5 Things You Need to Know to Start Your Day: Americas

Good morning. Stock futures are higher as attention turns to the US labor market, while China’s economic malaise continues. Here’s what’s mo [View in browser]( [Bloomberg]( Good morning. Stock futures are higher as attention turns to the US labor market, while China’s economic malaise continues. Here’s what’s moving markets. — [Sam Unsted]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Futures higher US stock futures [are following European and most Asian stocks higher]( with traders’ attention turning to the next round of economic data, which may support the case for the Federal Reserve to cut rates at its September meeting. Treasuries and the dollar are little changed. Later, we’ll get further insight into how US consumers are faring when Walmart releases results and retail sales numbers come out. Manufacturing, industrial production and jobless claims data are on the slate too. Eyes on Labor The Fed’s Austan Goolsbee said he was [growing more concerned about the labor market]( than inflation following the reassuring report on price-growth on Wednesday. He said that interest rates are in “very restrictive” territory, which would only be appropriate if the economy was overheating. Bloomberg columnist John Authers agrees that it’s time to start [looking more closely at the labor market](. Growth malaise The [malaise in Chinese economic growth]( extended into the third quarter, adding further attention to the possible need for more fiscal stimulus. A surprise slowdown in investment was the key takeaway from a raft of data, while industrial production softened slightly and overshadowed better retail sales. The [downturn in home prices did abate in July]( however, in a sign that a forceful attempt by the government to revive the market is bearing fruit. Iron ore woes Concerns about China’s economic demand are also impacting commodity markets, with [iron ore prices hitting the lowest levels since 2022]( on jitters about the steel industry. Steelmakers in the country [slashed output last month]( owing to sinking demand, which comes as they contend with shrinking margins. China is the major global market for iron ore and sets the tone for the entire industry. Buying big tech The latest flurry of 13F filings show investors reshuffling holdings in Chinese giants and big tech names. Hedge fund manager Michael Burry [slashed his overall equity stake]( by half but increased his share in China’s Alibaba. Billionaire investor David Tepper, meanwhile, [trimmed his Alibaba and US big tech holdings]( but held on to the other Chinese stocks he’d been snapping up. And Temasek, the Singapore state-owned investor, [spent billions on tech stocks]( in the second quarter before the drop in July. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - WHO declares [Mpox outbreak]( a global health emergency. - Apple pushes ahead with a [tabletop robot](. - Starbucks’ new CEO will work [1,000 miles from headquarters](. - Another [$393 million in WhatsApp fines]( for financial firms. - Harris set to propose [a “price gouging” ban]( on food and groceries. And finally, here's what Joe’s interested in this morning Yesterday’s CPI came in basically as expected, with a 0.2% monthly increase in the core rate. It’s not really worth quibbling too much over decimal points, but it actually came in at 0.165%, so it was a cool 0.2%. The number was a bit of a yawner, which perhaps is a further sign that the era of everyone being on pins and needles over each inflation report is coming to an end. I thought the best characterization of the report that I saw came from Peter Williams of 22V Research who, said the number “gives the Fed permission to focus on the labor market.” In other words, the number itself probably doesn’t move the dial much. But if the inflationary wave is in fact over, then the Fed can really try to calibrate its policy with an eye on the weakening labor market and not worry so much about the stable prices side of the mandate. On that note, we get Initial Jobless Claims today. Remember, stocks exploded last Thursday when claims came in below expectations, cutting against a narrative that the labor market is deteriorating. The labor market is clearly slowing down by basically any measure you look at (employment, job openings, the hiring rate, wages, etc.,)but what matters here is whether it’s still just cooling or whether the wheels are coming off. Right now, especially with volatility having settled down, the popular view still seems to be the former. So we’ll see with claims today. In addition to all that, we’ll also get Empire Fed, Philly Fed, and retail sales. All of that will come out at 8:30 a.m. It’s a full day of second-tier data to chew over. Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Stay updated by saving our new email address Our email address is changing, which means you’ll be receiving this newsletter from noreply@news.bloomberg.com. 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