Key Takeaways
- US Industrial Production unexpectedly rose by 0.1% month-over-month in August, defying estimates for a decline and suggesting resilience in the manufacturing sector.
- Former President Trump announced a "deal on TikTok," with reports indicating a group of "very big companies" are interested in acquiring the platform, and finalization expected within 30 to 45 days.
- Trump also stated that the United Kingdom is seeking to improve its existing trade agreement with the US, with discussions slated to continue.
- The US House of Representatives is scheduled to vote on a seven-week government funding bill this Friday, aiming to prevent a potential government shutdown.
US Industrial Output Surprises to the Upside
US industrial production saw an unexpected increase in August, climbing 0.1% month-over-month, a significant reversal from the -0.1% decline that economists had estimated. This positive movement follows a revised -0.4% contraction in the previous month.
Manufacturing production, a key component of industrial output, also outperformed expectations, rising by 0.2% against an estimated -0.2% decrease. Capacity utilization remained steady at 77.4%, aligning with estimates but slightly down from a revised 77.4% in July. The utilities sector experienced a 2.0% decline, while mining saw a 0.9% increase.
Trump Announces TikTok Deal and UK Trade Talks
Former President Trump has declared that a "deal on TikTok" has been reached, with reports suggesting that "a group of very big companies" are looking to purchase the popular video-sharing platform. The agreement is reportedly expected to be finalized within the next 30 to 45 days. CNBC reports indicate that the new agreement will include existing investors from ByteDance and that Oracle (ORCL) will maintain its cloud deal with TikTok. Trump also expressed confidence in his administration, stating, "I Have Confidence in Everyone in Administration."
In separate remarks, Trump indicated that the United Kingdom is keen to improve its trade deal with the US, and that talks between the two nations will continue. He characterized the relationship with the UK as "very good."
Legislative Developments and International Market Focus
The US House of Representatives is set to vote on a seven-week government funding bill this Friday, according to reports from Punchbowl News. This legislative effort aims to secure government operations and prevent a shutdown.
In international markets, the swaps market is now fully pricing in a rate cut by the Bank of Canada on Wednesday, signaling expectations for monetary easing. Meanwhile, investor sentiment in Germany showed surprising improvement this month, driven by anticipation of billions in domestic spending from Berlin.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.