- Asian Shares Open Mixed Ahead of Busy Data Week: Markets Wrap
(Bloomberg) — Asian equities traded mixed early Monday as investors looked ahead to a busy week of economic data including the Federal Reserve’s preferred inflation gauge. Shares in Australia and South Korea advanced while those for Japan edged lower. The moves follow a muted end to the week on Wall Street with the S&P 500 declining 0.1% and the Nasdaq rising. - Yuan Edges Higher as PBOC Sets Stronger-Than-Expected Fixing
(Bloomberg) — China’s yuan pared some of Friday’s losses after the central bank signalled its support for the currency via a stronger-than-expected daily reference rate. The People’s Bank of China set the yuan’s fixing at 7.0996 per dollar on Monday versus 7.2222 as forecast by analysts in a Bloomberg survey — the largest strengthening bias since November. - Russia Mourns Victims as Moscow Attack Deaths Rise to 137
(Bloomberg) — Russia held a National Day of Mourning after the terrorist attack that killed at least 137 people in Moscow, as officials continue to suggest a Ukrainian role in the massacre claimed by Islamic State. Russians lined up Sunday to donate blood, and many added flowers and candles to a makeshift shrine outside the Crocus City Hall on the edge of Moscow. - Harris Won’t Rule Out US Consequences If Israel Invades Rafah
(Bloomberg) — Vice President Kamala Harris declined to rule out consequences for Israel if it invades the crowded southern Gaza city of Rafah, a step the US has repeatedly warned against. While broadly in line with the Biden administration’s repeated cautions to Israel, Harris’ brief comment broadcast Sunday went beyond remarks by Secretary of State Antony Blinken during his latest trip to the region last week. - US Yield Curve to Flatten by Yearend — Model Forecast: Economics
(Bloomberg Economics) — The US Treasury curve has been inverted — an oft-viewed indicator of recession — since mid-2022, when the Federal Reserve raised its policy rate above 2%. With rate cuts now looming, a Bloomberg Economics model sees the curve flattening by the end of 2024, though yields are likely to remain significantly higher than consensus analyst forecasts predict. - ‘Normal’ BOJ to Hike Rates Mildly in 2H24 – Outlook: Economics
(Bloomberg Economics) — The Bank of Japan took a big step to become a “normal” central bank again when it ended negative rates and yield-curve control after a 25-year unconventional monetary policy odyssey. The BOJ’s next move — secure a policy buffer in case inflation loses steam. - NJ First Lady Tammy Murphy Suspends Campaign for US Senate
(Bloomberg) — New Jersey first lady Tammy Snyder Murphy said she’s suspending her campaign for the US Senate seat held by Democrat Bob Menendez. “I am suspending my Senate campaign today,” Murphy said in a video posted Sunday on X, formerly known as Twitter. “I have been genuine and factual throughout, but it is clear to me that continuing in this race will involve waging a very divisive and negative campaign, which I am not willing to do.” - Japan Private Equity Deals Soar in 2023 as Rest of Asia Slumps
(Bloomberg) — Private equity-related dealmaking in Japan jumped last year, as low interest rates and an ample supply of targets helped make the country the only market in the Asia-Pacific region to see growth, according to Bain & Co. Deal value in Japan last year nearly tripled compared with the annual average from 2018 to 2022, rising 183%. - Goldman’s Hedge-Fund Clients Get More Active in Crypto Options
(Bloomberg) — It’s not just the “YOLO” retail traders of the world who are jumping back into cryptocurrency markets. Hedge-fund clients of Goldman Sachs are, too. “The recent ETF approval has triggered a resurgence of interest and activities from our clients,” said Max Minton, Goldman’s Asia Pacific head of digital assets, in an interview. - Big Republican Donor Jeff Yass Owned Shares in Trump Media Merger Partner
The billionaire Wall Street financier is also a major investor in Byte Dance, the Chinese parent company of TikTok, which faces a possible ban in the United States. Jeff Yass, the billionaire Wall Street financier and Republican megadonor who is a major investor in the parent company of TikTok, was also the biggest institutional shareholder of the shell. - LVMH shares traded 2.3% lower after the company announced that Antonio Belloni is stepping down as second-in-command to billionaire Bernard Arnault at LVMH.
Belloni, known as Toni, will give up his roles as group managing director and chairman of the executive committee at LVMH, which he helped build into a behemoth with some 75 brands ranging from Louis Vuitton and Celine to Moet & Chandon and Dom Perignon. Stephane Bianchi, 59, the current head of LVMH’s watches and jewellery unit, will succeed him, the company said. Bianchi joined the group in 2018 to lead Tag Heuer and the watchmaking unit, and added Tiffany & Co. to his responsibilities following its acquisition. - Nvidia shares rose 3.1%, extending a record streak of weekly gains to 11.
The stock rose on Friday after UBS raised its price target on the chipmaker to $1,100 from $800. The company “sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns – with each sovereign potentially as big as a large US cloud customer,” wrote analyst Timothy Arcuri. Following the company’s GTC conference, “we now see another solid growth year in C2025 with revenue approaching $150B (~30% growth)”. - Nike fell 6.9% Friday after the sportswear company warned investors that sales will decline by low single digits in the first half of the fiscal year.
The company’s third-quarter revenue beat was offset by weaker-than-expected margins. RBC Capital Markets downgraded the stock to sector perform, saying Nike’s organizational restructuring and product transition adds further uncertainty and guidance risk. RBC Capital Markets, Piral Dadhania (cuts to sector perform from outperform): “Nike’s unexpected first glance guide for 1H25E implies no revenue growth for cal 2024, which leaves little to play for in the near term”. Sees the organizational restructuring and product transition over next few quarters adding further uncertainty and guidance risk. There is no doubt Nike will emerge a better company in a better phase of its business cycle, but Dadhania prefers outperform-rated Adidas. PT cut to $100 from $110. - FedEx shares rallied 7.4% after the parcel carrier’s third-quarter results beat estimates and it announced a $5 billion buyback plan. Analysts note that strong margins at its Express business helped offset some weakness at its Ground business.
YEAR FORECAST: Sees adjusted EPS $17.25 to $18.25, saw $17 to $18.50, estimate $17.48. Morgan Stanley analyst Ravi Shanker (equal-weight, PT to $210 from $195) says FedEx “earnings rollercoaster continues” as 3Q beat follows the 2Q miss. While bulls will like that its Express business “was better than feared and the $5 bn buyback,” the bears will point to the “continued revenue miss, potential earnings quality issues” and more. Cowen analyst Helane Becker (outperform, PT $320 from $293): FedEx beat estimates due to “strong cost control as revenue was below forecast.” The company continues to focus on its cost-cutting program. - Didi Global Inc’s fourth-quarter revenue jumps 55% YoY to RMB 49.4 billion while full year revenue climbed 37% to RMB 192.4 billion, ahead of Hong Kong IPO this year.
The latest increase in revenue showed signs of Didi’s recovery since it restored its main apps to mobile stores in 2023. Didi said as of Feb. 29 it has repurchased an aggregate of around 14.9 million ADS for roughly $54.4 million under its $1 billion share-buyback program, authorised by the board last year. - Truist Insurance wraps $6.1 billion in high-yield bonds and leveraged loans in a buyout by Stone Point Capital and Clayton Dubilier & Rice.
The notes are priced at par with a 7.125% coupon and is 325 basis points over the Secured Overnight Financing Rate at a discount of 99.75 cents. The sales are part of a financing package for the $15.5 billion deal that includes a $1.9 billion second-lien loan sold earlier in March. The latest financing comes as risk premiums on high-yield bonds are at their lowest in more than 2 years.
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