Chip Rout Deepens; Trump Sees 'Good Chance' of Iran Deal | Daybreak Europe 7/28/2026

Watch on YouTube ↗  |  July 28, 2026 at 06:41  |  45:26  |  Bloomberg Markets
Speakers
Jelena Sokolova — Senior Equity Analyst, Morningstar
Anthony — Technology Reporter, Bloomberg
Ven — Strategist

Summary

Asian markets cratered as a global chip selloff deepened, with Korea's Kospi halted twice and down over 10%. Fears around circular AI funding and Chinese lithography advances hammered SK Hynix, Samsung, and ASML. Oil prices slid on Trump's optimism about an Iran deal, while Mercedes and LVMH results disappointed on weak China demand. Morningstar's Jelena Sokolova reiterated LVMH as a top pick, arguing luxury recovery is near.

  • Kospi down more than 10%, circuit breakers triggered twice; MSCI Pacific index set for correction.
  • SK Hynix and Samsung lead declines on circular AI funding and Chinese chipmaking progress.
  • ASML drops over 8% on reports China is producing advanced lithography tools.
  • Oil extends decline as Trump sees 'good chance' of Iran deal; Strait of Hormuz tensions remain.
  • Mercedes cuts full-year revenue forecast, citing weak luxury demand in China.
  • LVMH barely ekes out sales growth; Morningstar analyst stays bullish on quality and recovery potential.
  • Markets price near 40% chance of a Fed rate hike as the two-day policy meeting begins.
Ideas
Jelena Sokolova Senior Equity Analyst, Morningstar 27:26
LVMH exceptional quality, early recovery signs.
LVMH remains a top pick despite the 28% share price decline this year because the company has exceptional quality of business, prominent brands like Louis Vuitton, a massive communication budget above peers, and long-term fashion and leather goods growth that has doubled the luxury industry average. Current weakness reflects difficult post-pandemic comparisons and a luxury downturn that typically lasts about three years. Early signs of recovery are appearing, driven by the US market, easier comparisons, potential Chinese consumer resumption, and a shift toward hard luxury.
LVMH HIGH
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This Bloomberg Markets video, published July 28, 2026, features Jelena Sokolova discussing LVMH. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Jelena Sokolova  · Tickers: LVMH