Inflation rises again, hits all-time high at 22.79% in June – The Sun For the past 11 months, the rising trend of Consumer Price Index (CPI) which measures inflation has not abated as it has now hit 22.79 per cent in June compared to May’s 22.41 per cent.
OPEC Cuts Nigeria’s Oil Quota By 20% To 1.38m Barrels - Leadership
The Organisation of Petroleum Exporting Countries (OPEC) and its allies, has agreed to cut global oil production by 1.393 million barrels per day, reducing Nigeria’s oil production quota by 20.7 per cent, BusinessDay reports.
Global
Yellen Says China Slowdown Risks Spillovers But No US Recession
- Bloomberg Treasury Secretary Janet Yellen said China’s economic slowdown risks causing ripple effects across the global economy, though she doesn’t expect a recession in the US.
Economists are (again) pushing out recession expectations.
Goldman Sachs has similarly cut its odds of a US recession within the next 12 months to 20% from 25%.
The bank’s main reasons for optimism–like those of said economists–are continued progress on inflation and strong fundamentals despite significantly higher borrowing costs.
Treasury Secretary Janet Yellen agrees: she told reporters yesterday she does not expect a US recession.
Tesla Starts Cybertruck Production Two Years Behind Schedule - Bloomberg
Almost four years after Elon Musk first unveiled Tesla inc.’s debut pickup, the automaker has built its first Cybertruck.
Here’s something you might not already know: the Nasdaq-100 has become too concentrated.
Currently, the top 7 stocks account for 56% of the index.
After July 24, their collective weight will be brought down to 44%.
Stocks seeing the biggest declines in weight: NVDA (3%), MSFT (3%), AAPL, (0.6%).
It will be just the second such “special rebalance” in 25 years (the previous one in 2011 had no clear impact on the affected stocks).
Here’s what the index will look like after the rebalancing:
FTC Loses Appeal Bid to Block Microsoft-Activision Deal - Bloomberg
A US appeals court denied a Federal Trade Commission bid to pause Microsoft Corp.’s acquisition of Activision Blizzard Inc. Friday, clearing a path for the companies to close the largest gaming deal ever in the US.
Cathie Wood’s ARK Writes Down Twitter Stake by 47% - WSJ
Wood is still bullish on Twitter’s long-term outlook and said her fund updates its internal valuations of private companies frequently
OPEC, the International Energy Agency (IEA), and the US Energy Information Administration (EIA) all see oil demand rising in Q3 (chart).
They also forecast tightening supply in the second half of the year.
In fact, according to Standard Chartered, the global market is already in a deficit.
Don’t tell that to oil investors - traders have remained sellers amid warnings of a tight market.
Russia has formally withdrawn from a UN-brokered deal to export Ukrainian grain across the Black Sea, potentially imperiling tens of millions of tonnes of food exports around the world.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Seoul and Taipei are under pressure, and Australia is down as commodity prices fall. India touched fresh record highs before scaling back gains, Southeast Asia all lower although Thailand outperformed.
July RBA minutes noted board members debated whether to hold or hike the cash rate by 25 bp at this month's meeting. RBA saw a stronger case to hold given the rapid and considerable tightening to date
China Evergrande files FY results for two years showing $81B in losses
New Zealand inflation may slow as rate increases take a toll
South Korean household debt at second highest among major countries
RBI says India's fight against inflation is far from over
Europe, Middle East, Africa
ECB's Visco says inflation may drop more quickly than forecast
Swiss National Bank’s Moser says intends to issue a pilot CBDC by year-end
After food prices peaked in March, inflation fell to 14.9% in four weeks to 9 July, down from 16.5% in the previous month.
UK food and drink manufacturers cut prices for the first time since 2020
The Americas
JP Morgan's Kolanovic sees increased chance of soft landing; Goldman cuts US recession odds to 20%
BofA survey shows sentiment still bearish, but also flags soft-landing expectations and a better profit outlook
Big tech dominance forces US funds to limit buying amid diversification rules
Corporate debt woes starting to hit home; more companies are being downgraded to a junk
The Week Ahead:
Monday:
China's Gross Domestic Product
NY Empire State Manufacturing Index
Tuesday:
US Retail Sales
Wednesday:
UK Consumer price index
US Building Permits
Thursday:
China’s PBoC Interest Rate Decision
US Initial jobless claims
US Existing Home Sales Change
Friday:
UK GFK Consumer Confidence
UK Retail Sales
Investment Tip of The Day
Consider socially responsible investing If you value environmental or social impact, consider incorporating socially responsible investing (SRI) principles into your investment strategy. SRI focuses on investing in companies that align with your values and have positive social and environmental practices.
Meme of the Day
Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.
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