- Asian Stocks Snap Gains as Commodities Rise: Markets Wrap
(Bloomberg) — Asian shares took a breather on Tuesday after seven days of gains and as a gauge of commodities reached a 15-month high. Traders’ focus turns to earnings from bellwether chipmaker Nvidia Corp. later in the week. Japanese shares rose, while South Korean ones retreated. - Oil’s Market Metrics Point to Weak Outlook Ahead of OPEC+ Meet
(Bloomberg) — The oil market is showing signs of weakness despite a recent uptick in geopolitical tensions ahead of an OPEC+ meeting on supply. The prompt spread for Brent crude has narrowed to its smallest backwardation since January, while money managers have continued to reduce their bets on rising prices for the global benchmark. - Nintendo Buys Studio to Bring More Outside Games to Next Switch
(Bloomberg) — Nintendo Co. has acquired Miami-based Shiver Entertainment to help bring more games from outside developers to its next-generation Switch platform. The 11-year-old studio focuses on adapting video games developed for one platform to others, called porting, and did so successfully with Hogwarts Legacy and Mortal Kombat 1 for the current Switch console. - Samsung Replaces Chip Chief After SK Hynix Takes AI Lead
(Bloomberg) — Samsung Electronics Co. has replaced the head of its semiconductor arm, appointing a memory chip veteran to spearhead efforts to catch up with SK Hynix Inc. in the booming AI arena. Korea’s largest company named Jun Young Hyun the new leader of its most important business line. - ICC Seeks Arrest Warrants for Netanyahu, Hamas Chiefs
(Bloomberg) — The chief prosecutor for the International Criminal Court said Monday he is seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Hamas leader Yahya Sinwar on war crimes charges. Karim Khan said in a statement that the charges relate to the Oct. 7 attack on Israel by the Hamas militant group, and also to the Israeli military response. - Google’s X Spins Off Moonshots in Favor of Financial Discipline
(Bloomberg Businessweek) — If there were an aptitude test to qualify for a job at X, Alphabet Inc.’s renowned research lab, Kathryn Zealand would ace it. She’s a McKinsey & Co.-trained entrepreneur who abandoned a Ph.D. in theoretical physics to build startups in sub-Saharan Africa. In her spare time, she climbs California’s tallest mountains while bingeing sci-fi audiobooks. - Biden Asks GOP Leaders to Resuscitate Immigration Compromise
(Bloomberg) — President Joe Biden urged the Republican leaders of the House and Senate in calls on Monday to revive a bipartisan immigration measure that failed after Donald Trump proclaimed his opposition. In his conversations with Speaker Mike Johnson and Minority Leader Mitch McConnell, Biden “reiterated that congressional Republicans should stop playing politics. - Fed’s ‘Stigmatized’ Discount Window Draws Flak at Own Conference
(Bloomberg) — The Federal Reserve needs to do more to address issues that keep US banks from tapping a key emergency lending facility. That’s the message of current and former central bankers and experts, who delivered some cutting observations aimed at the Fed’s efforts to revamp the backstop program, known as the discount window. - JPMorgan’s Erdoes Says New Hires Will Get Training for AI
(Bloomberg) — JPMorgan Chase & Co. is immersing new employees in artificial-intelligence training, preparing them for a technology Chief Executive Officer Jamie Dimon has likened to the impact of the printing press and steam engine. “This year, everyone coming in here will have prompt engineering training to get them ready for the AI of the future. - Bobby Jain’s New Hedge Fund Plans Major Push Into Commodities
(Bloomberg) — Bobby Jain’s new hedge fund is tapping talent from commodity trading houses and committing a chunk of the money it’s raising for a major push into raw materials — including in the physical market. Jain Global will allocate to commodities 15% to 20% of the roughly $5 billion it’s aiming to raise. - Soroban Said to Amass Johnson Controls Stake Beside Elliott
(Bloomberg) — Soroban Capital Partners has amassed a large stake in industrials firm Johnson Controls International Plc, compounding pressure brought by activist investor Elliott Investment Management, according to people with knowledge of the matter. New York-based hedge fund Soroban has invested more than $500 million in Johnson Controls. - Ryanair shares slipped 1.28%, after the carrier announced that ticket prices in the peak European travel season may be flat to modestly higher and that it had to discount fares to stimulate demand.
At the same time, Ryanair reported its earnings results for the financial year. The carrier’s revenue came in at €13.44 billion, +25% YoY, beating estimates of €13.38 billion. Adjusted profit after tax was at €1.92 billion, +34% YoY, beating estimates of €1.9 billion. Ryanair also announced a €700 million shares buyback following its earnings report. - Nvidia Corp. will be reporting its first quarter financial results after the market closes on Wednesday.
The company’s shares traded 2.49% higher on Monday, ahead of its earnings report. Investors expect Nvidia to report quarterly sales of nearly $25 billion, which is about four times the $6.5 billion in revenue in the previous year’s first quarter. - Target shares fell 2.1% after the retailer said it plans to reduce prices on approximately 5,000 popular items, a move that Barclays says points to “more challenges ahead.”
Target has already cut prices on about 1,500 items, with “thousands more” of reductions planned over the course of the summer, the retailer said. Items include milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels and pet food “Target routinely adjusts its prices to ensure it is competitive within the markets it does business,” the company said. Some of Target’s cuts “may have been planned as part of the 2Q inflection embedded in guidance, Barclays analyst Seth Sigman writes. - Palo Alto Networks slid 8.7% in afterhours trading after giving a downbeat forecast for the current period, renewing concerns about a slowdown in cybersecurity services.
Revenue in the fiscal fourth quarter will be $2.15 billion to $2.17 billion, the company said. Analysts had anticipated a number at the high end of that range. Fourth-quarter billings — a closely watched benchmark — will be $3.43 billion to $3.48 billion in the period, which runs through July, Palo Alto Networks said. Analysts had estimated $3.47 billion. The tepid outlook follows another disappointing quarterly report in February, when Palo Alto Networks shares suffered their worst single-day drop ever. At the time, Chief Executive Officer Nikesh Arora said customers were facing “spending fatigue” in cybersecurity. That stoked fears that clients were tightening their budgets in spite of an uptick in attacks. During a call with analysts, Chief Financial Officer Dipak Golechha acknowledged that the company had “significant volatility in our billings.” But he argued that it was due to payment terms and that there were other more relevant metrics, such as new subscription sales for next-generation products, which can include artificial intelligence. - Li Auto ADRs fell 12.8% Monday after the Chinese EV maker reported a sharp decline in profitability as operating income swung to negative, dragged by weak demand for its battery-electric Mega van. Its revenue guidance at mid-point is more than 20% below average consensus estimate.
FIRST QUARTER RESULTS: Revenue 25.63 billion yuan, +36% y/y, estimate 25.58 billion yuan. Vehicle deliveries 80,400 units, +53% y/y, estimate 85,830. Vehicle sales 24.25 billion yuan, +32% y/y, estimate 26.71 billion yuan. Adjusted earnings per American depositary receipts 1.21 yuan vs. 1.44-yuan y/y. Gross margin 20.6% vs. 20.4% y/y, estimate 20.7%. SECOND QUARTER FORECAST: Sees vehicle deliveries 105,000 to 110,000 units, estimate 130,692. Sees revenue 29.9 billion yuan to 31.4 billion yuan, estimate 38.63 billion yuan. “Consensus may start to lower FY24 volume expectation to below 500k units,” Citi analyst Jeff Chung (buy) wrote in a note to clients. Second-quarter volume and revenue forecasts imply blended ASP (average selling price) will fall quarter-to-quarter. - Microsoft announces new PCs with AI chips from Qualcomm
Microsoft will bring out new Surface PCs that adhere to its Copilot+ standard for running artificial intelligence models. These PCs and others use Arm-based Qualcomm chips to deliver longer battery life, and PCs with AMD and Intel chips will also become available. - Judge blasts Trump defence witness for ‘contemptuous’ staring, muttering at hush money trial
Prosecutors rested their criminal hush money case against former President Donald Trump after dramatic testimony from Michael Cohen, his former lawyer and fixer.
Trump’s attorneys then began calling their own witnesses to the stand, including Robert Costello, an attorney who once advised Cohen. Cohen earlier admitted he stole from the Trump Organization by pocketing money that should have gone to a tech company. - Stock futures are little changed after Nasdaq Composite hits all-time high
Stock futures are near flat Tuesday morning after the technology-heavy Nasdaq Composite closed at an all-time high. Futures connected to the Nasdaq 100 slipped about 0.1%. Dow Jones Industrial Average futures gained just 3 points, while S&P 500 futures also sat near its flatline. - Saudi King’s Health, Iran President’s Death Spur Succession Bets
(Bloomberg) — Out of the fog that claimed the life of Iran’s president, some clarity is emerging about Tehran’s next steps. The bad news for western capitals and those Iranian activists pushing for change is that there’s little hope of a relaxation of political oppression, or of the antagonism directed at the US and its allies, according to western officials. - Jamie Dimon thinks shares of JPMorgan Chase are expensive.
That was the message the bank’s longtime CEO gave analysts Monday during JPMorgan’s annual investor meeting. When pressed about the timing of a potential boost to the bank’s share repurchase program, Dimon did not mince words. “I want to make it really clear, OK? We’re not going to buy back a lot of stock at these prices,” Dimon said. “Buying back stock of a financial company greatly in excess of two times tangible book is a mistake,” Dimon said. “We aren’t going to do it.” Dimon’s comments about his company’s stock, as well as an acknowledgement that he may be nearing retirement, sent the bank’s shares down 4.5% Monday.
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