Good morning. US stock futures moved lower in Wednesday morning trading as investors looked toward the release of the consumer price index for more insights on inflation.

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Top News

US number one in global LNG exports

WHAT: The US just flexed its liquified natural gas (LNG) muscles as it roared back to the top spot in the global gas game. According to data from the Energy Information Administration (EIA), the US exported more LNG than any other country in the first six months of 2023. US LNG exports averaged 11.6 billion cubic feet per day during the first half of the year — a 4.4% year over year increase.

WHY: Europe and Britain remained the main destinations for US LNG, accounting for 67% of total exports.

Goldman CEO: Economic outlook uncertain

WHAT: Goldman Sachs head honcho David Solomon is serving up some economic insight with a side of caution. In an interview with Reuters, Solomon said that while there was a high likelihood the US would avoid a recession, sticky inflation remained a cause for concern. “The environment is definitely better. I have a personal view that inflation is going to be a little bit more sticky than the more optimistic view” Solomon said.

WHY: Solomon also criticized US proposals that would raise capital requirements for larger banks, echoing comments from his industry counterparts. “I do think these capital rules will have an impact on economic growth, and that will affect large and small businesses and their access to capital” Solomon said.

Traffic woes at Panama Canal to last into new year

WHAT: It’s not smooth sailing on the Panama Canal! According to Panama Canal Administrator Ricuarte Vasquez Morales, abnormally high ocean temperatures, an unpredictable rainy season, and the persistence of El Nino, means officials will have to continue restricting vessel traffic into 2024.

WHY: The number of ships moving each day through the canal has slipped to 32 from 36 because of declining reservoir levels. The backlog of ships also waiting to enter the canal has spurred fierce bidding for open slots.

In Other News

Companies join forces to manage AI risks

WHAT: Adobe, IBM, Nvidia and five other companies just joined the “AI Club” led by President Joe Biden. The companies signed on to voluntary commitments governing artificial intelligence (AI) which requires steps such as watermarking AI-generated content the White House said.

WHY: The original commitments, which were announced in July, were aimed at ensuring that AI’s power was not used for disruptive purposes. Google, OpenAI and Microsoft signed onto the commitments in July.

TikTok goes full steam ahead on e-commerce in US

WHAT: TikTok is taking a leap into the online shopping game in the US. The company announced it was launching its e-commerce product — called TikTok Shop — in an effort to translate the app’s cultural relevance among young consumers into sales. TikTok shop will include a “Shop Tab”, a marketplace and a logistics arm called Fulfilled By TikTok.

WHY: Shopping on social sites, known as social commerce, is estimated to be a $69 billion market in the US, led by Meta, which owns Facebook and Instagram.

Birkenstock bonanza!

WHAT: Get ready to walk the stock market runway because Birkenstock is stepping into the IPO world! The German footwear maker filed for an initial public offering in the US, a sign of the allure US equity markets hold for European firms seeking a valuation uplift. According to Bloomberg, the IPO could value Birkenstock at more than $8 billion.

WHY: The US market for IPOs looks like it’s finally coming back to life after 18 months in the doldrums. Birkenstock’s filing comes hot on the heels of semiconductor designer Arm, and grocery delivery firm Instacart.

Key Economic Events

• Wednesday - US Inflation Rate Y-o-Y

• Thursday - Initial Jobless Claims (wk end Sep 8)

• Friday - Baker Hughes Total Rig Count

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