UK Labour landslide election victory

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

UK Labour wins landslide victory
The center-left Labour Party has won a landslide victory, ending 14 years of Conservative rule. Early projections show that Keir Starmer‘s Labour will gain its second-largest majority, following former Prime Minister Tony Blair’s 179-seat majority in 1997. Prime Minister Rishi Sunak has conceded defeat. Brexiteer Nigel Farage has won his first seat in the British Parliament and his Reform Party is projected to pick up 13 seats.

Nikkei 225 hits record, Samsung up 
Japan’s Nikkei 225 hit a record high, crossing the 41,000 mark for the first time, before losing steam as household spending unexpectedly fell, jeopardizing plans by the central bank to raise interest rates. South Korea’s Kospi jumped 1.24% as Samsung Electronics stated second-quarter operating profit will surge almost 15-fold, mainly due to rebounding semiconductor prices driven by the artificial intelligence boom. Samsung shares climbed 2.84%, hitting their highest level since January 2021. Elsewhere, Hong Kong’s Hang Seng index dropped 1% and mainland China’s CSI 300 fell 0.48%.

Short losses 
Tesla‘s strong delivery report has caused significant losses for short sellers, with the stock rallying 17% in two days and short sellers losing $3.5 billion, according to S3 Partners. Tesla shares have surged 73% since April, nearing recovery with the stock $2 shy of wiping out losses for the year. Short interest is at 3.5% of the float, or 97 million shares, valued at $22.4 billion.

Friday’s ‘slowing payroll’
The June nonfarm payrolls report takes on added significance amid signs of a slowing labor market. Payroll gains in 2024 have slowed compared to last year, with economists predicting growth of 200,000 jobs for June, down from May’s 272,000. While job gains remain historically solid, rising unemployment levels and broader economic uncertainty have raised concerns about future economic weakness.

Saks deal
Saks Fifth Avenue parent HBC will acquire Neiman Marcus Group in a $2.65 billion deal, creating a new luxury retail giant. The combined entity will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman. The move comes amid a challenging period for traditional brick-and-mortar retail, with department stores struggling to attract younger shoppers and facing a pullback in discretionary spending.

[PRO] Evercore’s ‘best ideas’
After a strong first-half performance for equities, fueled by the AI boom, Evercore ISI maintains its top stock picks for the second half of 2024. Their “best ideas” list, based on a long-term investment outlook, includes…