Market Trends and Regional Performance - South Korea's KOSPI index plummeted more than 10%, triggering circuit breakers twice during the session and heading toward correction territory [2][7][48] - SK Hynix suffered a market value loss of about $570 billion since June highs, driving a broader global sell-off in chipmakers [8] - European Stoxx 50 futures declined by 0.2% and Nasdaq futures dropped over 1%, reflecting contagion fears from Asian markets and tech sector pressures [48][49] Corporate Earnings and Automotive Sector - Mercedes-Benz lowered its full-year guidance and reported a weak second quarter, citing a prolonged property slump and weaker demand in China [3] - BMW previously lowered its profit guidance in June, mirroring the broader downturn and pricing pressures facing European automakers in China [3][62] - LVMH posted a modest 1% rise in its most profitable fashion and leather goods unit, missing analyst estimates as Middle East conflicts deterred wealthy shoppers [52] Technology and AI Financing Risks - Credit spreads for Alphabet and Oracle widened to record levels, while Amazon reached its widest spread since 2018 and Microsoft since 2011 [77] - Market concerns intensified over circular AI financing models, including a $750 billion deal involving Nvidia and its interconnected web of tech customers [10][79] - ASML shares dropped more than 8% in Amsterdam following reports of a Chinese state-backed company beginning production of precision chipmaking tools [14] Macroeconomic and Commodity Outlook - Brent crude oil prices fell 1.3% to $87 per barrel amid discussions of a potential U.S.-Iran deal, though Tehran denied formal talks were taking place [1][19][24] - Markets priced in a nearly 40% chance of a Federal Reserve rate hike, with Citadel Securities expecting a move higher to combat entrenched inflation [18][22] - Johnson & Johnson agreed to a proposed $5.5 billion settlement to resolve the majority of lawsuits claiming its talc products caused ovarian cancer [73]

VONNIE: IT'S 5:00 A.M. IN NEW YORK CITY, 10:00 IN LONDON. I'M VONNIE QUINN WITH YOUR BLOOMBERG BRIEF. LET'S GET YOU SET UP FOR THE DAY. STOCKS AND BONDS GAINING AS OIL DROPPING AS WASHINGTON AND TEHRAN PAUSE ATTACKS FOR THE THIRD STRAIGHT NIGHT. THIS HAS INVESTORS LOOK AHEAD TO A BUSY WEEK WHEN THE FED DECISION AND LOTS OF TECH EARNINGS. NVIDIA SAID TO BE IN TALKS TO GUARANTEE FINANCIAL HELP FOR OPENAI TO COMPUTE FROM A $500 BILLION DATA CENTER. LET'S GET A MONDAY CHECK ON MARKETS AROUND THE WORLD. WE WILL ...