- Asian Bonds Rally as US Data Boost Rate-Cut Bets: Markets Wrap
(Bloomberg) — Australian and New Zealand bonds rallied, tracking gains in Treasuries after weak US data bolstered bets for the Federal Reserve to cut interest rates. Asian shares declined. Treasuries rose across the curve Monday after data showed factory activity shrank at a faster pace as output came close to stagnating. - Hedge Funds Bought Dollar Put Options Post ISM Data: Traders
(Bloomberg) — Leveraged funds in US and Europe bought short dated dollar puts versus a range of currencies Monday, after US ISM manufacturing data spurred traders to increase odds of two 25bps Fed interest rate cuts this year. Option contracts were in lengths up to 1-month and versus currencies such as JPY, EUR and MXN Premium to hedge USD/JPY’s downside over the next month compared with its upside rises. - Airbus in Talks to Sell More Than 100 Widebody Jets to China
Airbus SE is negotiating a major sale of A330neo aircraft to China, with talks gaining momentum since President Xi Jinping visited his French counterpart Emmanuel Macron last month. The largest Chinese airlines are considering buying more than 100 of the upgraded A330 models, according to people familiar with the matter. The terms are still being discussed and the timing is uncertain, said the people, who asked not to be identified because the matter is confidential. - India stocks sink 5% to lead Asia markets lower as election vote counting signals close contest for Modi
India stocks slumped to lead Asia markets lower Tuesday, as the country started counting votes for its 2024 general election. Both the Nifty 50 index and the BSE Sensex fell 5%, as early projections suggested a closer-than-expected contest between the BJP-led NDA and the Congress-led I.N.D.I.A bloc. Stocks had hit record highs on Monday after exit polls over the weekend suggested Prime Minister Narendra Modi would win a rare third consecutive term in office. - Israel Says No Permanent Cease-Fire Unless Hamas Destroyed
(Bloomberg) — Israeli Prime Minister Benjamin Netanyahu reiterated that there would be no permanent cease-fire in the war against Hamas in Gaza until the country’s conditions are met, which include the destruction of the militant group. Israel is willing to pause hostilities for the purpose of returning hostages but what happens next will be subject to further talks. - Biden, Border Crisis Loom Large in Sheinbaum’s Early Hours
(Bloomberg) — Claudia Sheinbaum had mere hours to enjoy the victory that will make her Mexico’s first female president before her northern neighbour reminded her how difficult the new gig will be. A congratulatory call from President Joe Biden on Monday came amid reports that he would sign an executive order limiting asylum claims at the country’s southern border. - Traders Push Treasuries Higher as Data Reinforces Fed Cut Bets
(Bloomberg) — Treasuries rose, taking benchmark yields to the lowest levels in more than a week, after US manufacturing data reinforced bets the Federal Reserve will cut interest rates at least once this year. Longer-dated bonds led the market higher after the Institute for Supply Management’s manufacturing survey showed factory activity contracting. - Software Update Gone Awry Sparked NYSE Trading Halts, 99% Drops
(Bloomberg) — A glitch during a software update early Monday led the New York Stock Exchange to erroneously halt trading on about 40 stocks and display odd trades showing a 99% drop in companies including Warren Buffett’s Berkshire Hathaway Inc. The disruption the third episode to hit US markets in the past week. - Trump Georgia Appeal Set for Oct. 4, Dooming Pre-Vote Trial
(Bloomberg) — Arguments on Donald Trump’s appeal to remove Fulton County District Attorney Fani Willis from the Georgia election-interference case have been tentatively set for Oct. 4, making a trial before the US presidential election on Nov. 5 virtually impossible. - Treasury Yields Sink as Weak Data Fuel Fed Bets: Markets Wrap
(Bloomberg) — Bonds climbed after as a weak manufacturing reading fuelled speculation the Federal Reserve will have room to cut interest rates this year. Stocks fluctuated as a rise in tech outweighed a plunge in energy producers. Longer-dated Treasuries outperformed after data showed US factory activity shrank at a faster pace as output came close to stagnating. - Indie Semiconductor Said to Explore Options Including Sale
(Bloomberg) — Indie Semiconductor Inc. has been exploring strategic options including a sale, people with knowledge of the matter said. The automotive technology company has been working with an adviser as it fields interest from prospective buyers, according to the people, who asked not to be identified discussing confidential information. - Ardent Health Is Said to Plan IPO of $400 Million or More
(Bloomberg) — Ardent Health is planning an initial public offering for a second time and could seek to raise $400 million or more, according to people familiar with the matter. The hospital operator confidentially submitted its IPO registration to the US Securities and Exchange Commission for an IPO that would value Ardent at about $5 billion and perhaps more. - Fox Business: Paramount, Sky dance near $8B deal: reports
Paramount Global is hammering out the last details of an agreement to be purchased by Sky dance Media in an $8 billion deal, according to multiple reports. FOX Business’ Charlies Gasparino reported last week that Sky dance and its backers were said to be in the final stages of negotiating the purchase of Paramount, and that a deal could be finalized in two weeks. - GSK shares fell 9.5% following a Delaware court ruling that GSK must face trials. A judge found the evidence backing up claims that the companies’ former Zantac heartburn treatment causes cancer is legitimate and can be heard by juries.
About 75,000 consumers have filed suit in Delaware targeting the Zantac treatment. GSK says it disagrees with the ruling by the Delaware State Court and will immediately seek an appeal. GSK says the “scientific consensus” is that there is “no consistent or reliable evidence that ranitidine increases the risk of any cancer”. Deutsche Bank (buy): The Delaware court decision is a “state-sized curve ball” for GSK, analyst Emmanuel Papadakis writes in a note. Although expectations for a dismissal have “significantly moderated” in recent months, Friday’s ruling means the Zantac overhang will “persist for now”. - Nvidia rose 4.9% after its Chief Executive Officer Jensen Huang gave AI updates and analysts at BofA Global Research raised their price target for the chip giant’s stock to a Street-high.
The company plans to upgrade its AI accelerators every year, announcing a Blackwell Ultra chip for 2025 and a next-generation platform in development called Rubin for 2026.BofA analysts led by Vivek Arya hiked the PT on the stock to $1,500 from $1,320; and maintained a buy rating. Arya says they are bullish on semiconductor stocks as the sector is early in cycle, has AI tailwinds and solid free cash flow. While the near-term seems stretched, the semiconductor cycle has legs for another 12-18 months moved its target to the high end of the range, implying a 37% increase from last price. - Waste Management, North America’s largest waste recycling firm, agreed to buy medical-waste disposal company Stericycle Inc. for about $5.8 billion in cash.
Stericycle provides medical waste and compliance services as well as secure information destruction services. The deal marks one of the biggest acquisitions in the waste management sector, and will strengthen Waste Management’s position as the largest trash hauler in the US. The company has bought several other disposal firms over the past few years, including Anderson Rubbish Disposal and Advanced Disposal. Waste Management will pay $62 per share of Stericycle, it said in a statement Monday. That represents a 20% premium over Friday’s closing price of $51.54 a share. Shares of Stericycle rose 14.6% to $59.05, whilst shares of Waste Management fell 4.5%. - Spotify Technology shares rose 5.7% after the audio-streaming company said it will raise prices in the US for its premium service starting in July. Analysts see a tailwind for revenue from the move.
The individual price will increase to $11.99/month from $10.99/month. Bloomberg Intelligence: The decision “demonstrates pricing power, especially as music streaming remains underpriced”. With this move, “consensus 2024 revenue of $17 billion may be low, since we calculate $400 million in incremental 2H revenue from the hikes”. Evercore ISI (outperform, PT $340): “This may well be a signal of Spotify’s confidence in its value proposition, competitive position, and pricing power, esp. as the prior price increases resulted in better-than-expected Churn impact”. There is “a reasonably good indication that these price actions will ultimately be both Revenue and Margin accretive for the company”. - Autodesk Inc shares jumped 4.57%, the most in more than a year, after the company reassigned its Chief Financial Officer (CFO).
The move aimed at resolving an internal accounting investigation, which delayed filings for weeks. Deborah Clifford, the CFO since March 2021, will become Chief Strategy Officer effective immediately. Elizabeth Rafel, an Autodesk board member, was appointed interim CFO. The decision to replace Clifford as CFO was made by the board of directors’ audit committee, which led the investigations. - Europeans may be about to elect their most right-wing parliament in history
From June 6 to 9, more than 400 million people across the EU’s 27 member states will be eligible to cast their vote for the next 720 members of European Parliament. Far-right, populist parties are set to see significant gains, as a rising tide of euroskepticism ripples through the European Union. “We are seeing a rise in populist sentiment both in Europe and globally, which might result in the most right-wing European Parliament in history,” Tim Adams, president and CEO of the Institute of International Finance, told CNBC. - Bitcoin miners sink millions into AI businesses, seeking billions in return
Bitcoin miner Core Scientific announced plans to significantly expand its AI business. The deal with cloud provider Core Weave is expected to add revenue of over $3.5 billion over 12 years. Many bitcoin mining firms have been retrofitting existing facilities to service AI clients as revenue from crypto mining plummets.
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