Good morning. US stock futures traded lower in Wednesday morning trading as investors awaited the release of the minutes from the Federal Reserve’s July meeting.

"If it flies, floats or fornicates, always rent it. It’s cheaper in the long run"

Felix Dennis

Top News

China’s GDP growth forecast slashed

WHAT: China’s GDP growth forecast just got a little makeover — and not the stylish kind! Barclays cut its forecast for China’s 2023 growth to 4.5%, down from 4.9%, citing “weaker-than-expected growth momentum in major economic indicators”

WHY: Most economists see downside risk to Chinese growth after the release of a batch of July data which comes on top of a raft of weak indicators showing slumping exports and negative consumer prices.

Fed exec: Inflation still too high

WHAT: Neel Kashkari, President of the Federal Reserve Bank of Minneapolis is giving inflation a side-eye. Speaking at a conference in Minneapolis, Kashkari said though the Fed has made tremendous progress in bringing inflation down, the rate of increase in prices still remains “too high”.

WHY: The US central bank has been raising rates in an attempt to slow inflation that in 2022 reached a 40-year high.

US retail sales remain robust

WHAT: American shoppers are still giving their wallets a workout! The latest data from the Commerce Department showed the value of retail purchases increased 0.7% in July, suggesting consumers still have the financial wherewithal to sustain an economic expansion.

WHY: The latest data illustrate how American households — supported by a strong labor market and rising wages — are so far buttressing the economy against recession in the face of rising interest rates.

In Other News

OpenAI explores content moderation systems

 WHAT: ChatGPT creator OpenAI wants to make artificial intelligence a “go-to” destination for content moderation. The company said it is currently working on tools that can allow companies to develop moderation policies faster and more efficiently than humans.

WHY: The startup said its latest technology, GPT-4, can be used to develop policies on appropriate content. The company has been testing its content moderation tools and has invited customers to experiment with it.

Fashion label under investigation over forced labor allegations

WHAT: Ralph Lauren’s Canada unit is under the investigative magnifying glass! The Canadian Ombudsperson For Responsible Enterprise is reviewing complaints made by a coalition of 28 civil society organizations that the popular fashion brand used or benefited from the use of Uyghur forced labor.

WHY: In the last couple of years, several large US and multinational companies have been accused of using Uyghur forced labor either directly or in their supply chains.

Beefy buyout

WHAT: Hold on to your steak knives folks, because the sizzling world of Brazilian steakhouses just got a new player in the game! Private equity firm Bain Capital agreed to buy Fogo de Chao in a deal valued at about $1.1 billion. Bain will acquire the Brazilian steakhouse from Rhone Capital which took Fogo de Chao private for $580 million in 2018.

WHY: Fogo de Chao’s sale comes amid a recent uptick in dealmaking in the restaurant industry. Sandwich chain Subway has been exploring a deal that could be completed in the coming weeks, while Benihana has also been working with advisors to sell itself.

Key Economic Events

• Wednesday - FOMC Minutes

• Thursday - Philadelphia Fed Manufacturing Index

• Friday - Baker Hughes Total Rig Count

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