BRICS summit 2023 - Day 2 >>> FT- 'Bridges with everyone’: how Saudi Arabia and UAE are positioning themselves for power, “The fundamental strategic dilemma for them remains that their security is in the west, their energy politics is with Russia and their prosperity is increasingly with China and the rest of Asia, they sell oil globally..
Today's 20-year US Treasury notes and Thursday’s 30-year TIPS auctions might be pivotal ahead of Jackson Hole on Friday, banks softer yesterday on S&P downgrade, Citi on lows, though UBS has had a great time since that CS takeover, all eyes and ears on NVDA tonight
FED's Barkin : consumer spending, economic strength make it possible U.S economy could reaccelerate before inflation cools, if inflation remains high and demand gives 'no signal' it is likely to drop, that would require tighter monetary policy
Eurozone services PMI flash 48.3 (forecasts 50.5..) - weaker than expected, ECB hike expectations softer, euro softer. UK economy also softer, as per PMI surveys, pretty significant downturn down to 47.9 (rates biting hard..)
Goldman says oil stock draws cut bearish risk to Brent price
MACY'S: ".. “we experienced an increased rate of delinquencies .. the speed at which the increase occurred for us and the broader credit card industry since our first quarter earnings call was faster than planned. .. We're working closely with our bank partner Citibank to mitigate the rising bad debts by adjusting underwriting strategies."
BASF signs long-term LNG deal with Cheniere of the US. German companies are rushing to ink agreements with American exporters after the country abandoned Russian gas
U.S existing home sales slide to lowest rate since 2010
Markets :
EURO lower, EURJPY notably topped out again 158+ area, EURUSD sub 1.0850 key support area of late, as market 'pares ECB wagers' on Sep hike, now 50/50 for the 25bps hike and EURCHF nearer to .9500, IMHO ECB could very well pause now in Sep ! GBPUSD best not break below 1.2600 area for the rare £ bulls out there !
Equity markets awaiting NVDA after the bell today, main indices, sentiment weak but.. the UST auctions will matter over next few days ahead of Jackson Hole, there has been big anticipation last 10days... slight recovery in bond prices helping Eq
Crude struggling to hold $80+ WTI
Metals showing a little big of life again off last week's lows
‘Bridges with everyone’: how Saudi Arabia and UAE are positioning themselves for power | Financial Times (ft.com) BIG long-term geopolitical 'change', BRICS etc etc - must read >>“We will come to you first, but if you don’t deliver we will go elsewhere” -UAE/Saudi to US Gulf nations are reconsidering their ties with US & are forging new alliances in Asia, with Russia countering US in the Gulf, after all they sell OIL globally...
“At what point does the economy effectively break under the weight of real rates? I don’t think we’re quite there yet…But I still think the market’s ignoring a lot of this interest-rate pass-through at their own peril.”
S&P downgrades five US banks following Moody’s lead (msn.com) all about funding costs, less profitable etc
Public firms could be allowed to extract £50bn from staff pension schemes in bid to boost investment (cityam.com) this is not a good idea
Nvidia stock hype is out of control, meaning investors may be overlooking this one key risk (yahoo.com) not trying to knock it ! but it has become a must watch meme stock these days, we shall know more tonight after the bell
Arm’s IPO filing is riddled with anxieties over China (qz.com) Arm expects to continue recording lower royalty revenues in the Chinese market
Trump attorney Jenna Ellis asks why MAGA PAC isn’t paying for the defense of her, others in Georgia case | The Hill going to be a lot of fun watching all this !
GBPUSD best not break sub 1.2600 area or the few £ bulls left out there will give up ! Jackson Hole and US auctions in the mix though
