Spain's Ceuta Migrant Crisis Sparks Debate; Tech Stocks Rise as Kospi Sees 18% Jump | The Pulse 7/31

Summary

The episode covers tech earnings with Amazon beating on AWS growth and Apple falling on supply shortages, a leveraged AI hedge fund implosion, central bank decisions (BOJ, Fed, BOE, ECB) with a Goldman economist providing dovish assessments and a bullish call on UK gilts, Clariant CEO discussing a favorable court ruling removing a legal overhang, and geopolitical updates on Gaza and migration. Markets saw a broad tech rally, especially in Korea, while oil prices remain resilient below $100.

• Amazon's AWS revenue growth accelerated to 37%, driving shares higher; Apple faced supply shortages and cautious AI outlook.
• A large AI-focused hedge fund suffered a 67% loss due to excessive leverage, but Citadel bought its portfolio at a discount, signaling the AI trade may not be broken.
• Goldman's chief European economist Jari Stehn expects BOE and Fed on hold, BOJ gradual hikes, ECB one more hike then pause, and sees UK gilts as attractive.
• Clariant's CEO highlighted a €1bn ethylene claim dismissal by a Dutch court, removing a share price overhang and boosting the stock 16%.
• Bank of England Governor Bailey said market pricing of no rate change is sensible, and a conflict de-escalation could lower energy risks.
• Geopolitical tensions: Trump announced Hamas disarmament deal, while Spain deployed troops to Ceuta amid a migrant surge.
• European banks NatWest and Credit Agricole posted strong results, with revenue strength and low credit risk.
• Climate-driven wildfires and low river levels in Europe threatened commodity transit and nuclear plant cooling.