August CPI and Producer Price Index (PPI) inflation data were in line with expectations, with headline CPI inflation falling to 2.5% year-on-year. At the same time, US consumer confidence reached its highest level in four months, driven by expectations that inflation will continue to moderate and incomes will improve, although views on the labor market weakened due to slowing job growth. The drop in import prices in August reinforces inflationary easing, allowing the Federal Reserve to focus on the labor market, with a 25 basis point rate cut expected at its next meeting next week.
Kamala Harris leads with 47% to Donald Trump's 42% in the presidential race, following a debate in which a majority of voters felt Harris won. Some 52% believe the 78-year-old Trump is too old to govern, compared to only 7% who feel the same about Harris.
More than 30,000 Boeing workers went on strike after rejecting a contract, adding challenges to the company's recovery. The strike, supported by 96% of the workers, affects the production of the 737 MAX and other models. Boeing, already facing financial difficulties and $60 billion in debt, is seeking a quick return to negotiations. Rating agencies such as Moody's and Fitch warned that a prolonged strike could affect its credit rating. Despite a 25% wage increase offer, workers are demanding more, reflecting tensions in a tight labor market.
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