Last week was a painful one for multi-assets portfolios: it was the worst week in four for Treasuries, the worst for commodities since June and the worst for stocks since March
Over the week, the 2s10s curve steepened by 19 bps, a 2.3 standard deviation move. As a consequence, the sectors that slid the most were those that are most exposed to bond yields, ie the long-duration stocks (Communications & Tech despite earnings beats by Apple and Amazon but also Utilities). Energy gained as Saudi Arabia said it would extend production cuts to prop up prices. Source: Bloomberg, J-C Gand.
Congrats to Warren Buffett as Berkshire Hathaway $BRK.A closed at an all-time high today. Buffett's 15% ownership in the company is now worth $118 Billion.
Source: Barchart
Unlike other products, Campbell's Condensed Tomato Soup cannot use shrinkflation to hide the effects of inflation. Watch out below the unit price per can...
Source: Moritz Wietersheim
A map of African countries that have signed military agreements with Russia.
Source: Jackson Hinkle, The Cradle
The Bank of Japan had to intervene twice this week to slow gains in govt bond yields, underscoring its determination to curb sharp moves in rates.
Nevertheless, the 10y Japanese yield has skyrocketed to 0.65%, well above the 0.5% from the YCC. Source: Bloomberg, HolgerZ
As highlighted by Tavi Costa, the implied demand for oil just surged to all-time highs
It was the largest weekly increase in 26 years. Meanwhile, US oil production remains ~7% below pre-pandemic levels with total operating rigs starting to contract for the first time in 3 years. Source: Bloomberg, Crescat Capital
A mixed message from the July US jobs report: the US economy added 187k jobs according to Establishment survey, a tiny bit below Street’s +200k forecast
According to the Household survey, the number of employed people rose by 268k. Because of this 268k number, unemployment rate dipped to 3.5%, down from 3.6% in June and below estimated 3.6%. Wages ran hot, coming in at +4.4% YoY (vs Street +4.2% and vs +4.4% in June). Source: HolgerZ, Bloomberg
Nasdaq has now been 'overbought' for 60 days
Its longest period since the run-up to the bursting of the dot-com bubble...
