futures rose 0.1% to $2,537.70. Gold prices have been largely steady in the Asian session,
seemingly catching a breather as buyers seek to defend its new record high, said IG market strategist Yeap
Jun Rong. The broader upward trend for gold remains intact, which could see prices eye for a move towards
the $2,665 level from a technical perspective. Gold prices have rallied more than 20% so far this year on optimism that the Fed will begin cutting interest rates in September, robust central bank buying and safe-haven demand stemming from the Middle East tensions. - S&P 500 Spikes to Notch Its Longest Rally in 2024
(Bloomberg) — Stocks kept pushing higher, adding to a rally that’s already topped $3 trillion from August lows amid bets the Federal Reserve will signal it’s ready to start cutting interest rates. All major groups in the S&P 500 rose, with the gauge up for an eighth straight day, the longest winning streak in 2024. - UBS transfers $1.5bn quants biz to Manteio
(Citywire) UBS asset management has entered into a definitive agreement with Manteio Partners to transfer
its quantitative investment strategies, QIS, business to the latter firm. As a result, about $1.5bn of assets will
roll over to Manteio Partners. - Chinese Banks Hold Key Lending Rates After PBOC Signals Caution
(Bloomberg) — Chinese banks kept their benchmark lending rates unchanged for August, as profit margins
come under pressure and policymakers focus on the health of financial institutions. The one-year loan prime
rate will stay at 3.35% and the five-year rate, a reference for long-term credit including mortgages, remains at
3.85%, according to a Tuesday statement. - FAA Orders 787 Cockpit Seat Checks After Rise in Incidents
(Bloomberg) — The Federal Aviation Administration mandated that operators of Boeing Co.’s 787 Dreamliner
inspect the jet’s cockpit seats after an uptick in reports about inadvertent movements disrupting flights. - Central Bankers Diverge on Rates Path Ahead of Jackson Hole
(Bloomberg) — Central bankers gathering this week for one of the world’s most prominent annual economic
forums are set to find themselves more divided than perhaps any time since before the pandemic. For years,
assessments at the Federal Reserve, European Central Bank and a swath of their developed-world peers were
much the same. - Boeing Halts 777X Flight Tests Over Damaged Engine Mount
(Bloomberg) — Boeing Co. has paused flight tests of its 777X jetliner while it inspects the four-aircraft fleet for
cracking in a crucial structural component that mounts the hulking General Electric Co. engines to the plane’s
wings. The planemaker said it discovered a damaged thrust link on a 777-9 during routine maintenance
following a test flight. - Democrats Start Convention With Biden Passing Harris Torch
(Bloomberg) — Democrats gathered in Chicago for their convention on Monday with praise for Joe Biden’s
presidency, and one last appeal to voters from the man who decided to leave it behind. The president is
hoping his appearance headlining the opening of the party’s convention can bolster Vice President Kamala
Harris’ political prospects. - Blinken Says Israel Accepts Cease-Fire, Hamas Must Say Yes
(Bloomberg) — US Secretary of State Antony Blinken said Israeli Prime Minister Benjamin Netanyahu has accepted a cease-fire proposal to halt the war in Gaza and the next step is for Hamas to say yes, putting the onus on the group to end the 10-month conflict even as violence continued. - Amundi Says Yen Will Strengthen to 140 as Historic Weakness Ends
(Bloomberg) — Amundi SA expects the yen to rally to levels last seen in July 2023 as its historic weakness
comes to an end. Japan’s currency may reach 140 yen per dollar over the next 12 months as the gap
between yields in Japan and US narrows, said Shinichiro Arie, chief investment officer at the Japan unit of the
largest European asset manager. - Koreans Expect Hotter Home Prices With Central Bank Set to Meet
(Bloomberg) — South Koreans expect the housing market to heat up further, according to a Bank of Korea
survey, in data likely to boost bets that the central bank will keep its policy settings on hold later this week.
An index measuring the outlook for home prices climbed to 118 in August from 115 last month, marking a
third straight rise. - What 800,000 Fewer Jobs Means for the US Labor Market: Economics
(Bloomberg Economics) — Wall Street largely expects a soft landing for the US labor market on the basis of a
robust pace of monthly nonfarm payroll gains. The Bureau of Labor Statistics’ Quarterly Census of
Employment and Wages report for the first quarter will challenge that view. We expect Wednesday’s release
to reveal much weaker labor-market conditions, with downward revisions to payrolls of about 800k over
April. - US Intelligence Points Finger at Iran in Trump Campaign Hack
(Bloomberg) — US intelligence agencies said they were confident that Iran was behind a recent hack of former
President Donald Trump’s presidential campaign, casting the intrusion as part of an increasingly aggressive
effort by the Islamic Republic to disrupt the November election. - Musk’s Pro-Trump PAC Hires Help in GOP-Friendly North Carolina
(Bloomberg) — Elon Musk’s pro-Trump super political action committee is hiring canvassers in North Carolina,
a sign that the former president’s allies are concerned about his slipping support in one of the most
Republican-friendly battleground states. Come work at America PAC, the Super PAC working to elect Donald
Trump and defeat Kamala Harris, according to job postings. - ECB’s Rehn Says Growth Risks Bolster Case for September Cut
(Bloomberg) — Increasing risks to Europe’s growth outlook have reinforced the case for a policy adjustment when the European Central Bank meets next month, according to Governing Council member Olli Rehn. - Trump Defends Fed Criticism, Weighs Providing Aid to Home Buyers
(Bloomberg) — Donald Trump downplayed criticism he’s undercut the US Federal Reserve’s autonomy, saying
he should be able to freely share his views on interest-rate policy. I think it’s fine for a president to talk. It
doesn’t mean that they have to listen, Trump said in an interview with Bloomberg News on Monday after an
event in swing state Pennsylvania. - Saudi Wealth Fund’s Returns Boosted by Global Markets Rally
(Bloomberg) — Saudi Arabia’s sovereign wealth fund said returns rose last year driven by local investments
and gains on its international portfolio. The Public Investment Fund’s annualized returns since 2017 rose to
8.7%, compared with 8% a year earlier, according to an annual report published Monday. - Paramount Likely to Extend Go Shop Period If Bronfman Bids
(Bloomberg) — Paramount Global, which has agreed to merge with David Ellison’s Skydance Media, is likely to
extend a deadline for rival takeover bids if Edgar Bronfman Jr. makes an offer for the company before
Wednesday night, people with knowledge of the matter said. Bronfman, a longtime media investor, is
expected to make an offer for Paramount. - Market Chatter: Couche-Tard Seeking To Buy US$31 Billion Owner of 7-Eleven Stores
Circle K operator Alimentation Couche-Tard Inc., ATD.TO, made a proposal to take over much larger rival and
7-Eleven owner Seven & i Holdings Co., in what would be the biggest foreign takeover of a Japanese
company. A merger would create a global network of roughly 100,000 convenience stores, the world’s
biggest. - Advanced Micro Devices agreed to buy server maker ZT Systems in a cash and stock transaction valued
at $4.9 billion, adding data center technology that will bolster its efforts to challenge Nvidia
ZT Systems will become part of AMD’s Data Center Solutions Business Group. AMD will retain the business’s
design and customer teams and look to sell the manufacturing division. The purchase price includes a
contingent payment of $400 million based on certain milestones. AMD investors applauded the deal, sending
the shares up 4.5%. The transaction consists of 75% cash and 25% AMD common stock. Closely held ZT has
extensive experience making server computers for owners of large data centers, the kind of customers that
are pouring billions of dollars into new artificial intelligence capabilities. - McDonald’s Corp. shares rose 3.3% Monday after Evercore ISI analyst David Palmer raised his price target on the company to $320 from $300
The analyst is increasingly bullish on the business, which has recently seen relative market share trend improvements. Heading into 2025, we believe the company will be more effective in pursuing a multi-faceted approach to value and stepping up the pace of menu introductions at both premium and medium price tiers, writes Palmer. Maintains outperform rating. - HP Inc. shares fell 3.6% Monday as Morgan Stanley downgraded the computer hardware firm to equal-
weight from overweight, citing limited upside to estimates and valuation
Previous positive stance was based on view the market wasn’t appreciating a return to Personal Systems revenue growth, stable print margins and accelerating capital returns, but this now looks priced in, analyst Erik Woodring says. Both consensus and Morgan Stanley’s own estimates already suggest near-peak growth rates for FY25. Overall, risk profile seems balanced for now. PT unchanged at $37. - Palo Alto Networks rose 1.9% afterhours, after issuing a quarterly profit outlook that beat Wall Street’s
expectations and boosting its share buyback program
Earnings for the current fiscal quarter will be $1.47 per share to $1.49 per share, the company said. Analysts
had expected $1.43. Palo Alto managed to grow its sales 12% last quarter, faster than expected. The reported
full-year sales of just over $8 billion was in line with consensus expectations that were moderated after it cut
its outlook earlier this year. Palo Alto’s also announced its board approved an additional $500 million to
repurchase shares, increasing the total authorization to $1 billion. Chief Executive Officer Nikesh Arora said
in an investor call on Monday the company was delighted with its results, adding cybersecurity has risen up
the agenda in C-suites following a recent broad outage involving security tools. - Former US President Donald Trump and Pennsylvania Governor Josh Shapiro reiterated opposition to
Nippon Steel Corp.’s planned purchase of United States Steel Corp
I will stop Japan from buying US Steel, Trump said Monday, repeating his objections to the $14.1
billion takeover. Nippon Steel is based in Japan but is not a state-owned enterprise. Both Trump and
President Joe Biden have opposed the deal, which was announced in December and remains before federal
regulators, including a review by the Committee on Foreign Investment in the US, or Cfius. The state of that
review is unclear, and Biden’s administration has demurred on when, or if, it might take action. The United
Steelworkers union is also a staunch opponent of the takeover, putting political pressure on lawmakers in an
election year. Shapiro, a Democrat who Vice President Kamala Harris closely considered to be her running
mate, said the deal as proposed is not fair for the steelworkers. - Southwest Airlines Co, LUV UN
Southwest Airlines is girding itself for a fight with Elliott Investment Management, rallying support from
investors and employees to face down an activist investor looking for wholesale changes to company
leadership. Shares of the company closed slightly lower at -1.5%. - Global commodities’ biggest winners and losers this year and where they’re headed
The S&P GSCI, a benchmark for the overall commodity market’s performance, rose as much as 12% in April from the start of the year, before tapering off to a 2.18% climb year-to-date. According to data pulled from FactSet, the commodities making the most gains year-to-date are a select basket of soft commodities that includes cocoa, eggs, orange juice, rubber and coffee. - Harris proposes raising the corporate tax rate to 28%, rolling back a Trump law
Vice President Kamala Harris is calling for raising the corporate tax rate to 28%, her first major proposal to
raise revenues and finance expensive plans she wants to pursue as president. Harris campaign spokesman
James Singer told NBC News that she would push for a 28% corporate tax rate, calling it a fiscally responsible
way to put money back in the pockets of working people and ensure billionaires and big corporations pay
their fair share. - Trump says he would offer Tesla CEO Elon Musk a Cabinet slot, but might end EV tax credit
Donald Trump said he would offer Tesla and SpaceX CEO Elon Musk a role in his administration if he defeats
Vice President Kamala Harris in the presidential election. Trump, who is the Republican nominee, said he
would consider eliminating a $7,500 tax credit for certain new electric vehicles. Tesla sells EVs.
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