View in Browser

Sign up for Reuters newsletters

A look at the day ahead in European and global markets

By Vidya Ranganathan, Editor, Finance and Markets Breaking News

ChatGPT vs Bard. Earnings from U.S. tech giants Microsoft Corp, which backs ChatGPT, and Google parent Alphabet Inc, top the watchlist on Tuesday.

Profits at these two, Facebook-owner Meta and Amazon Inc are due this week, and estimates show their cloud businesses could be a drag. Yet, as was the case in the last quarter, their efforts around artificial intelligence will predominate earnings calls.

A trader works at Frankfurt’s stock exchange in Frankfurt, Germany, March 12, 2020. REUTERS/Ralph Orlowski

Fed vs ECB. The Fed is in a blackout period ahead of its meeting next week, while the European Central Bank is out and about hinting a half point rate hike is possible next week. The euro is up and has also hit an eight-year high versus the yen as the Bank of Japan’s new governor, Kazuo Ueda, has been signalling he is not in a hurry to shift policy.

This week’s BOJ meeting, which concludes on Friday, is Ueda’s first in charge. U.S. debt ceiling debates and news of plunging deposits at First Republic Bank also serve as a reminder that financial and fiscal stability risks could spur the Fed to shift quickly from hiking to cutting.

Chip wars. South Korea reported barely averting a recession in the first quarter and sagging exports, much of which is chip shipments to China and hence a recurrent issue in Sino-U.S. tensions.

South Korean President Yoon Suk Yeol is in the U.S., and America wants South Korea to urge its chipmakers not to boost sales to China if Beijing bans memory chipmaker Micron Technology from selling chips, the Financial Times reported on Sunday.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Sponsors are not involved in the creation of newsletters or other Reuters news content.

Morning Bid is sent every morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

Want to stop receiving this newsletter? Unsubscribe here.
To manage which newsletters you’re signed up for, click here.

Reuters Terms & Conditions and Privacy Statement