The new trading week in the US opens to a backdrop of decline, as last week saw significant sell-offs across major asset classes. With the exception of foreign corporate bonds and US investment-grade fixed income, most global market segments experienced losses through September 4, according to a selection of proxy ETFs.
Recent developments include: Trump’s intent to significantly scale back US-China economic ties: BBG
US states grappling with severe fiscal crises: NYT
Wildfires in California leading to new electricity outages: AP
China’s exports showed a continued rebound in August: CNBC
The last two Australian journalists in China have been vacated from the country: BBC
ExxonMobil’s once-reliable dividend is now in jeopardy: Reuters
US payrolls showed continued recovery in August, although some sectors still face significant losses: FTE
“Without labor nothing prospers.”
– Sophocles
Cass R. Sunstein
Summary via publisher (MIT Press)
How much information is too much? Should we know the calorie count of the enormous bucket of popcorn purchased at the cinema? Are we interested in whether we are genetically predisposed to certain illnesses? And what value does next week’s weather forecast for Paris have if we aren’t there? In “Too Much Information,” Cass Sunstein explores the impact of information on our lives. While policymakers often emphasize “the right to know,” Sunstein advocates focusing instead on human well-being and the information that truly enhances it. The government should mandate the disclosure of information by companies, employers, hospitals, and others—not based on a general “right to know,” but when that information can significantly improve people’s lives.
It had to conclude at some point. However, is this merely a temporary pause in an ongoing bull market? If we only had clearer insights.
Is the bond market losing its effectiveness as a portfolio-diversification tool? While certainty eludes analysts, some interpret that a significant shift may be on the horizon. The main driving force is the prolonged decline in current yields, which have reached negative levels in several countries and could soon follow suit in the US.
Reports indicate the Justice Department is poised to file antitrust charges against Google: Reuters
Trump aims to slash federal funding to ‘anarchist jurisdictions’: CNBC
US job growth is expected to slow according to the August update: Reuters
Growth in German factory orders has continued to decelerate in July: MW
The Global Composite PMI, a GDP proxy, reached a 17-month high in August: IHS Markit
The US trade deficit in July widened to the largest gap seen in 12 years: BC
While US jobless claims remain substantially elevated, they have dropped to the lowest levels since the pandemic began: CNBC
How has the US stock market fared so far this year? The answer, as commonly found, is heavily influenced by the definition of “the market.” When dissecting by various factor buckets, the potential for dramatically different responses has rarely been so pronounced.
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The federal government instructs states to prepare for coronavirus vaccine distribution by November 1: ABC
Germany claims that Russian opposition leader was poisoned using a nerve agent: BBC
Calls increase for Germany to abandon the gas pipeline deal with Russia: Reuters
Economists are adjusting their expectations for the global economic forecast: Politico
China’s services sector reported a “continuation of solid growth” in August: IHS Markit
The US economic recovery showed signs of weakening in August, according to the Fed’s Beige Book: MW
US factory orders increased more than anticipated in July: Reuters
The US federal debt is projected to exceed 98% of the economy by the end of fiscal year 2020: NYT
US private payrolls experienced growth in September, but fell short of expectations: CNBC
Volatility in financial markets is expected to make a comeback sooner or later. Speculating on when that will occur remains uncertain. Currently, volatility appears to be dormant across the main asset classes, according to a selection of proxy ETFs.
