- Asian Stocks Climb as Risk Sentiment Rebounds: Markets Wrap
(Bloomberg) — Asian stocks tracked gains in US peers as an easing in US consumer inflation expectations bolstered the case for the Federal Reserve to cut rates this year. Markets in Australia, South Korea and Japan posted modest gains on Monday, while futures for Hong Kong equities also gained. Contracts for US stocks were little changed in early Asian trading. - BOJ’s Ueda: To Move Cautiously to Re-Anchor Price Expectations
(Bloomberg) — Bank of Japan Governor Kazuo Ueda says the central bank will move cautiously to anchor inflation expectations at 2%. Some challenges are uniquely difficult for the BOJ, compared with global counterparts, Ueda says in a speech at BOJ’s annual international conference. Assessing natural interest rate is particularly difficult in Japan, given a prolonged period. - China Defies Global Copper Squeeze With Near-Record Production
(Bloomberg) — The global copper market is gripped by fears of a shortage, which has propelled prices to record levels and sparked a $49 billion takeover battle. But in China, the world’s biggest producer and consumer of the refined metal, there’s more than enough to go around. At the center of that conundrum are the nation’s ever-expanding copper smelters. - Dozens Killed as Israel Strikes Tent City in Rafah Assault
(Bloomberg) — At least 35 Palestinians were killed in an Israeli airstrike at a camp for displaced people in the southern city of Rafah late Sunday, the Hamas-run ministry of health said. The strike came two days after the International Court of Justice issued a ruling ordering Israel to halt its operations in the name of sparing civilians. - Rescuers Search for 670 Missing in Papua New Guinea Landslide
(Bloomberg) — The death toll from a huge landslide in Papua New Guinea could be far higher than first expected as more than 670 people remain buried below up to 8 meters (26 feet) of soil, the United Nations said. Around 150 houses and their residents in Yambali village situated at the foot of a mountain in remote Enga province are believed to be submerged. - Fed’s Favourite Underlying Inflation Gauge Seen Cooling: Eco Week
(Bloomberg) — The Federal Reserve’s first-line inflation gauge is about to show some modest relief from stubborn price pressures, corroborating central bankers’ prudence about the timing of interest-rate cuts. Economists expect the personal consumption expenditures price index minus food and energy due on Friday to rise 0.2% in April. - China’s Housing Rescue Has a Poor Track Record in Pilot Cities
(Bloomberg) — China’s big housing rescue aims to build on smaller efforts that are already under way and struggling to get traction. The People’s Bank of China this month unveiled $42 billion of funding to help local governments buy excess inventory from developers. Pilot programs on similar lines have been operating last year in eight cities. - Sunak National Service Plan Faces Enforcement, Funding Questions
(Bloomberg) — Prime Minister Rishi Sunak’s campaign promise to revive national service for young Britons came under immediate scrutiny over how the £2.5 billion ($3.2 billion) plan would be funded and enforced. While Sunak captured the front pages of British newspapers with his surprise call to compel 18-year-olds into military or community service, his home secretary. - Bill Gross Expects Trump Win to Disrupt Bond Markets, FT Says
(Bloomberg) — Bill Gross said that a Donald Trump victory in the US presidential election would be more disruptive for bond markets than a Joe Biden win, according to the Financial Times. “Trump is the more bearish of the candidates simply because his programs advocate continued tax cuts and more expensive things,” which would add to the already burgeoning US deficits. - BOJ May Hike Rate to 0.5% by Year-End, Ex-BOJ’s Masai Says
(Bloomberg) — Japan’s central bank has scope to hike its benchmark rate to as high as 0.5% by the end of the year if economic conditions stay more or less on the same track, according to a former member of the Bank of Japan’s policy board. “It really depends on the real economy, but if economic expectations stay like the current situation. - HK New Home Weekend Sales Drop to Three-Month Low: HKEJ
(Bloomberg) — Hong Kong’s new home sales during the weekend dropped to a three-month low since the city removed property curbs in February, Hong Kong Economic Journal reports, citing market data. Hong Kong recorded 60 new home transactions in the weekend of May 25-26, representing a decline of 75% from the previous week Only 6 transactions were reported in the 10 biggest residential estates in Hong Kong. - Financial News: Inside Bobby Jain’s $5bn hedge fund launch: Poaching from rivals, global offices and seven key strategies
Jain Global, one of the most hotly anticipated hedge funds launches in years, will kick off with at least 150 employees after tapping rivals and investment banks for talent. The $5bn hedge fund, headed by former Credit Suisse managing director Bobby Jain, will launch on 1 July and focus on seven different investment strategies, according to people familiar with the matter. - Sneaker Maker Golden Goose Is Said to Kick Off Milan IPO Soon
(Bloomberg) — Luxury sneaker brand Golden Goose Spa plans to kick off an initial public offering in Milan as soon as this week, according to people familiar with the matter, extending a strong rebound in European listings this year. Golden Goose may indicate its intention to float as soon as this week following positive feedback from prospective investors. - Workday shares plunged 15.33% on Friday, after the human resources software provider cut its annual subscription revenue forecast.
Concerns about lower customer headcount growth as a hiring slowdown and IT budget cuts soften demand for its payroll services were cited by the company. The company sees subscription revenue for fiscal year 2025 in the range of $7.70 billion to $7.73 billion, down from its prior forecast of $7.73 billion to $7.78 billion. Analysts expect revenue of $7.76 billion. - Severe Turbulence Leaves 12 Injured on Qatar Airways Flight
(Bloomberg) — A Qatar Airways flight struck severe turbulence over Turkey, injuring 12 people on board, before landing as scheduled in Dublin on Sunday. Passengers on the flight said at least one crew member was flung into the air as the aircraft suddenly lost altitude, according to RTE News. - Crypto-linked stocks rose on Friday after the Securities and Exchange Commission paved the way for spot-Ether exchange traded funds.
Coinbase gained 8.6%. The SEC approved a proposal by venues run by Cboe Global Markets Inc., Nasdaq and the New York Stock Exchange to list Ether-linked products. There is no date set for when ETFs can launch, as the issuers also need approval, JPMorgan analyst Kenneth B Worthington noted. As crypto is a political issue ahead of the presidential election, trading should begin “well-ahead” of November, the analyst wrote. - Guardant Health shares rallied 13.4% after the company’s Shield blood test to screen for colorectal cancer received the backing of an FDA advisory panel.
The advisory committee agreed 7 to 2 that the benefits of the Shield test outweigh the risk for individuals at average risk of the disease. Shares of rival Exact Sciences, which makes the stool-based Cologuard test, fell 7.8%. Leerink Partners, Puneet Souda (rates GH outperform): Notes that the panel voted 6-3 on the proposed indication for first-line use. Adds that this occurred despite initial confusion from panelists about the first-line vs. second-line definition and the panel discussion leaning toward 2L during the second half of the meeting. “We believe the FDA will lean on the final vote when deciding whether to indicate Shield for first or second line”. - Booz Allen shares rose 4% after the technology consulting firm reported better-than-expected 4Q results. Analysts were also positive about the company’s 2025 outlook.
FOURTH QUARTER RESULTS: Adjusted EPS $1.33 vs. $1.01 y/y, estimate $1.23. Revenue $2.77 billion, +14% y/y, estimate $2.72 billion. Backlog $33.8 billion, +8.3% y/y. Adjusted Ebitda $286.8 million, +24% y/y, estimate $279.5 million. Adjusted Ebitda margin 10.3% vs. 9.5% y/y, estimate 10.3%. 2025 YEAR FORECAST: Sees adjusted EPS $5.80 to $6.05, estimate $5.92. Sees adjusted Ebitda $1.26 billion to $1.30 billion, estimate $1.27 billion. Sees revenue +8% to +11%. William Blair analyst Louie DiPalma (outperform): “Shares of Booz Allen will be able to maintain their gains as the valuation looks more appealing when looking at the new fiscal year”. “Booz Allen is the best-of-breed defense IT service provider” and the company is also a leading provider of AI solutions to the DoD. - Deckers Outdoor shares jumped 14.2% after the shoe company reported stronger-than-expected fourth-quarter sales, driven by the Hoka and UGG brands. Its annual sales forecast came roughly in line with consensus expectations, though its profit outlook fell short. Analysts continue to see Hoka and UGG driving growth for the company over the next year.
FOURTH QUARTER RESULTS: Net sales $959.8 million, +21% y/y, estimate $884.4 million. UGG net sales $361.3 million, +15% y/y, estimate $319.3 million. HOKA net sales $533.0 million, +34% y/y, estimate $491.4 million. Gross margin 56.2% vs. 50% y/y, estimate 51.6%. EPS $4.95 vs. $3.46 y/y. 2025 YEAR FORECAST: Sees net sales $4.7 billion, estimate $4.69 billion. Sees EPS $29.50 to $30.00, estimate $30.11. Sees gross margin about 53.5%, estimate 54.5%.
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