Public Markets 8-Hour Briefing
×Market Volatility
Stocks slipped as the Mideast conflict widened, with the Dow industrials leading losses. Emerging-market currencies fell to session lows as the Iran conflict entered its sixth day amid signs of escalation. The S&P 500 futures were little changed as of 7:45 a.m. in New York as the war in the Middle East again sends oil higher.
Energy Markets
Oil prices extended their jump as President Trump expressed confidence in the US military campaign against Iran. Jet fuel prices soared as the Iran war squeezes supply, with more flights resuming across the Middle East despite some refueling disruptions in Oman. Energy prices pushed higher as being the world's No. 1 driller isn't enough to shield the country from the effects of the war.
Corporate Moves
Delta Air Lines is shaking up the top leadership team following the retirement of its longtime president and the upcoming departure of its operations chief. Rolls-Royce boss is in line for an increased £18 million a year pay package, already sitting on a paper gain of more than £100 million from shares received when joining the engine maker. Greg Abel spent his entire $15 million salary on Berkshire stock and plans to do that every year.
Tech & AI
OpenAI's Symphony may shift AI beyond chat, UBS says. Nvidia partner Hon Hai saw sales climb 22% in the global AI buildout. Wall Street sees AI's 'creative destruction' coming for entire companies, with a new worry rippling across the stock market that entire businesses, not just their employees, may be thrown out of work.
Geopolitical Impact
The US set to launch strikes deeper into Iran as the US-Israeli war with Iran enters its sixth day and shows no sign of ending. Ukraine offered help downing Iran drones in exchange for Patriot missiles as Ukrainian President Volodymyr Zelenskiy tries to leverage his nation's war savvy to keep it on the world's agenda. Modi stressed dialog and diplomacy after the US sank an Iranian warship, saying military conflict cannot resolve problems.
Financial Markets
The Canadian dollar became a top pick in the $9.5 trillion-a-day foreign exchange market due to its link to oil prices as the war in the Middle East grinds on. The euro slid as a surge in oil and natural gas prices calls attention to Europe's vulnerability when energy gets expensive. UK mortgages are about to get pricier as swap rates rise on the Iran war, with a key gauge that reflects expectations for the future path of UK interest rates rising to the highest this year.
Deal Activity
Six Flags Entertainment agreed to sell seven of its regional amusement parks to EPR Properties for total cash consideration of $331 million. Mapletree Investments agreed to sell a portfolio of East Coast warehouses to EQT Real Estate for $575 million. BlackRock slashed another private loan value from 100 to zero just three months after assessing it at 100 cents on the dollar.
Economic Indicators
The Fed is still assessing impact of Iran war, with Richmond President Tom Barkin saying it's too soon to tell how policymakers will respond but they are tracking the price of gasoline closely. US initial jobless claims stood at 213,000. JD.com posted its first loss in over three years as the food-delivery subsidy war in China continued to take a toll on the e-commerce giant.