The OECD's GDP grew by 0.4% in Q2 2023, compared to the previous quarter. This continued the moderate growth trend that has been seen since early 2022.

The G7 countries also saw GDP growth in Q2 2023, with Japan and France experiencing the most notable growth. The United States, the United Kingdom, and Canada also saw growth, albeit at a slower pace. However, Italy's GDP contracted, and Germany's growth remained flat.

The factors driving these changes varied among countries. In Japan, net exports were the main growth driver, while private consumption decreased. France saw growth supported by net exports, but private consumption declined. The UK experienced growth due to increased private and government spending, although net exports hindered it. The same was true for Germany, mainly due to decreased exports. In the US, investment and private consumption contributed to growth, though private consumption growth slowed. Italy's GDP contraction was attributed to reduced domestic demand.

Among the OECD countries geographically close to the Ukraine conflict, Lithuania's GDP rebounded strongly in Q2 2023, while Poland and Hungary experienced contractions for multiple quarters.

Regarding other OECD nations, Ireland had the highest GDP growth (3.3%) in Q2, followed by Slovenia and Costa Rica. Conversely, GDP contracted notably in Poland, Sweden, and Colombia.

Globally, the OECD area's GDP exceeded its pre-pandemic levels by 5.1% in Q2 2023. Among G7 nations, GDP surpassed pre-pandemic levels by 4.0%, except for the United Kingdom. Spain, severely impacted by the pandemic, finally surpassed its pre-pandemic GDP level in Q2 2023 by 0.4%.

The OECD projects global growth to be 2.7% in 2023, with a modest pick-up to 2.9% in 2024. This is well below the average growth rate in the decade preceding the COVID-19 pandemic. The main risks to the outlook include a further escalation of the war in Ukraine, a more pronounced tightening of financial conditions, and renewed COVID-19 outbreaks.

Source: https://www.oecd.org/sdd/na/gdp-growth-second-quarter-2023-oecd.htm?utm_term=pac&utm_medium=social&utm_content=3-SDD%2CGDP%2C1-Non-CampaignDirectorateContent%2C2-Well-FunctioningGlobalMarkets&utm_source=linkedin

ADP National Employment Report as of August 2023

 The latest employment data does reveal some notable trends in various sectors. The natural resources and mining sector is clearly the star performer, with its nonfarm payroll employment surging by a whopping 21.42%. This is likely due to the rising demand for commodities such as oil, gas, and minerals. The leisure and hospitality sector is also doing well, with its nonfarm payroll employment increasing by 8.96%. This is likely due to the reopening of businesses and the pent-up demand for travel and entertainment. The construction sector is also growing, with its nonfarm payroll employment increasing by 4.88%. This is likely due to the ongoing investment in infrastructure and housing.

On the other hand, some sectors are facing challenges. The financial activities sector is seeing a decline in nonfarm payroll employment, down by 1.67%. This is likely due to the ongoing consolidation in the financial industry. The information sector is also seeing a decline, down by 1.17%. This could be due to the changing nature of the tech industry, as well as the ongoing trade war with China. The manufacturing sector is also seeing a modest setback, down by 0.88%. This could be due to a number of factors, including the rising cost of labor and the ongoing trade war.

Overall, the employment data paints a mixed picture. Some sectors are doing well, while others are facing challenges. This suggests that the economic recovery is still uneven, and that there are some risks on the horizon. However, the overall trend is positive, and the economy is expected to continue to grow in the coming months.

 

Source: ADP National Employment Report

Existing Home Sales as of August 2023

 

In the latest dataset, there was a decrease in existing home sales, coinciding with an upswing in inventory levels and an expansion in the months of supply. Furthermore, the most recent information indicates a modest decline in median sales prices.

Source: National Association of Realtors

Capital Market Rates

The rise of interest rates in the capital market to levels seen before the 2008 financial crisis could have significant implications for both investors and the broader economy. Here are some key points to consider:

### Economic Implications

1. **Cost of Borrowing**: Higher interest rates make it more expensive for both individuals and businesses to borrow money. This could lead to reduced consumer spending and business investment, slowing down economic growth.

2. **Debt Servicing**: Existing borrowers may find it more difficult to service their debts, potentially leading to increased defaults.

3. **Currency Value**: Higher interest rates often attract foreign capital, which could strengthen the domestic currency. While this is good for importers, it can hurt exporters.

4. **Inflation**: Higher rates generally dampen inflationary pressures by reducing demand for goods and services.

5. **Bank Profitability**: Banks generally benefit from a higher interest rate environment, as the spread between what they pay on deposits and what they earn on loans widens.

### Investment Implications

1. **Bond Market**: Rising interest rates typically lead to falling bond prices, affecting fixed-income investors.

2. **Stock Market**: Higher rates can reduce the present value of future cash flows, making stocks less attractive. However, sectors like banking might benefit.

3. **Real Estate**: The cost of mortgage financing rises with interest rates, which can lead to a slowdown in the housing market.

4. **Commodities**: A stronger domestic currency can make commodities priced in that currency more expensive for foreign buyers, potentially reducing demand.

5. **Emerging Markets**: Higher interest rates in developed markets can lead to capital outflows from emerging markets, affecting their currencies and stock markets.

### Policy Implications

1. **Monetary Policy**: Central banks may need to reconsider their policy stance. If the economy is overheating, higher rates might be warranted, but if the rise in rates is too rapid, it could choke off growth.

2. **Fiscal Policy**: Governments may need to adjust their spending and taxation policies to account for the changing economic landscape.

3. **Regulatory Oversight**: Financial institutions may come under increased scrutiny to ensure they are adequately capitalized and not taking excessive risks.

 

Palantir Technologies Inc. (PLTR) as of 08-2023

 Palantir Technologies Inc. (PLTR) is a software company that develops data analytics tools for the government and commercial markets. The company's software platform, Foundry, helps organizations collect, organize, and analyze large amounts of data to make better decisions.

PLTR stock has been on a wild ride since it went public in September 2020. The stock price surged from $10 to over $40 in the months following the IPO, but it has since fallen back to around $15. Some investors believe that PLTR stock is overvalued, given the company's slow revenue growth and mounting losses. Others believe that PLTR is a long-term investment with the potential to revolutionize the way organizations use data.

Here are some of the pros and cons of investing in PLTR stock:

Pros:

• PLTR has a strong track record of success in the government market. The company's software is used by the CIA, the FBI, and other major government agencies.
• PLTR is expanding into the commercial market, which has the potential to drive significant growth. The company has already signed major contracts with companies like Coca-Cola and Pfizer.
• PLTR has a talented team of engineers and scientists who are experts in data analytics. The company is constantly innovating and developing new products and services.

Cons:

• PLTR is still a young company and has yet to prove that it can be profitable on a consistent basis. The company has reported losses in each of the past three years.
• PLTR's software is complex and expensive. This could limit its adoption by smaller organizations.
• PLTR faces competition from other data analytics companies, such as Snowflake and Databricks.

Overall, PLTR stock is a risky investment. The company has a lot of potential, but it is also facing some challenges. Investors should carefully consider the risks and rewards before investing in PLTR.

In the short term, PLTR stock could continue to be volatile. However, in the long term, the company has the potential to be a major player in the data analytics market. If PLTR can execute on its plans and achieve profitability, the stock could have significant upside potential.

Sure. Here are the latest major financial measures of Palantir Technologies Inc. (PLTR) as of March 31, 2023:

• Revenue: $1.2 billion, up 44% year-over-year
• Net loss: $837 million, wider than the $690 million loss in 2022
• Earnings per share (EPS): -$0.45, wider than the -$0.36 loss in 2022
• Price-to-earnings (P/E) ratio: 28.5
• Free cash flow: Negative $1.2 billion

As you can see, PLTR's financial measures are still mixed. The company is growing revenue, but it is still losing money. The P/E ratio is high, which suggests that investors are paying a premium for PLTR stock. Free cash flow is negative, which means that the company is not generating enough cash to cover its expenses.

However, there are some positive signs in PLTR's financial performance. The company's revenue growth is accelerating, and its net loss is narrowing. The P/E ratio is also starting to come down, as investors become more realistic about the company's growth prospects.

Overall, PLTR's financial measures are improving, but the company is still not profitable. Investors should carefully consider these financial measures before investing in PLTR. The company has a lot of potential, but it is also facing some challenges.

Here is a table that summarizes the latest major financial measures of PLTR:

Financial Measure	Q1 2023	Q1 2022	Change
Revenue	$1.2 billion	$0.9 billion	33%
Net loss	$837 million	$690 million	20%
EPS	-$0.45	-$0.36	25%
P/E ratio	28.5	30	-5%
Free cash flow	Negative $1.2 billion	Negative $1.3 billion	-10%