Economic Developments
- The US Federal Reserve has recently been dovish about raising rates.
- Treasury yields have pulled back from recent highs but remain elevated.
- September is expected to be a challenging month for global bonds.
- US consumer spending has slowed to its lowest pace in a year
- Final GDP data indicates a 2.1% growth in the US economy.
- The UK's economic growth for Q1 is revised up, outperforming other G7 countries.
- Weakening of the pound sterling attributed to economic concerns.
- Bank of Japan's unscheduled bond purchase to manage rising yields.
Business News
- Ari Emanuel's Endeavor, Fenway Sports, and Henry Kravis are considering investing in the PGA.
- The UAW is negotiating a 30% pay raise from automakers.
- Nike's stock rises despite lower inventory.
- Tesla faces a lawsuit for alleged racial discrimination in the workplace.
- Charges of securities fraud against a former Goldman worker.
- Potential furloughs may happen as a result of the government shutdown.
Tech Industry and International Relations
- Huawei's resurgence with the Mate 60 Pro smartphone highlights China's semiconductor advancements despite export controls.
- Concerns in the US arise over China's growing military capabilities.
- Challenges faced by President Joe Biden's $100 billion chip subsidies, including labor disputes.
- US allocates $500 million in grants for domestic semiconductor production.
- Microsoft's discussions about selling Bing to Apple.
- EU's preparations to "Trump-proof" in case of a Trump win in the presidential election.
Investment Considerations
- Senator Bob Menendez's cash allocation prompts discussion on cash.
- Cash offers attractive yields now that rates are higher.
- Rising bond yields may lead to declining stock prices.
- Concerns about fiscal deficits and their impact on the bond market.
Works cited: "Treasury Yields Pull Back, September Remains Challenging: Bloomberg Close", Bloomberg, 28 Sept. 2023. "Menendez Isn’t the Only One Who Could Use a Cash Pile", John Authers, Bloomberg Opinion, 29 Sept. 2023. "UK economic growth revised up, but pound on track for worst month in a year" The Guardian, 29 Sept. 2023. The Daily Shot, 29 Sept. 2023. "Huawei's Resurgence and EU's Preparations for a Potential Trump Win" Bloomberg, 29 Sept. 2023. "5% Yields, China's Chips, Japan Bonds: Five Things You Must Know", Bloomberg, 29 Sept. 2023. ChatGPT, an AI software developed by OpenAI for initial draft article summaries.