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Gold continues its record-breaking rally, policymakers struggle with the strong US dollar, and Apple’s next big thing. Here’s what people are talking about.
Gold Shines
Gold continues to outshine, mainly thanks to Jerome Powell’s assurance on Wednesday that the Federal Reserve will likely cut interest rates this year. The precious metal hit a fresh record high above $2,300 an ounce. And it’s not just gold. Copper rose to a 14-month high while US equity futures also edged higher in Asian trading. For further clues on the rate trajectory in the US, traders will be switching their focus to jobs data stateside due later this week.
Currency Angst
Global policymakers may also have been relieved to see Powell sticking with projections for rate cuts. Central bankers and government officials have been stepping in to defend exchange rates as a resilient American economy keeps the dollar strong. The greenback has gained against virtually every major peer in 2024.
Apple’s Robotics
Personal robots! That may be Apple’s answer to the burning question of where it can find new sources of revenue. The company has teams investigating a push into the sector, according to people familiar with the situation. Apple is under growing pressure after scrapping an electric vehicle project in February. With robotics, it could gain a bigger foothold in consumers’ homes and capitalize on advances in artificial intelligence. Speaking of AI, Tesla CEO Elon Musk said the automaker has been boosting pay for AI engineers as it faces a war over talent.
Aviva Down Under
London-based asset manager Aviva Investors is tapping Australia’s pension funds to partner in private deals in the UK and Europe, as the surging pool of retirement savings lures more offshore suitors. The firm, which manages 262 billion euros ($284 billion) of assets globally, has been talking to some funds about co-investments in logistics centers and residential developments, said Head of Real Asset Equity Specialists Tom Graham. Some of Australia’s largest pension funds have already made big inroads into the UK and European markets.
Taiwan Recovers
Taiwan begins to recover from its worst earthquake in 25 years. The island’s semiconductor industry restarted operations and emergency personnel worked to help the injured. Nine people were killed and more than 100 remain trapped. Taiwan Semiconductor Manufacturing, the leading producer of advanced chips for Apple and Nvidia, said it would resume production less than 24 hours after evacuating staff and halting operations. The company said there has been no damage to its most critical chip-making equipment.
Coming up…
European equity futures are steady as traders await further clues about the monetary policy trajectory in the region from the European Central Bank’s account of its March rate decision. Also due are a slew of PMI data across Europe including Germany and the UK, along with Riksbank’s minutes. In the US, several Fed officials speak including Patrick Harker, Thomas Barkin and Austan Goolsbee.
What we’ve been reading::
This is what's caught our eye over the past 24 hours
Strikes in Gaza, Iran show limits of Biden’s leverage on Israel
L’Oreal eyes stake in €3 billion perfume brand Amouage
Dalio defends his decades-long investment in China
Disney’s Iger Wins Proxy Vote Over Peltz With Board Election
Yellen says US has option to shield industries against China
Trump courts Palm Beach billionaires as power of his rallies fades
BOJ is likely to wait until fall on next hike, ex-board member says
And finally, here's what Sofia is interested in this morning
This caught my eye yesterday: in the competitive world of hedge funds, it looks like the most traditional of the lot are coming back into favor. Equity long-short strategies where managers pick stocks rather than pursue a broader macro thesis based on the economy, or bet on events like M&A happening attracted $1.5 billion in net inflows in February. That’s the first positive reading in 24 months.
https://www.bloomberg.com/news/newsletters/2024-04-04/stock-markets-today-fed-rate-cut-bets-gold-s-record-highs-apple-robotics