Aurelia Butler

(Reuters) – A look at the day ahead in Asian markets.World markets are entering a period of nervous uncertainty as investors try to determine whether upcoming U.S. interest rate cuts will be benign and in tandem with a “soft landing,” or mitigation against a more damaging economic downturn.Asian markets leaned towards the former on Monday and traded positively. But risk appetite steadily whittled away as the day progressed, pushing Wall Street into the red and setting the tone for a more jittery session on Tuesday.The Asia and Pacific calendar on Tuesday is light, with Japanese producer prices and trade figures from Hong Kong and Thailand the major economic indicators on tap. Australian mining giant BHP’s annual results are the main corporate highlight. Global market dynamics will therefore be the more important drivers for Asia as investors continue to digest the implications of Fed Chair Jerome Powell’s policy pivot at Jackson Hole on Friday.Fears of U.S. recession and a continued rise in unemployment are keeping a 50 basis point rate cut from the Fed next month on the table. This is putting U.S. stocks on the defensive and fueling demand for Treasuries, although bonds and the dollar were generally flat on Monday.World stocks ended slightly lower on Monday, but not before hitting a new record high. Nvidia (NASDAQ:NVDA) shares slid ahead of the AI darling’s quarterly results on Wednesday, pushing Wall Street lower but not before registering a fresh six-week high.Gold hugged recent record peaks, while oil prices rose again on Monday as production cuts in Libya added to supply concerns stemming from reports of escalating conflict in the Middle East. Oil is now up 8% in three days.So it is a mixed bag for Asia on Tuesday. This is the backdrop to a re-emergence of trade tensions between China and the West, as the Biden administration prepares to announce final implementation plans for steep tariff increases on certain Chinese imports. U.S. manufacturers have asked for the higher tariff rates on a range of goods from electric vehicles to electric utility equipment to be reduced, delayed or abandoned, and for potential exclusions to be greatly expanded.The White House had said initially the new tariffs would take effect on Aug. 1 but that was delayed. The politically-loaded decision on what form they will take will be made by the end of the week.Canada’s Prime Minister Justin Trudeau on Monday said that Canada will impose a 100% tariff on the import of Chinese electric vehicles, including Teslas, and will also impose a 25% tariff on imported steel and aluminum from China.Here are key developments that could provide more direction to Asian markets on Monday:- Japan services PPI (July)- Thailand and Hong Kong trade (July)- Australia BHP annual results More

The leadership change comes ahead of Apple’s multiple product launch this fall season, which analysts have called the biggest software upgrade for the iPhone. It includes artificial intelligence features, which are crucial for Apple as it looks to reverse a slowdown in global sales, particularly in China, and better compete with rivals who have rolled out AI upgrades. Parekh, who has been with Apple for more than a decade and will join the company’s executive committee, most recently served as vice president of financial planning and analysis. “It appears that the transition to the new CFO is planned and orderly, which is the most important question. Maestri staying on with Apple is also very important, as it removes the risk of financial questions,” D.A. Davidson analyst Gil Luria said. “(Parekh) will need to continue the prudent capital management, but may also be tasked with restarting Apple’s exploration of complimentary acquisitions.” Before Apple, Parekh held senior leadership roles at Thomson Reuters (NYSE:TRI) and General Motors (NYSE:GM). Apple said Maestri will continue to lead the corporate services teams, including information systems and technology, information security and real estate and development, reporting to CEO Tim Cook.During Maestri’s tenure, Apple more than doubled its revenue, with services revenue growing more than five times.”Apple filling the role with an internal candidate should make the transition a bit smoother… any change of this magnitude does create some level of uncertainty, especially given the consistency and the history of execution from Maestri,” Piper Sandler analysts said in a note. Earlier this month, Apple said its third-quarter iPhone sales were better than expected and forecast more gains as it bets on artificial intelligence to attract buyers, even as its overall China business disappointed.In recent years, iPhone sales have slowed due to a lack of significant upgrades in newer models and competition from Android-based smartphone brands offering high-end specifications at lower prices.At its developers conference in June, Apple announced a slew of AI features under the umbrella “Apple Intelligence”, including a revamped Siri and an integration with ChatGPT.The iPhone maker’s shares were last down nearly 1% in extended trading. More

Clarke, nominated by IMF Managing Director Kristalina Georgieva, is set to replace Antoinette Sayeh as one of the IMF’s three deputy managing directors at the end of October. Clarke “is an exceptional public servant and policymaker,” Georgieva said in a statement, adding he had “stewarded his country’s economy to a stronger and more sustainable position.” Clarke had been key in negotiating credit lines with the IMF, starting in 2016 as ambassador of economic affairs before being appointed finance minister two years later.During his tenure, Jamaica’s central bank became an autonomous body and an independent fiscal commission was created. He also spearheaded policy coming out of the COVID-19 pandemic, allowing the nation’s economy to recover quickly.Last year, Moody’s (NYSE:MCO) Ratings upgraded the government’s rating to B1 and changed its outlook to “positive.” In June, the island was removed from the watchdog Financial Action Task Force’s so-called “gray list” of countries deemed to be doing too little to combat money laundering, one of Clarke’s signature achievements as minister. Prime Minister Andrew Holness said in a release that he had already drawn up a shortlist of potential successors to Clarke as both finance minister and parliamentarian. More

The proposed class action against the largest U.S. bank was filed on Friday night in Manhattan federal court.It followed similar lawsuits against other banks and brokerages including Ameriprise, LPL Financial (NASDAQ:LPLA), Morgan Stanley, UBS and Wells Fargo.JPMorgan declined to comment on Monday.Illinois resident Dan Bodea alleged that JPMorgan has used its cash sweep program to shortchange customers, while pretending to act as their fiduciary and reaping “outsized benefits” for itself.The lawsuit seeks unspecified compensatory and punitive damages for JPMorgan’s alleged breaches of fiduciary duty, gross negligence and unjust enrichment.Bodea did not specify JPMorgan’s interest rates on uninvested cash or how its payouts compare with those of rivals.Some brokerages offer sweep rates well above 4%, at a time U.S. Treasury bills maturing within three months still yield more than 5%.Lawyers for Bodea did not immediately respond to requests for comment. Morgan Stanley and Wells Fargo said this month that the U.S. Securities and Exchange Commission has been investigating their cash sweep practices, and Wells Fargo said it was in settlement talks.Last month, Wells Fargo said it increased pricing on sweep deposits late in the second quarter, and that this would likely lower future net interest income.The case is Bodea v JPMorgan Chase & Co (NYSE:JPM) et al, U.S. District Court, Southern District of New York, No. 24-06404. More

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