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Market Round Up: Macro Roundup 🙈 – Cyborgs are Coming 👽

by | 10 Sep, 2018

 

1. Macros for the Week Ahead

In the U.S., apart from a deluge of Fed speakers scheduled to make comments this week, macro news coming out of the U.S. will be relatively quiet until the end of the week, with August wage data due on Thursday and retail sales, industrial production and the Michigan consumer confidence indicator all slated for Friday.

In Asia, it’s all about President Trump’s threatened double-down on tariffs on all Chinese imports. Clarity surrounding the issue remains elusive for now as threats of further tariffs in recent weeks have not culminated in any retaliation from China, yet. But if the Trump administration ultimately pushes ahead with such widespread tariffs, China’s economy is primed for slowdown.

In Europe, the economy grew at 0.4% in Q2 as business and other investments rose sharply but net trade was negative. These GDP numbers provide an interesting lens through which to view the upcoming ECB monetary policy decision on Thursday. On the one hand, the slowdown in household consumption expenditure implies wage growth may not be picking up as much as policymakers would like. This is concerning as it stokes doubts about whether inflation sustainably is attainable. On the other hand, the fact that fixed capital formation accelerated is a positive as it suggests businesses in the region are not turning away from investment outlays despite the recent moderation in growth. The underlying trend, however, does not show that there is a particularly pronounced growth impulse. Ultimately, core inflation indicates that the bank is some way off its inflation target, while the confluence of other structural factors also points to a ECB that maintains very low rates going forward.

Related:  Asia & U.S. stocks look strong while cryptocurrencies wobble despite JPMorgan optimism

2. Cyborgs at the Ready

How cooky is this? During last Friday’s weird, dope smoking, live interview Elon Musk declared that artificial intelligence (AI) would be conjoined with a human brain very shortly.

Musk stated that within a matter of months a device being developed by his neurotechnology project, Neuralink, would produce “superhuman cognition”. Neuralink is in fact developing ultra-high bandwidth brain-machine interfaces to connect humans and computers.

Although Musk’s neuro-project passion has been driven by Ian Bank’s cult novel ‘The Culture’, where he wrote about neural laces (an ultra-thin mesh implanted in the skull to form a body of electrodes able to monitor brain function), the world is hoping it may come up with some novel ideas to solve brain diseases – rather than create a new breed of super-human antihero.

Related: Musk, Mergers, and The Markets

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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