Good morning, everybody. This is Martina’s Corner at Jores Capital on Thursday August 10, 2022. Welcome to our new program. We will be giving you a short summary on market news, politics, economics and other world news and market outlook every Monday and Thursday.
The US market closed stronger last night with the Dow Jones being 535 points up. Reasons for that? US inflation fell from 9.1 to 8.5% in July which gives hope that inflation is under control. We believe it is too early to give the all-clear.
Especially data on inflation in the service industry is concerning and could be a sign that inflation has already spread to all sectors which could trigger a severe wage-price spiral. Yet market observers believe that chances that the FED will take decisions of harshly increasing the interest rates, are off the table for the moment.
On the other hand, food prices are still sky rocketing with the prices of some basic groceries up one third in only one month. Prices for commodities are soothing but it always takes a while until the consumer feels such price cuts.
Interesting news also that SpaceX won’t receive almost 900 million USD in subsidies as it was expected. The decision is based on the company “fai[ling] to demonstrate that [it] could deliver the promised service”.
The program had been said to be designed to give fast internet and stable Internet access also to people in rural areas where Internet access is still extremely limited. As it seems the promised speeds did not meet the programs requirements which made the FCC refuse the subsidizing the venture.
Let’s see how the markets behave so far today: US markets open neutral in the pre-market. European markets are mainly unchanged with the German DAX and UK’s FTSE unchanged but rather pointing towards lower and the Spanish IBEX at plus 0,4%, 34 points up at 10,20 CET, 4,20 Eastern Time.
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