Syz the moment

Maybe "Too late Powell" is that that late... • PPI: 3.3% YoY vs. 2.5% est. • PPI: 0.9% MoM vs. 0.2% est. • Core PPI: 3.7% YoY vs. 3.0% est. • Core PPI: 0.9% MoM vs. 0.2% est. ‼️This is PPI MoM hottest since March 2022 as services PPI explode higher Over half of the increase is attributable to margins for final demand trade services, which jumped 2.0% 🤢 Our take 👇 ▶️ The higher than expected producer prices seems to confirm the underlying price pressures in the service sector already exhibited in the consumer price indices ▶️ This is bad news for the hashtag Fed in his fight against inflation. Market expectations for several key rate cuts in the next months will likely get partially priced out now. ▶️ We stick to our view that the current trade and overall economic environment in the USA will not let the US-Fed to lower its rate by more than 1 cut for the remainder of the year.

▶️ Treasury secretary Scott Bessent says the US will not be buying any bitcoin ▶️They will hold the $15-$20 billion in bitcoin they already have and confiscate more ▶️The statement contrasted with President Donald Trump’s earlier executive order directing the government to develop “budget-neutral strategies” for increasing Bitcoin holdings. ▶️In April, Bo Hines, who at the time was a part of the Presidential Council of Advisers for Digital Assets, said the administration was exploring funding options for Bitcoin acquisitions, including tariff revenue and a reevaluation of the Treasury’s gold certificates. ▶️In a silver lining to the sentiment-dampening statement, the Bessent did confirm that the US does not plan to sell any of its existing Bitcoin holdings ▶️Bessent’s comments echo White House AI and crypto czar David Sacks, who said a Bitcoin reserve would be “a digital Fort Knox for the cryptocurrency,” and the US wouldn’t sell any Bitcoin it put in the reserve. Source: cointelegraph

With July PPI and core CPI prints surprising on the upside this week, odds of rate cuts in September and beyond are moving lower. Could it trigger a decent market correction? Source image: @RealStockCats

Source: zerohedge

Yields on 10-year French government bonds have jumped above 3 per cent over the past year, as months of political instability and concerns about the public finances take their toll. This has brought France’s benchmark borrowing costs to just 0.14 percentage points less than those of Italy, whose bond yields have been driven lower as a display of fiscal prudence from Giorgia Meloni’s administration has won over investors. The convergence has upended long-held views on France’s position as one of the region’s safest borrowers and Italy as one of its most risky, with a huge stock of public debt equal to about 140 per cent of GDP. Italy’s “spread” over France — the difference between their bond yields — ballooned to more than 4 percentage points during the Eurozone debt crisis of the 2010s. Source: FT

👉 The Swedish company said it had 20% like-for-like sales growth in the second quarter, with total revenues coming in at $823 million for the period. 👉The firm also saw adjusted operating profits of $29 million, up significantly from the first quarter’s $3 million. “AI adoption continues to deliver significant, tangible results. As a result of this strategy, average revenue per employee reached $1.0m, up 46% [year on year in the second quarter],” the company said in its quarterly report. 👉Klarna has aggressively leveraged AI to boost productivity performance. It has shed two in five jobs over the past two years as a result. “This shift reflects the growing impact of AI and automation in eliminating manual, time-consuming work across Klarna,” the company had said in its first-quarter results.

Source: @readswithravi

From "guaranteed" to "not so fast." Source: Bespoke