European Central Bank officials are tempering expectations for a September interest rate hike, emphasizing the need to await additional data. ECB Chief Economist Philip Lane views September as the next pivotal moment for interest rate direction. Meanwhile, Morgan Stanley analysts suggest that if SpaceX's share price falls to $100, it would imply a zero valuation for its artificial intelligence business.

ECB Officials Downplay September Rate Hike Chances, Stress Need for More Data

European Central Bank policymakers are refraining from signaling a potential rate increase in September, instead choosing to wait for more data to guide their decision-making process.

The heads of the eurozone's two largest economies did not indicate their next move following Thursday's rate decision, even as some officials at the meeting considered an immediate rate hike. Ultimately, they unanimously agreed to keep rates unchanged.

"We are still facing high uncertainty," said Bundesbank President Joachim Nagel in a statement, while Bank of France Governor Emmanuel Moulin stressed that the ECB had already tightened policy in June.

ECB Chief Economist Lane Views September as Key Moment for Interest Rate Direction

ECB Chief Economist Philip Lane stated that the central bank will assess its policy stance in September and could make adjustments accordingly.

Speaking during a panel discussion in Donegal, Ireland, Lane noted that when calibrating interest rates, policymakers will respond to incoming data. He believes the eurozone economy is primarily supported by domestic demand and argued that the United States is not a dominant force in global trade.

When asked how the ECB should address the geopolitical challenges it faces, Lane responded: "Our job is more about reacting." He added that the ECB's response would be "neither overreacting nor underreacting."

Morgan Stanley: SpaceX Share Price at $100 Would Imply Zero AI Business Value

Morgan Stanley analysts believe the sell-off in SpaceX shares is driving the price close to a level that would value its artificial intelligence business at zero.

The rocket, space, and AI company experienced a turbulent start to public trading after a record-breaking $86 billion issuance in mid-June. The stock initially surged nearly 50% in its first three trading days but has since declined steadily. Earlier this week, it hit a low of $110.85, representing an 18% drop below its initial public offering (IPO) price.

"We see the current disconnect between increasingly negative investor sentiment and largely unchanged fundamentals as creating an attractive entry point to buy SpaceX shares," Morgan Stanley analyst Adam Jonas wrote in a client note on Friday.

Deutsche Bank Exits Bullish Yen vs Euro Trade Recommendation at a Loss

Deutsche Bank strategists stated that the yen's slide toward the 165 level against the US dollar has not sparked significant concern among Japanese investors or policymakers. The firm has abandoned its recommendation to bet on the yen appreciating against the euro.

"The current weakness of the yen does not seem to be causing much worry in Japan," Deutsche Bank macro strategist Tim Baker said in a Friday report.

"Client feedback, recent news reports, and market movements together suggest that Japanese policymakers are in a reactive mode and may already be behind the curve."