It's not the phones that are important, although partially. It's theNETWORKthat's critical. Elon already's building his own sub-orbital network. Total work around, engineering wise. Genius, even.
Five Things You Need to Know to Start Your Day: Europe
Good morning. Traders await UK jobs data to gauge the Bank of England’s policy path ahead, before we move on to the Federal Reserve meeting later this week. Apple unveils new artificial intelligence features. Here’s what people are talking about.
Sticky pay?
Today’s UK labor market data may highlight inflationary pressures, with wage growth forecast to accelerate for the first time in nine months. Resurgent pay increases would add to concerns that a tight labor market is continuing to fuel inflation. That would make it more difficult for the BOE to reduce the highest interest rates in 16 years. For the wider region, European Central Bank President Christine Lagarde said the ECB must stay cautious, and last week’s cut in borrowing costs won’t necessarily be followed by further rapid moves.
Pre-Fed nerves
Over in the US, bond traders who have come to terms with the prospect of higher-for-longer interest rates through 2024 are looking toward this week’s Fed meeting for clues on how to game out 2025 and beyond. With officials due to update the so-called dot plot on Wednesday, options trading has seen a surge in positioning for rates to stay elevated well into next year and 2026. As for stock markets, Wall Street’s most prominent trading desks from JPMorgan to Citigroup are urging investors to prepare for a jolt this week after the latest inflation print and the Fed decision, both of which arrive on Wednesday.
Now oil jumps, too
Inflation watchers will also keep a close eye on oil prices after Monday’s sudden, sizzling rally. Brent futures are trading little changed around $81 a barrel after jumping by the most since early March. For clues on the market outlook, traders are set to parse an OPEC report due Tuesday, followed by a Short-Term Energy Outlook from the US later in the day, and a monthly release from the International Energy Agency on Wednesday. Elsewhere in the energy markets, European officials are in talks to keep gas flowing through a key Russia-Ukraine pipeline, as they race to prevent Moscow’s war further damaging the continent’s energy supplies.
Apple of AI
Apple took the wraps off long-awaited new artificial intelligence features, including a partnership with ChatGPT maker OpenAI. The iPhone maker is engaging in a high-stakes bid to catch up with rivals in the booming AI market. After falling behind tech peers like Google and Microsoft, Apple is counting on a streamlined interface — and its loyal customer base — to regain ground. In the meantime, Elon Musk said he would ban Apple devices from his companies if OpenAI’s software is integrated at the operating system level, calling the tie-up a security risk.
And Apple co-founder Steve Wozniak says he is very interested in “Apple Intelligence.” Take a listen here.
Property pain
Like other urban centers from London to New York, Hong Kong is suffering from a mix of rising interest rates, financial-sector job losses and changing work habits. But for many in the city, the five-year property downturn is emblematic of a steady loss of faith in Hong Kong’s status as Asia’s premier financial hub. Over in New York City, an office building owned by a Related Cos. affiliate is set to be sold at a steep discount.
Coming up
Apart from UK labor market figures, there’s little in the way of economic data or events out of Europe. South Africa manufacturing production is on the data calendar, with the ECB’s Villeroy and Holzmann due to speak.
What we’ve been reading
This is what's caught our eye over the past 24 hours.
Le Pen’s 28-year-old political heir faces a make-or-break moment
Elliott disrupts CEO summer plans with $400 billion in new marks
Hwang’s top trader says he was told to do opposite of ‘normal’
‘They don’t understand’: Kravis rebukes climate protesters
Zero-coupon bond pile balloons to near half-a-trillion dollars
Sunak faces late Tory revolt over UK manifesto tax cuts
Bill Gross says European bonds are becoming more attractive
And finally, here’s what Mark is interested in this morning:
French bond futures’ slump this week coincided with a surge in turnover, which suggests traders added fresh bearish exposure after President Emmanuel Macron called snap elections, betting on an extended decline. Adding to downward pressure is a steepening of the Treasury curve, as traders price for the risk of a hawkish Federal Reserve outcome after last week’s strong jobs report.
Investors anxious about the parliamentary vote in France are likely to use the Germany-France yield spread as an insurance policy for a messy election result. Which will translate into further pressure on French bond contracts into early July, at least.
https://www.bloomberg.com/news/newsletters/2024-06-11/stock-markets-today-uk-jobs-fomc-oil-prices-apple-elon-musk
Western Water Rulez are a decent question to start the follow up, but MFM wouldn't knows dat.
>>f6aed5<<
Is this all an attention sock can muster for a tantrum?
struggling with struggle
return the wolves to childhood
here’s a cheery little piece of dystopian hypothesizing from francis fukuyama in “the end of history.”
it’s been sort of niggling at something in my brain and i find a sort of uncomfortable truth embedded here that seems to link a number of ideas.
it really does appear to be one of those unfortunate calibration issues where humans seem to need to feel a certain amount of struggle/deprivation/injustice and it's all subjective such that a brearley girl in her posh high school in NYC experiences a lack of kale at the salad bar in about the same way that an african kid in a warzone experiences "no food this week" in terms of the sense of struggle it constitutes.
this has a wide range of implications, among them the particularly ironic one that
in a world of outlandish plenty, the children of privilege seem to contract an societal auto-immune disease that attacks them and everything around them.
https://boriquagato.substack.com/p/struggling-with-struggle
Better than Huawei. Corrupted manufacturer, but not nearly as blatantly corrupt as Huawei.
Wrong spelling for that family, but keep at the cowbell. It'll fit in sooner or later.
And how would you open/influence a negotiation on Social Media?
>>21004784
And now you know why the ECB eased last week…
zerohedge
@zerohedge
*EUROPE SET TO DELAY BASEL BANK TRADING RULES BY YEAR: SOURCES
https://twitter.com/zerohedge/status/1800518141115761104
Wide Awake Media
@wideawake_media
"It could eradicate blue sky."
CNBC segment from 2019: "Bill Gates is backing the first high-altitude experiment of one radical climate change solution—creating a massive chemical cloud that could cool the Earth. It's called solar geo-engineering."
"But it also comes with significant risks and uncertainties: Things like mass famine, mass flooding, drought."
https://twitter.com/wideawake_media/status/1800446729986163068
zerohedge
@zerohedge
Lawfare Bingeing: New Jersey Announces An Investigation Into Trump Liquor Licenses
https://www.zerohedge.com/political/lawfare-bingeing-new-jersey-announces-investigation-trump-liquor-licenses
https://twitter.com/zerohedge/status/1800520404634599522