Housekeeping: Good Morning.
Gold Revaluation is happening (quite literally) before our eyes
Today:
Commentary: Markets Currently
Premium: Michael Every’s Latest Today
Equity Recap:
US equities sold off sharply on Friday after a weaker than expected jobs report and concerns about a potential recession.
Premium Markets:
Where are Markets
Why/What Caused This
What triggered it?
What are Implications?
What is next/ How does it end?
Finally: Liars
1- Where are Markets?
2- Why/What Caused This?
3- What triggered it?
4- What are Implications?
If handled too late but perfectly- Global recession
if handled too late but too heavy handed- Global stagflation
5- What is next?
Finally: Liars
The only question is when will rates be cut now now. But the more important question is, will it be enough? The answer is NO.
Given the choice between recession and inflation, central banks have always chosen inflation. Which translates to actions that will seek to prevent deflation at some point, which will either cause stagflation as money runs into safe haven like Gold and out of stocks.. or inflation as stocks reflate and the resources we use to keep the eocnomy going explode in price
Another answer to the question “Will it be enough when it comes”, slightly cynically is this:
Eventually it will be enough for the stock market, but it will not be enough for the actual economy. People will get fired, companies will pull in the reins for expansion, and the next wave of mercantile manifestation will take hold. Shrinking global economies.
Why?
Because they have deceived themselves into believing they can influence all people all the time by pointing to higher stock prices as proof of a strong economy. They have exploited every economic indicator that fostered trust in policy by cooking those indicators and in doing so, breaking them. until finally, the only people believing in them are the bureaucrats and policy makers who manipulated them to begin with.
They believe their own bullshit.. and we will pay the price for it.
That is why Gold and Silver are the only umbrella left to keep dry as things evolve now.
Continues at bottom
Market News:
"Big Tech companies have boosted their capital spending by 50 per cent to more than $100bn this year, as they race to build the infrastructure supporting artificial intelligence, despite growing scepticism from Wall Street about the returns on the unprecedented investment.Source: FT
"Warren Buffett’s Berkshire Hathaway dumped nearly half of its gigantic Apple stake last quarter in a surprising move for the famously long-term-focused investor. Source: CNBC
"Nvidia's upcoming artificial intelligence chips will be delayed by three months or more due to design flaws, a snafu that could affect customers such as Meta Platforms, Google and Microsoft that have collectively ordered tens of billions of dollars worth of the chips....Source: The Information
"Tadge Juechter’s first “taste” of Corvette working at General Motors was to research whether there were enough Americans who could afford a new high-performance model of the famed sports car, known as the ZR1, back in 1985. Nearly 40 years later, not only are there enough people to afford such a vehicle, but GM’s new 2025 Chevrolet Corvette ZR1 stands as something of a coup de grace for Juechter, who retired Wednesday after roughly 47 years with the Detroit automaker. The so-called “godfather” of the modern Corvette retired roughly a week after helping to introduce the new 2025 Corvette ZR1 — the most powerful and fastest version of the car ever produced." Source: CNBC
Politics/Geopolitics:
Israel conducted strikes targeting two schools sheltering the displaced near Gaza City which killed at least 25 Palestinians, while the Israeli military said the strikes on Gaza schools targeted militants operating there. Israel also conducted a strike in the West Bank which killed a Hamas commander.
Israeli PM Netanyahu on Sunday warned "Iran's axis of evil" against attacking Israel amid expectations that Tehran and the militant groups it supports are readying retaliatory strikes, according to dpa.
Iran-led retaliatory assaults are “expected imminently” and will likely be simultaneous, coming from Hezbollah in Lebanon, the Houthis in Yemen and Iran itself, according to Israeli officials cited by Bloomberg and Iran International.
Iran’s Revolutionary Guards said the terrorist act of killing Hamas chief Haniyeh was designed and executed by Israel with the support of the criminal US government, while it added that the adventurous and terrorist Zionist regime will decisively receive the response to this crime. Furthermore, the IRGC said Tehran’s revenge will be severe and at the appropriate time, place and manner, according to Reuters.
IRGC sources told iNews Britain that Iran's response to Israel could come no later than Tuesday or Wednesday.
Egypt’s Foreign Minister held a call with Iran’s Foreign Minister and stressed that recent developments are unprecedented, very dangerous and threatening to the region’s stability.
White House’s Finer said the US is trying to prepare for any scenario in the Middle East by warning citizens to leave Lebanon and the US is moving an aircraft carrier to the Middle East purely for defensive reasons, while Finer said the overall goal is to turn the temperature down in the region, according to a CBS interview.
UK Foreign Office said Britain temporarily withdrew the families of officials working at the British embassy in Beirut due to a highly volatile security situation in Lebanon.
Ukrainian President Zelensky announced the arrival of F-16 fighter jets and said they are already in use in Ukraine’s skies, while he said Ukraine does not have enough F-16 pilots or jets and hopes training will be expanded. Furthermore, he plans to discuss at the Ukraine-NATO council the use of neighbouring countries’ aviation for air defence work.- Ukrainian military said it struck a Russian submarine and anti-aircraft system in Crimea, while it also struck Russia’s Morovosk airfield, as well as oil fields and fuel facilities in three Russian regions.
Russian Defence Ministry said Russian forces captured a settlement in the Donetsk region.
North Korean leader Kim said they will have a more improved level of nuclear readiness in the near future to respond to any challenges, while he added that stockpiling and improving nuclear weapons is the best way to counter the US, according to KCNA.
Philippines and German Defence Ministers committed to concluding a broader defence agreement, while the Philippines Defence Minister said they invited German ships to participate in exercises.
Some headlines via NewSquawk or DataTrek
Data on Deck:
MONDAY, Aug. 5 10:00 am ISM services July 48.8%
TUESDAY, Aug. 6 8:30 am U.S. trade deficit June
WEDNESDAY, Aug. 7 3:00 pm Consumer credit
THURSDAY, Aug. 8 Initial jobless claims Aug. 3 10:00 am Wholesale inventories June -- 0.6% 3:00 pm Richmond Fed President Tom Barkin speaks
FRIDAY, Aug. 9 None scheduled1
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