German wholesale prices simply falling. Not only energy but also prices for agriculture raw materials and live animals. "It is just the beginning of the end of #inflation i.e. consumer price inflation," Ruland Research says: "We assume that inflation will not be as sticky as…

To put things into perspective: This year's price increase in Germany's Dax index is not due to valuation expansion, as is the case w/the US benchmark index S&P 500, but is mostly covered by the increase in earnings expectations.

#Dax index hit fresh ATH. German benchmark index rose above the previous record of 16,331 points set in May. Extends its YTD gain to ~17%.

Good morning from #Germany, where the price trend for the cucumber very well reflects the soul of the German consumer. When the price rises too much, consumers go on buyers' strike and make sure that prices fall again. In the meantime, after 2 euros in March, the cucumber costs…

#ECB Balance Sheet almost unch ahead of this week's meeting. Total assets now at €7,714.4bn, equal to 57% of Eurozone GDP vs Fed's 32%, SNB's 121%, BoJ's 130%.

US #inflation data inline w/Street consensus on MoM basis (+0.1% headline & +0.4% core), although CPI numbers more mixed on YoY basis, w/headline +4% (down from +4.9% in Apr & below Street’s +4.1% forecast) & Core +5.3% (down from +5.5% & above Street’s +5.2% via @knowledge_vital

BofA Fund Manager Survey shows the lowest cash level (5.1%) since Jan'22 BUT asset allocator conviction confined to tech & IG bonds. Allocation to stocks at 5mth lows; so risk asset "pain trade" still up.

SURPRISE SURPRISE! German ZEW investor expectations confidence unexpectedly improved to -8.5 from -10.7% following Dax ATH in May.

Good Morning from #Germany where EconMin Habeck has very optimistic growth forecasts. He expects German growth of 0.4% this year, well above the consensus of a slight contraction (-0.15%), and sees growth between 1.6% to 1.9% next year, which would be almost double the consensus.

#Apple closes at record in latest sign of Big Tech’s dominance. The stock rose 1.6% to $183.79, bringing its year-to-date gain to 41%. This is Apple’s first closing high since January 2022. Stock nears a $3tn valuation following 2023’s surge. (via BBG)

To put things into perspective: 10 stocks have contributed 90% of S&P 500's 13.0% gain this year, the most concentrated mkt ever, Bernstein says. The stocks are AAPL (up 39%), MSFT (+36%), NVDA (+164%), GOOG (+38%), AMZN (+48%), META (+120%), TSLA (+91%), AVGO (+45%), AMD (+87%)…

#Italy’s 10y risk spread over Germany drops to 169bps, lowest in 14mths. Investors have been encouraged by Italy's strong growth (vs Germany's stagnation) & Rome's acquiescence of EU budget rules, which contrasts to a prior populist coalition that battled union & roiled mkts.

Silvio Berlusconi, the flamboyant media mogul whose reign as Italy’s longest-serving postwar prime minister was plagued by sex scandals and allegations of corruption, has died, acc to Corriere della Sera. He was 86. (BBG)

Good Morning from #Germany, where food prices are falling again. Last week, Aldi reduced prices for milk, cottage cheese and cream by an average of 9%.

Goldman Sachs expects #China to overtake the US not in this decade but around 2035, while #India should catch up by 2075.

US Treasury is rebuilding its cash balance: The Treasury will reach around $425bn at the end of June.

Good Morning from Germany where FinMin Christian Lindner is planning to take on ~€17bn in net new debt in the 2024 federal budget, way more than prev planned €12.3bn. Economic slowdown is the reason for increase. Figure would be in line w/requirements of constitutional debt…

Good morning from Germany where the deindustrialization continues. High energy prices & rigid rules are hurting Germany's industry. Companies have begun to relocate their production or build new plants abroad. Industry now accounts for only 23.5% of German GDP, compared w/>30%…

Goldman Sachs: "Fully orthodox" policy maker could raise Turkey rates to 40%. Appointments of Mehmet Simsek as Turkish FinMin and Hafize Gaye Erkan as CenBank governor suggested a widespread understanding in the new admin that monetary and fiscal adjustments were needed, Goldman…

Slow-motion bank run over? US bank deposits rose for a 3rd week by $46.6bn.

#Tesla stands to earn as much as $3bn by 2030 thanks to deals w/Ford and GM for their electric vehicles to use its charging network. Tesla gains >5% on its way back to the $1tn mkt cap club.

#Turkey Lira extended its decline to an All-Time Low vs Dollar, taking its weekly drop to 11%, DESPITE President Erdogan has filled important econ positions w/experts who follow more conventional policies. Erdogan appointed former US-based banking exec Hafize Gaye Erkan as his…

Good morning from #Germany, where the good poll numbers for the radical right-wing AfD are becoming a negative location factor. In Germany as a whole, AfD is at 18% in the polls, and as high as 32% in Eastern Germany. Eastern Germany is having problems attracting skilled workers,…

#Fed emergency liquidity keeps rising for the 5th week as loans out to the banks through the BTFP rose modestly,

WOW! #Turkey President Tayyip Erdogan named Hafize Gaye Erkan as new governor of the central bank. Announcement completes a makeover of Erdogan’s econ team following Mehmet Simsek’s appointment as FinMin — appointments that may signal a return to more conventional policies.