Escalation in the Middle East, dockers' strike, Microsoft, Berkshire Hathaway, GM, Tesla

• Escalating fighting in the Middle East kept traders and investors in Asia focused on Wednesday as fears of a wider war lingered. Crude oil prices continued to rise, gold traded near its all-time high and bonds were snapped up along with the safe-haven dollar.

• The risk-sensitive Australian and New Zealand dollars rebounded as both countries are closely linked to the fortunes of China, a top trading partner.

• European stock futures are currently pointing to gains,  with little in Europe to distract attention from events in the Middle East due to a lack of macroeconomic data or scheduled corporate announcements.

• Apple may move iPhone component production from India back to China. The Tata Electronics plant that produced the components has stopped operations indefinitely after a major fire. It is also reported that iPhone 16 production has decreased, indicating low demand for the new technology.

• The new Windows 11 update has broken computers around the world again - mice, keyboards and WiFi don't work. Microsoft asks to restore the system via Troubleshoot → Advanced Options → Uninstall Updates.

• The biggest US dockworkers' strike in 50 years has begun, with
45,000 workers blocking dozens of ports and demanding higher wages, with supplies from everything from food to cars threatened. A quick end to the massive dockworkers' strike, which has halted half the country's supply, looks unlikely with little sign of active negotiations overnight. The strike, which affects everything from cars to corn, could cost an estimated $5 billion a day.

• Robinhood launches cryptocurrency transfer option for users in Europe - CNBC.

• Warren Buffett's Berkshire Hathaway plans a second yen bond issue this year, fueling a rally in trading stocks on speculation of increased investment in Japan.

• Matrixport has seen a significant increase in stablecoin minting volumes in the cryptocurrency market. Historically, such growth in stablecoin minting is considered a growth signal for the cryptocurrency market as a whole.

• Microsoft will not follow Amazon's path and will not completely cancel remote work. But on one condition - if employee productivity does not fall below the current level. Microsoft fears that the cancellation of the hybrid format will cause a flurry of negativity and voluntary resignations. Currently, Microsoft employees can work from home 50% of the time.

• 17% of Tesla workers in Germany are on sick leave. Tesla's German plant is facing an unusual problem: sick leave. Employees are using the social security system, and unions say the plant is extremely difficult to work in.

• GM's third-quarter U.S. sales fell about 2% as buyers shy away from big-ticket purchases like luxury vehicles and turn to utility models that are more affordable. Sales of GM's compact, affordable Trax SUV rose nearly 57% to 59,299 units from a year earlier.
Gold rally erodes physical demand in key markets

• Physical demand for gold has fallen in key markets as prices continue to rise and some retail consumers have decided to sell their stocks and take profits, industry participants and analysts say.

• Apollo Global Management (APO) expects to generate $10 billion in annual profits in its asset management and pension businesses by 2029, driven by investor demand for private loans and annuities.

• The US Labor Commission has accused Apple of imposing illegal workplace rules.

• Microsoft (MSFT) gave its AI consumer assistant Copilot a friendlier voice in its latest update. And the chatbot can also analyze web pages for interested users as they browse.

• Boeing (BA) is considering raising at least $10 billion through a stock sale as the planemaker seeks to replenish cash reserves depleted by the ongoing strike.

• Berkshire Hathaway will become the sole owner of Berkshire Hathaway Energy. The unit of Warren Buffett's conglomerate agreed to pay $3.1 billion in cash and stock for the 8% stake owned by the family of the late billionaire and philanthropist Walter Scott.

• On the monetary policy front, the Fed is likely to get more attention. We get monthly payrolls data on Friday, which could be a deciding factor in whether U.S. policymakers opt for a 25 or 50 basis point rate cut next month. We'll also get some clues from the ADP private sector employment report later today. If the Middle East stabilizes, there'll be plenty to keep markets active in the U.S.

- Eurozone Manufacturing PMI for September 2024 fell to 45.0 from 45.8. A reading below 50 indicates contraction.
- UK Manufacturing PMI for September 2024: 51.5 (previous 52.5)
​​- Eurozone CPI inflation +1.8% y/y (previous +2.2%)
- Core CPI: +2.7% (previous +2.8).
- US manufacturing activity contracts for the sixth month in a row
- US ISM Manufacturing PMI is stable in contraction zone at 47.2 (expected to rise to 47.6).
- US construction spending unexpectedly fell in August
This came amid a sharp decline in spending on single-family housing projects, but lower borrowing costs could stimulate activity in the coming months.
- U.S. job openings rose to a three-month high in August, defying other data that suggests labor demand is slowing.
- U.S. JOLTS job openings rose to 8.04 million (expected to fall to 7.64 million from 7.711).

Key events that could impact markets on Wednesday:
- Eurozone unemployment rate (August)
- ECB spokespersons including de Guindos, Lane
- EU Commission President von der Leyen speaks to UK PM Starmer
- US ADP employment (September)

• Iran said its attack was over barring further provocation after firing a salvo of some 180 ballistic missiles. But Israel, fully backed by the United States, vowed to respond.

• J.D. Vance and Tim Walz began the vice presidential debate. It went peacefully.

• Former Dutch Prime Minister Mark Rutte has officially become NATO's new Secretary General, replacing Jens Stoltenberg. When asked what his three priorities would be for his tenure, Rutte said: "It is very difficult to name exactly three priorities, since Ukraine is at the top. Of course, we must also do more for our collective security."

• The United States has signed a contract until December 2035 with the Boeing Corporation for $6.9 billion for the production of small-diameter bombs, in particular for deliveries to Ukraine, Japan and Bulgaria - Pentagon.

• The only patriotic choice: The American newspaper The New York Times published an editorial column in support of US presidential candidate Kamala Harris. The article begins with criticism of Donald Trump, whom the authors call “the most unworthy candidate for the post of US president.”

• For the first time in 2.5 years, Scholz plans to talk to Putin by telephone, - Die Zeit.