Peter Schiff:

Powell is wrong when he says that the economy is stimulated by a strong labor market. A weak economy and falling real wages are forcing more people to look for second and third jobs, and inflation is pushing retirees back into the labor force to keep up with the rising cost of living.

source: twitter.com

☝️☢️🗣 - 🇺🇸💰📈The US added $572 billion in debt in 2 weeks.

So here it is, the further the more.

📈Interest payments now exceed $2 billion per day.

☝️☢️🗣 - 🇬🇧The £2.6 trillion UK debt is larger than the entire economy for the first time since 1961

💬 Net debt reached 100.1% of the country's GDP. “We have correctly spent billions to protect families and businesses from the worst effects of the pandemic and Putin's energy crisis,” said Chancellor Jeremy Hunt.

It is Putin's fault

⚡️🇺🇸☢️🗣Despite the Fed's hawkish rhetoric, investors are actively buying long-term bonds

▪️They are betting that the monetary authorities will still be able to tame inflation, which will ensure high and stable debt yields.

The benchmark 10-year Treasury yield fell nine basis points this year to 3.78% even after the Federal Reserve aggressively raised interest rates and vowed to continue to rise.

🏦🇩🇪 Economic activity in Germany lost much more momentum than expected in June, driven by slower growth in the services sector and persistent weakness in the country's factories.

▪️Composite purchasing managers index fell to 50.8; forecast. 53.3.
▪️In the second quarter, the service sector developed quite actively
▪️Frankly weak data on business activity in France dealt a blow to the euro, which just yesterday rose above 1.10. 👇

▪️Number 41, that is, talk about de-industrialization is quite grounded, more than

▪️Against this background, profitability around the world is falling. Landmark treasuries

🏦 The French economy probably shrank by 0.5% in the second quarter .

▪️Composite purchasing managers index fell to 47.3; forecast. 51
▪️June data point to contraction in manufacturing and services.

⚡️🇺🇸☢️🗣Fed's latest balance sheet report

✔️After two weeks of almost no change, this time the Fed's balance sheet recorded a decline of $26.3 billion.

✔️As for QT, the Fed sold its assets for a decent amount of $19.4 billion

Tightening of financial conditions continues, liquidity is getting smaller

⚡️🇺🇸☢️🗣At the same time, US banks continue to take money through emergency Fed assistance programs.

The total amount of debt now stands at $106 billion.

✔️Banks' use of the Fed's emergency bank financing program rose again to a new record of $0.8 billion more than last week, while use of the discount window fell by $0.4 billion to $3.2 billion.. .

⚡️🇺🇸☢️🗣For the second week in a row, money market funds record an outflow

▪️The decline in funds was $18.2 billion, the biggest weekly decline since the week of Christmas 2022

Where this money went - unfortunately remains a mystery to us.

⚡️🇺🇸☢️🗣Analysts throw up another example of a pro-inflationary factor.

Rents in Manhattan just hit a new all-time high of $4,360. Accelerating rent inflation is a concern for the Fed as housing carries a 40% weight in the CPI basket.

This means that there is a demand for real estate in Manhattan. And this is another great example of the fact that " on average " some people do not have enough money for food, but the financiers who need apartments in Manhattan are doing well so far. Financiers are here for example. Accelerates inflation, of course, the conditional middle class with excess savings.

🏦🇨🇳The yuan weakens to a 7-month low, despite China's actions to contain the depreciation. Pessimism about the economic recovery continues to weigh on sentiment

🇩🇪🇪🇺🏦🇷🇺 As we've mentioned yesterday in our GOLD PRO WEEKLY Report - sentiment is changing.

Now Germany has objected to Brussels' plans to use the frozen assets of the Russian Central Bank to rebuild Ukraine, warning that a hasty move could cause legal or financial risks - Financial Times .

⚡️🇬🇧☢️Barclays confirms our view on inflation that its decreasing is a result of statistical method rather than reality:👇

Barclays:

While headline inflation is lowered by the high base effect and low commodity prices, core inflation remains robust on the back of strong consumer demand and tight labor markets. We expect an increase in rates of the Central Bank of countries with developed economies:

• Fed - up to 5.75%
• ECB - up to 3.75% (deposit line rate)
• Bank of England - up to 5.75%
• Bank of Japan - will stop controlling the yield curve in July

source: Barclays Research, 06/23/2023

🏦🇺🇸 Morgan Stanley now expects the Fed to raise interest rates at its July meeting, after Chairman Jerome Powell signaled that the central bank has not yet ended its aggressive rate hike cycle.

▪️The Fed may raise interest rates by 25 bp: economists.
▪️The revision followed Powell's statement about the need for additional measures to combat inflation

🏦🇪🇺 According to Christine Lagarde, the ECB will probably not be able to announce the end of the historical cycle of interest rate hikes soon: "It is unlikely that in the near future the Central Bank will be able to declare with full confidence that the peak of rates has been reached" .

▪️The ECB President confirmed the plan for another rate hike at the July meeting.
▪️To fight inflation, a "more assertive policy" is needed.

⚡️🇺🇸☢️🗣 Second - go!

Multi-trillion-dollar investment giant Fidelity decided to apply for a spot ETF for cue ball. If the information is confirmed, then they clearly know something, because it is mentioned that they want to copy the application submitted by Blackrock.

Which, in general, is logical. They already applied 2 years ago and at the beginning of 2022 they were refused under the pretext that “the asset is not protected from price manipulation”, although the futures for the cue ball were already on the market at that time. If they really plan to submit a similar Blackrock application, then this is either good luck, or they understand that the scheme proposed by Blackrock is well-founded and passable.