- Asian Stocks Gain to Shrug Off US Tech Concerns: Markets Wrap
(Bloomberg) — Shares in Asia edged higher to defy a mixed day on Wall Street as speculation gained that the tech sector rally may be running out of steam. Equities in South Korea, Australia and Japan advanced. Stock futures in Hong Kong pointed up as the Nasdaq Golden Dragon China Index, a gauge of US-listed Chinese shares, climbed 1.3% on Monday. - Forget 160, Traders See Yen Slumping as Far as 170 This Time
(Bloomberg) — The yen is at risk of sliding to levels last seen in 1986, with bearish traders unfazed by the specter of government intervention to bolster Japan’s embattled currency. A slump as far as 170 per dollar — some 10-yen from current levels — is possible amid continued selling of the currency in Favor of the higher-yielding greenback. - Wikileaks’ Assange to Plead Guilty, Ending US Legal Battle
(Bloomberg) — Wikileaks co-founder Julian Assange will plead guilty to leaking US national security secrets and return to his native Australia, under a deal with the Justice Department that ends an almost 15-year battle over his prosecution. Assange, 52, is expected to be sentenced to the more than five years he already served in a UK prison during a court appearance. - Hedge Fund With 20% Returns Record Targets Uranium M&A
(Bloomberg) — A top performing hedge fund is betting the pullback in uranium producer NexGen Energy Ltd. will be short lived, as the industry’s growing appeal leaves the startup well placed for a potential takeover. Melbourne-based L1 Capital’s flagship Long Short Fund is up 20% per annum since inception. - Boeing Bid for Spirit Aero Values 737 Supplier at $35 Per Share
(Bloomberg) — Boeing Co. has offered to acquire Spirit AeroSystems Holdings Inc. in a deal funded mostly by stock that values the key supplier at about $35 per share, according to people familiar with the matter. Boeing switched its proposed funding from an all-cash offer with the finish line in sight after months of talks between the companies. - Blinken Meets With Israel’s Gallant Amid Netanyahu Complaints
(Bloomberg) — Secretary of State Antony Blinken and Israeli Défense Minister Yoav Gallant met in Washington on Monday as the Biden administration struggles to forge a cease-fire in Gaza and prevent a war with Hezbollah forces in Lebanon. The meeting occurred after Israeli Prime Minister Benjamin Netanyahu has repeatedly accused the US of withholding weapons. - Macron Says Extreme Opposition Parties Would Cause Civil War
(Bloomberg) — President Emmanuel Macron said the agendas of the far-right and far-left blocs in France’s upcoming legislative elections pit the country’s people against each other, going so far as to say that “extreme” parties could spark a “civil war.” The far-right National Rally’s plan to deal with crime and insecurity “refers to people of a religion or an origin. - Fed’s Daly Warns of Labor Market Risks, Nearing Inflection Point
(Bloomberg) — Federal Reserve Bank of San Francisco President Mary Daly warned the US labor market is nearing an inflection point, where further slowing could mean higher unemployment. Daly, who votes on monetary policy this year, said restrained demand will likely be needed to return inflation to the central bank’s 2% target. - Sunak, Starmer Issue Warnings on Economy in UK Election
(Bloomberg) — Rishi Sunak and Labour leader Keir Starmer traded stark warnings about each other’s handling of the UK economy as the prime minister sought to turn around his Conservative Party’s fortunes ahead of next week’s general election. Sunak said Starmer’s tax plans may have the same impact as predecessor Liz Truss. - UBS Picks Beijing Over Citadel Securities for China Unit
(Bloomberg) — UBS Group AG has agreed to sell the majority of its stake in Credit Suisse’s China venture to a Beijing-backed fund, dealing a blow to the ambitions of Ken Griffin’s Citadel Securities to expand in the world’s second-largest economy. - Thoma Bravo Said to Be Exploring Sale of Auto Marketplace Trader
(Bloomberg) — Thoma Bravo is exploring the sale of Trader, a Canadian automotive marketplace and software provider, according to people with knowledge of the matter. The private equity firm is working with an adviser to solicit interest from potential buyers, said the people, who asked not to be identified discussing confidential information. - Nvidia shares fell 6.7% on Monday with the stock extending losses for a third consecutive session, putting it on track to wipe out more than $400 billion in value and pushing its market capitalization below $3 trillion.
“It’s just the usual fluctuations in the stock market which, with such large companies, can wipe or add hundreds of millions or even billions of dollars to their market value,” said Russ Mould, investment director at AJ Bell. “Nothing has gone wrong at Nvidia.” Some whipsawing in the short-term was expected by some. In a June 19 note, analysts led by Vivek Arya at Bank of America Corp. said that Nvidia’s “steep climb makes it vulnerable to profit taking, but we argue any volatility likely to be short-lived.” - Energy stocks were among the biggest gainers on the S&P 500 Index on Monday, as oil prices rebounded from Friday’s decline, amid signs of rising demand in the US and healthy air travel volumes.
Crude remains on track for a monthly gain. The prompt spread for American crude has strengthened this month in a bullish backwardation structure, signalling tightening supply amid signs of rising US gasoline demand and healthy air travel volumes. “Gasoline posted its first draw of the summer driving season in last week’s report, and crude oil posted a storage draw on bullish import/export dynamics,” Robert Yawger, executive director of energy futures at Mizuho Securities USA, said. “Unfortunately, the report was so good that it will be hard to repeat the feat again this week.” - Makers of devices to treat sleep apnea, such as ResMed and Inspire Medical Systems tumbled on Monday following additional clinical data from Eli Lilly that showed its weight-loss drug tirzepatide reduced the severity of obstructive sleep apnea (OSA).
Citi analyst Mathieu Chevrier cut his recommendation on ResMed’s GDRs to neutral from buy, saying the new data indicates that GLP-1 drugs, like tirzepatide, are a viable treatment option for the ~70% of OSA patient population that are obese. “While the data supports use of combination therapy, there is a risk that a portion of mild patients may drop CPAP therapy over time”. Reduces target price on RMD AU to A$30 from A$36. Separately, Stifel analyst Jonathan D Block lowered his price target on Inspire Medical to $170 from $210 saying the new data from Lilly raises more questions for INSP rather than answers. Maintains hold rating on INSP, adding that the stock’s setup remains challenging. - Alnylam Pharmaceuticals shares soared 34.5% after the drugmaker said its drug vutrisiran succeeded in a late-stage study for patients with a serious heart condition known as ATTR amyloidosis with cardiomyopathy.
Cantor, Olivia Brayer (rates ALNY neutral, PT $150): Says the data “looks like a best-case scenario”. “Not only did vutrisiran clear the bar for success but it actually showed a benefit on the composite ACM/CVH endpoint in both the monotherapy subgroup and overall population.” Adds that the most important debate will be how much market share vutrisiran will be able to get compared to BBIO’s acoramidis. Notes that a priority review of the drug application puts a likely approval/launch in the late spring 2025 timeframe. William Blair, Myles R. Minter (rates ALNY outperform): Says the data looks to be a best-case scenario and a “huge win” for the company. Sees trial outcome reading as a “clear home run for Alnylam with clear positive read-through to other TTR silencer players in Ionis and Intellia”. - Prudential shares surged 7.32%, after it launched a $2 billion share buyback programme.
The insurer outlined the company’s progress, that includes the potential for further shareholder returns.
The company said in a statement that the buyback will be completed by mid-2026, with the pace and timing subjected to market conditions. - China’s premier defends national competitiveness as trade tensions simmer
Chinese Premier Li Qiang on Tuesday defended the country’s technological development while criticizing efforts to restrict global cooperation. His remarks, at the opening of the World Economic Forum’s “Summer Davos” meeting in Dalian, China, came amid rising tensions with the EU over imports of Chinese electric cars. - Tech giants bet next-generation optical networks will reduce AI’s climate impact, aid 6G transition
The likes of Microsoft, Google, Intel, and Sony are backing a little-known initiative referred to as the IOWN Global Forum, a worldwide collective of cloud hyperscale’s, telecom groups, and chipmakers.
The forum is working to develop technical standards for all-photonic networks, which rely on light rather than electrical impulses to deliver data, with the aim of achieving implementation by 2030. These networks are expected to achieve far less power consumption, higher transmission capacity, lower latency, and benefit data-intensive applications like AI. - Stock futures climb after Nasdaq Composite registers worst day since April
Stock futures rose on Tuesday morning after a selloff in favored technology names brought the Nasdaq Composite to its worst day since April. Futures tied to the Dow Jones Industrial Average added 72 points, or 0.18%. S&P 500 futures and Nasdaq-100 futures rose 0.13% and 0.26% respectively. In extended trading, SolarEdge Technologies sank 13% after announcing plans for a $300 million private offering of convertible notes, while Pool Corp dropped 11% after adjusting its guidance downward. - Gold drifts lower as traders await U.S. inflation data
Gold prices eased on Tuesday, while investors looked toward key U.S. inflation data due later this week that could throw some light on the Federal Reserve’s interest rate cut stance. Spot gold was down 0.2% at $2,327.52 per ounce as of 0339 GMT. U.S. gold futures fell 0.2% to $2,339.90. “Technical factors in the short-term are not so positive for gold. After last Friday’s sell-off, short-term traders view this as a bearish signal explaining the lackluster movement for gold holding on to these levels,” said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA. - Australia’s Households Remain Pessimistic on RBA Rate-Rise Fears
(Bloomberg) — Australia’s consumers remained downbeat in June, reflecting concern that persistent inflation could prompt the Reserve Bank to resume raising interest rates. Sentiment edged up 1.7% to 83.6 points, still far below the 100 dividing lines between pessimists and optimists, a Westpac Banking Corp. survey showed Tuesday. - Hostile Migration Policy Threatens UK Chip Industry, Bosses Say
(Bloomberg) — British chipmakers warn that a UK crackdown on immigration is hobbling the sector’s ability to compete globally because of increased barriers to hiring foreign talent. Moreover, they expect those roadblocks to persist whoever wins next week’s general election.
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