The U.S. debt gets downgraded

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🔻 Fitch Downgrades U.S. Debt Rating [CNN]

Fitch Ratings has lowered the US debt rating from AAA to AA+, attributing the decision to deteriorating governance standards, including fiscal management issues and recent political instability. This downgrade, which could affect mortgage rates and global contracts, was met with disagreement from the Biden administration.

📊 The Jobs Market Is Starting To Simmer [WSJ]

The U.S. economy added 187,000 jobs in July, a slowdown from the previous year's average of 400,000 jobs per month, signaling a cooling economy and reducing pressure on the Fed to raise interest rates. The unemployment rate dipped to 3.5%, wages grew by 4.4%, and sectors such as healthcare, financial activities, and construction saw job increases, while areas like temporary services, tech and information companies, and retailers cut staff.

📉 Bill Ackman Shorts 30-Year US Treasuries [BB]

Hedge Fund Manager Bill Ackman is betting on a decline in 30-year US Treasuries due to anticipated increases in the supply of Treasuries needed to fund the current budget deficit, future spending plans, and higher refinancing rates.

🔄 Bank of America Reverses Recession Call [BB]

Bank of America economists have abandoned their prediction for a US recession due to recent data indicating persistent economic growth, low unemployment, and gradual improvements in wage and price pressures, making them the first large Wall Street bank to reverse their recession forecast.

🇧🇷 Brazil Cuts Interest Rates [R]

In an unexpectedly aggressive move, Brazil's central bank cut its benchmark interest rate by 50 basis points due to improved inflation projections, and signaled further similar reductions in the coming months.

🏠 Foreign Purchases of U.S. Homes Reaches All-Time Low [WSJ]

Foreign purchases of U.S. homes have reached a record low, with 84,600 homes bought in the year ending March, a 14% drop from the previous year, though signs of a turnaround are emerging due to easing Covid restrictions and increased interest in rental properties.

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