iPhone fears wipe $116bn off Apple inventory
Thanks for joining us at the start of a big week for interest rates, where the Federal Reserve and Bank of England will both outline their next moves.
The latest figures showing Britain’s job vacancies fell last month add to pressure on the Bank of England to cut rates again.
Policymakers will also be wary of data showing factory output slumped for the first time since the height of the pandemic in 2020.
5 things to start your day
1) Power shortage puts Labour’s data centre blitz at risk – Over a dozen projects are on hold as the National Grid struggles with capacity constraints
2) Rayner at odds with Business Secretary over workers’ rights reforms – Cabinet members in disagreement over how far new employment protections should go
3) Miliband urged by US nuclear giant to abandon large reactors in favour of mini-nukes – GE-Hitachi Nuclear boss says investors have ‘scars’ from large projects’ cost overruns
4) Agatha Christie hotel owner kills off £15m sale – Burgh Island Hotel, which inspired two of the novelist’s works, will now be refurbished
5) ITV launches online shopping tool in scramble to replace lost advertising sales – Broadcaster has a minority stake in the business behind discounting system Kerching
What happened overnight
The yen advanced past the key psychological level of 140 against the dollar as the Japanese currency extended its rally from the weakest point in nearly 38 years in July.
It appreciated as much as 0.6pc versus the dollar to 139.96 on Monday, its strongest level since July 2023. The yen has been the best-performing major currency this quarter, with a 15pc gain as investors position for a further narrowing of the interest-rate gap between the US and Japan. The Federal Reserve is expected to lower US borrowing costs on Wednesday with speculation centred on either an 0.25 or 0.5 percentage points cut.
Asian stocks shifted between losses and gains on Monday, with expectations for a Federal Reserve rate cut tempered by signs of enduring slack in China’s economy.
Hong Kong equities wore the brunt of declines, dropping the most in a week, after a string of poor Chinese data on Saturday left traders wondering if authorities will initiate forceful stimulus to buttress the economy. Japan, South Korea and mainland China were closed for a holiday, while Asian trading of Treasuries was also shut.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3pc, after bouncing 0.8pc last week.
The Hang Seng Index was down 0.3pc at 17,318.16 at the break.
Japan’s Nikkei was shut but futures traded at 36,315 compared to a cash close of 36,581 as recent yen gains pressured exporters. S&P 500 futures were little changed, while Nasdaq futures dipped 0.1pc..
Central banks in Japan and the UK also meet this week, with both expected to stand pat for now, while a packed data schedule includes US retail sales and industrial production.
