The infoshot to help kick-start your week
Coming up this week:
US inflation data – Thursday & Friday
Following last week’s US jobs data boosting the chances of a Fed interest hike this month, all eyes will be on the latest inflation data this week.
PPI and CPI numbers will be released on Thursday and Friday. Inflation worries have increased again after fresh strikes sent oil prices higher and Iran announced a new restricted zone accompanied by maps of a new shipping corridor through the Strait of Hormuz.
ECB interest rate decision – Thursday
As central banks come under more pressure to raise interest rates, expect the European Central Bank (ECB) to lead the way by raising its key interest rate +0.25% on Thursday. Eurozone inflation increased to 3.3% in August, way above the ECB’s 2% target, with energy inflation soaring to 14.3%.
Apple’s “Surprise and Shine” showcase – Wednesday
Apple will be hosting their annual product showcase this week. Apple’s plans and growth prospects have been far less AI-obsessed than their Mag’ 7 counterparts, and it’ll be interesting to see if that approach looks set to continue.
This year’s event, dubbed “Surprise and Shine”, will be the first without Tim Cook since he stepped down as CEO earlier in the year. Rumours suggest replacement CEO John Ternus, and his team, will showcase the foldable iPhone Ultra, the latest Apple watch, and the “new Siri experience”.
Last week:
Parts of the AI supply chain soar
Key parts of the AI supply chain, Dell and Broadcom, posted their Q2 earnings last week.
Demand for AI hardware and servers saw Dell’s revenue break records, increasing 58% year-on-year and Broadcom’s AI semiconductor revenues more than tripled in the same period. Both share prices surged in response, but the US’s tech index was relatively flat overall due to increased rate hike chances and rising oil prices.
Gilt yields surge
Higher oil prices put fresh pressure on bond markets sending yields across the globe up. 30-year UK gilt yields hit 5.80% their highest level since 1998 and their equivalent US government bond yields also reached their highest level since 2008. Japan’s 10-year yield hit 3% for the first time in thirty years, doubling the rate it was at when Sanae Takaichi became Prime Minister.
Yields did pull back later in the week as the rise in oil prices slowed. All the turmoil in bond markets doesn’t show much sign of slowing down, as investors, perhaps rightfully, worry about inflation, government debt and corporate debt fuelled by AI hyperscalers.
More gold moved out of North America
De Nederlandsche Bank, the central bank of the Netherlands, confirmed last week that they’d relocated 86 tonnes of their gold from the US and Canada to London. Citing “increasing geopolitical unrest” the Bank’s Governor Olaf Sleijpen said “we need to strengthen our resilience and preparedness” without giving many actual details on what he’s preparing the bank for. Selling 59 tonnes and buying them back in London limited how much actual gold was physically moved. The relocation follows a similar decision by the Bank of France, which moved 129 tonnes of gold from New York to Europe between July 2025 and January 2026.
Notice:
For regulated financial advisers and investment professionals only, Copia does not provide financial advice, and the contents of this document should not be taken as such.
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated but is not an indicator of potential maximum loss for other periods or in the future.
