Public Markets 8 Hours

Last updated: September 3, 2026, 7:08 AM ET

Fixed Income

British asset manager Schroders Plc has bought more longer-dated US Treasuries, arguing yields have nearly peaked after the recent selloff. The firm sees attractive entry points in the long end of the curve, betting that the Federal Reserve's easing cycle will eventually drive prices higher. Meanwhile, Japan's 30-year government bond auction passed smoothly Thursday with yields above 4%, offering some respite from the selloff in long-dated JGBs. The successful sale helped stabilize sentiment in Asia's bond markets after weeks of volatility.

The classic 60/40 portfolio remains a subject of intense debate among investors, with readers weighing in on whether bonds have permanently lost their hedging power in the post-pandemic era. The discussion comes as Japan's Government Pension Investment Fund, the world's largest pension fund, fuels speculation over a potential allocation shift after its management team took the unusual step of meeting in August. Any change by GPIF could have outsized effects on global bond markets given its roughly $1.5 trillion in assets.

Currencies

The Japanese yen strengthened to a nearly one-month high against the dollar, closing in on ¥156 per dollar after a sudden overnight jump, as traders bet on further Bank of Japan interest-rate hikes. Market chatter about possible intervention by Japanese authorities added to the currency's momentum, with investors on alert for another round of official buying. The yen's strength is rippling through global carry trades, with BBVA SA warning that the Chinese yuan may replace the yen as a preferred funding currency if the BOJ continues hiking.

India's rupee gained as the central bank's capital-raising measures pulled in a bumper $136 billion, far exceeding expectations and boosting its war chest to defend the currency. The Reserve Bank of India tapped the country's 35 million-strong diaspora through FCNR deposits in June to stem a sharp decline in the rupee. The record $127 billion in diaspora inflows has swamped banks and tested the RBI's toolkit, though policymakers appear to have welcomed the additional buffer.

Equities

European stocks were steady on Thursday as oil and bond markets stabilized, with Deutsche Telekom AG gaining after activist investor Elliott Investment Management built a sizeable stake in the German telecom giant. US equity futures were mixed after major averages snapped their losing streak, with investors on alert for yen intervention and its potential impact on risk sentiment. Bond markets have stabilized as oil slips, offering some relief to equity investors after a turbulent week.

Crest Nicholson Holdings Plc shares plunged after the UK homebuilder reversed previous guidance and now expects to make a full-year loss thanks to a subdued housing market and lackluster pricing. The company is battling weak demand and the fallout from the Iran war, which has pushed up construction costs. The share tumble reflects broader concerns about the UK housing sector's resilience amid elevated mortgage rates and economic uncertainty.

A frenzy for AI-generated dramas is sending investors rushing into Mango Excellent Media Co., putting the Chinese broadcaster on track to become Asia's hottest stock this week with a 64% surge. The rally highlights the market's appetite for AI-related plays even in unexpected sectors. Meanwhile, HDFC Bank Ltd. is barely holding on to its position as the most influential stock on India's equity benchmark, with a leadership upheaval and governance concerns deepening a selloff that could see it lose its top spot to rival ICICI Bank.

Impala Platinum's fiscal-year earnings surged, buoyed by higher precious-metal prices and the reversal of prior write-downs at its Rustenburg operations in South Africa. The results underscore the strength in metals markets despite broader economic uncertainty.

Energy & Commodities

US retail diesel prices hit the highest since mid-2022, topping a peak seen during the early stages of the Iran war to approach a record as wars strain global supplies. The spike in diesel costs threatens to feed through to consumer prices across the US economy, adding to inflationary pressures. Swiss inflation jumped in August, reversing several months of cooling price growth as renewed tensions in the Middle East pushed global energy costs higher, with the annual rate rising to 0.8%.

Taiwan has proposed more than $13 billion in funding, mainly for its state-run energy companies, to secure liquefied natural gas and shield electricity users when a price freeze expires. Bangladesh was forced to pay the most for LNG than it has in about four years, threatening to drive up energy costs as the government scrambles to contain rolling blackouts. Gold's bull run isn't yet done, according to FT analysis, with fiscal burdens, sovereign buying and positive bond-equity correlation continuing to support the precious metal.

Deals & Corporate

Air India Ltd. is close to securing 100 billion rupees ($1.1 billion) in financial aid from its owners Tata Sons Pvt. and Singapore Airlines Ltd., according to people familiar with the matter, as the carrier works through a massive fleet renewal and expansion program. A unit of Indian billionaire Kumar Mangalam Birla's conglomerate has received as much as 240 billion rupees ($2.5 billion) in commitments from at least four banks for an acquisition loan, 70% more than initially sought, underscoring strong lender appetite for Indian corporate deals.

Australian asset manager IFM Investors will deploy up to half of a roughly $1 billion private credit fund to other Asian markets, drawn by untapped opportunities and deal structures it views as more favorable than domestic options. Vodafone Three is launching its debut TV service in a challenge to UK rivals Sky and BT, hoping the new platform will help it double its broadband business.

KPMG warned a Guggenheim unit over deficiencies in internal controls, with the Big Four auditor flagging flaws in how the private investment division accounted for revenue. The warning was also highlighted in the Financial Times' FirstFT newsletter, which noted Dutch gold bars and Google ads among other stories.

Policy & Geopolitics

Ukrainian President Volodymyr Zelenskyy dismissed a department head at the country's security service following a shootout between officers from two rival intelligence agencies on the streets of Kyiv. Malaysia's central bank extended a more than year-long pause in interest rates but tweaked its monetary policy statement to remove a reference to its stance as being "appropriate," in a possible signal of future tightening.

A disagreement between Chinese and US officials at a Group of 20 finance chiefs meeting this week mostly revolved around a dispute over one word, according to people familiar with the talks. President Donald Trump's defense and trade policies are prompting the Philippines to look beyond its longstanding alliance with the US and build ties with non-traditional partners, Manila's top diplomat said. Trump has also put tariffs of up to 100% on foreign-made drones, with the FCC weighing stiff restrictions on common drone technology such as thermal imaging and aerosol spraying.

A US-Saudi nuclear agreement could open a path to 20% uranium enrichment, though allowing Riyadh to enrich to such levels risks bolstering congressional opposition to the deal. Drawing inspiration from MAGA, separatists in Alberta are pushing for a break away from Canada, adding a new dimension to North American political tensions.

Industry & Strategy

Competition is growing between banks and proprietary trading firms, with a new rivalry emerging on Wall Street as both groups chase similar strategies. More than 160 US companies, including VW and Amazon, are unable to rule out sanctioned smelters in their supply chains, a test of western efforts to clamp down on conflict minerals. Uber is allying with driver unions in a bid to slow robotaxi rollout, with the ride-hailing app admitting its effort to back workers may appear "ironic" after years of clashes with drivers.

Law firms are seeking bespoke differences in legal AI, with the desire for differentiation driving a push to build in-house platforms. The AI industry's PR problem is the subject of five ideas to put out the fire, as doomers say the sector's reputation is beyond repair. Parents are increasingly using AI to organise their families, from managing busy schedules to researching preschools, with some calling it a "total game-changer" and others questioning whether it creates a new kind of dependence.

The port of Jebel Ali, which built Dubai, faces "existential risk" as Strait of Hormuz disruption stifles marine traffic to the Gulf, exposing a dangerous dependence on the waterway. For sweltering Britons, rising energy prices could spark a shutter boom, with shares in window specialists having outperformed the broader market in the past month. Seven theoretical tie-ups could help Europe's corporate sector compete with the US and China, according to a fantasy M&A recipe — if regulators, politicians and the public allowed them. The mysterious billionaire Chen Zhi, a Chinese-Cambodian tycoon, saw his investment in Cuba's cigar industry come crashing down after Cohibas became ultra-luxury symbols.