- Stocks, Bonds Face Pressure Ahead of Powell Speech: Markets Wrap
(Bloomberg) — Japanese equities showed signs of resilience as other Asian markets opened lower, as
investors prepare for comments from Jerome Powell later Friday. Equities in Australia and South Korea fell
alongside Hong Kong share futures, echoing Thursday’s selloff in US stocks where both the S&P 500 and techheavy Nasdaq 100 indexes retreated. - Stocks close lower, Nasdaq slides 1% as Treasury yields rise and Powell speech looms
The S&P 500 pulled back on Thursday as investors readied for a speech by Federal Reserve Chair Jerome
Powell at the central bank’s annual Jackson Hole conference. The broad index slipped 0.89% to close at
5,570.64. The Dow Jones Industrial Average ended down 177.71 points, or 0.43%, at 40,712.78. The Nasdaq
Composite shed 1.67% to close at 17,619.35 as technology stocks felt the brunt of Thursday’s declines.
Thursday marks a retreat following a largely positive period that had been deemed a recovery rally following
the global market rout on Aug. 5. All three indexes had traded higher at one point in the session, with the
S&P 500 within striking distance of its all-time intraday high set in July before reversing course. - Oil set to end week lower on demand concerns, easing supply woes
Oil prices were steady in early Asian trading on Friday, but were poised to end the week lower as downward
revisions to U.S. employment data raised demand concerns and ceasefire talks in Gaza eased worries about
supply disruptions. Brent crude futures were down a cent to $77.21 per barrel by 0033 GMT. U.S. West Texas
Intermediate crude futures were up 4 cents to $73.05 per barrel. Both benchmarks rose for the first time in
five sessions on Thursday on expectations the U.S. Federal Reserve would cut interest rates soon, which
helped ease some concerns about the economic outlook of the top oil consumer. - Gold faces weekly fall as Fed’s Powell grabs limelight
Gold prices inched up on Friday but were set for a weekly decline after slipping from record highs, as the U.S.
dollar and Treasury yields rebounded ahead of Federal Reserve Chair Jerome Powell’s speech that could give
clues on interest rate cuts. Spot gold rose 0.2% to $2,488.74 per ounce by 0257 GMT and U.S. gold futures
gained 0.3% to $2,524.30. Bullion, which hit an all-time high of $2,531.60 on Tuesday, has fallen nearly 1%
this week, hurt by a bounce in dollar index and benchmark U.S. 10-year yields following an unanticipated
increase in the unemployment rate. - Wall Street Braces for Reality Check From Powell: Markets Wrap
(Bloomberg) – Bond yields climbed and stocks got hit, with Wall Street traders betting Jerome Powell will
throw cold water on market expectations for aggressive interest-rate cuts. In the run-up to Powell’s Jackson
Hole speech, Treasuries tumbled across the US curve, with the move led by shorter maturities. The dollar
gained the most in over a month. - AQR Attracts $350 Million for Fund Pitching Long-Short ESG Bets
(Bloomberg) — A fund launched by AQR Capital Management LLC is about to give investors a taste of how
well ESG can be combined with the goal of generating market-beating returns. The quant firm co-founded by
hedge fund veteran Cliff Asness has now attracted about $350 million for its Adaptive Equity Market Neutral
UCITS Fund, according to data compiled by Bloomberg. - Short-Seller Retreat Bodes Well for BYD Shares Ahead of Earnings
(Bloomberg) — Short-sellers are losing conviction on bets against BYD Co. shares, which may continue to
outperform other Chinese electric-vehicle stocks if its results next week are as good as expected. Short
interest in BYD’s Hong Kong-listed shares has dropped to 1.4% as of Aug. 21 from a high of 7.7% earlier this
year, according to S&P Global Inc. data. - Trump Threatens Tariffs on Nations That Don’t Take Back Migrants
(Bloomberg) — Former President Donald Trump threatened large tariffs on countries that don’t accept
deported migrants, suggesting that his immigration and trade policy could become closely intertwined if he
returns to the White House. The countries will accept them back, and if they don’t accept them back we do
no trade with those countries. - Harris says Trump wants to be an autocrat and tyrants are rooting for him
Vice President Kamala Harris said Republican presidential nominee Donald Trump wants to be an autocrat as
she accepted the Democratic presidential nomination in Chicago. Trump admires dictators, treats our friends
as adversaries, and our adversaries as friends, said Rep. Elissa Slotkin, D-Michigan. He thinks Americans who
have made the ultimate sacrifice are suckers and losers, said Sen. Mark Kelly-D-Arizona. Trump would
abandon our allies and isolate America, said Leon Panetta, a former secretary of Defense and CIA director. - Fed Officials Argue for Gradual Pace of Cuts Starting Soon
(Bloomberg) — Two Federal Reserve officials said they believe it’s appropriate for the US central bank to
begin lowering interest rates soon, and that the pace of subsequent cutting should be gradual and
methodical. Boston Fed President Susan Collins used the terms in interviews with Bloomberg News and Fox
Business. - BOJ Governor’s First Appearance Since Rout Has Investors on Edge
(Bloomberg) — An appearance by the Bank of Japan’s Kazuo Ueda in parliament Friday has investors bracing
for potential surprises after the governor’s hawkish rhetoric helped trigger a massive selloff in global stock
markets earlier this month. Japanese lawmakers will pepper Ueda with questions over the course of five
hours. - Argentina Senate Passes New Pension Formula in Defiance of Milei
(Bloomberg) — Senators in Argentina approved a bill Thursday that defies President Javier Milei’s bid to
balance the government’s books by reworking how pension payments are calculated. In a 61 to 8 general
vote, senators passed the bill that already swept through the lower house in June. Ever since the June vote,
Milei vowed to veto the bill, or slash spending if it. - Japan’s Inflation Picks Up as BOJ Chief Prepares for Hearing
(Bloomberg) — Japan’s key prices rose at a faster pace in July in the latest indication of the rising cost of living,
as Bank of Japan Governor Kazuo Ueda prepares to talk about policy developments in parliament following
recent market turmoil. Consumer prices excluding fresh food climbed 2.7% from a year earlier, accelerating
from 2.6% in June. - BOJ’s Ueda Cites Concerns Over US Economy as Mkt Turmoil Trigger
(Bloomberg) — Bank of Japan Governor Kazuo Ueda cited concerns about the state of the US economy as a
key factor that triggered market turmoil earlier this month, and noted that overdone concerns about the US
economy have been adjusted. Says he believes there were concerns about an economic slowdown in the US
due to weak indicators and that concerns spread rapidly. Notes while testifying in parliament that markets
are still unstable. - Jefferies-Led Bank Group Loses $15 Million Underwriting M2S Loan
(Bloomberg) — A bank group led by Jefferies Financial Group Inc. has lost about $15 million after being forced
to sweeten terms on a leveraged loan for M2S Group Intermediate Holdings Inc., according a person with
knowledge of the matter. Jefferies is absorbing about half the loss, said the person, who requested
anonymity to discuss confidential information. - Taiwan’s Shin Kong Agrees to Merge With Rival Firm Taishin
(Bloomberg) — Taiwan’s Shin Kong Financial Holding Co. agreed to merge with a smaller rival in a deal that
sets up a takeover battle for Shin Kong with another suitor, CTBC Financial Holding Co. Shin Kong and Taishin
Financial Holding Co. will combine via a share swap, the two companies said at a press briefing on Thursday
evening. - PAI Said to Rope in Sovereign Funds for Sanofi Consumer Unit Bid
(Bloomberg) — Buyout firm PAI Partners is seeking to rope in two of the world’s largest sovereign wealth
funds to back its offer for French drugmaker Sanofi SA’s consumer health division, according to people
familiar with the matter. Abu Dhabi Investment Authority, which controls almost $1 trillion, and Singapore’s
GIC Pte are in talks to team up with PAI. - Starboard Urges Autodesk to Hold CEO Accountable After Probe
(Bloomberg) — Starboard Value LP urged Autodesk Inc.’s board to evaluate whether Chief Executive Officer
Andrew Anagnost is the right person to lead the company following recent accounting issues. There is an
urgent need for significant change at the company, the activist investor said Thursday in a statement. An
Autodesk spokesperson said the company is fully committed to transparency. - Stocks making the biggest moves after hours: Cava, Uber, Ross Stores, Workday and more
Cava Group: The fast-casual restaurant brand saw shares climb nearly 6% in after-hours trading following a
better-than-expected earnings report. Cava posted a profit of 17 cents per share, or 4 cents above the LSEG
estimate. Its revenue also came in above expectations; Uber: Shares of the ride-sharing platform fell about
3% after the company and General Motors Cruise announced a multiyear partnership. The embattled
autonomous vehicle company plans to offer driverless rides to Uber users as soon as next year. GM shares
rose more than 1% after hours; Ross Stores: The off-price retailer’s stock surged about 6% in extended
trading following an earnings beat. Ross reported earnings per share of $1.59 in the second quarter, 9 cents
above analysts’ expectation, according to LSEG. Revenue of $5.25 billion matched the estimate; Workday:
Shares of the cloud company jumped more than 11% after the firm’s earnings and revenue exceeded
expectations. The firm said its subscription revenue for the third quarter will be $1.96 billion, compared to
$1.97 billion expected by analysts polled by StreetAccount. - Snowflake shares fell 14%
Snowflake shares fell 14% after Snowflake executives said on a post-earnings conference call that they left
the margin forecast unchanged partly due to the firm awaiting the deployments of certain GPUs. The data
cloud analytics firm on Wednesday raised its forecast for full-year product revenue, as it attracts more clients
to its cloud platform owing to advancements in artificial intelligence. - Zoom stock has best day in almost 2 years on quarterly results, increased guidance
Zoom shares soared the most since November 2022 on Thursday after the video chat company reported
better-than-expected results for the second quarter and raised its full-year guidance. The stock rose 13% to
close at $68.04. Shares are still down 5.4% for the year, while the Nasdaq has gained 17% over that stretch.
Zoom said revenue in the quarter rose 2.1% from a year earlier to $1.16 billion, topping the average analyst
estimate of $1.15 billion, according to LSEG. Adjusted earnings per share came in at $1.39, ahead of the $1.21
average estimate. For the full fiscal year, Zoom now expects revenue of $4.63 billion to $4.64 billion. The last
time Zoom provided guidance, the company said the top end of the expected range was $4.62 billion. - ExonnMobil
The oil and natural gas production company has indicated it will push back its final investment decision on
the long-delayed Rovuma LNG project to 2026 with efforts in place to ensure security in Mozambique’s Cabo
Delgado province and attract a financial lender. - Peloton shares soar 35% as turnaround plan takes hold, losses shrink
Peloton said Thursday it is digging itself out of the red and eked out a slight sales increase for the first time in
nine quarters as it slashed its overall losses. The company’s shares spiked 35% on Thursday. The beleaguered
connected fitness company, which two board members have run since former CEO Barry McCarthy resigned
earlier this year, saw sales grow by 0.2% during its fiscal fourth quarter. While only a modest uptick, it’s the
first time Peloton posted year-over-year revenue growth since its 2021 holiday quarter. The company also
indicated it’s ready to focus on profitability over growth with significant cuts to its marketing and sales
spending and meaningful increases to free cash flow and adjusted EBITDA. Those cuts helped Peloton narrow
its quarterly losses to $30.5 million from $241.1 million in the year-ago period. - GM-owned Cruise will partner with Uber to offer driverless rides
Uber Technologies and General Motors’ Cruise have agreed to a multi-year partnership, under which the
embattled autonomous vehicle company plans to offer driverless rides to Uber users as soon as next year.
The announcement comes as Cruise attempts to revive its robotaxi business after the company ceased
operations following an October 2023 incident. - China’s self-driving startup WeRide delays U.S. IPO as deadline looms
WeRide delayed its plan for an initial public offering in the U.S., citing the need for more time to complete
documents. It has been a dry market for Chinese IPOs in the U.S. in recent years, and many were watching
WeRide’s potential listing for signs of a pickup. WeRide was expected to offer 6.5 million ADS (American
depositary shares) in the range of $15.50 to $18.50.
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