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Today:
Premium Analysis: He Chose inflation
**Special Comment: Gold Block Trades**
News: Rundown and recap
Premium Analysis: He Chose Inflation
Inflation is NOT dead…. it is the lesser evil for Powell now, whether he sees something he doesn’t like or is just playing by his own data based rule book..
It doesn’t matter.. inflation is the lesser evil as long as domestic and global markets respond properly.. stagflation is the bigger evil. Recession is NOT an option
Three blocks (2 shown) of 500 Nov. 3,000 calls trade 1.20…
Continues at Bottom with very special comment about Gold Block trades
News:
Equity Recap:
US equities closed lower on Wednesday despite initially rising after the Fed lowered near-term rates by 50 bps. Large caps lagged small caps: S&P 500 (-0.29%) vs. Russell 2000 (+0.04%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) dropped 0.35% and 0.32% respectively.
Market News: Inflation Bakes in More
"The Federal Reserve voted to lower interest rates by a half-percentage point, opting for a bolder start in making its first reduction since 2020. : WSJ
"Amazon announced Wednesday it is raising wages for its hourly warehouse workers CNBC
Sam's Club workers to receive raise, higher starting wages, but pay still behind CostcoThe big-box giant said in a press release that it would increase employee pay between 3% and 6% starting Nov. 2,
"India has overtaken China’s weighting in one of the world’s biggest stock market benchmarks: FT
"Stock prices in half-cents are coming soon to a brokerage near you. WSJ
"Alphabet unit Google won a legal challenge on Wednesday against a 1.49 billion euro ($1.7 billion) European Union antitrust fine, while Qualcomm failed to repeal a penalty. Reuters
"Millions of ambitious Chinese professionals [have] had their lives upended by President Xi Jinping’s decision to reshape the world’s second-largest economy. Industries such as finance, consumer tech and property Bloomberg
Politics/Geopolitics:
Israel submitted a new proposal that includes the release of all hostages at once and securing the exit of Hamas leader Sinwar from the Gaza Strip along with anyone who wishes to leave the Gaza Strip, according to Sky News Arabia citing Israeli media. Furthermore, Israel Broadcasting Corporation said the proposal includes the release of Palestinian prisoners, the disarmament of the Gaza Strip, the application of another mechanism of governance there, and an end to the war.
Israel's Security Cabinet authorised PM Netanyahu and Galant to take action against Hezbollah, according to Al Jazeera citing Israel’s Channel 12.
Israeli Army Chief said they have many capabilities they have not yet activated, while he added that Israel plans ahead by stages and the price paid by Hezbollah should be high at every stage.
Lebanon's Foreign Minister told CNN that Hezbollah was hit hard and a response is a must for it, according to Asharq News.
Senior Hamas official said the Israeli government is responsible for the repercussions of this continuous attack on Lebanon.
Iran will follow up on the attack against its envoy in Lebanon and reserves its rights under international law to take required measures deemed necessary to respond, according to a letter from Iran's UN envoy.
US Defence Secretary Austin spoke to Israel's Defence Minister Gallant to review regional security developments and reiterated US support for Israel amid Iran and Hezbollah threats, according to the Pentagon.
Germany's government placed war weapons export permits to Israel on hold, according to Reuters citing sources.
Japan's Icom (6821 JT) said it was investigating facts surrounding reports that two-way radios bearing the Icom logo exploded in Lebanon, while it later stated that it is not possible to confirm whether the radio product related to Lebanon explosions was shipped by the Co. and noted that the sales of batteries required to operate the device were discontinued about 10 years ago.
Russian President Putin ordered the signing of a comprehensive strategic partnership agreement between Russia and Iran, according to Interfax.
China's government pushed back on a US probe of whether China is helping Russia dodge a US ban on Russian uranium imports and stated that Beijing has always opposed "illegal unilateral sanctions".
US has no immediate plans to withdraw Typhon missile system from the Philippines which is being used in joint training exercises with the US and the Philippines testing the feasibility of the system's use in the event of a conflict, while a Philippine government source said there is strategic value in keeping the missile system in the Philippines to deter China.
North Korea said it tested a new tactical ballistic missile on Wednesday which was a modified strategic cruise missile and used a super large warhead in the tactical ballistic missile test which was supervised by North Korean leader Kim. Furthermore, Kim said the country must maintain overwhelming attack capabilities of conventional weapons while continuing to increase nuclear capabilities, according to KCNA.
Some headlines via NewSquawk or DataTrek
Data on Deck:
MONDAY, SEPT 16 8:30 am Empire State manufacturing survey Sept. -4.
TUESDAY, SEPT 17 8:30 am U.S. retail sales
WEDNESDAY, SEPT 18 2:00 pm FOMC interest-rate decision
THURSDAY, SEPT 19 10:00 am Existing home sales
FRIDAY, SEPT 20 None scheduled 1
Final Market Check…
Premium:
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5:30 AM Take:
He choose inflation over stagflation. Recession was never an option as Pozsar said in 2022
