In today’s briefing, we cover the latest economic indicators, corporate news, and market movements impacting the global landscape. From forecasts in the US labor market to significant shifts in corporate strategy and international economic updates, here’s a comprehensive overview of the day’s most pressing developments.

US NFP Forecast: Nonfarm Payrolls Set to Increase by 175k in July

The US labor market continues to show resilience, with forecasts indicating an increase of 175,000 in nonfarm payrolls for July. This anticipated growth underscores a steady, albeit moderate, expansion in employment, suggesting that the US economy is still on a recovery path despite broader global economic uncertainties. The upcoming jobs report will be closely watched as it could influence Federal Reserve policy and market sentiment.

International Economic Developments

BoE Takes First Tentative Step on Rate Reduction Path
The Bank of England (BoE) is beginning to signal a potential shift in monetary policy, taking preliminary steps towards rate reductions. This move could mark a significant change in the bank’s approach, particularly as inflationary pressures in the UK show signs of easing.

France Industrial Output Recovers in June
In a positive turn for the French economy, industrial output showed signs of recovery in June. This rebound suggests a stabilization after recent declines and offers a hopeful sign for continued economic improvement in the coming months.

Italian Industrial Production Sees a Small Boost in June
Similarly, Italy’s industrial production experienced a modest increase in June. While the growth was not substantial, it indicates a slight uptrend that could help support the broader European economic outlook.

UK Retail Footfall Declined in July as Consumers Shift Spending
UK retail footfall saw a decline in July, reflecting a shift in consumer spending habits. With inflation impacting household budgets, consumers are becoming more selective in their purchases, potentially focusing more on essential goods and services.

Swiss Inflation Holds Steady as SNB Ponders Next Rate Cut
Switzerland’s inflation rate remained steady, leading the Swiss National Bank (SNB) to consider its next steps in monetary policy. The stability in prices provides the SNB with room to maneuver, potentially opening the door for further rate cuts.

BoJ Likely to Hike in October After Big Shift, Ex-Official Says
A former official suggests that the Bank of Japan (BoJ) may consider hiking rates in October following significant policy adjustments. This potential move would be a noteworthy shift in Japan’s long-standing ultra-loose monetary stance, as the country grapples with economic challenges.

Market Movements and Corporate News

Treasury Yields Slide Ahead of July Jobs Report
As investors await the July jobs report, US Treasury yields have slid, reflecting cautious sentiment in the markets. The report’s findings could provide crucial insights into the health of the economy and the future direction of interest rates.

Dollar Falls as Data Points to Economic Slowdown; Sterling Weak
The US dollar weakened as recent data pointed towards a possible economic slowdown. Concurrently, the British pound also struggled, weighed down by concerns over the UK’s economic outlook and shifting consumer behaviors.

Oil Prices Set for Fourth Weekly Fall on Demand Concerns
Oil prices are on track for a fourth consecutive weekly decline, driven by ongoing concerns about global demand. The dip in prices reflects broader uncertainties in the global economic landscape, particularly in key consumer markets.

Dow Futures Fall 300 Points as Amazon Drops After Earnings
US stock futures faced a downturn, with Dow futures falling 300 points, following disappointing earnings from Amazon. The e-commerce giant’s results highlighted the challenges facing tech companies as they navigate a post-pandemic economic environment.

Noteworthy Corporate Updates

Intel Shares Fall 20% on Plans to Cut 15,000 Jobs
Intel’s shares plunged 20% amid news of the company’s plans to cut 15,000 jobs. This significant restructuring move reflects broader challenges in the semiconductor industry and Intel’s efforts to streamline operations and reduce costs.

Chevron Earnings Miss on Lower Refining Margins
Chevron reported earnings that fell short of expectations, largely due to lower refining margins. The company’s performance underscores the volatile nature of the energy market and the impact of fluctuating global demand.

Exxon Earnings Beat as Production in Guyana and Permian Sets Record
In contrast, Exxon posted better-than-expected earnings, driven by record production in Guyana and the Permian Basin. This strong performance highlights Exxon’s strategic focus on key production areas.

Linde’s Q2 Earnings Beat Estimates on Higher Pricing
Linde exceeded earnings expectations for the second quarter, benefiting from higher pricing. The company’s results point to its strong market position and ability to manage cost pressures.

PBoC Adviser Gives Rare Critique of China Economic Policies
A rare critique of China’s economic policies emerged from an adviser to the People’s Bank of China (PBoC). This candid assessment highlights internal debates over the country’s economic strategy amidst ongoing challenges.

As these developments unfold, market participants and policymakers will continue to navigate a complex and dynamic economic landscape. Stay tuned for further updates and analyses.