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$32trn / German PPI 1% yoy / UK terminal rate near 6% / Commods / SNB and BoE meet this Thursday




  • U.S. national debt spiked by $572 billion reaching a record $32 trillion since the debt ceiling was suspended 2 weeks ago

  • UK 2y yields jump above 5% for 1st time since 2008 ahead of the BoE's interest rate decision on Thursday... Markets are pricing in another rate hike to 4.75%. The terminal rate is now just under 6%

  • Furious San Francisco mayor fires back at GMA claim it’s ‘too dangerous to film’ in city’s downtown area, Californian dream breaking

  • US office buildings are only about 50% as full as before Covid: Kastle Systems. Columbia & NYU professors estimate that the value of office property across US cities is 38% lower than pre-pandemic, equaling a loss of about $500 billion

  • Blinken and Qin Gang held "candid" talks for a longer-than-expected 7hours, agreeing to maintain high-level ties. Qin accepted an invitation to Washington and called for "stable, predictable" relations. Blinken may also meet Xi Jinping — who Joe Biden said he also hopes to meet within months.Blinken says he failed to revive military-to-military talks with China

  • German producer price deflation is gaining breadth. Over 40% out of 99 basket items with falling prices atm. Disinflation is increasingly spreading from energy and very commodity heavy intermediate goods sectors into downstream sectors.. German PPI collapsed to 1% in May, down from 4.1% in April, a good leading indicator of consumer

  • Koreans Buying Gold Bars from Vending Machines as Global Inflation Soars. "People in their 20s & 30s appear to be the main buyers, purchasing physical"

  • The construction of new US factories is hitting unprecedented levels

  • The former CEO of Credit Suisse wanted to realize his dream and shake up investment banking. His plan does not seem to be working out with Exos Financial

 

Markets :
  • Commodities had best week in over a year / Saxo article below

  • Equities, specifically S&P7 powered ahead last week, again, NQ had best week YTD too, watch Terminal rates across board, if they continue higher, risk should react lower/might well have seen some sort of a peak late last week on OpEx day!

  • USdollar had a bad week, though more of a big CROSSJPY's up move in reality, never fails when yields globally and risk do well, crossjpy's do well - as Terminal rate nudged up again, risk and crossjpy's come under pressure last 24hours...AUDUSD a little softer on RBA minutes, might pause again after 2 hikes lately

 


De-dollarisation unstoppable, BRICS cooperation fostering multi-polar currency world (iol.co.za) >>> "De-dollarisation is occurring ten times faster than the decline witnessed in the previous two decades. From 2021 to 2022, the dollar’s share in global reserves dropped eight points, from 55% to 47%, compared to 73% in 2001."










Californian dream breaking : Owners of San Francisco’s Westfield shopping mall walk away citing “grow­ing num­ber of re­tail­ers and busi­nesses leav­ing area due to un­safe con­ditions for cus­tomers, re­tail­ers, and em­ploy­ees”. Half mall’s re­tail­ers closed since 2020. Nord­strom closure was last straw. San Fran­cisco has lost some 7.5% of its pop­u­la­tion— larger share than any other US ma­jor city — as residents flee crime wave and urban squalor for Bay Area exurbs and, increasingly, other states



Why only the soldier gets hammered, management? board ? treasury, everyone knew..




Tim Martin says we could soon be seeing £10 pints (thelondoneconomic.com) >>> clear Brexit win!!? >>> Tim Martin famously pledged to slash the price of booze in his pubs to an “unbelievably low” price after Brexit







Happy Tuesday

Team PVM

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