A daily market update from FS Insight — what you need to know ahead of opening bell

“Remembering what you’ve been through and how that has strengthened your mindset can lift you out of a negative brain loop and help you bypass those weak, one-second impulses to give in. I guarantee you can think of a time or two when you overcame odds and tasted success.” — David Goggins

Overnight

Wall Street mixed ahead of economic data; CPI in focus RT

Futures mixed as PPI set to kick off data barrage RT

Oil prices steady after rising for five sessions RT

U.S. NFIB July small business survey, July producer price index NFIB

Chipmakers face a looming crisis in labor FT

Starbucks replaces CEO as activist investors push for changes WSJ

Jobhunters flood recruiters with AI-generated CVs FT

The gig economy is staying strong on Americans’ love of convenience FT

Berkshire Hathaway could pay $15 billion in taxes on Apple stock sale Barron’s

Guardian Life Insurance increases stake in private credit group HPS Investment Partners FT

Carlyle explores €3bn sale of Dutch salt and chemicals producer Nobian FT

Janus Henderson expands private credit footprint with stake in $6bn boutique FT

B. Riley’s shares slide on losses from Franchise Group stake WSJ

Equinox-owned Blink Fitness chain files for Chapter 11 bankruptcy WSJ

After global IT outage caused by an update from CrowdStrike, its president accepts ‘Most epic fail’ award at the DefCon hacking conference TR

At 120x a full-time worker’s average salary, CEO salaries at Britain’s 100 largest companies are tame compared to the U.S., where the multiple is 185 IW

Dockworkers along the East Coast are threatening to strike in October Axios

China’s Hesai, a laser sensor maker, to be removed from U.S. DoD blacklist FT

Paris Olympics are the first Olympics since Sydney where the total costs came in under $10 billion CNN

Which college won the Olympics? WSJ

As tech giants pour billions into AI, a recent study shows that tacking the ‘AI’ label on products may actually drive people away CNN

A magnitude 4.4 earthquake occurred in Los Angeles on Monday afternoon; no reports of injuries or structural damage. Much of western Japan is on high alert after a 7.1-magnitude quake hit the region last week. CNN

‘This could be the origin of the Atlantis legend’: mountain that sank beneath the waves discovered off Canary Islands LS

Chart of the Day

MARKET LEVELS

MORNING INSIGHT

Good morning!

There are 7 concerns facing markets in thee coming weeks, with the hostilities between Iran and Israel at the top of the list. Core CPI, released Wed., is key this week.

More in today’s Macro Minute Video, linked HERE.

TECHNICAL

As Mark Newton is on break, there will be no new reports or videos this week.

Click HERE for more.

CRYPTO

Marathon Digital Holdings (MARA -0.75% ) has announced plans to privately offer $250 million in convertible senior notes, with the primary goal of using the proceeds to acquire additional bitcoin and support general corporate purposes. The notes, which will be unsecured and senior obligations of the company, will bear interest payable semi-annually and may be convertible into cash, shares of common stock, or a combination of both, at MARA’s discretion. The offering, subject to market conditions, also includes an option for initial purchasers to acquire an additional $37.5 million in notes. Proceeds will be used for acquiring more BTC -0.19% , as well as for other purposes such as working capital, strategic acquisitions, and debt repayment. This follows their $100 million purchase of BTC in July, and is likely to further its high-beta relationship to BTC price. It is interesting to see a miner pursue this strategy, since, while there is potential additional upside, this increases the level of same way risk for the company should BTC move lower, although according to their latest Q2, the company only had about $346 million in total debt, which is rather tame compared to historical debt levels.

Click HERE for more.

First News

On the Boats and on the Planes They’re Coming to America. Immigrants to the U.S. are turning into American citizens at the fastest pace in roughly a decade. As immigration tops U.S. voters’ priorities ahead of November’s election, the accelerated pace of naturalization comes on the back of improved technology, additional staffing, and simplified procedures. Although the issue has been made a political one, the fact that global conflicts and climate change are helping drive people from their homes precisely as Western countries confront aging populations strengthens the economic incentives for these Western host countries’ support of immigration. The trend is a worldwide one; the issue is neither unique to the U.S. nor is it peaking. Semafor

From Sink to Fountain. Speaking of climate change, the Amazon rainforest, a crucial carbon sink storing the equivalent of two years’ global carbon emissions, is facing a critical tipping point. A recent Amazon Conservation report warns that escalating deforestation could transform this vital ecosystem from a carbon absorber to a net emitter. Despite Brazilian officials’ pledges to curb illegal logging, particularly by gold prospectors, the practice persists. Small-scale gold mining in Brazil’s protected areas nearly doubled over 2018-2022. A local environmental researcher highlighted chronic underfunding and weak enforcement as key obstacles to safeguarding the Brazilian Amazon. Semafor

Landlocked Grift. And from illegal logging to illegal lugging (of maritime freight) – some countries will stop at nothing to make a buck, even if it’s running ships as a landlocked country. Maritime law requires all ships to fly a national flag to maintain global maritime-safety standards and vessel tracking. While the likes of Liberia and the Marshall Islands are traditionally popular for registering oil tankers, some countries with little stake in ocean welfare now offer their flags to vessels seeking to circumvent sanctions, such as those transporting Russian oil. In response to this, the UAE recently imposed a ban on all ships flying the flag of Eswatini (formerly Swaziland), a landlocked African nation, on suspicion of flag-selling activities. As of last year, Eswatini had no registered ships under its flag, yet the current count suddenly stands at 26 vessels, with several having previously transported Russian and Iranian oil. Bloomberg BNN

Stress on No Salt. Water from oceans and seas is being desalinated at an increasing pace, and now half a billion people globally rely on it at least in part for their water needs – a figure that could rise sixfold by mid-century. Not surprisingly, the surge in demand for desalinated water has propelled a far-flowing industry. Some $14 billion is invested each year to refurbish the ~1,500 large desalination plants around the world or to build new ones. Experts say that water will continue to be a singular point of stress, particularly in the era of climate change. Semafor

Free as a Fish. Water sports, especially rowing and swimming, were crucial to the United States’ dominance in the medal count at the Paris Olympics, which was largely fueled by achievements rooted in the collegiate system. Notably, Stanford athletes claimed 39 medals – surpassing the totals of the Netherlands, Germany, and South Korea – which would have placed the university eighth in the Olympic rankings. This success highlights a broader trend: following China in second place, the next 14 countries in the medal table are all affluent democracies. The pattern suggests that athletic prowess may indicate wider societal strengths, particularly in education. Nations adept at providing widespread access to sports facilities and coaching – a common trait among democracies – often excel in delivering comprehensive healthcare and education to their citizens. Semafor

Something to Clap For. The 1974 album One Hand Clapping, by Paul McCartney and Wings, was shelved for decades, but has finally been released in full. Recorded at the legendary Abbey Road studios, the album is “intimate and exploratory, showcasing a seldom heard, anything-goes side of the former Beatle”. Listen to it on Spotify.