And you can see right now the ten year at 422, the two year at 370. >> And now to the gusts that we've been talking about all morning President Donald Trump. Mr.. President welcome. Thanks for thanks for calling in. Wish you could be here in person, but we'll do this.>> Good morning Joe. >> We've been talking about the BLS and the employment numbers all morning long. Sometimes I know you get a chance to tune in. I want to bring up a chart.I hope you can see it, or else I'll describe it to you. This is the r ...

is is that the Trump administration is making the same mistake that the Biden administration made which was to basically you know remember we had Biden is working well now we have the golden age of American prosperity's return and Americans are not feeling that better to say we're we're working hard to put America on the right road rather than declaring premature victory and I think that's a big mistake for the White House and is likely to come back and and bite him in the midterm election >> that's uh Repu ...

Wage Costs & Inflation - UK businesses are anticipating another significant increase in wage costs for their lowest-paid workers next year, potentially exceeding the inflation rate [1]

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The cost of food has risen faster than overall inflation in the last year. https://t.co/0rQ8QFTrl8 https://t.co/0rQ8QFTrl8 ...

Czech inflation slowed in July but remained above the central bank’s target as policymakers are expected to keep interest rate unchanged this week to tackle persistent price pressures https://t.co/ku9MFErngD ...

Wages have risen, but inflation in food and housing means families are struggling https://t.co/Bp8w48F3fs ...

Summary of Key Points from the FOMC Meeting and Economic Outlook Industry Overview - **Federal Reserve and Economic Policy**: The July FOMC meeting indicated a hawkish stance regarding interest rates and inflation management, emphasizing the importance of the unemployment rate as a key indicator of economic health. Core Insights and Arguments - **Hawkish Tone of FOMC**: The July FOMC meeting raised the bar for potential rate cuts later in the year, with Chair Powell highlighting persistent inflation risks and the unemployment rate as a more accurate measure of maximum employment [6][8][37]. - **Tariff-Induced Inflation**: Powell acknowledged initial evidence of inflation due to tariffs, but noted uncertainty regarding the pace of tariff pass-through to consumer prices, indicating that the Fed remains data-dependent [6][18][22]. - **Labor Market Dynamics**: Powell stated that the Fed could still meet its maximum employment mandate despite slow payroll growth, as long as the unemployment rate remains low. This suggests a focus on the unemployment rate rather than payroll growth as a key metric [6][24][30][32]. - **Inflation Expectations**: The Fed's inflation target remains above 2%, with core PCE prices rising by 2.7% over the past year. The Fed expects inflation to remain firm in the coming months, with potential upward revisions to inflation forecasts [18][23][37]. - **Economic Growth Assessment**: The FOMC downgraded its growth assessment, indicating that economic activity moderated in the first half of the year, which could imply a dovish tilt in future policy decisions [10][12]. Important but Overlooked Content - **Dissenting Opinions**: The presence of dissenting opinions from Governors Bowman and Waller allowed Powell to adopt a more hawkish tone, focusing on the consensus view rather than reflecting a range of opinions [16][38]. - **Market Reactions and Predictions**: The market-implied probability of rate cuts has been influenced by upcoming employment and inflation data, with expectations that the Fed will remain on hold in 2025 unless significant economic changes occur [39][41][62]. - **Trade Recommendations**: Analysts suggest various trading strategies, including maintaining long positions in specific Treasury securities and monitoring the USD outlook, which is expected to decline unless labor market data surprises positively [66][62]. Conclusion - The FOMC's current stance reflects a cautious approach to monetary policy, with a focus on inflation management and labor market stability. The upcoming economic data will be crucial in determining the Fed's future actions regarding interest rates and overall economic strategy.

Summary of US Consumer Tracker (2Q25) Industry Overview - **Industry**: US Consumer Sector - **Key Focus**: Impact of inflation, consumer sentiment, and tariffs on spending behavior Core Insights 1. **Inflation and Consumer Income**: - Inflation has increased, with a notable rise to 2.7% in June 2025, while real disposable income has declined sequentially in May 2025 [3][15] - Tariff-driven inflation is expected to further impact consumer prices in the second half of 2025 [2] 2. **Consumer Sentiment**: - Consumer sentiment showed slight recovery in June but remains significantly lower year-to-date in 2025, particularly among high-income consumers concerned about inflation and employment [3][17] - The trade-down effect is evident as consumers shift to lower-priced options due to economic pressures [3][17] 3. **Retail Sales Trends**: - Retail sales growth has normalized after an earlier pull forward, indicating stable shopping behaviors despite economic challenges [3][21] - Categories such as home goods and toys have turned inflationary in Q2 2025, contributing to a weak consumer backdrop [3][87] 4. **Sector Performance**: - **Broadlines & Hardlines Retail**: Companies like Dollar General (DG), Dollar Tree (DLTR), and Walmart (WMT) are expected to benefit from trade-down trends, with WMT well-positioned due to its enhanced shopping experience [4] - **Specialty Retail**: Anticipated price increases of high single digits to low double digits for apparel and footwear, and over 20% for hard goods due to tariffs, may impact Q3 spending [5] - **Restaurants**: A macro deceleration in May affected spending, with potential declines in 2026 due to SNAP benefit reductions [6] - **Alcohol Sector**: Consumption is pressured by affordability concerns, particularly among low-income consumers [7] 5. **Investment Ratings**: - **Retailing**: Outperform ratings for WMT, COST, DG, and LOW; Market-Perform for HD and DLTR; Underperform for TGT [11] - **Food Sector**: Outperform ratings for MKC, MDLZ, SMPL, and CPB; Market-Perform for several others [11] - **Apparel & Specialty Retail**: Outperform ratings for brands like NKE, TJX, and LULU; Market-Perform for CPRI and ROST [11] Additional Insights 1. **Consumer Behavior**: - The gap between low-income and high-income consumer sentiment has narrowed, indicating a shift in spending patterns [13][17] - Cooking from scratch is increasing as consumers seek value amid rising prices [7] 2. **Economic Indicators**: - The unemployment rate remains low, but consumer credit growth has decelerated in a high-rate environment [13][51] - The 10-Year Treasury yield remains elevated, reflecting higher inflation expectations [46][48] 3. **Inflation Dynamics**: - Cumulative inflation since January 2019 is at 28%, with food and energy leading the increases [94][96] - General merchandise categories have recently turned inflationary, influenced by tariff-driven price increases [83] This summary encapsulates the key findings and implications from the US Consumer Tracker for Q2 2025, highlighting the challenges and opportunities within the consumer sector amidst ongoing economic pressures.

Investment Rating - The report maintains an equal weight in equities, overweight in core fixed income, and underweight in other fixed income [4][6]. Core Insights - The US labor market is gradually cooling, with expectations of a decline in real GDP growth from 2.5% in 2024 to 0.8% in 2025 [2][8]. - Global growth is projected to decrease from 3.5% in 2024 to 2.5% in 2025, influenced by tariff shocks and immigration restrictions [2][8]. - The report highlights a preference for quality cyclical stocks and investment-grade credit over high-yield credit amid growth and tariff risks [4][6]. Economic Outlook - The US GDP growth forecast for 2025 is revised down to 0.8%, with inflation expected to peak at 3.0% [9]. - The Euro Area and Japan are also projected to experience slow growth, with GDP growth of 0.8% and 0.4% respectively in 2025 [9]. - The report anticipates a significant drop in global demand due to tariffs, impacting supply chains and investment [8]. Sector Recommendations - In the US, the focus is on quality cyclicals, large caps, and defensives with lower leverage [6]. - Key sectors in Europe include defense, banks, software, telecoms, and diversified financials, with a recommendation to reposition into resilient market pockets [6]. - Emerging markets are favored towards financials and domestic-focused businesses over exporters [6]. Market Valuations - The S&P 500 is projected to reach a price target of 6,500 with a P/E ratio of 22.5x for 2025 [7]. - The MSCI Europe index is expected to see a slight decline in earnings, with a target of 2,250 [7]. - Emerging markets are forecasted to have a P/E ratio of 13.1x, with a target of 1,200 [7].