Good morning. US stock futures rose in Monday morning trading as investors geared up for the latest inflation print and moves from the Federal Reserve.

"Easy money means only one thing when it means money that has come easy: it means money goes even more easily than it came"

Edwin Lefevre

Top News

US Treasury Secretary: “Soft landing” a real possibility

WHAT: US Treasury Secretary Janet Yellen has got quite the pep in her economist step! She’s predicting that the US can tame inflation without job market chaos, thanks to some nifty stats showing slower price hikes and folks eager to find jobs. “I’m feeling very good about that prediction” Yellen said in an interview on her air craft en route back from attending the Group of 20 Summit in New Delhi, India.

WHY: Yellen and President Joe Biden attended the gathering, which was skipped by China’s President Xi Xinping, against the backdrop of a raft of positive data on the world’s largest economy.

US, Vietnam link up over strategic partnership

WHAT: US President Joe Biden just did some fancy deal-making with Vietnam, scoring agreements on semiconductors and minerals. As part of the deal, the South East Nation lifted the US to Hanoi’s highest diplomatic status alongside China and Russia.

WHY: The partnership with Vietnam is part of the Biden Administration’s push to “demonstrate to our Indo-Pacific partners and to the world, the United States is a Pacific nation and we’re not going anywhere” Biden told reporters.

UK ponies up big bucks for climate initiative

WHAT: The UK just whipped out a whopping $2 billion check at the G20 Leaders Summit to support the Green Climate Fund (GCF) to help developing countries cope with the effects of climate change.

WHY: The Green Climate Fund — the world’s largest such fund — was set up under United Nations climate change negotiations to help channel money needed by poor states to meet their targets to reduce carbon emissions, develop cleaner energy sources, and adjust to a warming world.

In Other News

Meta digging deeper into AI

WHAT: It’s getting really hot in the world of artificial intelligence! According to a report from the Wall Street Journal, Meta Platforms is working on a turbocharged AI system intended to be as powerful as the most advanced model offered by rival OpenAI. The Facebook parent is aiming for its new AI model to be ready next year, the journal added.

WHY: Businesses and enterprises have flocked to the nascent generative AI market for newer capabilities and refining business processes since the launch of OpenAI’s ChatGPT late last year.

Sweet deal!

WHAT: Twinkies are about to tie the knot! J.M Smucker is closing in on a sale to buy Hostess Brands — a move that would marry two of the biggest names in the snack industry. Smucker prevailed in a heated competition with General Mills, parent of Cheerios and Betty Crocker.

WHY: Two investment firms bought the company out of liquidation a decade ago, returning Twinkies to store shelves after an eight month hiatus.

It might be the Boomers…

WHAT: Barclays’ housing research team is having a lightbulb moment! They’re blaming the unstoppable demand for homes in the US on none other than those silver foxes — Baby Boomers. “The US housing market is on the upswing again, even with mortgage rates at multi-decades highs. Although much has been attributed to shortages of existing properties, and mortgage lock-in effects, we think strong demand is a symptom of the aging population” Barclays wrote in a note to clients.

WHY: The housing shortage has remained a major headwind for homebuyers. Rising mortgage rates have stalled out the market’s inventory with existing homeowners reluctant to sell and risk giving up lower rates they secured before the Federal Reserve’s aggressive rate hikes.

Key Economic Events

• Monday - Consumer Inflation Expectations

• Tuesday - No Major Economic News

• 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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