Bloomberg - Evening Briefing - The big slowdown

Bloomberg Evening Briefing

New labor data added further evidence that the US jobs market is indeed slowing down. Companies hired workers at a more moderate pace in June and wage growth cooled as recurring claims for unemployment benefits rose for a ninth straight week, the longest stretch since 2018. Two reports coming ahead of Friday’s June employment data suggest weaker demand for workers. A separate measure published Wednesday showed that the US services sector contracted last month at the fastest pace in four years, another sign that the economy is losing steam. As the US Federal Reserve looks to time its pivot to rate cuts in a bid to cement a soft landing, it’s been hesitant to pull the trigger. New minutes from a recent meeting show why. Meanwhile stocks hit yet another record on Wednesday. Here’s your markets wrap. 

Here are today’s top stories

JPMorgan’s chief global market strategist and co-head of global research, Marko Kolanovic, is leaving the bank, according to an internal memo obtained by Bloomberg News. The move follows a disastrous two-year stretch of stock-market calls by Kolanovic. He was steadfastly bullish in much of 2022 as the S&P 500 Index sank 19% and strategists across Wall Street lowered their expectations for equities. He then turned bearish just as the market bottomed, missing last year’s 24% surge in the S&P 500 as well as the 14% gain in the first half of this year.

Marko Kolanovic Source: Bloomberg

London’s rich private equity fund managers are getting ready to run. Why? Taxes of course. Apparently the prospect of paying more on their main source of compensation under a Labour government has them eyeing a trip to Italy. Labour leader Keir Starmer has pledged to take a tougher approach on the financial industry. Such a tack would come on the back of the UK decision to scrap preferential tax treatment for rich “non-domiciled” foreign residents. While it’s too early to say whether all of this— in tandem with a flood of UK inquiries to Italian law firms—will translate into an exodus, it does highlight how Italy has become a rising pick for the wealthy seeking to take advantage of Italy’s expat-friendly tax breaks.

Russia’s reliance on China has gotten to the point where Beijing could end the war in Ukraine if it chose to, Finnish President Alexander Stubb said. His comments reflect the increasing frustration among Ukraine’s allies over what they say is China’s increasingly visible support for Russia’s war effort. They accuse Beijing of providing the Kremlin with technologies and parts for weapons and helping Moscow get around international trade restrictions. “Russia is so dependent on China right now,” Stubb, 56, said in an interview in Helsinki Tuesday. “One phone call from President Xi Jinping would solve this crisis.”

Xi Jinping, left, embraces Vladimir Putin after talks in Beijing on May 16 Photographer: Mikhail Metzel/AFP

Nvidia Chief Executive Officer Jensen Huang unloaded stock worth almost $169 million in June, the most he’s netted in a single month. The sale of 1.3 million shares came during a month when Nvidia’s market value rose above $3 trillion for the first time. That briefly made it the world’s most valuable company and pushed Huang, 61, into the rarefied group of ultra-rich with fortunes above $100 billion.

Ron Shaich may have created the now-famous Panera in the 1990s, but it’s his investment firm that made him a billionaire. The financial stake held by Shaich’s firm in Cava Group, a Mediterranean fast-casual chain whose shares have skyrocketed 330% since its 2023 IPO, is worth $970 million, giving him a total fortune of about $1.6 billion, according to the Bloomberg Billionaires Index, which is calculating his net worth for the first time.

The owner of Saks Fifth Avenue is said to be close to acquiring Neiman Marcus Group for $2.65 billion—a deal that would unite America’s two largest high-end department-store chains in a bid to grab a bigger share of a slowing industry. Amazon and Salesforce will be helping facilitate the deal by Saks owner Hudson’s Bay. The tech companies will take minority stakes in a new company, to be called Saks Global.

Billionaire Jorge Perez, the condo king of Miami, has spent hundreds of millions of dollars of his real estate fortune making the city a magnet for the arts. But it seems that one very powerful person is wiping all of that effort away: Ron DeSantis. The far-right Republican governor and failed presidential candidate is undoing Perez’s efforts with the stroke of a pen. Last month, DeSantis stunned the state’s arts community by axing all $32 million of funding for a state program that provides grants for music, theater and culture. 

Jorge Perez Photographer: Nathalia Angarita/Bloomberg

What you’ll need to know tomorrow

Dragons and Sex Are a $610 Million Business

Dragons, faeries and happily-ever-after love stories are having a moment. Sales of romantasy novels—a genre that blends fantasy’s epic quests and mystical characters with romance’s swooning gestures and spicy sex scenes—are projected to jump to $610 million this year. The number of books sold reached 11 million in the first five months of 2024, almost double the same period last year. Their empowered female protagonists and cult followings may soon find these genre permanent shelf space in stores.

Illustration: Shira Inbar

The Bloomberg Evening Briefing will return on Friday, July 5.

Older messages

The magic 5,500

Tuesday, July 2, 2024

Bloomberg Evening Briefing View in browser Bloomberg For the first time in its history, the S&P 500 closed above 5500 on Tueday to extend a blistering 2024 rally that's left analysts scrambling

‘Above the law’

Monday, July 1, 2024

Bloomberg Evening Briefing View in browser Bloomberg Having delayed its ruling until a rare July session and then ordering up a complex fact-finding mission for a lower court judge, the US Supreme

Le Pen Crushes Macron — Again

Sunday, June 30, 2024

It was a big night for Le Pen. View in browser Bloomberg Welcome to Balance of Power, bringing you the latest in global politics. Readers of the Paris Edition, Weekend Reading and Economics Daily

Not-so-great debate

Saturday, June 29, 2024

Bloomberg Weekend Reading View in browser Bloomberg US President Joe Biden's main opponent on the debate stage in Atlanta Thursday night wasn't the rambling, falsehood-filled former president

The aftermath

Friday, June 28, 2024

Bloomberg Evening Briefing View in browser Bloomberg It's been a big 24 hours for Donald Trump and the Republican Party. It started last night, when President Joe Biden stepped out onto the debate

You Might Also Like

5 Top Stocks: And They Will Surprise You

Thursday, July 25, 2024

Take a look inside... ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Big stock selloff

Wednesday, July 24, 2024

Bloomberg Evening Briefing View in browser Bloomberg A steep selloff in high-flying technology stocks sent the S&P 500 Index down to its worst day since December 2022. The US equities benchmark

👛 Chinese consumers cut back

Wednesday, July 24, 2024

Chinese demand for luxury goods falters, the UK economy is on the up, and a hydrogen-powered air taxi | Finimize TOGETHER WITH Hi Reader, here's what you need to know for July 25th in 3:09 minutes.

Issue #248: Do Trump and Harris really need my measly $2?

Wednesday, July 24, 2024

plus Brisket + a snowboarding cat ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Harry's Take 7-24-24 S&P 500 Outperforms Expected Returns

Wednesday, July 24, 2024

image Harry's Take July 24, 2024 Another Simple Indicator Shows We Are Way Overdue for a Stock Crash All types of indicators of excessive valuation for stocks have been flashing for a good while

Harris on the attack

Tuesday, July 23, 2024

Bloomberg Evening Briefing View in browser Bloomberg As US President Joe Biden announced he would address the nation Wednesday on his decision to not seek a second term, Vice President Kamala Harris

🪙 Ether makes its ETF debut

Tuesday, July 23, 2024

Alphabet's results are in, ether spot ETFs are launched, and the family that was shipwrecked for 38 days | Finimize TOGETHER WITH Hi Reader, here's what you need to know for July 24th in 3:14

Is now the right time to invest in gold?

Tuesday, July 23, 2024

Here's how to do it! ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Are These 3 Factors Delaying Your Retirement?

Tuesday, July 23, 2024

Most Americans retire by 64. Why not all? ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

This 2 sentence phrase simply pays... week after week

Tuesday, July 23, 2024

Unique opportunity inside ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌