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China bans Micron / G7 communiqué / Powell / U.S debt ceiling drama continues this week



  • G7 is really something of the past in GDP terms vs RoW (Thread-chart)

  • Quel drama : US Debt Ceiling: Debt ceiling talks are back on. Biden and McCarthy agreed to resume negotiations over avoiding a default a day after both sides broke off contact amid partisan finger-pointing. The House speaker said he had a "productive" call with the president, who's returning from G7, and that they'd meet in person today

  • China bans major chip maker Micron from key infrastructure projects >> at G7 : Biden Says US-China Relations Set to Improve ‘Very Shortly’. US president says ‘silly balloon’ derailed ties with China

  • FT - Higher rates combined with rising pensions and healthcare costs are set to weigh on states’ finances

  • Powell said Friday interest rates may not need to rise as high as previously expected with the bank crisis tightening credit conditions, even with inflation well above the Fed's 2% target

  • ‘In a lot of the world, the clock has hit midnight’: China is calling in loans to dozens of countries from Pakistan to Kenya

  • German economy shows resilience but lacks momentum - DIHK survey (DAX all time highs..)

  • WSJ-JPMorgan now has more than 13% of the nation’s deposits and 21% of all credit-card spending...concentration of risk?

  • Missing Recovery Leaves China’s Metals Bears In Charge

 
Markets:
  • BTC : often hear around ''if bitcoin can't really rally on a risk of US default, then..'

  • -SPX500 4150-4200 still the top end of the range, but looking at DAX etc, the bears may well be more 'upset' in the short-term >>> pure game of low vol and liquidities piling into megacaps (mainly)

  • USD showed/showing signs of strength since last week or so, as UST yields picked up again (TGA stories put a bit of pressure on UST prices). USDTRY nearly 20, USDZAR 19.50, even USDJPY had a great week last week overall (and yet USDCHF remains sickly..CHFJPY!)

  • Crude, commods, stead near their recent lows

 








Ageing populations are hitting public finances across the world, with rating agencies warning that recent interest rate rises have increased the impact of higher pensions and healthcare costs






Flights resuming this morning though - good






Don't look too hard, you won't find many


have a great start to the week

team PVM


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