Three Things to Watch
- The U.S. Federal Reserve (Fed) releases its Beige Book report on the state of the economy on Wednesday, which should provide investors a fresh input on the possible need for the Fed to increase rates. Fed Chairman Warsh was hawkish in his Jackson Hole testimony, and futures are now pricing at least one increase this calendar year.
- Friday’s August employment report is another key data marker. Nonfarm payrolls are expected to increase 58,000, with the unemployment rate holding at 4.1% and average hourly earnings rising 0.3%.
- More tech earnings will be out this week before the Labor Day holiday with Dell, Hewlett-Packard, Broadcom and Snowflake highlighting the calendar.
Three Things to Know
- U.S. debt just crossed $40 trillion, double what it was 10 years ago, with interest costs up 15% in a year. (Source: @MarioNawfal)
- The U.S. Open starts this week and the official cocktail of the tournament, the Honey Deuce, generates more revenue in two weeks than the total prize money awarded to the singles champions. Selling hundreds of thousands of units annually at a premium price point, the cocktail produces tens of millions of dollars in beverage sales, making it one of the most successful localized food and beverage phenomena in sports history. (Source: 15funfacts.com)
- The U.S. government is now running a primary budget deficit of -3.59% of gross domestic product (GDP), the largest among major advanced economies. The primary budget deficit excludes the $1.1+ trillion in interest payments on existing government debt. This is followed by the U.K. at -3.51% of the country’s GDP. Belgium, France, Austria and the Euro Area run primary budget deficits of -2.14%, -1.97%, -1.66% and -1.40%, respectively. In other words, even excluding the cost of servicing existing debt, which is the second-largest U.S. government expenditure, even larger than defense spending, the U.S. deficit is the biggest relative to GDP among all major advanced economies. (Source: The Kobeissi Letter)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.
5883611- EXP: 08/31/2029