Good morning, everybody. This is Martina’s Corner at Jores Capital on Thursday, August 25, 2022. Welcome to our program. We are giving you a short summary on market news, politics, economics and other world news and market outlook every Monday and Thursday.
From this Thursday onwards, markets will be looking at the Jackson Hole annual symposium I Wyoming where the Federal Reserve of Kansas will be reporting on their plans and outlook on inflation and possible measurements they plan to take. There are no great surprises expected as Jerome Powell made it clear already that he will increase interest rates as long as the FED sees a necessity due to inflation, which seems to be largely under control for the moment in the US, partly due to falling commodity prices. But, things can always change and there is no doubt that the Fed will react again if necessary. So let’s see what the day brings.
The energy crises nevertheless turns to be a real problem in some countries, especially with winter approaching. We have reported on Germany in our last podcasts where the gas prices are hiking and supply is a crude problem due to the war between Russia and Ukraine and with Russia being Germany’s main gas supplier. But also the UK are facing highly increased energy bills being as high as 90% which could bring part of the population to the brink of poverty. Government is considering tax cuts that would cost the public administration 24 billion English pounds, 27 billion USD in 2023. Another consideration is paying subsidies of as high as 100 billion Pounds to energy companies in order to ease the skyrocketing energy prices but with severe effects on Government spending.
The market’s eyes are also on Texas as the state has ordered a list of investment funds and individuals in order to protect Texas’ oil and gas industry. On that list appear Black Rock, 9 European companies and nearly 350 individual investment funds, which may be banned from retirement funds as they are may be accused of having violated state policies. Pension funds like Teacher Retirement System of Texas have 30 days to report their relationships with the companies and investment funds found on the list. Texas Controller Glenn Hegar said that “The ESG movement has produced an opaque and perverse system in which some financial companies no longer make decisions in the best interest of their shareholders or their clients,”.
Now let’s see what the markets are doing today:
As of 2,46am Eastern Time, 8,46 CET, the S&P500 future is 0,9% up, the Dow Jones future is 0,69% up and the NASDAQ future is 0,99% up. The German DAX futures are trading 0,9% higher, IBEX futures are 0,48% higher, and the FTSE 100 futures trade 0,62% stronger this morning, so the markets being expected to open higher in a few minutes.
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See you again and have a great day!
Music by Music Unlimited at pixabay.com. Track «This is Epic» at shorturl.at/fSZ49