- Asian Shares Slip as China Factory Activity Slides: Markets Wrap
(Bloomberg) — Asian stocks fell as signs mounted that China’s efforts to support its ailing economy have yet
to take hold. A gauge of the region’s shares edged lower in its first day of trading in a typically volatile month
for markets. Benchmarks in South Korea and Australia slipped, while equities in Japan advanced. - Stocks close higher Friday, S&P 500 posts fourth straight winning month
Stocks rose on Friday, with the Dow Jones Industrial Average posting a fresh record high as investors ended a
volatile month on a high note. Traders also mulled over crucial inflation data watched closely by the Federal
Reserve. The 30-stock Dow jumped 228.03 points, or 0.55%, to close at 41,563.08. The blue-chip index
touched a fresh all-time high in the final minutes of the trading session and closed at another record.
The S&P 500 advanced 1.01%, closing at 5,648.40, and the tech-heavy Nasdaq Composite
gained 1.13% to end at 17,713.62.
- Oil extends losses on prospect of higher OPEC+ supply
Oil prices extended losses on Monday with investors weighing higher OPEC+ production from October against
a sharp drop in output from Libya amid sluggish demand in China and the U.S., the world’s two biggest oil
consumers. Brent crude futures fell 57 cents, or 0.7%, to $76.36 a barrel by 0108 GMT while U.S. West Texas
Intermediate crude slipped 50 cents, or 0.7%, to $73.05 a barrel. The losses followed a 0.3% decline for Brent
last week and a 1.7% drop for WTI. - Gold slips on firm dollar; market focus turns to U.S. jobs data
Gold prices dipped on Monday as the dollar strengthened, while investors awaited key U.S. jobs data to firm
their bets on the size of Federal Reserve’s interest rate cut expected this month. Spot gold was down 0.3% at
$2,494.76 per ounce, as of 0330 GMT. U.S. gold futures held steady at $2,527.20. The dollar hit a near two-
week peak, making greenback-priced bullion less appealing to other currency holders. The Fed is expected to
kick off a rate-cutting cycle at its policy meeting on Sept. 17-18. Traders currently see a 69% chance of a 25-
basis-point cut and a 31% chance of a 50 bps cut, according to the CME FedWatch tool. - China’s Sputtering Growth Engines Raise Urgency for Stimulus
(Bloomberg) — China’s remaining growth engines are showing signs of spluttering while the property market
continues to drag on the economy, highlighting the urgency of government intervention to keep an
increasingly unlikely growth target in sight. Factory activity contracted for a fourth straight month in August,
with sub indexes showing deepening deflationary pressures. - The Fed’s favorite inflation indicator increased 0.2% in July, as expected
Core personal consumption expenditures prices increased 0.2% in July and 2.6% from a year ago. The 12-
month figure was slightly softer than the 2.7% estimate. All-item inflation came in respectively at 0.2% and 2.5%, in line with forecasts. Personal income increased 0.3%, slightly higher than the 0.2% estimate, while
consumer spending rose 0.5%, in line with the forecast. - US Jobs Data Will Help Fed Gauge Extent of Moderation: Eco Week
(Bloomberg) — Upcoming readouts on the US labor market, including the monthly payrolls report, will give
Federal Reserve policymakers insight into the need for further interest-rate reductions after an all-but-certain
cut in a little more than two weeks. - Japan’s Firms Lift Outlays in Sign of Modest Domestic Demand
(Bloomberg) — Japanese businesses boosted investment in the second quarter of the year, reaffirming signs
of confidence that the economy is recovering slowly with the help of an uptick in domestic demand-led
activity. Capital expenditure on goods excluding software rose 1.9% in the three months through June from
the previous quarter, the finance ministry reported Monday. - UK Oil Lobby Warns of Investment Slump Due to Tax Increase
(Bloomberg) — The UK’s new tax regime for North Sea oil and gas could lead to an investment slump of more
than 80%, the industry lobby group warned. Changes already announced by the new Labour government,
including an increase in a windfall tax and removal of an investment allowance, could mean a drop in capital
spending on UK projects from 2025 to 2029 to just £2.3 billion ($3 billion), compared with an estimate of
£14.1 billion under the current fiscal regime, Offshore Energies UK said in a report on Monday. - Yen Forecasters Chart Path Past 140 as Global Rate Tracks Emerge
(Bloomberg) — Currency strategists have had a radical rethink on the trajectory of the yen in the wake of the
Bank of Japan’s interest rate hike in July and the Federal Reserve’s recent signaling of looming cuts to US
borrowing costs. Prior to the BOJ’s July 31 decision, many strategists still warned of further weakness in the
beleaguered yen. - Indonesia, Malaysia Shine as Fed Pivot Approaches: Taking Stock
(Bloomberg) — Global investors are boosting exposure to Indonesia and Malaysia on bets the two markets
will benefit more than their developing-nation peers as the Federal Reserve looks set to embark on monetary
easing. Sound fiscal policies and focus on new technology sectors such as electric vehicles and data centers
are among factors attracting funds. - RBA Set to Stand Pat Even as US Signals Rate Cuts, Hauser Says
(Bloomberg) — Australian interest rates are likely to stay unchanged in the near future because inflation is a
bit stickier than the in the US, Reserve Bank Deputy Governor Andrew Hauser said, highlighting a global
divergence as the Federal Reserve prepares to ease policy. - PSBC Reports Weak Earnings Despite Bond Trade Gains: Street Wrap
(Bloomberg) — Postal Savings Bank of China reported a 1.5% y/y drop in net income for the first half-year of
2024 at 48.82 billion yuan. Citigroup says its pre-provision operating profit drop was bigger due to agency fee
paid to the parent, but sees potential upside from upcoming agency re-negotiation. - Marvell Technology
Marvell Technology shares rose 9.16% after the semiconductor-device company reported Q2 results that
beat expectations and gave a Q3 revenue outlook that was seen as strong, spurring price target upgrades
across sell-side analysts. The company reported Q2 net revenue of $1.27 billion compared to estimates of
$1.25 billion while net revenue forecast for Q3 was $1.45 billion to $1.46 billion compared to estimates of
$1.4 billion. - BABA
BABA shares gained 2.86% (US ADR) after the Chinese e-commerce giant secured the endorsement of the
country’s antitrust watchdog after a landmark probe into its monopolistic practices that started three years
ago. - Intel Corp.
Intel Corp. shares rose 9.49% after Bloomberg News reported that the company is discussing various
scenarios, including a split of its product-design and manufacturing businesses, as well as which factory
projects might potentially be scrapped. - The sneaky way Big Tech is acquiring AI unicorns without buying the companies
Microsoft, Google and Amazon along with other tech companies have been getting creative in how they’re
poaching talent from top artificial intelligence startups. Earlier this month, Google signed an unusual deal
with Character.ai to hire away its prominent founder and more than one-fifth of its workforce while also
licensing its technology. It looked like an acquisition, but the deal was structured so that it wasn’t. Google
wasn’t the first to take this approach. Microsoft laid the groundwork in its deal with Inflection, closely
followed by Amazon’s faux acquisition of Adept. It’s a playbook that skirts regulators and their crackdown on
Big Tech dominance, provides an exit for AI startups struggling to make money and allows megacaps to pick
up the talent needed in the AI arms race.
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