Guardian Weekly Market Report – Issue 134

Reports of Note Due This Week

Investors will focus on the CPI and PPI this week and they will give us one last look at inflation before next weeks FOMC meeting on September 17-18. Also wholesale pricing, consumer credit and small business optimism are scheduled to be released this week.

• Monday, Sep 9– 10:00 A.M. Wholesale inventories (July), 3:00 P.M. Consumer credit.
• Tuesday Sep 10 – At 6:00 A.M.  we see the NFIB small business optimism index for August.
• Wednesday Sep 11 – At 8:30 A.M.  sees the important Consumer Price Index (CPI)and the Core CPI reading.
• Thursday Sep 12 – We start the day at 8:30 A.M. with the Weekly Initial Jobless Claims. They are expected to be slightly lower at 225,000 versus last weeks 227,000. Also, out at 8:30 A.M. is Producer price index (PPI) which is expected to show a 0.1% increase over Julys and Core PPI for August. At 2:00 P.M. we see the release of the monthly U.S. Federal budget.
• Friday Sep 13 – 8:30 A.M. sees the release of the U.S. import price index and then at 10:00 A.M. the consumer sentiment (prelim) for Sept.

Geopolitics

The Biden administration has introduced new export controls targeting advanced technologies such as quantum computing and semiconductor equipment. These measures, motivated by national security and foreign policy considerations, aim to prevent adversarial use of these technologies. The controls include specific components and software linked to metals and high-bandwidth chips essential for AI applications. The U.S. is working with international partners to align these restrictions, and a public comment period of 60 days will precede the final rule.

Israeli Prime Minister Benjamin Netanyahu stated that a ceasefire with Hamas is not imminent, contradicting U.S. officials who claimed a deal was close. He emphasized that his stance has hardened, particularly after the recent killing of six hostages by Hamas. Netanyahu reiterated that any deal must allow Israeli forces to maintain a presence in the Philadelphi corridor to prevent arms smuggling. The U.S. continues to negotiate, but no agreement has been reached, with significant issues including the terms of hostage exchanges and the repositioning of Israeli forces.

Ukrainian President Volodymyr Zelenskyy stated in an interview that Ukraine plans to indefinitely hold Russian territories it recently seized to pressure President Vladimir Putin into negotiations. He clarified that Ukraine does not intend to impose its way of life on these areas but needs to hold them as part of a strategy to end the war. The operation in Russia’s Kursk region was a surprise and highly secretive, even within Ukrainian circles, to enhance its success. Zelenskyy emphasized that Ukraine did not inform international partners, including the U.S., about the incursion in advance.

Brazil’s federal supreme court has unanimously upheld orders to suspend the use of Elon Musk’s social network, X, across the country. This decision includes a controversial measure that permits fines for individuals or businesses attempting to bypass the suspension, such as using VPNs. The suspension was initially ordered after X failed to comply with court requests to remove content violating Brazil’s laws on political misinformation and hate speech. In response, Musk criticized the court’s actions as “illegal” and intensified his rhetoric against Justice Alexandre de Moraes, who issued the suspension orders.