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Meta has reached a settlement with the California attorney general and other states in a case alleging that its platforms harmed children. The states had filed claims against Meta’s at roughly $200 billion (and not realistic). The settlement caps Meta’s payments to the states at $16.68 billion—well below either figure and clearly better than market expectations. The payments are over 10 years as well.  

Meta shares are up 4.65% at $596 in premarket trading following the news.

From a technical perspective, today’s rise is taking the price closer to its 100-day moving average at $607.35. However, the stock remains below that key technical level. If buyers are to take more control, the price needs to break above—and stay above—the 100-day…

Meta is truly a vilanous company.

Just this month, CEO Mark Zuckerberg was writing about all the jobs AI would create. Meanwhile, we learned in a Reuters report today that he was contemplating eliminating 60% of Meta's workforce this year.

In any case, he will need the savings as Meta will pay $16.7 billion to 29 states as part of an agreement today, just before jury selection was set to begin in the trial. The accusation was that the company designed Instagram and Facebook to addict children, misled consumers about their safety, and improperly collected personal data of kids.

What's bizarre to me is that his will function as a tax on a US company and some states will benefit but Meta did the same thing globally and if any country attemps…

The US dollar is mixed as North American traders enter for the day. The greenback is trading higher against the EUR, GBP, CHF, CAD and NZD, while moving lower against the JPY and AUD.

The largest moves are against the NZD and CHF. The NZDUSD is down -0.35% (higher USD), while the USDCHF is up +0.34% (also higher USD). The AUD is the strongest of the major currencies vs the greenback, with the AUDUSD rising +0.29%. The changes against the EUR, GBP and JPY remain relatively modest.

The low-to-high trading ranges are mostly contained:

• EURUSD: 16 pips
• USDJPY: 37 pips
• GBPUSD: 33 pips
• USDCHF: 34 pips
• USDCAD: 42 pips
• AUDUSD: 58 pips
• NZDUSD: 35 pips

In today’s Kickstart video, I take a technical look at the EURUSD, USDJPY and GBPUSD. For each…

• Prior was +0.5%
• Ex transport +0.4% vs +0.8% exp
• Ex defense +1.3% vs +0.3% prior
• Non-defense capital goods ex air +0.2% vs +0.9% exp

This is a softer report overall and is leading to some USD weakness.

• GDP 1st estimate 1.6% (they were expecting 2.1% before the 1st release).
• GDP 2nd revision 1.5% vs 1.5% estimate
• Consumer Spending 2.2% vs 3.2% preliminary estimate
• GDP Deflator 6.4% vs 6.2% estimate
• Core PCE YoY 3.6% vs 3.4% estimate
• PCE Prices YoY 5.3% vs 5.1% estimate
• PCE ex food energy and housing Q2 3.4% vs 3.2% preliminary
• PCE Services ex energy and housing Q2 3.7% vs 3.4% preliminary

• GDP 1st estimate 1.6% (they were expecting 2.1% before the 1st release).
• GDP 2nd revision x.x% vs 1.5% estimate
• Consumer Spending x.x% vs 3.2% preliminary estimate
• GDP Deflator x.x% vs 6.2% estimate
• Core PCE YoY x.x% vs 3.4% estimate
• PCE Prices YoY x.x% vs 5.1% estimate
• PCE ex food energy and housing Q2 x.x% vs 3.2% preliminary
• PCE Services ex energy and housing Q2 x.x% vs 3.4% preliminary

• Prior was 3.3%
• Headline y/y 3.7% vs 3.6% expected (3.7% prior)
• Headline m/m +0.2% vs +0.1% expected (-0.1% prior)

Core PCE (excluding food & energy):

• Core m/m +0.2% vs +0.2% expected
• Prior +0.1%
• PCE services excluding energy and housing % vs +0.1% prior

Consumer spending and income for July:

• Personal income +0.4% vs +0.2% expected. Prior month +0.2%
• Personal spending +0.2% vs +0.1% expected. Prior month +0.3%
• Real personal spending 0.0% vs +0.4% prior

This is the data highlight of the week and the stakes are notable with the market still pricing in a 35% chance of a Fed rate hike on September 16. Lately, the data has run in a more dovish direction but Fed officials are worried about persistent inflation, that's why the core reading in today's number…

• UK retail sector remains under pressure as CBI survey shows sharp sales decline
• Oil prices sink as expectations for an imminent US-Iran deal increase. What's next?
• Nasdaq Analysis: Two Critical Levels to Watch Around Nvidia Earnings
• Switzerland August UBS investor sentiment +12.1 vs +10.0 prior
• Nvidia Earnings Tonight: NVDA Levels and Trade Plan
• ECB's Schnabel says the central bank must act early to prevent second-round effects
• FX option expiries for 26 August 10am New York cut
• What are the main events for today?

It's been a pretty boring session with limited economic data and news releases. On the data side, the Swiss investor sentiment improved further in August, with the UBS Investor Sentiment Index rising to +12.1 from +10.0 in July, marking…

What Is a Stablecoin? Why Digital Dollars Could Change How Money Moves

A stablecoin is a cryptocurrency designed to keep a steady value, usually one token for one US dollar. Unlike Bitcoin, its purpose is not to rise in price. Its purpose is to let people and businesses move dollar value over blockchain networks, often 24 hours a day, without waiting for traditional banking hours.

Key stablecoin lessons for investors and everyday users

• Most stablecoins are digital dollars issued by private companies, not by the US government.

• USDT and USDC already represent dollar-linked stablecoins, so the digital dollar story is not merely a future idea.

• Bitcoin and stablecoins serve different jobs: Bitcoin has a floating market price, while a dollar…

• Full report here

The UK retail sector faced worsening trading conditions in August, according to the latest CBI Distributive Trades Survey, as sales volumes fell at their fastest pace in over a year and business sentiment deteriorated further.

The CBI's retail sales balance dropped to -48% in August, down sharply from -26% in July. Although sales are still expected to decline in September, firms anticipate the pace of contraction will moderate, with the balance forecast to improve to -22%.

Retailers also reported that sales were well below normal seasonal levels, with the balance deteriorating to -26% from -18% in July. Expectations for September remain subdued, with sales projected to continue undershooting seasonal norms.

The prolonged…

●         Asian Stock Markets : Nikkei up 0.55%, Shanghai Composite up 0.70% Hang Seng up 0.69% ASX down 0.18%

●        Commodities : Gold at $4,700.74 (0.14%) Silver at $69.260 (0.85%), Brent Oil at 85.30 (-2.27%), WTI Oil at 80.35 (-2.44%)

●        Rates : US 10-year yield at 4.637, UK 10-year yield at 4.9944, Germany 10-year yield at 3.2033

●        (USD)       CB Consumer Confidence   89.4 to 90.3  expected

Stock futures were little changed Tuesday night as investors awaited key U.S. inflation data and Nvidia’s latest quarterly earnings report. S&P 500 futures were flat, while Nasdaq-100 futures gained nearly 0.1%.

Wall Street closed higher in the previous session,…