5 Things You Need to Know to Start Your Day

The Bank of Japan’s jolt to the yield curve surprises investors, Intel’s positive report extends gains for tech stocks, and China asks techn [View in browser]( [Bloomberg]( The Bank of Japan’s jolt to the yield curve surprises investors, Intel’s positive report extends gains for tech stocks, and China asks technology companies to provide case studies of successful startup investments. — [Tiffany Tsoi]( BOJ Shock The Bank of Japan shook up[ financial markets]( by loosening its grip on bond yields. The move sent Japan’s 10-year yield to the highest level since 2014, triggered big swings in the yen and sparked a debate over whether the country is starting to normalize policy. US bond markets tumbled on speculation that higher yields in Japan may lead investors to repatriate cash — Japanese investors are the biggest foreign holders of US government debt. Treasury 10-year yields were flat at 4%, having risen 13 basis points the previous day. US shares took a knock towards close on Thursday when the Nikkei news agency reported the BOJ would discuss tweaks to yield-curve control at its meeting. Intel Earnings [Intel Corp. shares surged]( after the chipmaker declared an end to the personal computer slump and said the second half of the year will show that its long-awaited comeback is under way. The beleaguered chip pioneer reported a surprising profit in the second quarter and gave a bullish sales forecast for the current period that topped analysts’ estimates, sending shares up about 8% in extended trading. But the company remains in the early stages of a turnaround, which hinges on reestablishing Intel’s once-bulletproof lead in chip technology. CEO Pat Gelsinger said Intel is on course for, or slightly ahead of, plans to adopt new manufacturing advances — an effort to regain its technological leadership by 2025. China Tech China has [asked its largest technology companies]( to provide case studies of their most successful startup investments in consumer, telecom and media companies, a sign authorities are ready to grant them broader leeway in backing such deals after a crackdown brought them to a virtual halt two years ago. Companies including Tencent and Meituan received the requests from China’s Ministry of Commerce and the National Development and Reform Commission, people familiar with the matter said. Shares of Meituan and Tencent reversed losses on Friday following the Bloomberg News report. Meituan climbed as much as 2.3%, while Tencent stock increased as much as 1.6%. The Hang Seng Tech Index also reversed declines to increase as much as 1.8%, touching its highest level since February. Futures rally S&P 500 and Nasdaq 100 futures are both up as of 6:20 a.m. in New York. Treasury yields fell, as the dollar edged higher. Oil and iron ore are down, while gold prices have climbed. Coming up… Today’s scheduled earnings include Exxon, P&G, Colgate-Palmolive, and T. Rowe Price. At 8:30 a.m., US June Personal Income and PCE Deflator data is out. US July University of Michigan Consumer Sentiment data is out at 10:00 a.m. Baker Hughes US Rig Count is due at 1:00 p.m.  At 10:00 a.m., Secretary of the Treasury Janet Yellen is chairing the Financial Stability Oversight Council. This week, the MLIV Pulse survey is asking: Do you think this AI rally resembles the dotcom bubble? Will Nvidia Corp. become the world’s largest company? Are you planning to increase your exposure to tech stocks? Share your views [here]( on big tech and ChatGPT. What we’ve been reading Here’s what caught our eye over the past 24 hours: - [Trump faces new charges]( over footage in Mar-A-Lago probe - The extreme solutions that can [fix climate change]( - Hermes surpasses rivals with strong US [Birkin bag demand]( - Rich [Russians isolated from the West]( are flocking to Thailand’s Phuket - An [AI startup]( is helping North American diesel trains clean up their act - [NatWest]( cuts profit margin guidance after a bruising week - The song that first captured [Sinéad O’Connor](’s power And finally, here’s what Katie’s interested in this morning… The Federal Reserve’s decision to lift rates by 25 basis points this week was delivered via another unanimous vote, despite some vocal disagreements among Fed speakers in the weeks heading into the meeting. That’s led to some raised eyebrows. “I think Powell has been somewhat masterful in getting these decisions to be unanimous, but we saw that’s sometimes coming at the cost of clarity,” Andrew Hollenhorst, chief US economist at Citigroup Inc., said on Bloomberg Television. “That’s what happened in June, when we had this strange decision not to raise rates but signal it would be appropriate to raise rates another 50 basis points. So as you try to keep that committee together and get unanimity, it’s a little bit troubling in trying to get clarity in terms of the communication.” Since Powell took the reins in February 2018, he’s only endured 13 dissenting votes in his tenure — that’s the lowest tally of any chair in recent decades, data from the St. Louis Fed show. And needless to say, it’s been an eventful five years — the outbreak of a pandemic, a global supply chain crunch, the hottest inflation in decades and banking sector turmoil. But it’s easy to link arms in a crisis. As inflation cools closer to the central bank’s 2% goal, the united front will likely fracture, according to Vanguard Group’s Joe Davis. “The reason why we probably haven’t seen as much of a dissent or an open-aired dialogue is because inflation is still well above target,” Davis, the firm’s global chief economist, said on Bloomberg’s What Goes Up podcast. “As we get closer to 2% — it could be a ways off — but as we get closer to 2% inflation, you could see a more healthy debate, including on the voting.” Follow Bloomberg’s Katie Greifeld on Twitter @[kgreifeld]( 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](. 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