Public Markets 8-Hour Briefing
×Market Performance
The S&P 500 struggled despite strong earnings, with investors fixated on AI and credit concerns. European stocks hit records, powered by banks and miners, while UK stocks also reached new highs. HSBC led the earnings parade with a 10% bonus pool increase, while Diageo shares tumbled 5% after a dividend cut and slashed outlook. Haleon slid the most in nearly a year after missing sales expectations.
Tech & AI Focus
Nvidia earnings loom as a critical risk factor for the AI-obsessed stock market, with traders increasingly nervous about the technology's outlook. ASML sees AI demand as a long-term growth driver, while ByteDance's AI chatbot Doubao reached 100 million users during the China holiday period. Microsoft faced a Japanese raid over suspected antitrust violations, and Wise Tech's CEO expects more AI savings after cutting 30% of staff.
Global Markets & Currency Moves
Global markets lifted following US equity recovery and Trump's relatively uneventful State of the Union address. Treasuries fell as risk appetite jumped, with the dollar slipping as investors exited haven assets. The yen weakened after dovish Bank of Japan nominations, while Thailand signaled its easing cycle may be near an end after a surprise rate cut. The Thai baht gained as a driver of the unexpected monetary policy shift.
Deal Activity & Corporate News
Omnicom made a rare foray into the euro debt market, raising funds days after announcing quarterly earnings and a share buyback. Telecom Italia launched a share buyback of up to $471 million after revenue growth. Aston Martin posted weaker earnings and plans to cut up to 20% of staff. Arla Foods made its biggest investment ever, spending €300 million to expand cheese production.
Regional Developments
Singapore banks drew $61 billion in new wealth from Asia's rich amid geopolitical tensions. South Korea passed another reform bill to boost shareholder value, while Japan's Nippon Steel jumpstarted the convertible bond market with a $3.9 billion deal. Saudi tanker giant Bahri snapped up ships as rates neared $200,000 per day. Hong Kong plans to tap its currency peg defense fund for the first time in 40 years to finance a technology hub.
Energy & Commodities
Russia and Iran slashed oil prices to China as crude piles up at sea, competing for limited buyers after India retreated. Australia shipped LNG 16,000 miles to Canada as Asian demand slumped. Diageo's new CEO wants the distiller to get back to serving drinkers properly, cutting prices to revive demand in the US spirits market.
Earnings & Economic Data
Applied AI CEO said the UAE will play an outsized role in AI development. E.ON raised its investment plan to 2030 as earnings rose from expanding European energy infrastructure. GSK secured a potential "multi-blockbuster" drug in a $950 million deal. NKT reported strong Q4 cash flow despite soft guidance, while Novonesis edged lower after Q4 results and 2026 outlook trailed expectations.
Policy & Regulation
China warned it will respond if the US uses a trade probe to impose fresh tariffs. Bangladesh's central bank chief quit abruptly after a government change. Zambia will use larger-than-expected copper revenues to start a stabilization fund. Kenya reached its target from the state pipeline company IPO, the first such sale in over a decade.