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Can Bitcoin Weather the Storm?
Both bitcoin and ether hit multi-month lows on Monday. Bitcoin has lost more than a third of its value since a record high in March, Reuters reported; its growing correlation with equities is undermining perceptions of its reliability. Elsewhere, Morgan Stanley’s [MS] 15,000 financial advisers will soon be allowed to encourage clients to invest in BlackRock’s [BLK]iShares Bitcoin Trust [IBIT] or the Fidelity Wise Origin Bitcoin Fund [FBTC], according to CNBC. Lastly, Riot Platforms [RIOT] disclosed that it bought 380,838 shares in bitcoin mining company Bitfarms [BITF] on 2 August.
Glum Times among German Automakers
Business expectations within the German auto sector fell to minus 18.3 points in July, from minus 9.5 points in June, according to a survey released on Monday by the Munich-based ifo Institute. This outlook stems from a disappointing earnings season, with giants like Volkswagen [VWAGY] and Mercedes [MBGAF] reporting dwindling electric vehicle (EV) sales and weakness in China. German chipmaker Infineon Technologies [IFNNY], which specialises in the chips used in cars, reported disappointing Q3 sales amid the EV slump. Elsewhere, China Evergrande New Energy Vehicle [0708:HK] said on Monday that a court has dictated that two of its units must enter into bankruptcy.
Nvidia Downturn
The chipmaker [NVDA] has been impacted by the ongoing rout, which was partly sparked by fears that the artificial intelligence (AI) bubble could be about to burst. The stock’s sharp drop might also be attributable to reports that shipments of its next-generation Blackwell B200 chip will be delayed by three months, a delay that according to Barron’s would equate to billions of dollars in lost revenue, and might also affect major clients such as Meta [META] and Alphabet’s [GOOGL] Google.
Defence Stock Rises on Middle East Tensions
Benzinga reported Monday that US aerospace and defence company Lockheed Martin’s [LMT] share price climbed 4% in overnight trading, driven by mounting tensions in the Middle East; the White House announced on Sunday that the US would step up its military presence in the region. LMT increased by nearly 9% over the course of last week. Several countries have encouraged their nationals to leave Lebanon amid fears of a full-blown war with Israel.
Hard Luck for SoftBank
SoftBank [SFTBY] stock fell 19% on Monday, losing some $15bn in value — its biggest single-day drop since going public in 1998. Founder and CEO Masayoshi Son also saw $2.9bn of his own personal wealth wiped out in a single day by the market rout, according to the Bloomberg Billionaires Index. “AI’s hype is fading now that there’s a greater focus on AI companies’ ability to deliver revenue and earnings,” Bloomberg Intelligence analysts Marvin Lo and Chris Muckensturm wrote in a note. “SoftBank’s AI investment strategy might help the company return to profitability, but it might not be smooth sailing with execution risk high.”
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