EGGFLATION... With the price of eggs up +13% yesterday and +33% for the month, consumers are shelling out more and more for groceries
Thank you Hedgeye for the great cartoon Source: WallStreetSilver, WSJ
German wages rose at a record annual pace of 6.6 per cent in the second quarter, boosting consumer spending power but fuelling concerns about inflation being pushed up by rising labour costs
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since collection of the data began in 2008. It took German annual wage growth above the country’s consumer price inflation rate — 6.5 per cent in the period — for the first time since 2021. Source: FT
The importance of Nvidia and Tesla for the US equities market
Source: Mac10
US commercial real estate prices prices are down sharply this year with offices building prices down ~30%
On top of declining prices, there are nearly $1.4 TRILLION of commercial real estate loans coming due by 2025. Meanwhile, rates on the commercial real estate loans have more than doubled since they were issued. Last but not least, vacancies in commercial real estate are skyrocketing (which means rent revenue is down). The coktail of rising rates on loans that need to be refinanced and declining income looks like a rather toxic one. Source: The Kobeisi Letter
Here's a chart showing mentions of "AI" on earnings calls and transcripts
Mentions of "AI" in 2023 have basically broken this chart. We went from ~500 mentions in 2015 to ~30,000 this year and we still have 4 months left. Corporations really want to cash-in on the artificial intelligence hype. Source: Bloomberg, The Kobeissi Letter
The demise of europe in one chart
Source: The Economist
BREAKING; Elon Musk’s X (Twitter) obtains license for Bitcoin and €crypto services to store, transfer, and exchange digital assets on behalf of its users
Elon Musk has decided to make X (formerly Twitter) an “everything app” with multiple functionalities, including a payment hub processor integrated with the microblogging social network and other tools from the building ecosystem. Musk already stated that X is a “DOGE-friendly place”. Part of the work of becoming a payment hub, or a cryptocurrency-friendly place, in the United States lies in obtaining the required licenses to operate such a business legally. Elon Musk’s company has been gradually doing that in different states but mostly focused on fiat payments under the “Money Transmitter License.” In particular, this license will enable X to store, transfer, and exchange digital assets on behalf of its users. Source: Finbold, Bitcoin Archive
This chart from Morgan Stanley shows that growth stocks are missing in Europe. That's why European indices are trading like value stocks
Source: Morgan Stanley, HolgerZ
