Greetings,
The United States: To begin, the probability of a 75 bps rate hike in September is near 70% as Fed officials strike a hawkish tone.
Looking at inflation, slower gains in China’s producer prices should help ease US consumer inflation.
China: Business activity in China is still in contraction according to the August World Economics SMI report.
The Eurozone: Euro-area inflation will remain elevated for some time with energy being a significant contributor.
Energy: European electricity prices have gone vertical.
Equities: Professional investors remain concerned about rates, buying puts on interest-rate-sensitive names over the past few weeks.
This chart illustrates the exposure to labor costs by sector.
Food for Thought: Lastly, here is US meat consumption over time:
Edited by William Villacis
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