The U.S. Producer Price Index (PPI) remained unchanged in July (0.0%), after falling 0.1% in June, while expectations pointed to a 0.2% increase, bringing its annual rate to 4.7%, down from 5.5% in May. The result reflected mixed performance, with goods prices declining 0.7% due to lower energy and gasoline costs, while services increased 0.2%. Core PPI advanced 0.4% month-over-month, compared with 0.1% in June, and recorded an annual increase of 4.7%.

Our Take

Since the PPI typically anticipates movements in the personal consumption expenditures price index, the Fed's preferred inflation measure, this result reinforces our view (and the market's) that the Fed is unlikely to rush into raising interest rates in the short term.

Eurozone industrial production remained unchanged in June 2026 compared with the previous month, after recording 0.3% growth in May. By component, non-durable consumer goods increased 3.0% and energy rose 1.5%, while capital goods declined 1.4% and intermediate goods fell 0.8%. On an annual basis, industrial production advanced 0.1%.

Our Take

The stability in industrial production highlights the stagnation of manufacturing activity at the end of the second quarter. Although growth in non-durable consumer goods and energy helped support activity, the decline in capital goods points to weaker investment and productive capacity.

The U.K. economy grew 0.4% in the second quarter, after expanding 0.6% in the first three months of the year, while annual growth stood at 1.2%. Although the pace of expansion slowed, the economy showed greater resilience than expected in the face of the conflict in the Middle East.

Our Take

The data confirm a gradual slowdown, but not a significant deterioration in economic activity, with services and private consumption providing support. Looking ahead, the main risk comes from rising energy prices, which could put pressure on inflation and reduce household disposable income, complicating the Bank of England's ability to cut rates.

Norway's Central Bank kept its benchmark interest rate at 4.25%, although it reiterated that another increase could still be necessary due to persistent inflationary pressures. The decision maintains a restrictive monetary policy stance and reflects the central bank's caution regarding inflation trends and elevated economic uncertainty.

Our Take

The more hawkish tone reinforces expectations that Norway will maintain higher interest rates for longer, particularly if higher energy prices resulting from the conflict in the Middle East prolong inflationary pressures.

Corporate News

Anthropic is in talks to acquire artificial intelligence startup Decart AI for $6 billion. Decart develops so-called world models, which aim to simulate the physical world, as well as software that can reduce the cost of training artificial intelligence by helping chips operate more efficiently.

Maersk once again raised its 2026 underlying EBITDA guidance to $10.5 billion to $12.5 billion, well above its previous estimate and analyst consensus. The revision reflects higher freight rates, more resilient global container demand, and capacity constraints, which have offset higher operating costs resulting from disruptions in the Middle East.

Lenovo shares rose 20% in Hong Kong after the company reported a 43% increase in revenue. An increase of this magnitude in revenue confirms that demand for computing equipment with integrated AI capabilities is already translating into tangible results for manufacturers, extending beyond data center infrastructure.

The To-do List

  • Follow today's $25 billion 30-year Treasury bond auction, which is expected to be issued at the highest financing rate in 25 years.

  • Watch whether the yen appreciates sustainably following news of the Japanese government's support for a Bank of Japan rate hike.

  • Dedicate 30 minutes to a rowing session using resistance bands or a rowing machine, one of the most complete exercises for strengthening the back, arms, and core.

  • Remember that today marks the 505th anniversary of the fall of Mexico-Tenochtitlan in 1521, one of the most decisive events in the formation of modern-day Mexico.

Today's Quote...

"Talent is common, what is rare is persistence."

— Anonymous