Optimism from Britain and the new Prime Minister, USA, China, corporate news of companies
Fundamental news
• Markets welcome Britain's first Labor Prime Minister since Gordon Brown with confidence in what will be a window of opportunity for an economic reset after years of tension.
Sterling is the only G10 currency to rise against the dollar over the year. In terms of trade, it is back to the same level as in 2016, six prime ministers ago, during the Brexit vote. Investor premium demand for government bonds over German 10-year bonds remained stable at around 160 basis points - significantly lower than the 230 basis points reached during the 2022 mini-fiscal crisis. FTSE 100 futures rose 0.2% in Asia on the back of earnings and the market's record highs this year, helped by slow but steady economic growth and easing inflation.
• In a thin session, with many traders taking a long weekend on Thursday for Independence Day, US employment data is expected to show a slight cooling in the labor market. President Joe Biden also appears on ABC News for an interview.
• Shanghai Cooperation Organization
- The chairmanship of the SCO passes to China.
- Erdogan told Xi Jinping about the threat of the “conflict in Ukraine” spreading at the global level - office of the Turkish leader.
- Xi Jinping at the SCO summit called on the countries of the association to increase the exchange of intelligence data.
- Peskov: At the SCO summit they will discuss the creation of a new Eurasian security system.
• China continues to build a Eurasian empire from the Pacific to the Atlantic. Indian Prime Minister Modi will pay an official visit to Russia on July 8-9 - Kremlin.
• The EU will impose preliminary temporary import duties on electric cars from China of up to 38% from July 4th.
• “Why Biden must go” - The Economist. Now The Economist has called on Biden to withdraw from the presidential race. Kamala Haris is an obvious alternative to the failed Biden - Bloomberg. Trump hopes that Biden will not drop out of the presidential race
because he is easier to defeat - WP.
• In the United States, an explosion occurred at a defense plant at night. An emergency occurred in Arkansas at a plant of the military and aerospace equipment manufacturer General Dynamics. The facility handles explosives and also stores various types of ammunition, including Hellfire and Javelin missiles.
• Israel claimed its largest share of Palestinian territory in 30 years. The authorities of the Jewish state recognized an area of 1,270 hectares in the West Bank as their land. This is the largest single addition in the last 30 years.
• The Bundeswehr ordered satellites worth 2.1 billion euros from Airbus. The large order strengthens the strategic partnership between the German Armed Forces and Airbus, Michael Schellhorn, a spokesman for the European aerospace and defense company, said on July 4. The Bundeswehr order consists of satellites and associated earth stations. The system should be operational within the next 15 years.
• Orbán will visit Moscow on Friday to meet with Putin.
Corporate news
• Chinese BYD intends to overtake Tesla in sales of electric vehicles in 2024 - CNBC.
• Iron ore rose in price on signs of improving demand in China - Bloomberg.
• Nvidia CEO Jensen Huang sold $169 million worth of shares in June after the chipmaker's capitalization surged. This was his biggest profit in one month, Bloomberg writes.
• A group of investors again raised their buyout offer for Macy's - WSJ. Arkhouse Management and Brigade Capital Management want to buy Macy's shares they don't already own for $24.80 a share, or about $6.9 billion. M shares are currently worth $18.
• Donald Trump's victory in the November presidential election will lead to a sharp rise in long-term yields on US Treasury bonds - Bloomberg. Benjamin Melma, chief investment officer at Edmond de Rothschild Asset Management, said this on Thursday.
• Chip shortages are not a hindrance to China's ambitions. A top executive at Chinese tech giant Huawei on Thursday rejected the idea that a shortage of cutting-edge artificial intelligence chips would hamper the country's bid to become a leader in artificial intelligence - Reuters.
• Bitcoin fell to a 2-month low. Continuing its monthly decline due to uncertainty with the US presidential election and reports of bitcoin supplies from the defunct cryptocurrency exchange Mt Gox in Tokyo.
• Foxconn Singapore has received a license to invest $551 million in two projects to produce smart entertainment products and smart systems equipment in northern Vietnam.
• Tesla cars were included in China's government procurement list for the first time. The best-selling Tesla Model Y has been included in the list of electric and hybrid models that local governments in China can purchase as company vehicles, official Chinese publication The Paper reported on Thursday. This is the first time Tesla vehicles have qualified for the program.
• Saudi Arabia cuts oil prices for Asia for the second month in a row. A slowdown in demand or the Russian Federation is flooding with its cheap oil.
Key events that could impact markets on Friday:
- Data on employment in the US non-farm sector.
- Joe Biden interview for ABC News.