The market will probably like this morning’s reported rise in US continuing jobless claims, which rose for the 7th straight week. It’s the highest since mid-Apr. If the economy and labor are cooling, there will be a lower chance of the Fed raising rates again, goes the thinking. But Reuters is reporting that some investors are concerned that additional yield declines could actually make the Fed be hawkish for longer.
Per the FT, the Hollywood strike on royalties and AI looks like it will end. Folks will get more pay and clarity, and new content will pop up again. Putting additional salt into a 118-day-old wound, Katzenberg announced that AI will lower the cost of animated movies by 90% and accelerate the digital transformation of the entertainment industry.
That’s what Citadel’s Griffin is talking about when forecasting that high inflation will last decades and saying that the “Peace Dividend” is over. He remarked that there is too much global unrest with major structural changes pushing de-globalization, which keeps inflation higher. Similarly, with tons of debt at the gov level, he projects that printing money to stop default will cause major instability, so we need to get our spending house in order.
AstraZeneca is now making an experimental obesity pill that’s cheaper than the existing GLP-1 options. The treatment was developed by a Chinese biotech firm. This will be in addition to Pfizer’s one in development, danuglipron. The FDA approved Lilly’s obesity drug tirzepatide, which will compete with Ozempic and Wegovy. You know that saying–when something sounds too good to be true, it probably is? Does anyone else have this looming feeling that we’re going to learn in 5-10 years that these drugs have some crazy unintended side effect?
A Jefferies trader was charged with fraud for supposed spoof orders of Treasuries when he worked for his former employer, TD Bank.
Be careful what you wish for. It may come true faster than you expected.
