Good morning. In today’s newsletter:
-
Private capital groups prepare for deal revival
-
Who’s really running Beijing-based ecommerce giant JD.com?
-
Why are there so many TikTokers at the Olympics?
But first we will look at markets. Investors are preparing for renewed volatility when global markets reopen today.
Traders are fretting that the US Federal Reserve has been too slow to respond to signs the US economy is cooling and may be forced to play catch-up with rapid cuts to interest rates.
A sell-off which started in richly valued big-tech stocks, many of which reported earnings last week, gained wider traction after the latest Fed decision and jobs data.
The chorus of Wall Street strategists calling for the Fed to reduce rates by 0.5 percentage points at its next two meetings grew over the weekend.
And here’s what I’m keeping tabs on today:
-
Economic data: PMI data for China, EU, France, Germany, India, Italy, Japan, UK, US is due (S&P Global).
-
Indonesia: The country is set to release its Q2 GDP figures.
-
Japan: The Bank of Japan will publish its latest monetary policy meeting minutes.
-
US presidential race: Kamala Harris has said she will pick her running mate for the White House this week.
Five more top stories
1. Western governments have stepped up calls for citizens to leave Lebanon, as an anxious region braced for the possibility of a full-blown regional war after twin assassinations in Beirut and Tehran.
2. A brutal downturn in the lithium price has made it harder for western groups to compete with Chinese companies because of their cheaper costs, leading the world’s largest lithium producer, Albemarle, to urge governments to intervene.
3. The founder of the ecommerce giant JD.com has been quietly steering the Beijing-based company from overseas despite stepping down as chief executive in 2022, highlighting the succession challenges at Chinese tech companies with charismatic and high-profile founders.
4. Surging AI power demand has boosted utility stocks. The rapid expansion of power consumption after decades of stagnation has transformed market interest in utilities, which will need to invest heavily to satisfy it.
5. A fresh outburst of violent disorder broke out in several English towns and cities on Sunday, further escalating the most widespread far-right violence in the UK for years in the first big test for the Labour government.
The Big Read
Broadcasters are flying TikTokers and YouTubers into Paris this year to generate Olympic buzz. While influencers are not new to sports, YouTube chief executive Neal Mohan says the scale of what is happening in Paris makes it the “first of its kind”. Read how social media stars are helping the Olympics expand its audiences.
We’re also reading and listening to . . .
Chart of the day
Four of the largest US private capital groups —— Ares, Apollo, Blackstone and KKR —— deployed more than $160bn in the latest quarter. Executives at the firms said they were readying for an increase in buyout and merger activity, as the US Federal Reserve edges closer to cutting interest rates.
Take a break from the news
Oscar-nominated actress Hong Chau has worked with Hollywood’s greatest auteurs. Her latest film is an action movie, a first for Chau. The Instigators, features the Oscar-nominated actress playing a therapist — and hostage — alongside Matt Damon and Casey Affleck. But the road to get here wasn’t straightforward.
Additional contributions from David Hindley and Emily Goldberg
Recommended newsletters for you
One Must-Read — Remarkable journalism you won’t want to miss. Sign up here
Sort Your Financial Life Out — Learn how to make smarter money decisions and supercharge your personal finances with Claer Barrett. Sign up here
