* Heatwaves around the world likely triggered by climate change, study finds
* Decades of rising global debt levels starts to bite as borrowing costs increase
* US economic boom possible due to productivity boost: head of Yardeni Research
* When will the drop in US personal savings threaten the expansion?
* Federal Reserve expected to lift interest rates tomorrow (Wednesday, July 26)
* Chicago Fed Nat’l Activity Index: US growth remains below trend in June
* US economic momentum slows in July via PMI survey data:

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American shares remain firmly in the lead for the major asset classes year to date, based on a set of ETF proxies through Friday’s close (July 21). Markets generally are posting solid gains in 2023 but various risk factors will pose a stress test for the bull run in the second half.

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* A “momentous week” ahead for Fed and other central bank
* Fed isn’t set to declare victory on inflation
* Positive Q2 earnings surprises for S&P 500 firms in line with recent averages
* Decade-long rally in US home prices may be ending: Professor Robert Shiller
* Eurozone economy contracts at steepest rate in 8 months in July via PMI survey
* Is the regional banking crisis over? Investors think so:

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● You Will Own Nothing: Your War with a New Financial World Order and How to Fight Back
Carol Roth
Interview with author via Hidden Forces
The argument that Carol makes in the book is that we are on the precipice of a new financial world order, one that will fundamentally change the fortunes of hundreds of millions if not billions of people across the western world. How this new financial world order is being brought about and the role being played by international organizations, governments, and multinational corporations in facilitating it forms a large part of today’s conversation. The second part of the episode examines the deeper technological, socio-cultural, and spiritual forces that are driving peoples awakening. This part of the discussion focuses on how to differentiate betwen the fear-mongering misdirection of many media entrepreneurs and other, more credible sources of information, as well as what we can do to fight back by regaining control over our finances, over our lives, and over the narratives that define our reality.

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Betting on War? Oil Prices, Stock Returns and Extreme Geopolitical Events
Knut Nygaard (Oslo Metropolitan U.) and L.Q. Sørensen (Storebrand Asset Mgt.)
July 2023
We show that the ability of oil price changes to predict stock returns is largely limited to five extreme geopolitical events: the 2022 invasion of Ukraine, the 2003 invasion of Iraq, the 1990/91 Persian gulf war, the 1986 OPEC collapse, and the 1973 Arab-Israel war. In the counterfactual scenario where these events did not occur, the t-statistics are reduced on average 75% as compared to that reported by Driesprong, Jacobsen, and Maat (2008). We also find that a market-timing trading strategy based on oil price changes typically generates insignificant abnormal returns, contradicting previously published results. Our findings serve as an example of how a significant predictor in a time series forecasting regression does not necessarily constitute a useful or profitable market-timing signal.

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* US Treasury Sec. visits Vietnam to strengthen ‘friendshoring’ of supply chains
* Damaged Pfizer plant will “likely lead to long-term shortages” of medicine
* US Leading Economic Index continues to issue warning for economy
* Federal Reserve launches instant payments services
* US existing home sales fell in June to slowest pace in 14 years
* Philly Fed Mfg Index continues to reflect weak sector activity in July
* US jobless claims fell last week, holding near multi-decade lows:

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Are we at or near peak yields for risk assets? The possibility is looking more likely these days.

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* Final Fed rate hike expected, according to new Bloomberg survey of economists
* Recession risk still looks low for the US economic outlook
* Just 1% of all US homes change hands in first half of 2023, lowest in a decade
* Net inflows into Chinese stocks falls below other Asian markets
* China’s use of coal for energy is deepening
* TSMC, world’s largest chipmaker, reports 10% drop in Q2 profits vs. year ago
* US housing starts fall more than forecast in June:

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* Extreme heat bakes large parts of the US, Europe and Asia
* Will China deflation/disinflation soon be exported to the rest of the world?
* Investment banking, trading downturn ‘bottomed’, says Morgan Stanley chief
* US GDP growth set to pick up in Q2: Atlanta Fed’s GDPNow model
* Wave of corporate bankruptcies brewing as easy money era fades
* US homebuilder sentiment edges up in July, highest level since June 2022
* US industrial output falls for second month in June
* US retail sales rise for third month, reflecting slow but resilient spending trend:

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One of Wall Street’s famous maxims is that bull markets climb a wall of worry. On that score there’s no shortage of real and potential hazards lurking. But as recent history suggests, the crowd isn’t intimidated, at least not yet. Quite the opposite, in fact, as investor sentiment seems to have been stoked in favor of buying, according to various trend profiles in markets around the world that point to price strength that highlights risk-on positioning.

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