Housekeeping: Good Morning. The West is Now Buying Physical Gold
Gold Revaluation is happening (quite literally) before our eyes
Today:
Commentary: How Apple Invades your home, Germany United 2.0
Premium: The GS Full report on Yesterday’s CPI
Equity Recap:
US equities advanced on Wednesday after the July consumer price index showed the lowest annual inflation rate since 2021.
Premium Markets:
BOTTOM LINE: July core CPI rose 0.17% month-over-month, roughly in line with expectations. The composition was mixed, as large declines in the volatile used cars and airfares components were offset by above-trend increases in the car insurance and rent components. Non-housing services prices increased 0.21%. Based on details of the CPI and PPI reports, we estimate that the core PCE price index rose 0.14% in July.
KEY NUMBERS:
CPI (mom) +0.15% for July vs. GS +0.17%, median forecast +0.2%, prior -0.06%
Core CPI (mom) +0.17% for July vs. GS +0.16%, median forecast +0.2%, prior +0.06%
CPI (yoy) +2.89% for July vs. GS +2.93%, median forecast +3.0%, prior +2.97%
Core CPI (yoy) +3.17% for July vs. GS +3.20%, median forecast +3.2%, prior +3.27%
Full analysis premium at bottom…
Market News: Home invasion
"Apple, seeking new sources of revenue, is moving forward with development of a pricey tabletop home device that combines an iPad-like display with a robotic limb. The company now has a team of several hundred people working on the device, which uses a thin robotic arm to move around a large screen... The product, which relies on actuators to tilt the display up and down and make it spin 360 degrees, would offer a twist on home products like Amazon’s Echo Show 10 and Meta’s discontinued Portal." Source: Bloomberg
How Apple and Amazon “Compete”
There are two models for making your product indispensable in a home.
Amazon- software.. the service- what you consume, goods, services, consume
Apple- hardware.. the portal- how you consume- PC, iphone, ipad, robot arm
The dividing line for these two models is the outlet in your home
Coming soon: Baby sitter, playmate, and teacher with an ipad for a face
Amazon sells everything up to the outlet. Apple sells you everything inside the walls of your home
“Warren Buffett’s Berkshire Hathaway took a stake in Ulta Beauty in the second quarter while buying more shares of Chubb and Occidental Petroleum. [The] company cut its positions in Capital One Financial, T-Mobile US and Floor & Decor Holdings." Source: WSJ
"Apple will open the contactless payments technology on its iPhone to third-party developers in multiple countries, following regulatory pressure from authorities in the US and EU. Source: FT
"The consumer price index, a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate at 2.9%, its lowest since March 2021.: CNBC
Politics/Geopolitics: United Germany 2.0
South Korean President Yoon laid out the blueprint for establishing a unified Korea and said the freedoms enjoyed in the South must be extended 'to the frozen kingdom of the North'. Yoon said they will create a North Korean human rights fund to support activists and offered to create a working-level consultation body with North Korea, while he added they are ready to begin political and economic cooperation if North Korea takes the initial step to denuclearise.
What happens if the Koreas unite?
What does it signal to world leaders?
Ideology vs economics
Who benefits, who suffers?
What happened when Germany reunited?
How do Geoeconomics, Mercantil ism, ideological differences, regional economics factor in?
What does it mean to your country and to you
What does it mean to the EU, Western thought, Eastern thought, Brics, mBridge, the global negotation
Who will broker such a deal?
One thing is for sure, like the Berlin wall falling, it will shake the world econonically, ideologically and set the table for decades of behavior as the reunification of Germany did. it would sweep the table and be a triumph for one ideology over another
Hamas told mediators it was ready to meet them after today's talks "if there are developments or a serious response from Israel", via Sky News Arabia.
"The Israeli delegation for the hostage deal talks has left Israel towards Doha", via Kann's Stein citing ItayBlumental.
Russia conducted a missile attack on Ukraine's Odesa which targeted port infrastructure and injured one person, according to Reuters citing the regional governor.
Some headlines via NewSquawk or DataTrek
Data on Deck: CPI, PPI, Retail Sales, Housing
MONDAY, AUG. 12 2:00 pm Monthly U.S. federal budget
TUESDAY, AUG. 13 Producer price index July
WEDNESDAY, AUG. 14 CPI year over year 3.0% 3.0% 8:30 am
THURSDAY, AUG. 15 8:30 am U.S. retail sales July 0.0%
FRIDAY, AUG. 16 Housing starts July 1.35 million 1.35 million 1
