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Some members of US Congress want Fed Chair Powell sacked

  
  Analysis
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This from three members of the US Congress, who seem confused about the remit of a central bank:

Via a Politico report:
  • Reps. Alexandria Ocasio-Cortez, Rashida Tlaib and Ayanna Pressley  … called for Federal Reserve Chair Jerome Powell to be replaced
  • “As news of the possible reappointment of Federal Reserve Chair Jerome Powell circulates, we urge President Biden to re-imagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice”
Sounds great! I wonder should the Chair print more or less to hit these three added objectives though?
If Yellen was still Chair she’d know how to deal with these clowns.
This from three members of the US Congress, who seem confused about the remit of a central bank:

Here is what’s on the economic calendar in Asia today – China’s official PMIs for August

  
Analysis, Economy

China’s NBS PMIs are the focus, and plenty more on the data agenda also.

 

2245 GMT New Zealand Building Permits for July

  • prior 3.8% m/m

2330 GMT Australia weekly consumer confidence

 

  • ANZ/Roy Morgan survey
  • prior 101.6

 

2330 GMT Japan Jobless (Unemployment) rate for July

  • expected 2.9%, prior 2.9%

Job to applicant ratio for July

  • expected 1.12, prior 1.13

2350 GMT Japan Industrial Production for July (preliminary)

  • expected -2.5% m/m, prior 6.5%
  • expected 21.5% y/y, prior 23.0%

0100 GMT China official PMIs for August, brief preview here: China PMI data for August due this week – what to expect

Manufacturing PMI:

  • expected 50.1
  • 50.4 in July

Non-manufacturing PMI 

  • expected 52.0
  • 53.3 in July

 

0100 GMT New Zealand ANZ business survey for August

  • Business Confidence prior -3.8
  • Activity Outlook prior 26.3

0130 GMT Australia Q2 Current Account, will include the “net exports as a % of GDP” for the quarter, this’ll feed into the GDP number due September 1. 

  • prior -0.6%
  • Export prices rose but volumes fell. A net minus for this expected. Expectations I have seen are for a result similar to Q1.
0130 GMT Australia Australia Building Approvals for July

  • expected -5.0% m/m, prior -6.7%
  • prior 48.9% y/y

0130 GMT Australia Private Sector Credit for

  • expected 0.5% m/m, prior 0.9%
  • prior 3.1% y/y

S&P and NASDAQ close higher and at record levels. Dow down.

  
Analysis, US Market
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53rd record close level for the S&P in 2021

The S&P and NASDAQ closed higher and at record levels again. The Dow industrial average fell modestly.

Highlights include:

  • S&P and NASDAQ up for the seventh day in the last eight
  • S&P closes at a record level for the 53rd day NASDAQ in 2021
  • NASDAQ index closes at a record level for the 32nd in 2021
  • Advances on the New York Stock Exchange total 1406. Declines total 1885. Unchanged 203
  • major indices are on track for monthly gains
  • S&P on track for the best month since April with one more day to go
The final numbers are showing:
  • Dow industrial average felt -55.9 points or -0.16% at 35399.90
  • S&P index rose 19.39 points or 0.43% at 4528.76. The new intraday high reached 4537.80.
  • NASDAQ index rose 136.39 points or 0.90% at 15265.89. The new intraday high reached 15288.10
  • Russell 2000 index fell 11.16 points or -0.49% at 2265.99
Nine of 11 S&P sectors were higher led by:
  • Real estate, +1.2%
  • Technology, +1.1%
  • Consumer discretionary +0.92%
  • Communication +0.74%
Declining sectors were led by:
  • Financials -1.47%
  • Energy -1.16%
  • Materials -0.17%
  • Industrials -0.15%

Hurricane Ida weakens to a tropical storm – NHC

  
  Analysis

The latest update on Ida

From the NHC:

Tropical Storm #Ida Advisory 17: Ida Now a Tropical Storm Over Southwestern Mississippi. Dangerous Storm Surge, Damaging Winds, and Flash Flooding Continue Over Portions of Southeastern Louisiana and Southern Mississippi.

Well, at least this one is slowly getting out of the way but it surely won’t be the last for Louisiana this season so keep an eye out for the next one when it comes around.

OPEC+ reportedly likely to roll over output policy this week

  
Analysis, Crude

Reuters reports, citing three OPEC+ sources on the matter

The report says that OPEC+ is likely to keep its oil output policy unchanged i.e. planned 400k bpd hike starting from September, when they meet on 1 September this week.
One of the sources is reported as saying that:

“Current oil prices around $70 are okay. OPEC+ is likely to continue as planned with the increase of 400k bpd.”

North Korea appears to have resumed operation of its plutonium-producing reactor

  
Analysis, Politics
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Producing plutonium will allow the country to expand its arsenal of nuclear weapons.

Wall Street Journal report on findings of the UN Atomic Agency:
  • “Since early July, there have been indications, including the discharge of cooling water, consistent with the operation of the reactor,” said the report by the International Atomic Energy Agency.
  • and there are indications that North Korea is also using a nearby laboratory to separate plutonium from spent fuel previously removed from the reactor.
The agency described the twin developments as “deeply troubling” and a clear violation of United Nations Security Council resolutions.
North Korea’s plutonium-producing reactor is at Yongbyon
  • appeared to have been inactive from December 2018 until the beginning of July 2021
Producing plutonium will allow the country to expand its arsenal of nuclear weapons. 

US gulf – Hurricane Ida – more than 95% Gulf crude oil, 94% natural gas offline

  
  Analysis
Platts with the report that more than 95% Gulf crude oil, 94% natural gas offline:
  • many Louisiana refineries and petrochemical plants were closed in advance of the major storm
Also reports that:
  • Colonial pipeline says it is temporarily shutting fuel lines from Houston, Texas, to Greensboro, North Carolina
US President Biden says it could be weeks before electricity is restored to some areas
  • damage from the hurricane is likely beyond coast
Oil trading (CL futures) begins at 6pm US ET (2200 GMT)
hurricane ida 30 August 2021
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