Daily Economic Update: September 6, 2023

Continued dollar strength especially against Asian currencies (JPY and CNY)  and rising oil prices are front and center today as equities and bonds are little changed to start the day.  The 2Y UST is trading ~4.95% while 10Y is ~4.25% ahead of today's ISM Services and Fed Beige book.  Fed Governor Waller yesterday didn't rule out more hikes and didn't seem to favor cuts.  German factor ordered missed estimates badly falling 11.7% in another sign of stagflationary fears for EU.

XTOD: You know what breaks the S&P 500?  People selling off their Vanguard funds from their retirement accounts and paying the penalty because they no longer work and milk now cost $357.73. 

Few understand this.

XTOD: A Delta flight from Atlanta to Barcelona was forced to return to Atlanta to address, "diarrhea all the way through the airplane."

XTOD: There's an epic Battle for Narrative right now.  Each side is vying to get a landmark share placing out successfully:

- On one side, OPEC wants to pump the Saudi Aramco placing through the Inflation narrative

- On the other side, Wall Street wants to pump the ARM IPO through the AI AI AI AI narrative 

The only certainty is that a new class of bagholders will be created

XTOD: Long list of people who keep on telling me how smart they are to be long duration and what an idiot I am for being short it. It's almost as if they don't have a quote provider and they are living in their own little fantasy land where supply gets mysteriously bought by Daddy.

XTOD: Join us on the blog as we mark one year since Liz Truss began her short-lived tenure as PM, one that got us all talking about submerging markets and...lettuce. 

https://twitter.com/leadlagreport/status/1699174809643700301?s=20

https://twitter.com/knowyourmeme/status/1699114915141754881?s=20

https://twitter.com/agnostoxxx/status/1699081959564005598?s=20
https://twitter.com/nickgiva1/status/1699134687497568746?s=20
https://twitter.com/SofiaHCBBG/status/1699371578864091146?s=20