🤯 Ethereum ETF: Send Ether to the Moon 🚀

Good Morning!

Looks like the market's having a bit of a tantrum. Tesla, LVMH, and Deutsche Bank dropped the ball on their earnings, sending stocks into a nosedive. Tesla's down 8%, LVMH's feeling a 5% hangover from China's spending drought, and Deutsche Bank's first quarterly loss in four years has investors reaching for the aspirin. With the Magnificent Seven tech stocks expected to outperform, all eyes are on this earnings season. Is this just a blip, or are we in for a bumpy ride?

In today’s email:

• Japan: $1.7 trillion rally, TSE stocks have been surging

• Bitcoin: Bitcoin down to $65k mark, Mt. Gox jitters

• Ethereum: ETH ETFs rack up $1 billion+ in Day 1 trading volume

• Tesla: Earnings disappoint, TSLA down 7% premarket

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THE BIG IDEA

Japan's stock market surge, driven by reforms and foreign investment, shows no signs of slowing down according to Japan Exchange Group head Hiromi Yamaji

In an unexpected turn of events, Japan's stock market is experiencing a renaissance, and we've got the inside scoop from the mastermind behind it all. Hiromi Yamaji, the head honcho at Japan Exchange Group, is convinced this $1.7 trillion rally is just the appetizer.

Since taking the reins 15 months ago, Yamaji has been shaking things up like a bartender on a Friday night. His "name and shame" strategy for underperforming companies has triggered a tsunami of dividend hikes and share buybacks. The result? Japanese stocks are now the cool kids on the block, outperforming major developed markets.

But Yamaji isn't content to rest on his laurels

He's globe-trotting like a rockstar on tour, pitching Japan to investors from Malaysia to London. His secret weapon? A mix of MBA smarts, aikido discipline, and a golf handicap that would make most executives green with envy.

The reforms are working their magic. Companies trading below book value have dropped from 53% to 45%, and activist campaigns are surging. It's not all smooth sailing, though. Japan still lags behind the US in profitability metrics, and attracting cross-border listings remains a challenge.

But if Yamaji's track record is anything to go by, Japan's stock market might just be entering its golden age. Who knows? The Land of the Rising Sun could soon be known as the Land of the Rising Stocks.

MARKETS AT A GLANCE

TOP NEWS

Tesla's profit slump and delayed robotaxi unveiling shake investor confidence, despite record revenue

Elon Musk's grand robotaxi reveal is now stuck in traffic until October, leaving Tesla investors tapping their fingers on the dashboard. Profits took another hit, missing estimates for the fourth straight quarter. While revenue hit a record high, it's mostly thanks to energy storage and emissions credit sales. The road ahead looks bumpy with car sales slowing and new models delayed. Musk insists autonomy is Tesla's golden ticket, but with prototypes pushed back and production timelines hazy, are we looking at a detour or a dead end?

Billionaire-backed companies facing debt crises are eroding investor trust in Europe's junk bond market

The party's over for Europe's debt-fueled tycoons, and bondholders are nursing one hell of a hangover. Patrick Drahi's Altice France is the poster child for this billion-dollar bust, with creditors facing potential haircuts on $10.9 billion of debt. It's not just Drahi - from Irish packaging mogul Paul Coulson to the Issa brothers' Asda struggles, Europe's billionaire-backed businesses are in a bind. Investors are vowing "never again," but with shrinking junk bond markets, they might not have much choice. Is this the end of Europe's love affair with leveraged moguls, or just a rocky patch in a dysfunctional relationship?

Deutsche Bank posts first quarterly loss in four years, scrapping buyback plans amid trading slowdown and litigation costs

Well, looks like Deutsche Bank's hitting some turbulence. They've just posted their first quarterly loss in four years, thanks to a perfect storm of slowing trading and a €1.3 billion legal hangover from their Postbank unit. CEO Christian Sewing's grand plan to boost shareholder returns? Yeah, that's on ice for now. The silver lining? Their deal advisory business is booming, doubling revenue. But with the ECB breathing down their neck over leveraged finance risks, Deutsche's not out of the woods yet. Is this just a bump in the road, or a sign of rougher skies ahead for Germany's banking giant?

CRYPTO

Ether ETFs debut with over $1 billion in trading volume and $106.78 million in net inflows on their first day

Looks like Ethereum's joining the Wall Street party! The new Ether ETFs hit the ground running, racking up over $1 billion in trading volume on day one. Not too shabby, considering their Bitcoin cousins pulled in $4.5 billion on their debut. The real kicker? A cool $106.78 million in net inflows, with BlackRock's iShares leading the pack. Grayscale's trust took a hit, but overall, it's a solid start for ETH on the traditional finance dance floor. Is this the beginning of a beautiful friendship between crypto and Wall Street, or just a first-day fling?

Bitcoin and altcoins dip as Mt. Gox creditors begin receiving assets on Kraken after a decade-long wait

Looks like the crypto market's getting a case of the Mt. Gox jitters. Bitcoin's taking a nosedive towards $65K, with Bitcoin Cash leading the plunge at a 7% drop. The culprit? Mt. Gox creditors are finally getting their hands on $9 billion worth of crypto after a 10-year wait. It's like finding a time capsule filled with digital gold, but the market's worried these newly minted crypto millionaires might cash out faster than you can say "blockchain". Meanwhile, Ether's holding steady, buoyed by its shiny new ETFs. Is this just a speed bump on the crypto highway, or are we in for a Mt. Gox-sized pothole?

Harris' nomination sparks crypto speculation in 2024 race

Kamala Harris' rise as the Democratic nominee has the crypto world buzzing. Will she pivot from Biden's cautious approach? Early signs hint at potential openness, with her California tech background a possible plus. Industry leaders are hopeful, but it's still early days. Harris' stance could reshape the crypto narrative in this election.

GOLD

The copper-to-gold ratio's decline signals potential economic weakness, posing risks for Bitcoin and other cryptocurrencies

Heads up, crypto bulls! The economic weather vane known as "Doctor Copper" is pointing towards stormy skies. The copper-to-gold ratio has plummeted to its lowest since November 2020, hinting at a possible economic slowdown and risk aversion. This could spell trouble for Bitcoin and its crypto cousins, despite the recent ETF hype. But there's a silver lining: the ratio's decline often precedes lower interest rates, which could eventually reignite the risk asset fire.

DAILY ECONOMIC CALENDAR (ET)

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