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

Good morning. Stocks slip before run of US data, Micron tumbles after disappointing earnings and the lowly yen remains in focus. Here’s what [View in browser]( [Bloomberg]( Good morning. Stocks slip before run of US data, Micron tumbles after disappointing earnings and the lowly yen remains in focus. Here’s what’s moving markets. — [David Goodman]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Stocks slip US [equity-index futures are falling](and Treasury yields ticking higher this morning ahead of a flurry of economic data over the next two days. Reports on economic growth and weekly unemployment claims are on traders’ radars Thursday before tomorrow’s key inflation figures. The figures come after Fed Governor Michelle Bowman yesterday [tempered market expectations](for interest rate cuts. Micron falls On the company front, Micron -- the largest US maker of computer memory chips -- [is tumbling in pre-market trading]( after its forecast disappointed investors seeking an even bigger payoff from artificial intelligence mania. The shares are down about 6%, after a 67% rally this year as of Wednesday’s close. In a month when Nvidia Corp. briefly became the world’s largest company, hedge funds were “[aggressively](” selling tech stocks, according to Goldman Sachs Group Inc. Net selling in the US tech sector is on track to be the largest on recordin June, going back in data since 2017, according to Goldman’s prime brokerage data. Consumer woes It’s been a tricky morning for European retailers. Hennes & Mauritz shares plunged 15% after the fast-fashion retailer reported a slump in sales in June as [bad weather in key markets kept shoppers at home.]( Earnings from UK firms, such as electronics retailer Currys and bicycle seller Halfords, also showed [signs of fading demand](. We’ll see if that malaise spread to the US when Walgreens Boots and Nike both report figures today. Yen in focus The yen was little changed on Thursday, holding above 160 against the dollar, after[reaching the weakest level since 1986 a day earlier.]( The move has fanned speculation authorities may be soon be forced to support the currency again in a bid to stem the worst selloff in the developed world. It prompted Masato Kanda, Japan’s vice minister of finance and currency chief, to say on Wednesday that officials are watching the foreign-exchange markets with a high degree of urgency and would take appropriate steps as needed. The slump in the currency has gone so far that it’s [no longer giving a boost to Japanese stocks.Â]( China clawbacks In China, the [era of big paychecks for financiers is fast coming to an end]( as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign. The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and in some cases return pay from previous years to comply with a pre-tax cap of 2.9 million yuan ($400,000). What we’ve been reading This is what’s caught our eye over the past 24 hours. - GSK drops as much as 7.2% after [RSV shot suffers fresh blow.]( - [Iceland’s debut gender bond]( sets template for other governments. - Banker-lawyer duo make billions from [audacious natural gas bet](. - [Starmer denies Sunak]( clear win he needed in final UK debate. - France’s Hollande [floats unity government](as the left wavers. And finally, here's what Joe’s interested in this morning Back when inflation was really booming, one of the things that you clearly saw was companies pursuing a "price over volume" strategy. We did a [whole podcast episode]( on it with [Samuel Rines](, but the basic gist was that big consumer-facing companies (like, say, Pepsi) were happy to stay flat or give up a little bit of market share in exchange for substantially higher prices. There were numerous companies talking about this on their conference calls. Anyway, that appears to be dead. Everyone knows about companies getting more into promotional activity. McDonald's has generated a ton of attention by [bringing back $5 menu options](. Other companies have also talked about more competitive pricing to address softening consumer demand. Yesterday General Mills (which makes things like Cheerios) [saw its sales tumble](, thanks to mediocre growth. And what's notable is that in its quarterly release, it specifically said it would aim to boost volume. From the press release: "Amid a continued uncertain macroeconomic backdrop for consumers across its core markets, General Mills expects volume trends in its categories will gradually improve in fiscal 2025, though full-year category dollar growth is expected to be below the company’s long-term growth projections." Also on the conference call, the company says it's been increasing its "couponing", so again, more evidence of competing on price. But the important thing really is that volume realities are clearly back in focus. Big companies made a trade over the last few years, prioritizing pricing and margins over volume. And at least in General Mills' case it's clear that that is over and now they want to move more units. It's yet another sign that the balance of risks (from the Fed’s perspective) appears to be shifting right now. Joe Weisenthal is the co-host of Bloomberg’s Odd Lots podcast. Follow him on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. [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. 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