- Asian shares open cautiously on tariff angst
Asian shares traded in a tight range Friday after President Donald Trump’s threat to impose higher tariffs
outweighed the sentiment from a stronger US jobs data. The MSCI Asia Pacific Index swung between small
gains and losses at the open after US stocks closed at a record Thursday in a shortened session ahead of Friday’s
Independence Day holiday. Trump said his administration may begin sending out letters to trading partners as
soon as Friday, setting unilateral tariff rates, ahead of the July 9 deadline for negotiations. Treasuries fell and
the dollar rose Thursday in a sign traders see less pressure on the Federal Reserve to cut interest rates after US
jobs growth exceeded expectations in June. Swap traders saw almost no chance of a July Fed cut, compared
with a roughly 25% probability seen before the data. The chance of a move in September ebbed to about 70%. - Dow jumps more than 300 points, S&P 500 sets new record after strong June jobs report
U.S. stocks rose on Thursday, with the S&P 500 and Nasdaq Composite hitting fresh record highs, after a better
than-expected jobs report fueled optimism the U.S. economy was hanging tough despite fast-changing trade
policy and geopolitics. The Dow Jones Industrial Average advanced 344.11 points, or 0.77%, settling at
44,828.53. The S&P 500 added 0.83% to close at 6,279.35, while the Nasdaq gained 1.02% and ended at
20,601.10. Both the S&P 500 and the Nasdaq Composite also closed at records. - Oil eases on US tariff uncertainty and OPEC+ output expectations
Oil prices fell slightly on Thursday as the possibility of U.S. tariffs being reinstated raised questions about
demand ahead of an expected supply boost by major producers. Brent crude futures fell 68 cents, or 0.98%, to
$68.43 a barrel by 11:45 a.m. ET. U.S. West Texas Intermediate crude declined 84 cents, or 1.25%, to $66.61.
Both contracts hit one-week highs on Wednesday as oil producer Iran suspended cooperation with the U.N.
nuclear watchdog, raising concerns the lingering dispute over its nuclear program could again evolve into
armed conflict. A preliminary trade deal between the U.S. and Vietnam also boosted prices. Tariff uncertainty
looms large, however. The 90-day pause on the implementation of higher U.S. tariffs ends on July 9, and several
large trading partners have yet to clinch trade deals, including the European Union and Japan, raising concerns
about the economic impact, with implications for fuel demand. The OPEC+ group of oil producers, meanwhile,
is expected to agree to raise output by 411,000 barrels per day at its policy meeting this weekend. Adding to
negative sentiment, a private-sector survey showed that service activity in China – the world’s biggest oil
importer – expanded at its slowest pace in nine months in June as demand weakened and new export orders
declined. - Gold heads for weekly gain as US tax-cut bill stokes fiscal worries
Gold edged up on Friday, poised for a weekly gain as U.S. President Donald Trump’s tax-cut and spending bill
passed in Congress, raising fiscal concerns. Spot gold rose 0.1% to $3,329.67 per ounce, as of 0221 GMT. Bullion
is up 1.7% this week. U.S. gold futures inched down 0.1% at $3,339.30. Trump’s tax-cut legislation cleared its
final hurdle in the U.S. Congress on Thursday, which will fund his immigration crackdown, make his 2017 tax
cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. Through this bill “we’re
not making any progress on getting our fiscal house in order here in the U.S., so in longer run, it should be
bearish for the dollar and bullish for gold,” Marex analyst Edward Meir said. The nonpartisan Congressional
Budget Office estimates the legislation would add $3.4 trillion over a decade to the nation’s $36.2 trillion debt.
Meanwhile, the labor market data on Thursday showed U.S. firms added a more-than-expected 147,000 jobs
in June and the unemployment rate unexpectedly fell to 4.1%, bolstering the case for the Federal Reserve to
hold interest rates steady. Spot silver fell 0.5% to $36.66 per ounce. - UK in dire straits after finance minister’s tears rattle markets
Prime Minister Keir Starmer was apparently unaware of his finance minister’s distress as she sat behind him,
tears streaming down her face, in the House of Commons. The government insisted it was a “personal matter”
that had upset Rachel Reeves but speculation mounted that she could be sacked, or could step down. Markets
responded to the perceived distress, with bond yields spiking and the British pound surrendering ground
against the euro and dollar. - Jane Street barred from Indian markets as regulator freezes $566 million over Nifty 50 manipulation claims
The Securities Exchange Board of India (SEBI) has temporarily barred Jane Street Group from accessing India’s
securities market, after it accused the U.S. firm of widespread market manipulation. According to an interim
order posted on the regulator’s website on Thursday, Jane Street’s “entities are restrained from accessing the
securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or
indirectly.” SEBI also issued an interim order to freeze over 48.4 billion Indian rupees ($566.3 million) from Jane
Street in alleged illegal gains. It further stated that banks have been directed to ensure that “no debits are
made, without permission of SEBI,” for accounts held by Jane Street’s entities either jointly or individually. Jane
Street disputed the findings of SEBI’s interim order and said it will further engage with the regulator, in
response to queries from CNBC. A Jane Street spokesperson added that the firm “is committed to operating in
compliance with all regulations in the regions we operate around the world.” - Trump speaks with Putin after U.S. pauses some weapons shipments to Ukraine
President Donald Trump spoke to Russian President Vladimir Putin. The call comes two days after the U.S. said
it would halt some U.S. missile and ammunitions shipments to Ukraine, which continues to fight off invading
Russian forces. Ukraine President Volodymyr Zelenskyy said that Washington and Kyiv are “clarifying all the
details of defense support, including air defense.” - U.S. payrolls increased by 147,000 in June, more than expected
Nonfarm payrolls increased a seasonally adjusted 147,000 for the month, higher than the estimate for 110,000
and just above the upwardly revised 144,000 in May. Market pricing shifted strongly following the payrolls
report, with traders all but taking the chance of a July rate cut off the table. Government employment posted
a large gain, leading all categories with an increase of 73,000 due to solid boosts in state and local hiring. - Apple’s China iPhone sales grows for the first time in two years
Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint
Research said, as the tech giant looks to turnaround its business in one of its most critical markets. Sales of
iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint
Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023. Apple’s
performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16
models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the
618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping
festival happens in China every June and e-commerce retailers offer heavy discounts. Apple’s return to growth
in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces
a number of headwinds. U.S. President Donald Trump has threatened Apple with tariffs and urged CEO Tim
Cook to manufacture iPhones in America, a move experts have said would be near-impossible. China has also
been a headache for Apple since Huawei, whose smartphone business was crippled by U.S. sanctions, made a
comeback in late 2023 with the release of a new phone containing a more advanced chip that many had
thought would be difficult for China to produce. - Zurich Insurance Group AG agreed to buy BOXX Insurance Inc, a Canadian cyber risk management firm,
marking the Swiss insurer’s latest push into the insurance technology sector
The acquisition will see BOXX becoming part of Zurich’s platforms business, Zurich Global Ventures, the
company said in a statement. Financial terms of the transaction were not disclosed. “BOXX’s digital-first,
service-led approach will help us further enhance customer engagement and provide integrated solutions that
make people’s everyday life easier,” Cara Morton, CEO Zurich Global Ventures said in the statement. BOXX
provides services to businesses and individuals to insure and defend against cyber threats. The company was
founded in 2018 and is based in Toronto, Canada. Zurich Insurance has gone into an acquisition spree since
last year. In April, the firm bought a minority stake in Icen Risk, a UK company specializing in insuring mergers
and acquisitions. Last year, the Swiss insurer also bought American International Group’s global travel
insurance business, as well as a majority stake in India’s Kotak General Insurance Company Ltd. - AST SpaceMobile secures $100 million equipment financing facility
AST SpaceMobile, Inc. (NASDAQ:ASTS), a $15.4 billion market cap space technology company with strong
liquidity metrics and a current ratio of 10.62, announced Thursday it has closed a $100 million equipment
financing facility led by Trinity Capital Inc. (NASDAQ:TRIN), an alternative asset manager. The non-dilutive
financing will support the company’s manufacturing and network deployment goals for 2025 and 2026 as it
builds its space-based cellular broadband network designed to work directly with standard smartphones.
According to InvestingPro data, while the company isn’t currently profitable, analysts anticipate 13% revenue
growth in FY2025. The facility provides long-term liquidity through 2031, with $25 million already drawn at
closing against previously purchased equipment. The financing uses existing and planned equipment as
collateral and is structured to accommodate future debt capital. “This new non-dilutive financing enables AST
SpaceMobile to continue its strong momentum executing against its accelerated operational plans,” said
Andrew Johnson, Chief Financial Officer of AST SpaceMobile, according to the company’s press release. - TripAdvisor shares jump as much as 19% to hit a Feb. 19 intraday high after activist investor Starboard
Value disclosed a 9% stake in the online-travel review company
BTIG analyst Jake Fuller (buy, PT $20) says that while details are sparse, he believes Starboard could revisit
strategic alternatives now that TRIP has consolidated Liberty Trip, and look to unlock the “hidden” value of
emerging assets like Viator and TheFork. “While the legacy metasearch business faces ongoing secular
pressure, those emerging assets are now the majority of the topline”. Adds that operational strategies could
include going all-in AI trip planning, expanding on memberships efforts and exploring on-platform bookings to
improve monetization.
Menu