Japan's economy could do with some Fire Horse energy

A look at the day ahead in European and global markets

Morning Bid Europe Morning Bid Europe A look at the day ahead in European and global markets By Wayne Cole, Chief Correspondent, Treasury   Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com. It's been a quiet start to the week with holidays in much of Asia - welcome, almost, to the year of the Fire Horse - and the United States. Japanese data rained on the Nikkei's parade as GDP badly missed forecasts. The economy grew just 0.2% annualised in the December quarter, when analysts had hoped for a bounce of 1.6% after a contraction in Q3. Today's Market News Europe's earnings gain pace while lofty valuations cap rewards Shares subdued in Asia by holidays, dismal Japan data UK labour reforms to cut hiring by one in three employers, survey shows UK property asking prices hold steady after post-budget jump, Rightmove says UK minimum wage is raising youth unemployment, Bank of England's Mann says Weak Japan GDP fuels stimulus talk City skyline and harbour are seen at sunrise from a bus window in Tokyo, Japan July 24, 2021. REUTERS/Maxim Shemetov/File Photo GDP was also up just 0.1% year-on-year, a sharp slowdown from 2% in mid-2025. Nominal GDP was a bit better at 3.4% on the year, but all of that was accounted for by rising prices. Government spending and imports were the biggest drags on growth, which should strengthen PM Takaichi's case for aggressive fiscal stimulus. Suddenly the talk is of a speedy supplementary budget as opposed to late in the year. Anyway, the Nikkei could do with a rest having climbed 5% last week. Likewise, Taiwan had risen 5.7% and South Korea more than 8%, as chipmakers benefited from the truly mountainous amounts being splashed out by the AI hyperscalers. Walmart another AI test Analysts are worried the tech giants are now in a desperate race to be first with AI (whatever that looks like), without regard to returns. At least there are no tech majors reporting this week, leaving humble Walmart to steal the show. Walmart expects annual sales to rise between 4.8% and 5.1%, and they need to be at the top of that range to justify a P/E of 47. The world's first $1 trillion retailer also has shades of AI in its pricing, particularly in logistics, robotics, digital advertising and online sales. They are hoping AI can better predict what shoppers will want to buy, and not buy, which would be a bonanza for efficient inventory management.   Graphics are produced by Reuters. Key developments that could influence markets on Monday: Euro zone industrial output Participation by ECB President Christine Lagarde and Board Member Piero Cipollone in Eurogroup meeting Fed Vice Chair for Supervision Michelle Bowman speaks   Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.   Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website   Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you’ve engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions   © 2026 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036