FOMC : "Supply-side constraints exemplified by the autoworkers’ strike & rise in oil prices will cast a hawkish shadow over the FOMC meeting that starts today. Powell is likely to embrace some version of the higher-for-longer policy that is increasingly being priced in:" Citi analysts >>>''high(er)-for-longer'' the name of the game..
BoE : markets have priced in another 25bps in this cycle, again the real key is how long is 'high-for-longer', softer UK CPI this morning, but its still 6.7%, Core CPI (ex fuel/food) at 6.2% down from 6.9% in July & below expectation of 6.8%
Canada's annual inflation rate accelerated for the second month in a row in August, increasing 4 per cent as the price of gasoline surged, quick reminder inflation is far from dead, ahead of all those CB meetings..
ECB QT continues with balance sheet shrinking by another €17bn to €7,135.7bn, lowest since Mar2021
Switzerland ups economic growth forecast for the year but revises lower 2024 projection
White House no longer sending top officials to Detroit for UAW strike talks this week (strange..).., Ford & GM 'temporary' layoffs
Markets :
Crude off a few pct on some chatters that Saudis will ease back on cuts in Q4 >>> as the likes of PIMCO and JPM talking about 'oil supply shock' coming
USD remains firm, UST yields on highs going into FOMC, imho, 'higher-for-longer' has almost become a well known talked view, whether fully price is very hard to tell, beware a quarter-end bond rebalance (buy bonds - which has been mentioned-too early for facts), and equity markets are 'struggling' in the face of firmer rates - will reassess post Powell presser tonight
UST 10's 4.36 almost 2007 highs - some bond specialist beginning to argue it's a little overdone going into FOMC and quarter-end
It sure will become an interesting debate, but probably not until after the next election
Sounds worse over in Sweden, but signs of stagflation in many places
Shame
Be back later online, have a great day
Team PVM
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