Core Insights - The Bank of Spain forecasts a quarter-on-quarter GDP growth of 0.6% to 0.7% for the third quarter, indicating a sustained robust expansion trend [1] - The GDP growth forecast for 2025 has been revised upward from 2.4% to 2.6%, while the forecasts for 2026 and 2027 remain unchanged at 1.8% and 1.7% respectively [1] - The inflation rate forecast for 2025 has been slightly increased to 2.5%, up from the previous estimate of 2.4%, although it remains lower than the actual inflation rate of 2.9% in 2024, suggesting a gradual easing of overall inflationary pressures [1] - The fiscal situation shows positive improvement, with the forecast for the government budget deficit as a percentage of GDP for 2025 revised down from 2.8% to 2.5%, indicating strengthened fiscal discipline and a trend towards a more stable fiscal situation [1]

Core Viewpoint - The recent surge in gold stocks is driven by rising gold prices, with COMEX gold surpassing $3700 per ounce and a projected increase to $4000 per ounce by Q1 2026 due to strong investor demand and potential Federal Reserve rate cuts [1] Gold Stocks Performance - Shandong Gold (01787) increased by 3.65% to HKD 36.34 - China Silver Group (00815) rose by 2% to HKD 0.51 - Zhaojin Mining (01818) gained 1.95% to HKD 30.3 - Chifeng Jilong Gold (06693) went up by 1.16% to HKD 31.4 [1] Market Predictions - Morgan Stanley has raised its gold price forecast, anticipating that gold could exceed $4000 per ounce by Q1 2026, with a potential rise to $5000 if the Federal Reserve's independence is challenged [1] - The increase in gold prices is attributed to concerns over global debt and monetary policies, with the passage of the "Big and Beautiful" bill expected to raise the U.S. fiscal deficit by $3.4 trillion [1] Investment Outlook - Huaxi Securities suggests that the long-term outlook for gold remains positive due to global monetary and debt concerns, indicating that gold stocks are currently undervalued and present a good investment opportunity [1]

Core Points - The article discusses the impact of tariffs on the U.S. economy, highlighting that tariffs have led to a significant increase in government revenue but also pose risks to household incomes and economic growth [1][3][4]. Group 1: Tariff Revenue and Economic Impact - As of August 31, the U.S. tariff revenue reached $165 billion, an increase of approximately $95 billion from the previous year [1]. - The Yale Budget Lab estimates that by 2025, tariffs will raise the price level by 1.7%, equating to an average household income loss of $2,300 [1][10]. - The effective average tariff rate for U.S. consumers is projected to be 17.4%, the highest since 1935, with the IEEPA tariffs being a significant component [3]. Group 2: Legal and Political Uncertainties - A recent federal appeals court ruling has raised questions about the legality of tariffs imposed under the IEEPA, with Treasury Secretary Yellen warning of potential refunds if the Supreme Court rules against the administration [1][7]. - The Supreme Court is set to hear arguments regarding the legality of the tariffs in November, which could have significant implications for the administration's trade policies [7]. Group 3: Economic Growth Projections - Economic growth is expected to slow down, with forecasts for Q3 and Q4 annualized growth rates dropping to 1.2%-1.3% from over 3% in Q2 [8]. - The uncertainty surrounding tariffs and economic policies is contributing to a tightening financial environment, which may hinder investment [8]. Group 4: Business Impact - Companies like hand2mind are experiencing increased costs due to tariffs, with one company reporting over $5.5 million in tariffs paid this year, compared to $2.3 million for the entire previous year [10]. - The imposition of tariffs has led to higher production costs and has forced some companies to relocate production to avoid increased tariffs [10].

Group 1: Silver Market Performance - The main silver futures contract in Shanghai closed at 10,035 CNY/kg on September 12, marking a 2.42% increase, with an intraday high of 10,065 CNY/kg and a low of 9,777 CNY/kg [1] - COMEX silver closed at 42.68 USD/oz, up 1.46%, with an intraday high of 43.04 USD/oz and a low of 41.90 USD/oz [1] Group 2: U.S. Tariff Revenue and Budget Deficit - In August, U.S. tariff revenue reached a record high for a single month at 30 billion USD, a 296% increase compared to August of the previous year, contributing to a budget deficit of 345 billion USD, which is 15% larger than the same month last year [2] - For the first 11 months of the fiscal year, total tariff revenue amounted to 172 billion USD, with expectations that annual tariff revenue could reach 500 billion USD by year-end [2] - Despite the surge in revenue, the total budget deficit for the fiscal year reached 1.973 trillion USD, only surpassed by the deficits in 2020 and 2021 during the COVID-19 crisis [2][3]

Group 1 - The core viewpoint of the article indicates that U.S. Treasury yields have declined significantly, driven by cooling employment and falling inflation, with the market fully pricing in a Federal Reserve rate cut in September [1] - As of September 12, the 10-year Treasury yield fell by 16 basis points to 4.06%, while the 2-year yield decreased by 6 basis points and the 30-year yield dropped by 20 basis points over the same two-week period [1] - The U.S. Treasury's fiscal deficit for December was reported at $344.8 billion, with a 12-month cumulative deficit slightly decreasing to $1.89 trillion [1] Group 2 - The net short position in U.S. Treasury futures decreased to 5.915 million contracts, indicating a short-term closure of hedging demand in the interest rate market [1] - The Federal Reserve's policy statement has become more cautious, with market expectations for a 75 basis point rate cut by the end of the year exceeding 90% following weak non-farm payroll data on September 9 [1] - The Treasury General Account (TGA) balance increased by $71.79 billion over two weeks, while the Federal Reserve's reverse repo tool shrank by $10.2 billion, adding uncertainty to liquidity buffers [1]

Group 1 - The core viewpoint of the article highlights a significant decline in U.S. Treasury yields driven by cooling employment and falling inflation, with the market fully pricing in a Federal Reserve rate cut in September [1] - As of September 12, the 10-year Treasury yield decreased by 16 basis points to 4.06%, while the 2-year yield fell by 6 basis points and the 30-year yield dropped by 20 basis points over the same two-week period [1] - The U.S. Treasury's fiscal deficit for December was reported at $344.8 billion, with a 12-month cumulative deficit slightly decreasing to $1.89 trillion [1] Group 2 - The net short position in U.S. Treasury futures slightly decreased to 5.915 million contracts, indicating a short-term closure of hedging demand in the interest rate market [1] - The Federal Reserve's interest rate futures market saw a slight decline in net short positions to 209,000 contracts, reflecting an increased expectation for rate cuts [1] - Short-term projections suggest that rate cuts will lower short-term interest rates, while long-term considerations should focus on fiscal pressures and the impact of global de-dollarization on long-term rates [1]

Group 1 - The U.S. Treasury Department reported a record increase in tariff revenue, reaching $30 billion in August, a 296% year-over-year surge, following President Trump's tariff hikes [1] - Despite the increase in tariff revenue, the federal budget deficit for August was $345 billion, a 15% increase compared to the same month last year, marking it as the third-largest deficit in the first 11 months of the fiscal year [1] - Cumulative tariff revenue for the fiscal year up to August reached $172 billion, with expectations from Treasury Secretary Mnuchin that it could approach an annualized level of $500 billion by year-end [1] Group 2 - Personal income tax revenue continued to grow in August, reflecting rising wage levels and increased employment, while corporate tax revenue saw a significant decline [2] - If tariff revenue remains at August levels, total tariff revenue for the year is expected to approach $300 billion, although there are concerns about potential legal challenges to the tariffs that could result in refunds of about half of the collected amounts [2]

Group 1 - The core point of the article is that South Korea's fiscal deficit exceeded 86 trillion won in the first seven months of this year, marking the third-largest deficit for the same period on record since 2020 and 2022 [1] - The Ministry of Finance reported a management fiscal balance deficit of 86.8 trillion won, which is a key indicator of fiscal health [1] - In July alone, the government achieved a management surplus of 7.5 trillion won, indicating an improvement compared to the 94.3 trillion won deficit from January to June [1] Group 2 - The South Korean government anticipates that the fiscal deficit will reach approximately 111.6 trillion won by the end of the year, aligning with its annual target [1]

Economic Impact - The economic situation in the U.S. has deteriorated significantly since Trump's presidency, with rising inflation and a record trade deficit of $103.6 billion reported in July [13][20] - The Consumer Confidence Index dropped by 6 points in August, the lowest in four months, with 43% of respondents citing high prices as a major concern [13] - The "Big and Beautiful" Act is projected to leave 11.8 million Americans without medical assistance over the next decade, raising concerns among lawmakers [7][9] Political Climate - Wall Street experts are increasingly hesitant to voice their opinions due to political pressure, with many fearing repercussions from the Trump administration [5][11] - Dalio's comments about the U.S. moving towards authoritarianism resonate with some in the financial community, but few are willing to publicly agree [3][5] Fiscal Concerns - The U.S. government is facing a significant budget deficit, with a shortfall of $2 trillion last year, leading to daily borrowing of $5 billion [20][24] - The "Big and Beautiful" Act is expected to increase the deficit by an additional $3.3 trillion over the next decade [20][26] - Moody's has downgraded the U.S. credit rating three times this year, reflecting concerns over ongoing deficits [22] Investment Strategies - Dalio has advised clients to allocate 15% of their portfolios to gold or Bitcoin, indicating a lack of confidence in the U.S. dollar [24] - The current economic policies are seen as unsustainable, with rising interest payments consuming a significant portion of government spending [20][24] Future Outlook - Dalio warns of a potential "economic heart attack" in three years, likening it to the 2008 financial crisis but possibly on a larger scale [26][28] - The current low-interest environment and lack of demand for government bonds could exacerbate the situation, leaving the government with fewer options to respond [28]

Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core Viewpoints of the Report - The overall market shows a complex situation with various factors influencing different sectors. In the short - term, some commodities may experience fluctuations, while in the long - term, certain trends are expected to continue. For example, the stock index may have short - term adjustments but a high probability of long - term upward trends, and precious metals may show a relatively strong trend in the context of approaching interest rate cuts and external interference [11][4]. 3) Summary by Relevant Catalogs a. Main News on the Day - **International News**: The number of ADP employed in the US in August was 54,000, lower than the expected 65,000 and the previous value of 104,000 [5]. - **Domestic News**: The General Office of the State Council issued an opinion on releasing the potential of sports consumption and promoting the high - quality development of the sports industry, including increasing financial support [6]. - **Industry News**: The Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth of the Electronic Information Manufacturing Industry from 2025 - 2026", with expected average growth rates for related industries and specific goals by 2026 [7]. b. Daily Gains of Overseas Markets - The FTSE China A50 futures dropped 1.24%, the US dollar index rose 0.21%, ICE Brent crude oil fell 0.76%, London gold spot decreased 0.22%, London silver dropped 0.83%, ICE No. 11 sugar fell 2.18%, ICE No. 2 cotton dropped 0.02%, CBOT soybeans fell 0.59%, CBOT soybean meal rose 1.34%, CBOT soybean oil fell 0.70%, CBOT wheat fell 0.89%, and CBOT corn rose 0.50% [8]. c. Morning Comments on Major Varieties - **Financial Products** - **Stock Index**: US stock indexes rose, while the previous trading day's stock index continued to correct. In 2025, domestic liquidity is expected to remain loose, and with the increasing probability of the Fed cutting interest rates in September, the attractiveness of RMB assets is enhanced. The market is at the resonance of "policy bottom + capital bottom + valuation bottom", but short - term adjustments are possible [10][11]. - **Treasury Bonds**: Treasury bonds showed mixed trends. The yield of the 10 - year active treasury bond fell to 1.746%. The market is affected by factors such as the Fed's interest rate cut expectation, economic data, and real - estate policies. The price of treasury bond futures has stabilized, but the stock - bond seesaw effect continues [12]. - **Energy and Chemical Products** - **Crude Oil**: Oil prices fluctuated at night. Before the end of the US peak driving season, gasoline and distillate inventories decreased, but commercial crude oil inventories increased. Future attention should be paid to OPEC's production increase [13]. - **Methanol**: Methanol rose 1.18% at night. Coastal methanol inventories increased significantly, and the overall device operating rate and the average operating rate of coal (methanol) to olefin devices both increased. Methanol is expected to be bullish in the short - term [3][14]. - **Rubber**: Rubber fluctuated narrowly. The price is mainly supported by supply - side factors, but the demand side is weak. The short - term trend is expected to continue to correct [15]. - **Polyolefins**: Polyolefin futures were in consolidation. The spot market is mainly affected by supply - demand fundamentals, and it remains to be seen whether the futures stop falling can drive the spot to stop falling [16]. - **Glass and Soda Ash**: Glass and soda ash futures continued to be weak. The market is in the process of inventory digestion, and future attention should be paid to consumption in autumn and policy changes [17]. - **Metals** - **Precious Metals**: Gold prices fell after profit - taking. The market focuses on the non - farm payrolls data on Friday. Multiple factors affect the precious metals market, and gold and silver are expected to be strong in the context of approaching interest rate cuts and external interference [4][18]. - **Copper**: Copper prices closed lower at night. With multiple factors at play, copper prices may fluctuate within a range [19]. - **Zinc**: Zinc prices closed lower at night. The supply - demand situation may tilt towards surplus, and zinc prices may fluctuate weakly within a range [20]. - **Lithium Carbonate**: The short - term trend is affected by sentiment. Supply and demand both show certain changes, and the price may have a callback risk after a rapid rise. If inventory starts to decline, the price may rise further [21]. - **Black Metals** - **Iron Ore**: The demand for iron ore remains supported, but the medium - term supply - demand imbalance pressure is large. The market is expected to be strong and volatile in the future [22]. - **Steel**: The supply - side pressure of steel is gradually emerging, but the supply - demand contradiction is not significant. The market is in a short - term adjustment, and the trading logic focuses on fundamental changes [23]. - **Coking Coal and Coke**: The main contracts of coking coal and coke were strong at night. The market is affected by factors such as policy expectations, inventory changes, and demand seasons, and is expected to fluctuate at a high level [2][24]. - **Agricultural Products** - **Protein Meal**: Protein meal fluctuated at night. The US soybean market has both positive and negative factors, and the domestic market is expected to continue to fluctuate narrowly in the short - term [25]. - **Oils and Fats**: Oils and fats were strong at night. The fundamentals of the palm oil market have limited changes, and the market is expected to continue to fluctuate [26]. - **Sugar**: The international sugar market is in the inventory accumulation stage, with a weak trend expected. The domestic sugar market has both supporting and dragging factors, and Zhengzhou sugar is expected to follow the weak trend of the international market in the short - term [27]. - **Cotton**: Cotton prices rose slightly. The domestic cotton market has a relatively tight supply in the short - term, and the market focuses on the new cotton purchase price. The short - term trend is expected to be volatile [28]. - **Shipping Index** - **Container Shipping to Europe**: The EC index declined. The short - term market is affected by sentiment and expectations, with an expected volatile trend. The medium - term market may return to the game of off - season freight rates [29].