5 Things You Need to Know to Start Your Day: Americas

Good morning. US stock futures are higher, Japanese equities are recovering and China is trying to cool its bond market. Here’s what’s movin [View in browser]( [Bloomberg]( Good morning. US stock futures are higher, Japanese equities are recovering and China is trying to cool its bond market. Here’s what’s moving markets. — [Sam Unsted]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Futures bounce US [stock futures are higher]( as benchmarks continue to retrace losses from the recent selloff. European stocks are rising too following gains in Asia. Treasuries and the dollar are mostly flat as traders await a raft of data due this week, kicking off with producer price inflation later as a prelude to the closely-watched CPI report on Wednesday. Results from Home Depot, which [cut its sales forecast]( a weak housing market, kick off a run of updates on the US consumer. Japan stock recovery Topping those gains in Asian stocks was Japan, where the [Nikkei 225 has recovered]( to where it was trading at prior to the turbulence that sent the index down by the most since 1987 last week. Aizawa Securities’ Ikuo Mitsui said investors have shifted their focus back to fundamentals and are taking advantage of cheap valuations. Bank of Japan Governor Kazuo Ueda [will be called to parliament]( this month to explain the decision to hike rates in its last meeting. Chinese intervention Chinese authorities are [going to extreme lengths]( to tighten their grip on the local bond market, intervening to tell rural banks in the Jiangxi province not to settle recent purchases in a bid to cool the recent market rally. Elsewhere, Chinese [stock trading has plummeted]( in a new sign of waning confidence, while index provider MSCI is [continuing to cull Chinese stocks]( from its benchmarks. Oil prices slip Oil prices [have slipped following a five-day run of gains]( as signs of weakening global demand growth offset worries about a likely escalation of the conflict in the Middle East. Hints of weak crude consumption caused the OPEC group to cut its demand forecasts for this year and next. That, at least today, is overshadowing the [US view that an Iranian attack]( against Israel has grown more likely. Valuing assets Investment firm B. Riley Financial is [struggling to value its assets]( after months of concern about flawed accounting and a federal investigation culminated in a 52% one-day plunge. The Los Angeles-based firm said late on Monday that it couldn’t file its report on time with regulators. It also [suspended its dividend and announced its biggest-ever quarterly loss](. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - Musk and Trump hold a [glitchy conversation]( on X. - Hong Kong’s [real estate slump]( is threatening its funding model. - The [pressure returns]( for France’s Macron with the Olympics over. - The startup using [robots and AI]( to make IVF cheaper. - Wall Street concessions to a [shift in power]( in Middle East investment. And finally, here's what Joe’s interested in this morning Today we get the latest PPI report, and expectations are for a 0.2% increase in core. Tomorrow there’s the more popular CPI report, and it’s expected to show the same thing. As I mentioned yesterday, we’re clearly at a point where people are more attuned to labor data than inflation data, but the inflation numbers will still matter in terms of giving the Fed “greater confidence” in the trajectory returning to 2%. In the meantime, yesterday we got the latest edition of the [NY Fed's Survey of Consumer Expectations](. Of course, there’s only so much weight you want to put on consumer expectations about surveys. They’re not hard data. But a couple of years ago there was a lot of focus on them because the fear is that if higher inflation expectations (however you want to measure them) were to become embedded somehow in the public consciousness, then perhaps that would be a sign that inflation would get further out of control. Anyway, good news on that front. Looking at these charts, it basically looks like it’s all over. There’s no sign of the inflationary episode of the last few years remaining embedded psychology. Not only is the trend down at the 1-year and 3-year intervals, the 3-year interval actually just fell to its lowest level in the history of the survey. Meanwhile, other questions about the labor market and personal finances were generally fine. It’s just one survey, but it adds to the general evidence that the inflation story is coming to an end. Now whether the employment situation continues to deteriorate at a worrisome pace remains an open question. Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Stay updated by saving our new email address Our email address is changing, which means you’ll be receiving this newsletter from noreply@news.bloomberg.com. Here’s how to update your contacts to ensure you continue receiving it: - Gmail: Open an email from Bloomberg, click the three dots in the top right corner, select “Mark as important.” - Outlook: Right-click on Bloomberg’s email address and select “Add to Outlook Contacts.” - Apple Mail: Open the email, click on Bloomberg’s email address, and select “Add to Contacts” or “Add to VIPs.” - Yahoo Mail: Open an email from Bloomberg, hover over the email address, click “Add to Contacts.” Like getting this newsletter? 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