Morning 8-14


  • U.K. Adding France, Malta and the Netherlands  to its list of countries that people arriving from must quarantine from for 14 days.(BBG)Travel leisure sector  in Stoxx 600 down 2.2%,Easy jet -6% Ryan air -5% all 16 companies that make up sector down on day
  • The number of employed persons in the Euro Area declined by 2.8 percent on quarter in the second quarter of 2020, compared to market expectations of a 1.7 percent drop, preliminary estimates showed. It is the biggest decline since the series begun in 1995 due to lockdowns and business closures imposed by many countries to fight the coronavirus pandemic. 
  • China data dump last night “China’s retail sales fell 1.1% in July, vs previous 1.8% fall vs Expectations of .1% gain China’s industrial output up 4.8% y/y in July, vs expected 5.2% rise
  • Yellen tops Biden econ brain trust list — Biden and Harris got both Covid and economic briefings on Thursday and the biggest name on the econ list was former Fed Chair Janet Yellen, whom Trump dumped in favor of Jerome Powell. Yellen takes some flak on the left for starting a path of gentle rate hikes before she left and that Powell continued before the pandemic, turning him into a Trump punching bag. (Politico)
  • WSJ citing US Gvt sources: 4 Iranian fuel cargoes covered by US warrants have been seized & are now headed to the US-WSJ
  • Russian State News Chief: Calls for Russian invasion of Belarus I-TC markets
  • China -US trade talks this weekend… possibly
  • Apple and Google kicked “Fortnite” out of their app stores. The tech giants yanked the videogame—one of the most popular in the world—from their app stores in an escalating battle over the fees they charge developers to distribute their software and process in-app purchases -WSJ


 Disappointing economic news from Europe and Asia weighing on stocks and weighing on Yields a bit, both bunds and 30-year bond yields roughly at 1-month high give or take a week. Both the global and U.S. Citi economic surprise index are near multi year highs this   show that Economic data is better than expected not that Economy is back to normal. ….. Silver roller coaster continues overnight The  5 day Historical vol 136… 50 day 77 per BBG  . Gold .75% Silver -3.35% platinum, -1.9% Dollar index steady Copper down 2.9% yesterday +1.4% today. The unwind of the Growth vs value trade appears over again as Nasdaq outperformed Russell yesterday and doing so again this morning. Just released retail sales control group Better then Consensus, and near the upper end of the range. Last month Data revised higher as well, very good this the peak in retail sales as Added unemployment benefits run as of Aug 1st….. Also jut released Q2 Unit labor costs well above expectations, but not that much of a surprise as low wage earners likely dropped out of equation thus skewing the data. No light at end of tunnel regarding stimulus talks, rumbling that post Labor Day is when a deal may get done. A Bit of negative sentiment for markets today.

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