- China Concerns Weigh on Traders After Weak Data: Markets Wrap
(Bloomberg) — Asian stocks traded in a narrow range on Monday as investors weighed a raft of data which
reinforced concerns about the health of China’s economy. South Korean shares eked out a gain while
Australian equities fell and futures pointed to a lower start in Hong Kong. Cash trading of US Treasuries was
closed in Asia due to a holiday in Japan. - Dow rises to close at fresh record, posts winning week after big Fed rate cut
The Dow Jones Industrial Average eked out a gain and closed at a record on Friday, capping a big rally for the
week that came after the first major easing of interest rate policy by the Federal Reserve in four years.
The 30-stock Dow inched up 38.17 points, or 0.09%, for a new closing high of 42,063.36. The S&P 500 pulled
back 0.19%, ending at 5,702.55, and the Nasdaq Composite dropped 0.36% to end at 17,948.32. On
Thursday, the Dow hit a record above 42,000, and the S&P 500 climbed above 5,700 for the first time.
The three major averages notched weekly gains. The S&P 500 rose 1.36%, posting its fifth positive week over
the past six weeks. The index is up more than 19% in 2024. The Dow ended the week higher by 1.62%, while
the tech-heavy Nasdaq advanced 1.49%. - Oil edges up following U.S. rate cut move, geopolitical concerns
Oil prices gained slightly during early trade on Monday, boosted by concerns conflict in the Middle East may
impact supply in the key producing region and expectations the U.S. interest rate cut last week will support
demand. Brent crude futures for November were up 20 cents, or 0.3% at $74.69 a barrel at 0045 GMT. U.S.
crude futures for November were up 22 cents, or 0.3%, at $71.22. Both contracts rose in the previous session
on support from the U.S. interest rate cut and a dip in U.S. supply in the aftermath of Hurricane Francine. Oil
prices climbed last week for a second week. - Gold breaks $2,600 barrier as Fed cut bets prolong historic run
Gold soared above the $2,600 level on Friday for the first time, extending a rally boosted by bets for further
U.S. interest rate cuts, and rising tensions in the Middle East. Spot gold was up 0.3% at $2,593.80 per ounce,
while U.S. gold futures rose 1.2% to $2,646.30. Bullion’s latest rally got a fillip after the Federal Reserve
initiated an aggressive easing cycle on Wednesday with a half-percentage-point reduction, adding to the
appeal for gold, which pays no interest. Prices of the safe-haven asset have climbed 26% in 2024, its biggest
annual rise since 2010, as investors also sought to hedge uncertainties spurred by prolonged conflicts in the
Middle East and elsewhere. - Fed About to Get Validation for Its Jumbo Rate Cut: Eco Week
(Bloomberg) — The Federal Reserve’s preferred price metric and a snapshot of consumer demand are seen
corroborating both the central bank’s aggressive interest-rate cut and Chair Jerome Powell’s view that the
economy remains strong. Economists see the personal consumption expenditures price index rising just 0.1%
in August for the second time in three months. - RBA Set to Extend Rate Pause as Housing Crisis Props Up Prices
Australia’s record household debt was a key factor in the Reserve Bank’s cautious approach to tightening,
and now housing is an important consideration in the RBA becoming an outlier in the easing cycle and
keeping interest rates on hold this week. Housing costs, including rents, constitute roughly a fifth of
Australia’s consumer basket and are the biggest driver of inflation after services. That helps explain
Governor Michele Bullock’s hawkish rhetoric and why economists see the RBA holding the cash rate at a 12-
year high of 4.35% on Tuesday and keeping it there until at least February. - Scholz Escapes Another Defeat to Far Right in German State Vote
(Bloomberg) — Olaf Scholz’s Social Democrats held off the far-right Alternative for Germany and look set to
cling on to power in the eastern state of Brandenburg, sparing the chancellor and his party another
embarrassing electoral setback. - Harris Vows to Aid AI, Crypto Sectors in Pitch to NYC Donors
(Bloomberg) — Vice President Kamala Harris vowed to help grow investment in artificial intelligence and
crypto if elected, pitching her economic agenda to donors in New York City on Sunday as one that would
bolster innovation and focus regulations on protecting consumers and investors. - Banking’s Ultimate Dealmaker Orcel Hits German Resistance
(Bloomberg) — Andrea Orcel’s audacious move on Commerzbank AG caught many in Germany unawares. On
Friday, Berlin hit back. The government’s announcement it won’t sell any more shares in the lender
effectively shuts down, for now, any ambitions UniCredit SpA may harbor for a full takeover of Germany’s
second-largest listed lender. - Apollo Is Said to Offer Multibillion-Dollar Investment in Intel
(Bloomberg) — Apollo Global Management Inc. has offered to make a multibillion-dollar investment in Intel
Corp., according to people familiar with the matter, in a move that would be a vote of confidence in the
chipmaker’s turnaround strategy. The alternative asset manager has indicated in recent days it would be
willing to make an equity-like investment of as much as $5 billion in Intel, said one of the people, who asked
not to be identified discussing confidential information. Intel executives have been weighing Apollo’s
proposal, the people said. - Carlyle Targets India Auto Part Makers With $400m Platform: Mint
(Bloomberg) — Carlyle is building a $400 million platform in India to acquire and merge auto component
makers, Mint reports, citing two unidentified people aware of the plans. Carlyle may acquire at least two
parts-makers by the end of this financial year and two more in the next 12-18 months. Will focus on firms
catering to electric vehicles and export-led companies. - Shares of Novo Nordisk A/S fell 5.4% after the Danish drugmaker reported mixed safety data on one of
its next-generation weight-loss drugs
A mid-stage trial showed that monlunabant helped generate statistically significant weight loss compared
with placebo, but with limited additional losses seen at higher doses. The trial of 243 people had no serious
adverse events, but mild to moderate neuropsychiatric side effects, primarily anxiety, irritability, and sleep
disturbances, were more frequent and dose dependent with the drug than with placebo. The company
acquired monlunabant last year in its purchase of Canadian biotech Inversago Pharma, a deal that would
have been worth as much as $1.1 billion if development goals were hit. The results raise questions over the
commercial viability of the class of drugs that includes monlunabant, said Bloomberg Intelligence analyst
Michael Shah. The side-effect reports are concerning and the weight loss shown in the trial lags behind that
shown by rival Eli Lilly & Co.’s pill orforglipron, Shah said. - Mercedes-Benz Group AG shares fell 1.8% after a deepening slowdown in China prompted the world’s
biggest luxury-car maker to cut its outlook
The deepening rout in China has particularly hurt sales of Mercedes’ most expensive models like the S-Class
and Maybach sedans. The manufacturer cut expectations for its main cars unit and now sees adjusted returns
between 7.5% and 8.5%, compared with an earlier forecast of as much as 11%. Earnings before interest and
taxes will be significantly below the prior year level. Mercedes is planning a sales offensive in China with new
products, Chief Executive Officer Ola Källenius said. The company’s latest EVs have met with a tepid response
from consumers in Asia’s powerhouse economy and elsewhere. Younger drivers in China are increasingly
turning to homegrown brands that are perceived to have more advanced in-car digital and entertainment
technology. - The owner of the shuttered Three Mile Island nuclear plant in Pennsylvania will invest $1.6 billion to
revive it, agreeing to sell all the output to Microsoft Corp. as the tech titan seeks carbon-free electricity for
data centers to power the artificial intelligence boom
Constellation Energy Corp., the biggest US operator of reactors, expects Three Mile Island to go back into
service in 2028, according to a statement Friday. While one of the site’s two units permanently closed almost
a half-century ago after the worst US nuclear accident, Constellation is planning to reopen the other reactor,
which shut in 2019 because it couldn’t compete economically. Shares of Constellation Energy jumped 22.3%
to an all-time high on Friday. Microsoft has agreed to purchase the energy for two decades and declined to
disclose financial terms. This is the first time Microsoft has secured a dedicated, 100% nuclear facility for its
use. - Qualcomm Inc. has approached Intel Corp. to discuss a potential acquisition of the struggling
chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever M&A
deals
Qualcomm proposed a friendly takeover for Intel in recent days, according to the people, who asked not to
be identified discussing confidential information. The approach is for all of the chipmaker, though Qualcomm
hasn’t ruled out buying or selling parts of Intel in a combination. It’s uncertain whether the initial approach
will lead to an agreement and any deal is likely to come under close antitrust scrutiny and take time to
complete, the people said. Qualcomm has been speaking with US regulators and believes an all-American
combination could allay any concerns, they said. Separately, Apollo Global Management Inc. has also offered
to make a multibillion-dollar investment in Intel Corp. - FedEx Corp.
FedEx Corp. shares tumbled 15.23% after the parcel carrier lowered its annual outlook for adjusted earnings
per share and revenue growth, while posting a worse-than-expected quarterly profit. Morgan Stanley
downgraded the stock and warned FedEx could be facing structural risks. The parcel giant was hurt by a
pullback on priority services as customers traded down to cheaper shipping options in what Chief Executive
Officer Raj Subramaniam called a challenging quarter. - Amazon.com Inc
Amazon.com Inc shares rose 0.91%. The Competition Commission of India asked Amazon Seller Services and
Flipkart Internet to share financial statements to determine a potential penalty in an ongoing antitrust case.
The investigation into the e-commerce platforms stemmed from a trade association complaint.
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