- Stocks in Asia Slip, Tracking US Tech-Led Declines: Markets Wrap
(Bloomberg) — Equities in Asia declined as investors began pulling back on the artificial-intelligence frenzy that has powered the bull market this year. Stocks in Japan and South Korea both fell over 2%, with chipmaker SK Hynix Inc. tumbling even with solid earnings. In the US, the S&P 500 slumped 2.3%, its worst showing since December 2022 and one that ended the best stretch. - Stock futures rise after S&P 500, Nasdaq post worst day since 2022
Stock futures rose Thursday morning after a sharp tech-driven sell-off dragged the Nasdaq Composite and the S&P 500 to their worst session since 2022. Futures tied to the Dow Jones Industrial Average added 65 points, or about 0.16%. S&P 500 futures rose 0.13%, while Nasdaq 100 futures advanced 0.18%. - Hedge Funds in Europe Bought Dollar-Yen Puts Amid FOMO: Traders
(Bloomberg) — Leveraged funds in Europe bought dollar-yen put options Wednesday amid fears of missing out on the currency pair’s further decline, as risk-off sentiment grows and carry trades are unwound, according to traders. - PBOC Conducts 200B Yuan MLF, Cuts 1-Year Rate to 2.3%
(Bloomberg) — The People’s Bank of China conducts 200 billion yuan one-year medium-term lending facility, according to a statement. MLF rate cut to 2.3% from 2.5%. - Lineage Raises $4.4 Billion in Year’s Biggest IPO
(Bloomberg) — Temperature-controlled storage and logistics giant Lineage Inc. raised about $4.4 billion in an enlarged initial public offering, landing the year’s biggest first-time share sale. Novi, Michigan-based Lineage sold nearly 57 million shares Wednesday for $78 each, near the top of the price range, according to a statement confirming an earlier report. - Musk’s Poll Shows Most Want Tesla to Invest $5 Billion in xAI
(Bloomberg) — Elon Musk asked X users whether Tesla Inc. should invest $5 billion in his artificial intelligence startup, saying he was “testing the waters” for a potential deal. More than two-thirds of respondents voted “yes.” The Tesla chief executive officer posed the question Tuesday, shortly after the carmaker reported a fourth straight quarter of disappointing. - Biden Says Time for ‘Younger Voices’ in Oval Office Speech
(Bloomberg) — President Joe Biden framed his momentous decision to drop out of the 2024 race as a bid to unify the nation under a new generation of leaders, in his first speech since ending his re-election campaign and political career. Biden sought to define his legacy on Wednesday with an 11-minute Oval Office address one that he has staked on defending US institutions. - Netanyahu Vows to Press On in Gaza in Defiant Speech to Congress
(Bloomberg) — Prime Minister Benjamin Netanyahu urged the US to fast-track weapons for Israel’s war against Hamas in a fiery speech to Congress, inserting himself into a super-charged moment of American politics and brooking no criticism about the mounting death toll in the Gaza Strip. - US Yield Curve Steepens as Bond Traders See Fed Cuts Looming
(Bloomberg) — The US yield curve steepened sharply amid growing calls for the Federal Reserve to start cutting interest rates as soon as next week. Yields on policy-sensitive two-year Treasuries slid three basis points on Wednesday, while those on 10-year bonds were up by about the same amount. - South Korea’s Economy Contracts After Surge at Start of 2024
(Bloomberg) — South Korea’s economy flipped back into reverse last quarter after hotter-than-expected growth at the start of the year, adding to challenges for policymakers as they struggle to stimulate investment and consumption. Gross domestic product shrank by 0.2% in the three months through June from the previous quarter, the Bank of Korea said Thursday. - Trump Shooter Googled Oswald, Flew Drone, FBI Head Testifies
(Bloomberg) — The man identified by the US as the shooter at Donald Trump’s campaign rally used encrypted messaging apps and flew a surveillance drone over the area ahead of his assassination attempt, the head of the FBI testified. Appearing before Congress to answer questions about the July 13 assault in Pennsylvania, Federal Bureau of Investigation Director Christopher Wray. - AMLO Says Trump’s Threat to Ban Mexican Cars Is Just a Bluff
(Bloomberg) — Donald Trump’s threat to ban Mexican-made cars is a bluff that “isn’t serious,” according to the nation’s President Andres Manuel Lopez Obrador. Trump’s proposal won’t happen, since such a move would significantly raise prices for US drivers, Lopez Obrador told reporters. - Typhoon Gaemi Aims at China After Pounding Taiwan, Philippines
(Bloomberg) — Typhoon Gaemi took aim at China after tearing across the Philippines and Taiwan, knocking out power to hundreds of thousands of homes, flooding streets and leaving at least five people dead. After passing south of densely populated Taipei, the storm’s eye headed out over the Taiwan Strait early Thursday, lumbering to the northwest. - China Yield Curve Steepener Trade Gains Traction With Caveats
(Bloomberg) — A popular Treasuries trade is being replicated in China, where the gap between long and short-dated yields is widening as the central bank pushes to better control the bond market and signal a healthier economy. The gap between two- and 10-year yields has hit levels last seen in 2020, while that between five- and 30-year equivalents is at its steepest. - FDIC Vice Chair Says Bank Capital Plan Needs More Unified Effort
(Bloomberg) — All three of the top US bank regulators need to get on the same page when they propose major revisions to the Biden administration’s signature overhaul of capital requirements or risk causing confusion, a top FDIC official said Wednesday. - Evercore Posts Record Revenue on Dealmaking Rebound
(Bloomberg) — Evercore Inc. posted record second-quarter revenue as a dealmaking rebound fuelled a surge in advisory fees. Adjusted net revenue soared 38% from a year earlier, to $695.3 million, as the firm advised on transactions including ConocoPhillips’s $22.5 billion acquisition of Marathon Oil Co., the quarter’s biggest takeover deal. - T-Mobile Invests $4.9 Billion in JV With KKR to Buy Metronet
(Bloomberg) — T-Mobile US Inc. is investing $4.9 billion in a joint venture with private equity firm KKR & Co. to buy fiber-optic internet service provider Metronet. The No. 2 US wireless carrier will use Metronet’s digital and fiber infrastructure to expand to more households with fiber broadband services, according to a statement on Wednesday. - Trump’s Vance Pick Is a Warning That M&A Won’t Get an Easy Pass
(Bloomberg) — Former President Donald Trump’s selection of JD Vance as his running mate may signal that a second term could be far less business friendly than corporate dealmakers had hoped. The Ohio Senator whom Trump chose as his vice-presidential nominee last week has opinions on antitrust regulation that run counter to the traditional light-touch Republican. - Chinese EV startups are spending more on research than Tesla is
Chinese electric car companies are outspending Tesla and traditional fuel-powered cars on research and development as a ratio to sales. Many Chinese automakers already spend as much as or more than their global peers on R&D as a percent of revenue, a significant increase from many years ago, Paul Gong, autos analyst at UBS, told CNBC. Geely’s vice president of autos R&D, Ren Xiangfei, told CNBC late last month that while the company is looking to improve both hardware and software for cars, the latter can provide more differentiation. - Deutsche Bank shares (DBK GY) dropped 8.31%, after it reported its second quarter results.
Net revenue came in at €7.59 billion, while estimates were at €7.53 billion. FIC (Fixed Income and Currencies) sales and trading revenue was at €2.10 billion, below estimates of €2.15 billion. The bank also announced that it will most likely refrain from conducting a second share buyback this year, as a previously disclosed litigation charge pushed it to the first quarterly loss since 2020. - LVMH shares fell by 4.66% after it reported a disappointing set of earnings results for the second quarter.
Revenue came in at €20.98 billion, which were below the estimates of €21.41 billion. Specifically, organic revenue at the luxury group’s fashion and leather goods unit rose by 1%, about half of its estimates of 1.95%. The results signal that even the strongest brands are succumbing to a slowdown in demand for high-end items. - India is on alert after a fresh outbreak of the deadly Nipah virus.
Here’s what you need to know Health authorities in the southern Indian state of Kerala are on high alert following the latest flare-up of the deadly Nipah virus. The Nipah virus is considered one of the most dangerous pathogens circulating in the wild. First identified 25 years ago in Malaysia, Nipah is estimated to have a case fatality rate as high as 75% and has been cited as having the potential to spark another pandemic. - Nvidia supplier SK Hynix posts highest quarterly profit in 6 years on AI chip leadership
Operating profit in the June quarter hit its highest level since the second quarter of 2018, rebounding from a loss of 2.88 trillion won in the same period a year ago. SK Hynix on Thursday said that a continuous rise in overall prices of its memory products — thanks to strong demand for AI memory including high-bandwidth memory led to a 32% increase in revenue compared with the previous quarter. - Ford shares tumble 11% after massive earnings miss
Ford Motor came in short of Wall Street’s second-quarter earnings expectations while beating on revenue, due to warranty costs that have plagued the automaker for several years now. The automaker increased its target for free cash flow but maintained its 2024 earnings guidance, disappointing some investors who had hoped for a hike. Ford CEO Jim Farley told investors Wednesday that his Ford+ restructuring plan remains on track to make the automaker more profitable. - Chipotle earnings and revenue top estimates, restaurant traffic rises again
Chipotle Mexican Grill said its restaurant traffic increased 8.7% in the second quarter. The restaurant company beat Wall Street’s estimates for its quarterly earnings and revenue. Chipotle reiterated its full-year outlook for same-store sales growth. - NBA says Amazon will be its new media partner, rebuffing Warner Bros. Discovery attempt to match deal
The NBA said it does not believe Warner Bros. Discovery can exercise its right to match Amazon’s new media rights package. The league said it will move forward with Amazon as the third media partner in its new 11-year rights deal, along with ESPN and NBCUniversal. Warner Bros. Discovery responded to the league’s statement saying it doesn’t believe the NBA can reject the matching rights. - Gold rises on softer dollar, traders eye more U.S. data
Gold prices rose on Wednesday as the dollar slipped with investors’ focus shifting to U.S. economic data due this week for fresh signals on the timing of the central bank’s interest rate cuts. Spot gold was up 0.7% at $2,425.28 per ounce, as of 1349 GMT. U.S. gold futures gained 0.8% to $2,426.60.
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