News Without All The Nonsense (Sponsor)

Check out 1440 — it’s news without motives, edited to be unbiased as humanly possible. The team at 1440 scours over 100+ sources so you don't have to. Culture, science, sports, politics, business, and everything in between — in a five-minute read each morning, 100% free.

Another Wall Street bank throws in the towel on their 2023 recession call (2 min read)

JPMorgan became the latest bank to make a U-turn on its US recession call this year. The bank now thinks the US is unlikely to face a recession in the near future and delays its recession forecast to 2024. It believes that the US economy's growth will remain strong for the third quarter. While there are still risks for a recession in the following year, there's also potential for modest economic growth. The robust job market and consumer spending in the US are the key contributing factors to JPMorgan’s revision.

Chinese exports suffer worst fall since start of pandemic (3 min read)

China's exports and imports experienced sharper declines than anticipated in July, dropping 14.5% and 12.4% respectively from a year ago. This is the largest fall for both metrics since the pandemic started in early 2020. The weakening global demand, high inflation, and rising rates have contributed to China's export struggles. The sharp decline in imports also undermines the hope that domestic demand will lead to a bounce in China’s economy. These challenges are greatly impacting the country’s economic recovery, putting pressure on policymakers.

Lucid earnings miss but stock pops (3 min read)

Luxury EV startup Lucid missed Q2 earnings and revenue estimates while cutting prices for its vehicle by up to $12,400 due to rising EV competition. Despite this, Lucid's stock rallied over 10% following the news. The company affirmed its goal to produce over 10,000 EVs in 2023 and has improved its balance sheet. Although Lucid is still losing money as a startup, the loss in the last quarter is much less than a year ago. Analysts highlighted all these factors as positive signs that pushed the stock higher on Tuesday.

Moody’s warns it could cut credit ratings of 6 big US banks (2 min read)

Moody's has placed six large US banks, including BNY Mellon, State Street, and Northern Trust, under review for possible credit rating downgrades. The reasons for review include ongoing strain in the US banking sector, increased funding pressures, and potential capital weaknesses. The lowered credit ratings could lead to higher funding costs for these banks. Moody's also downgraded 10 smaller US banks due to their risk of declining asset values, especially those with large exposure to commercial real estate. US stock markets edged lower after the news.

US ETFs Eke Out Weekly Inflow (Table Chart)

US-listed ETFs barely scraped new assets last week after the inflows in US equity ETFs and outflows in fixed-income ETFs offset each other. Most of the inflows were still mostly in US large-cap ETFs but a strong list of outflows emerged from various fixed-income strategies such as high yield and corporate bonds, and long-term US treasury ETFs. More on the full list of ETF creations, redemptions, and asset flows from last week is available in the article.

Cathie Wood Says SEC Will Approve Multiple Bitcoin ETFs at Once (2 min read)

Cathie Wood of ARK Invest suggests that the SEC might approve multiple spot-Bitcoin ETFs simultaneously. This reverse her previous view that her firm would be the first in line for potential approval and leveled the playing field among firms like BlackRock, Fidelity, WisdomTree, VanEck, and Invesco. While no spot-Bitcoin ETF exists in the US yet, she believes such approvals could result in demand exceeding $50 billion. The success in attracting new assets will come down to each issuer’s marketing skills since the funds will be similar.

That's it for today! You can reply to this email if you have any comments or feedback.

If you are interested in reaching an audience of investors, entrepreneurs, and financial professionals, you may want to advertise with us.

Thanks,
Thomas

No longer want to receive these emails? Click here to unsubscribe.