Key Takeaways
- Uber (UBER) and Wayve officially launched the UK's first autonomous ride-hailing service in London, deploying a fleet of supervised Ford Mustang Mach-E vehicles.
- Japan's Services PMI climbed to a five-month high of 52.5 in August, fueling expectations for a Bank of Japan (BOJ) interest rate hike later this month.
- President Donald Trump claimed significant military success in Iran, stating that most of the country's missiles and naval assets have been destroyed following Operation Epic Fury.
- Broadcom (AVGO) shares fell 5% in after-hours trading after providing fourth-quarter revenue guidance of $34.8 billion, slightly missing analyst expectations of $35.1 billion.
- Tencent Music (TME) launched its first offshore dollar-denominated bond offering in six years, targeting up to $1 billion to fund share repurchases and debt refinancing.
Geopolitical Tensions and Market Sentiment
Global markets showed resilience on Thursday as investors processed claims from the Trump administration regarding the rapid degradation of Iran's military capabilities. President Trump stated that "good results are being achieved" and suggested the campaign would not be prolonged, which helped stabilize sentiment in Asian markets. Despite the military flare-up, gold prices surged 1.3% to $4,385 an ounce as a weaker dollar and lower yields improved the appeal of safe-haven assets.
U.S. Ambassador to NATO Matthew Whitaker echoed this confidence, noting that recent naval blockades and sanctions have effectively "bankrupted" the Iranian regime. However, Whitaker remained cautious regarding Russia, warning that while the country is currently "bogged down" in Ukraine, it remains an unpredictable threat to NATO allies. Meanwhile, China and Russia continue to deepen ties, with Vice Premier Ding Xuexiang meeting President Putin in Vladivostok to discuss Far East development cooperation.
Technological Milestones in London
In a landmark development for autonomous mobility, Uber (UBER) and British AI startup Wayve launched robotaxis on the streets of London. The service features Ford Mustang Mach-E vehicles equipped with the Wayve AI Driver, though they currently operate with a human supervisor to meet Transport for London (TfL) safety requirements. This rollout makes London the second European city, after Zagreb, to offer autonomous rides via the Uber app.
Japanese Economic Strength and Yield Volatility
Japan's economy showed further signs of recovery as the S&P Global Services PMI was revised upward to 52.5 for August. This stronger-than-expected growth, driven by resilient domestic demand, has intensified market speculation that the Bank of Japan will raise interest rates at its upcoming September meeting. The news initially sent the Yen higher and saw the 10-year Japanese Government Bond (JGB) yield reach a 30-year milestone of 3.0% earlier in the week, though longer-dated yields like the 30-year JGB eased slightly to 4.075% on Thursday.
Corporate Earnings and Debt Offerings
In the technology sector, Broadcom (AVGO) faced a sharp sell-off despite reporting an 86% year-over-year revenue surge to $29.59 billion for its third quarter. Investors focused on the company's fourth-quarter outlook, which fell just short of consensus estimates, raising concerns about the immediate pace of AI-driven growth. In contrast, Tencent Music (TME) is moving to capitalize on its strong cash position by issuing a multi-tranche dollar bond, its first since 2020, to support a strategy of returning capital to shareholders through buybacks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.