TotalEnergies Breakout
TotalEnergies (TTE FP) is breaking out ! Massive volume yesterday (over 15 million shares). Source : Bloomberg
China Uses Another Tool to Aid Yuan in String of Market Support – Bloomberg
China moved to support the yuan by increasing the supply of foreign currency in its local market, part of a multi-pronged effort by Beijing to restore confidence amid sluggish growth. Financial institutions will need to hold just 4% of their foreign-exchange deposits in reserve starting Sept. 15, the People’s Bank of China said Friday, compared to the current level of 6%. The greater availability of overseas currency relative to the yuan effectively boosts the allure of the latter. The so-called FX RRR cut came on the heels of Thursday’s reduction in down payments for mortgages to help the country’s under-pressure residential property market and after policymakers lowered stamp duty for stock trading over the weekend. The combination of supportive measures is a sign that Beijing is growing uncomfortable with increasing pessimism in its financial markets.
Despite surging mortage rates, US home prices are RISING to ALL-TIME-HIGHS
Higher rates are having an INVERSE effect on price. Rather than prices falling with higher rates, they are actually rising. Why is this happening? As explained by The Kobeissi Letter, as rates rise, existing home sales are falling, now down 16.6% at their lowest since 2010. Borrowers are locked-in to sub-3% mortgages and do not want to sell their homes to get a 2.5x higher rate. We need LOWER rates for LOWER prices... Truly a historic occurrence... Source: FRED, The Kobeissi Letter
After rising ~$3,000 on the Grayscale news, prices just fell $1,000 in a matter on minutes
In less than a day, Bitcoin has shed nearly all the gains it made from Grayscale Investment's court victory against the United States Securities regulator. On Aug. 29, Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application. However, the SEC’s Aug. 31 decision to delay seven pending spot Bitcoin ETF applications sent Bitcoin’s price downward — falling nearly 5% in the 24 hours to 12 am UTC Sep. 1. This could brutal move coud also be a sign of drying liquidity in the market. This is indeed the 4th "flash-crash" happening on bitcoin this year Source: Cointelegraph, The Kobeissi Letter
The KBW Bank Index fell by 8.8% in August, the weakest bank in the index is Citi with a -13.4% decline
Source: Bloomberg, HolgerZ
The world's richest universities
💰Of the 25 wealthiest schools worldwide🌍, only 2 are not from the United States. 💰As of 2022, the University of Texas System had an endowment value of $69 B, making it the wealthiest university in the world🤑. Source: Genuine Impact / Chris Quinn
PCE Deflator, the FOMC's favorite inflation number, show a rise as expected with the YoY at 3.3% (from 3%) and the core at 4.2% (from 4.1%)
Jobless claims at 228k (235k expected) showing continued strength ahead of Friday's NFP report Source: Ole S.Hansen
Disinflation pause?
Eurozone inflation remained stuck at 5.3% in Aug, higher than the 5.1% that economists expected. Core inflation, which excl volatile energy, food, alcohol & tobacco prices & closely watched by ECB as measure of underlying inflation, tumbled to 5.3% in Aug from 5.5% in July, matching expectations. Source: HolgerZ, Bloomberg
