By Geoffrey Smith and Ana Beatriz Bartolo
Investing.com – The U.S. publishes the latest major dump of economic data ahead of next week’s pivotal Federal Reserve meeting, featuring retail sales, jobless claims and the Philadelphia Fed’s business survey. US labor unions and rail operators reach an interim agreement to prevent a national rail strike in the US. California sues Amazon for anti-competitive behavior toward third-party sellers and wholesalers. The network concludes its long-awaited ‘Merge’ and Xi Jinping meets Vladimir Putin for the first time since Russia’s invasion of Ukraine. In Brazil, Guedes criticizes the spending cap and talks about adjustments to the 2023 budget, if Bolsonaro is reelected.
Here’s what you need to know about the financial markets on Thursday, September 15th.
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1. Dump of pre-fed data
The US will publish the August numbers, the last important piece of an economic data puzzle that it will have to consider when it meets next week to define the
Analysts expect the number of headlines to have risen 0.2%, which would represent a modest increase in real terms, given the modest 0.1% increase in the month. must have increased by 0.1%.
Elsewhere, the Federal Reserves publish their monthly manufacturing surveys, while weekly ones are expected to have jumped to historically low levels thanks to the still high availability of new jobs for those being laid off. August numbers are also due at 10:15 am.
Meanwhile, unions and rail operators have reached an “interim agreement” that averts the threat of a U.S. rail strike, according to the Labor Department. The agreement, if approved by unionists, prevents strike action that would have a severe impact on domestic supply chains that have not yet fully recovered from the effects of the pandemic.
The actions of Union Pacific (NYSE:) and CSX (NASDAQ:) were up more than 3% premarket on the news, while Norfolk Southern (NYSE:) shares rose 1.7%. Refineries, automakers, coal companies and retailers are also likely to breathe a sigh of relief.
2. US stocks open higher
US equity markets are expected to open slightly higher later on supported by news from rail trading.
At 8:24 AM, 100 futures were down 0.34%, while A and A were down 0.19% and 0.14%, respectively. The three cash benchmarks rose as much as 0.7% on Wednesday, thanks to a late rally that, in hindsight, appears to have anticipated the news of rail trading.
The lawsuits likely to be in focus later on include Amazon (NASDAQ:) (BVMF:), which was sued Wednesday by the state of California over alleged anti-competitive practices in its dealings with third-party sellers and wholesalers. Also in the news is energy group Shell (LON:), which has named Wael Sawan, the head of its integrated gas business, as its new CEO. He will replace Ben van Beurden at the end of the year.
(BA:) (BVMF:) reports results after the closing bell.
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3. Guedes talks about the budget
Economy Minister Paulo Guedes said that the spending ceiling was “poorly designed” and that “they forgot to put in the walls, the renovations”. Guedes said that the measure aims to prevent the government’s exaggerated growth, but that the limits imposed also prevent the State from decreasing. The statements were made at two events this Wednesday, 14.
“The ceiling is to not let the State grow. If I want to reduce the State, sell the State to have less State and donate it to the population, the ceiling prevents it. Of course, this kind of adjustment has to be made. But we maintain the philosophy of containing the growth of the federal government”, he said.
Guedes also denied the hypothesis of a “fiscal bomb” in public accounts for next year and that the government would be in a context of “fiscal populism”.
Regarding the details of the 2023 budget, the minister said that if President Jair Bolsonaro is re-elected, he should send a “message” during the first days of the new term to adjust the government’s accounts, in order to enable, for example, the Brazil Aid of R$ 600, which is being promised during election campaigns, but which was not included in next year’s Budget.
4. The Ethereum network completes “The Merge”
The Ethereum network has completed its long-awaited, long-awaited and long-delayed transition to a new ‘proof of stake’ system for validating transactions.
The so-called ‘Merge’ is intended to greatly reduce the power consumption of the network and thus make it easier for the host of applications running on it to achieve scale.
While this should be favorable in the long term for ether, the digital currency used on the network, the short-term price action in suggests that the move was more than fully discounted upfront and was not a bigger market driver than issues. broader issues related to risk appetite at the moment. Ether is down 0.9% to $1,590, having lost more than half its value this year.
5. Xi-Putin Meeting
Chinese President Xi Jinping will meet his Russian counterpart Vladimir Putin on the sidelines of a regional security conference taking place in Kazakhstan.
The two will likely discuss the fallout from Russia’s war in Ukraine, which Putin launched just days after the two declared a “unlimited partnership” in February this year. The meeting comes at a difficult time for Putin, whose army is hastily regrouping after suffering an embarrassing defeat in eastern Ukraine last week.
China has been a crucial supporter of the Russian economy ever since, dramatically increasing its purchases of Russian and refined products. However, while the two have a common interest in resisting what they see as US hegemony ambitions, the country has avoided providing public aid in the form of military material.