News

Germany's final reading for seasonally adjusted GDP growth in the second quarter was 0.3%, below the expected 0.2% and the previous reading of 0.20%.

Germany's final Q2 unadjusted GDP annual rate was 1%, below the expected 0.9% and the previous reading of 0.90%.

Germany's final second-quarter GDP annualized rate, adjusted for working days, was 1%, below the expected 0.9% and the previous reading of 0.90%.

BHP Billiton: (Regarding key issues raised by Australian workers) Negotiations are progressing and an agreement is expected.

Hedgeye contributor and Spanish economist Daniel Lacalle argues that the US's $40 trillion debt has made headlines. However, the key to fiscal policy isn't who "wins," but who "loses" first. According to official estimates for 2026, the present value of the funding gap for US Social Security and Medicare over 75 years is approximately $95 trillion, roughly 5% of the cumulative present value of projected GDP during that period. This doesn't include publicly held federal debt, which is projected to reach 101% of annual GDP by 2026. However, the Eurozone's implicit fiscal burden is at least as large as its on-paper debt. Official estimates from the European Commission show that, considering future contributions, net accrued public pension liabilities are approximately 150% of GDP, while total pension commitments are approximately 371% of GDP. Importantly, this doesn't include the pressure from most future healthcare and long-term care spending. This means the next debt crisis may not originate in the US, but rather in the Eurozone. First, the US dollar remains the world's reserve currency, and US Treasury bonds remain the most important asset for central banks globally, despite recent gold purchases and asset rebalancing trends. Secondly, the political reality in most major EU economies is fiscal aversion. French sovereign bond yields are now higher than Italian yields. No Eurozone government is willing to cut spending or limit future debt. Unfunded committed debt (debt committed but not yet issued) in major Eurozone countries exceeds 300% of GDP. Thirdly, Eurozone sovereign assets have generated negative real economic returns since 2021, leading to decreased global investor interest. While US debt is indeed a challenge, the Eurozone debt problem is greater because the reported debt only reflects the figure under the "excess deficit agreement," not the total debt of the public sector. Investors should be more wary of a region mired in economic stagnation, with government expansion and unfunded debt increasing simultaneously. The recent global bond sell-off is not a temporary problem. Markets are telling governments that no central bank can anymore cover up their irresponsibility. Developed economy governments have pushed the boundaries of debt-driven policies to the limit, exceeding their fiscal, economic, and inflationary thresholds. The US bond market is making headlines because US Treasury yields remain a benchmark for global currency prices and collateral, but the Eurozone could trigger the next major sovereign shock because EU member states are borrowing in currencies they cannot control, and governments are refusing to cut spending, resorting instead to tax increases and regulatory burdens that are further weakening their economies.

A Reuters poll indicates that the Reserve Bank of India may set the closing yield for Indian 10-year government bonds in the range of 7.50%-7.54%.

Sources say that Xiyin's Hong Kong IPO, valued at up to US$1.8 billion, has been fully subscribed.

BHP's Australian port workers submitted a wage counter-proposal ahead of their next meeting on September 8.

The Iranian Students' News Agency quoted an Iranian lawmaker as saying that the Iranian parliament opposes any move to raise gasoline prices.

Bank of Japan: Core-core CPI rose 2.2% in July (up 2.0% in June).

Japan's June coincident indicator final reading was 118.5, compared with 118.2 in the previous month.

Japan's leading indicator final reading for June was 116.5, compared with 116.4 previously.

Japan's final June coincident economic index rose 0.6% month-on-month, down from 0.3% previously.

Japan's leading indicators for June were final reading at 0%, unchanged from the previous month.

Tesla (TSLA.O) has raised the price of its Cybertruck dual-motor all-wheel-drive model in the U.S. market to $74,990 and the Cybertruck premium all-wheel-drive model to $84,990.

JPMorgan Chase is easing its mortgage lending policy for shares held by employees and early investors of recently listed companies, a policy that typically does not accept shares of companies listed within the past 135 days as collateral. Insiders expect the bank may adopt a similar strategy when Anthropic goes public.

Reserve Bank of Australia Markets Director Jacobs: The path to ample reserves is a transition from a system where the central bank determines the amount of reserves to a system where the banking system determines the amount of reserves.

Reserve Bank of Australia Markets Director Jacobs: As reserves become more demand-dependent, proactive liquidity management will become more important for financial institutions.

The report states that the Reserve Bank of India is selling dollars to support the Indian rupee.

Reserve Bank of Australia Markets Director Jacobs: The goal is to establish a system that can flexibly provide any amount of cash the banking system needs, while keeping the cash rate near the Committee’s target.