Daily Brief - 4 July 2024

Jeff Bezos plans to sell $5 billion in Amazon stock as prices peak

  Jeff Bezos is set to sell 25 million Amazon shares valued at $5 billion after the stock reached an all-time high.

This comes after he already sold $8.5 billion worth of shares earlier in February, marking his first stock sale since 2021. This latest move will increase his total sales this year to about $13.5 billion.

Despite the sales, Bezos will still own around 8.8% of Amazon, maintaining a substantial stake in the company. Amazon's share price has surged 32% this year, largely driven by excitement around its AI-driven cloud business. Also, Bezos recently moved to Miami from Seattle, likely saving a significant amount in capital gains tax.

ECB's Stournaras hints at more rate cuts this year as a reasonable step

  Yannis Stournaras from the European Central Bank suggests that two additional interest rate cuts this year would be sensible.

This consideration comes as recent data show some cooling in inflation but with persistent high rates in service costs. Despite a slight drop in consumer price growth, underlying inflation pressures remain.

Stournaras emphasized not overreacting to service inflation, noting that manufacturing inflation is below target. He also commented on European fiscal discipline, expecting any new French government to adhere to EU rules, referencing past fiscal missteps in Greece and the UK as cautionary tales.

Trump's potential return shakes up markets as Biden re-election doubts grow

The possibility of President Joe Biden not seeking re-election has caused shifts in the financial markets, particularly affecting the dollar and Treasury yields.

After a debate where Biden appeared weak, speculation grew that he might withdraw, impacting trades and market strategies. Traders are now betting on a Trump victory, anticipating policies that might lead to a stronger dollar and higher inflation.

The market movements included a spike in short-term bond buying and bets on a steeper yield curve, reflecting expectations of a challenging economic policy landscape if Trump returns to office.