Good morning. Zoom is the standout mover in an otherwise steady start for US markets, while Japan had a big day. The dollar and Bitcoin are emerging as the year’s big winners and Shein is considering a London IPO. Here’s what people are talking about. — Sofia Horta e Costa
S&P 500 futures are flat and US government bond yields are slightly lower ahead of the Treasury’s $42 billion sale of 7-year notes. Zoom shares are surging in early New York trading after the company’s quarterly sales and profit topped estimates. A new $1.5 billion share buyback is also helping sentiment, suggesting the firm — which operates the ubiquitous videoconferencing platform — is prioritizing shareholder returns over large acquisitions for now. Over in Asia, the big focus was Japan, where the two-year bond yield climbed to the highest since 2011 after stronger-than-expected inflation boosted bets that the country’s long era of negative interest rates could end as early as March. Here’s today’s must-read fact: for the first time in over two decades, it’s cheaper for blue-chip companies in the US to sell shares than to borrow debt.
JPMorgan CEO Jamie Dimon said problems in commercial real estate will be contained to “pockets” of the sector — as long as the US avoids a recession. Do you agree, or do you consider it a risk for US banks or broader financial system? Fill out Bloomberg’s latest MLIV Pulse survey.