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

Good morning. European markets are digesting data which showed weaker-than-expected business activity, while US markets are gearing up for t [View in browser]( [Bloomberg]( Good morning. European markets are digesting data which showed weaker-than-expected business activity, while US markets are gearing up for the so-called triple witching expiration day. Meanwhile, in Canada, the government is preparing to slap new tariffs on Chinese EVs. Here’s what traders are talking about. — [Morwenna Coniam]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Triple witching US futures were slightly lower, with tech companies indicating declines as the AI-fueled rally showed signs of fading. Tech funds had their record largest weekly inflow, which Bank of America says hints at “AI capitulation.” Meanwhile Wall Street is bracing for the t[riple witching derivatives expiration dayÂ](— in which contracts tied to equities, index options and futures mature — compelling traders en masse to roll over existing positions or start new ones. Today will see some $5.5 trillion worth of options tied to indexes, stocks, and exchange-traded funds fall off the board, according to an estimate from options platform SpotGamma. Bonds surge In Europe, [bonds surged]( after manufacturing and services PMI readings for Europe’s two biggest economies fell short of expectations, prompting traders to amp up wagers on monetary easing. The yield on Germany’s benchmark 10-year bonds fell six basis points, dragging the rate on US Treasuries lower, while gilts also jumped on UK data showing private sector companies there reported slower-than-expected growth. The Stoxx 600 extended declines, while the euro, which has been under pressure since French President Emmanuel Macron’s surprise decision to call a snap election, fell to its lowest in a week. Canadian tariffs In Canada, Prime Minister Justin Trudeau’s government is preparing potential [new tariffs on Chinese-made electric vehicles](to align the nation with actions taken by the US and European Union, Bloomberg’s Brian Platt reports. The government still has to make final decisions on how to proceed, but it’s likely to announce soon the start of public consultations on tariffs that would hit Chinese exports of EVs into Canada, according to officials. In May the US announced a plan to nearly [quadruple]( tariffs on Chinese-manufactured electric vehicles, up to a final rate of 102.5%, while the European Union said last week it plans to increase tariffs to as high as 48% on some vehicles. Property’s new era The huge opportunistic real-estate funds with which Blackstone Real Estate Income Trust made its name are facing an epochal challenge. Central bankers have demolished the certainty of previous decades, in which funds awash with cheap money conquered global property markets. Now the world’s biggest real-estate investor is moving into riskier new terrain in the hunt for stellar returns. You can read more in[today’s Big Take](. Coming Up… Following on from Europe, the US also has provisional PMI data for June due today. That’s expected to show a slightly weaker month for private sector business activity, though readings are still anticipated to show growth. Also coming up today is the latest data on US existing home sales, while the Fed’s Thomas Barkin is due to speak. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - How Elon Musk has been fueling fears about a [population collapseÂ]( - Trump is [raising more money]( than Biden as billionaires chip in - Labour may need to [lift taxes on the UK’s wealthy](, economists say - Britvic has rejected a [$3.9 billion takeover offer]( from Carlsberg - How Sweden’s [dash to ditch cash]( has created a playground for criminals And finally, here's what Katie’s interested in this morning The Swiss National Bank diverged from its peers in more ways than one this week. Officials in Zurich lowered interest rates Thursday, the second consecutive reduction from the SNB, which delivered the current cycle’s first rate cut among advanced economies back in March. After a three-week quiet period, it was a decision observers found hard to call. A strong Swiss franc and low inflation relative to international standards would argue for a cut, though price pressures were still stuck at this year’s highest level. But that markets were second-guessing which way the bank would lean is somewhat of a rare occurrence these days. Source: SNB Consider the European Central Bank’s decision earlier this month, where the bank delivered what was widely regarded as a reluctant cut — lowering rates while also warning it will take longer than anticipated for inflation to return to 2%. While that led some onlookers to question why the ECB reduced rates at all, Bloomberg News reported that the consensus among policymakers was that they needed to go ahead with the cut, given how consistently it had been signaled to investors, according to people familiar with the matter. And compare that with the Federal Reserve, which seems to subscribe to a policy of over-communication rather than risk startling markets. On Thursday, Chicago Fed president Austan Goolsbee outlined a tidy blueprint for traders trying to map out the central bank’s first rate cut: A few more prints like May’s surprise inflation report, and we’re good to go. Katie Greifeld is an anchor for Bloomberg TV in New York. Follow her on X @kgreifeld. [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](