◆ Daily Global-Macro Brief LIVE
TODAY IN 30 SECONDS
  1. Japanese Nikkei Briefly Crosses 70,000 Mark Amid Tech Rally and Reduced Fed Hike Bets
  2. Japan's Takaichi Reassures Markets on Fiscal Policy Amid Spending Agenda
  3. Silver Falls to Two-Month Lows as US Treasury Yields Hit 24-Year Highs Amid Strong Dollar and Geopolitical Tensions
  4. US Justice Dept Directs Staff to Use 'Super Intelligence' Term Under Trump Order
  5. Debate on AI Development Pace Amidst Continued Tech Demand

Markets 117

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  • Japanese stocks surged on Monday, with the Nikkei Stock Average briefly surpassing 70,000 intraday.
  • This marks the first time the benchmark index has crossed the 70,000 threshold in three months.
  • A tech rally contributed significantly to the rise in Tokyo stocks.
  • Slower-than-expected U.S. jobs report led investors to pare back bets on a September Federal Reserve rate hike.
  • Hong Kong's IPO market has experienced a notable increase in new listings.
  • The city's position as a global financial hub continues to attract companies seeking to raise capital.
  • This trend indicates investor confidence in the region's economic outlook.

Macro/Economy 59

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  • Japanese PM Takaichi pledged to respond "flexibly" to economic and market conditions.
  • She aimed to reassure financial markets regarding her government's fiscal policy.
  • Takaichi gave little indication of shifting from her expansionary spending agenda.
  • US hedge fund Situational Awareness was over a month late in reporting a stake exceeding 5% in Japanese electronic components maker Taiyo Yuden.
  • The fund increased its holdings in Taiyo Yuden beyond 5% by June 29 but failed to file on time.
  • This incident highlights a significant gap in Japan's disclosure system for large shareholding positions.
  • Japan experiences approximately 1,500 shareholder reporting violations annually, underscoring systemic issues.

Central Banks 17

Energy/Oil 20

Gold/Metals 20

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  • Silver (XAG/USD) trades near two-month lows, pressured by rising US Treasury yields and a stronger US Dollar.
  • US Treasury yields rallied to fresh 24-year highs, driven by sticky inflation and a global bond selloff.
  • Escalating Middle East geopolitical tensions (Houthi strikes) boosted safe-haven demand for the US Dollar.
  • US service-sector input costs surged at their fastest rate in over four years, contributing to higher yields.
  • G7 bond yields have risen by approximately 1% since January, with long-dated US and UK bonds above 5%.

Crypto 41

Geopolitics 38

  • South Korea expresses caution regarding a U.S. investment deal, despite former President Trump's positive remarks.
  • Disagreement over the terms of South Korean investment in the U.S. is a key point of contention.
  • The ongoing dispute underscores lingering friction and a 'testy relationship' between the two treaty allies.

Tech/AI 38

  • US Justice Department directed employees to use 'super intelligence' (SI) instead of 'artificial intelligence' (AI) in most circumstances.
  • The directive follows a US President Donald Trump executive order mandating the switch across federal agencies.
  • The change applies to public communications, policy documents, official records, and court filings 'to the maximum extent permitted by law'.
  • Trump stated the new term more accurately reflects the technology's potential, despite public perception of AI souring due to hacking incidents.
  • Growing calls are emerging to slow down AI development.
  • Infrastructure providers maintain a bullish outlook despite discussions of AI risks and slowdowns.
  • Massive industry investments in AI have created significant momentum, making a reversal of development difficult.
  • The tech supply chain continues to see booming demand, shrugging off calls for an AI slowdown.
  • Malaysian chip designer SkyeChip aims to produce custom AI processors for Japanese companies.
  • SkyeChip's CEO sees opportunities in Japan's efforts to build a stronger domestic semiconductor industry.
  • The company has joined the Rapidus ecosystem, a key initiative in Japan's advanced chip manufacturing push.

Companies 6

  • Qualcomm will pay Huawei for the first time to use its 5G and AI patents.
  • The cross-licensing and patent acquisition agreement marks a breakthrough for Huawei's intellectual property portfolio.
  • The deal will make Qualcomm the net payer to Huawei, reversing previous arrangements.
  • The agreement is subject to U.S. regulatory approval.
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  • Lumentum (LITE) is up 600% in one year, breaking out from consolidation with potential upside to $1,200.
  • LITE's RSI is above 60, not yet overbought, suggesting a new leg higher is starting based on historical trends.
  • PepsiCo (PEP) is at 52-week lows, down 12.6% YTD, and 37% below 2023 highs, in a clear downtrend.
  • PEP is oversold on daily and monthly charts, setting up for a potential 10-20% relief rally to $129-$138, especially with upcoming earnings.
  • While a short-term bounce is possible for PEP, a long-term turnaround is not guaranteed, but downside risk appears limited compared to potential upside.
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  • Panasonic Holdings plans to develop humanoid robots.
  • The company aims to begin making these machines by 2029.
  • Robots are intended for use in plants and warehouses.
  • Panasonic will leverage its battery business for this initiative.
  • HK Express, Cathay Pacific's low-cost unit, is "firmly on a path to a turnaround," according to its CEO.
  • The airline has been struggling with losses.
  • It has swiftly cut unprofitable routes to improve performance.
  • Despite the turnaround efforts, conditions are still described as "challenging."
  • Nippon Paint Holdings acquires Akzo Nobel's Southeast Asia operations.
  • The acquisition includes the premium Dulux brand, enhancing Nippon Paint's product lineup.
  • Nippon Paint aims for faster earnings growth and increased profit in the Southeast Asian region.
  • Nippon Paint is already the market leader in Asia.
  • Chinese actress Li Bingbing, 53, attributes her decades-long career success to her younger sister, Li Xue, 51.
  • Li Xue transitioned from a journalism career to become Li Bingbing's manager.
  • The sisters co-founded Hesong Entertainment, a talent company representing various performers.

Thai Markets 13

Other 3

  • US President Donald Trump approved the execution of Nidal Hasan by firing squad.
  • Hasan was convicted for killing 13 people and wounding dozens at Fort Hood, Texas, in 2009.
  • This will mark the first execution carried out by the US military since 1961.
  • Cornell University students staged an anti-rape rally.
  • The demonstration was held in support of an individual referred to as 'Jane Doe'.
  • Stephen Schwarzman sought career advice from Averell Harriman before graduating Yale in 1969.
  • Harriman, a distinguished Yale alumnus, had a prominent career in business, diplomacy, and politics.
  • Harriman, son of "the Railroad King," emphasized the value of financial independence to Schwarzman.