RTI International layoffs deepen as federal funding uncertainty grows
Why it matters: Since the start of the Trump administration's efforts to cut federal funding, RTI International has laid off more than 500 staff members.
Driving the news: That includes an additional 340 U.S.-based employees announced on Tuesday — 177 of which are in North Carolina.
The nonprofit said it anticipates making more changes to its operations in the coming weeks.
State of play: RTI, the first-ever tenant in Research Triangle Park, had more than 1,000 employees in the Triangle before the start of this year.
The research nonprofit, formed by the North Carolina state government as well as Duke, UNC and N.C. State, has been a major recipient of federal research funding over its history.
Between the fiscal years of 2013 to 2022, RTI received $2.3 billion from USAID.
But USAID has been significantly downsized under the Trump administration, which has cut a majority of its future grants.
FHI 360, another Durham nonprofit that has laid off hundreds of employees, was set to receive around $3.8 billion from USAID.
What they're saying: "Taking this step was not easy, but it's necessary to position RTI for long-term success and strengthen our ability to serve federal, state and local government and commercial clients, RTI International CEO Tim J. Gabel said in a statement.
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Politico
an hour ago
- Politico
White House personnel aide hanging a shingle
With help from Daniel Lippman and Daniel Desrochers FILLING THE SWAMP: A senior White House official is decamping for K Street — the first instance this year of a prominent aide to President Donald Trump leaving for a lobbying gig, your host scooped. — Trent Morse has been serving since January as deputy assistant to the president and deputy director of the Office of Personnel, which vets candidates for thousands of roles across the federal government. His last day at the White House will be next week, after which Morse will launch his own lobbying shop, Morse Strategies. He will also partner with K Street heavy hitter Brownstein Hyatt Farber Schreck as a senior strategic adviser. — Morse is subject to a one-year cooling off period during which he's barred from lobbying the West Wing directly or representing any foreign entities. But he's free to cash in on his front-row seat in the administration by lobbying the rest of the executive branch right away or advising others lobbying the White House. — 'The president's hired some of the best people across the board,' Morse told PI. 'I'll be excited to be on the other side of that now, helping clients navigate it.' — 'There's not a department that I haven't become familiar with or gotten an understanding on how it works,' he said. 'And I think there's a lot of opportunity to help clients navigate the way this administration [works] and how quickly this administration works.' — White House chief of staff Susie Wiles spoke highly of Morse's new venture in an interview, calling him 'an important and integral part of the successes we've had.' A former lobbyist herself, Wiles told PI that clients are clamoring for 'some guidance about the process and some strategic … counsel' about decoding the Trump administration. 'And nobody is better able to do that' than Morse, she said. — Will Moschella, who co-leads Brownstein's government relations practice, echoed Wiles' assessment of Morse. 'He's going to provide what I think is going to be unrivaled insight into the way the president's team is thinking about issues,' he told PI. 'He's been in the middle of a lot of important debates, and knows a lot of the key players throughout the administration, particularly in the agencies, and he'll be helpful in providing those insights to our clients.' — This isn't Morse's first stint as a lobbyist. After stints at HHS, HUD and DOT during Trump's first term, Morse went to work at Wiles' former haunt Ballard Partners, before eventually joining her at Mercury Public Affairs. Morse has been working with Trump's team for the past year — first heading up external and GOP outreach for last year's Republican National Convention in Milwaukee and then working for the transition team. Happy Tuesday and welcome to PI. What else is going on out there? Add me on Signal at caitlinoprysko.17 and email me at coprysko@ and you can add Daniel on Signal at danielbarnes.13 and email Daniel at dbarnes@ And follow us on X: @caitlinoprysko and @dnlbrns. ANOTHER ONE: 'Former White House cryptocurrency official Bo Hines is joining the digital assets giant Tether to advise on its U.S. strategy,' POLITICO's Declan Harty reports. Hines recently stepped down as the executive director of the White House's crypto council, which involved 'helping coordinate the passage of a landmark bill regulating so-called stablecoins, which are a type of crypto token pegged to assets like the U.S. dollar.' — 'Bo's appointment demonstrates our commitment to building a strong U.S.-based presence that spans across multiple sectors, starting with digital assets and expanding to new opportunities, including a deep focus on potential further investments in domestic infrastructure,' Tether's CEO Paolo Ardoino said in a statement. — Hines will serve as a strategic adviser for digital assets and U.S. strategy, according to the company, which offers one of the world's most popular stablecoins. FIRST IN PI — WESTERN DIGITAL OPENS D.C. OFFICE: Data storage giant Western Digital is standing up its first office in D.C. as the company looks to expand its lobbying footprint in the nation's capital. Western Digital is one of the world's largest manufacturers of hard drives and semiconductors, which help meet the immense storage demands of data centers used by artificial intelligence companies. The Trump administration is pushing to ramp up construction of the centers as part of its bid for U.S. AI dominance. — The company has tapped Stacey Dion, the former head of global government affairs at Carlyle Group, to lead the new D.C. office. Dion most recently oversaw tax policy work at GE Aerospace, but she previously spent eight years with the Carlyle Group and with Boeing for nearly a decade before that. Before joining the private sector, Dion was an aide to former House GOP Leader John Boehner. — The chipmaker currently has just two outside firms on retainer — BGR Group and the Wessel Group — and has spent just $170,000 on federal lobbying so far this year. BROWNSTEIN TOUTS ACCESS TO TRUMP OFFICIALS IN CLIENT PITCH: As Brazil tries to fight off high tariffs from the Trump administration, the country's top business lobby is in the process of hiring a D.C. lobbying firm, and Brownstein is among the firms vying to get the business, according to a copy of a pitch deck, Lippman reports. — The pitch to the Brazilian National Confederation of Industry, or CNI, says that Brownstein has a proven record of successful outcomes for clients registered under FARA and that its goal is 'to execute a disciplined and proactive influence campaign that enables CNI – and your partners within the Brazilian government – to anticipate and shape policy.' It proposes a fee of $50,000 per month for an initial year-long engagement. — The firm says it has 'strong relationships with President Trump and the officials and agencies responsible for devising and implementing his tariff policies.' — The deck, dated Aug. 1, lists who in the administration the firm can get in front of, including the White House's Peter Navarro and Kevin Hassett, Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and USTR Jamieson Greer. For its State Department contacts, it mistakenly says it can reach 'Jacob Herbert – Under Secretary for Economic Affairs (pending confirmation),' referring to Jacob Helberg. — But Navarro pushed back on the pitch deck's claims in a post on Substack today. 'You will NEVER darken my White House door,' he wrote. 'Don't want to trip on your slime.' — The Brazilian government hasn't hired any firms with connections to the Trump administration, according to a search of FARA records, so this effort may be a way to find an alternative way to influence the administration. — A spokesperson for Brownstein told PI that CNI asked them for a proposal a month ago but there's been no follow-up since. CNI didn't respond to a request for comment on the status of its hiring of a firm. LOOMING LARGE: 'Laura Loomer is all the talk in Washington, D.C. The right-wing influencer … touts herself as President Donald Trump's informal adviser and argues—not incorrectly—that she has more power than many people inside it,' Gabe Kaminsky writes for the Free Press. 'What that means, in practice, is mostly getting people fired who she believes are disloyal to the president.' — 'Inside the White House, though, some senior officials have had it with Loomer. They are increasingly suspicious of her true motives, and have speculated that what she says and does is influenced by lobbying firms and companies trying to advance their own interests, according to four White House officials and another Trump administration official.' ICYMI — A4A HIRES SUNUNU: Airlines for America, the preeminent lobby for the biggest commercial and cargo carriers in the U.S., has tapped former New Hampshire Gov. Chris Sununu as the trade group's next president and CEO. The four-term governor would have been a top GOP recruit to run for an open Senate seat next year, but passed on the opportunity — despite a preemptive endorsement from Trump. — Sununu will replace A4A's longtime leader Nick Calio, who will stay on as CEO emeritus through the end of the year. Sununu will take the reins next month, and comes aboard at a critical moment for the aviation industry, which has been pushing hard for improvements to the nation's air traffic control infrastructure amid a surge of near misses on tarmacs and following January's deadly collision near Washington's Ronald Reagan National Airport. — The former governor also told POLITICO's Pavan Acharya that he's eager to work with Transportation Secretary Sean Duffy on ATC improvements, and supports Duffy's efforts to secure an extra $19 billion in funding for the initiative, on top of $12.5 billion that was included in the GOP reconciliation package. — Airlines for America, whose members include Delta Air Lines, United Airlines, American Airlines and Southwest Airlines, as well as FedEx and UPS, has spent more than $2.8 million on lobbying through the first half of 2025, which has included advocacy on tariffs, credit card swipe fees, sustainable aviation fuel, airport security and more. ALFORD SPEAKS OUT: 'An antitrust lawyer who was dismissed last month from the Justice Department accused senior officials of cutting deals with favored lobbyists and undermining the independence of antitrust enforcement,' The Wall Street Journal's Dave Michaels reports. — 'Roger Alford, formerly the antitrust division's second-in-command, on Monday said two senior aides to Attorney General Pam Bondi had corrupted the department's typical law-enforcement process for dealing with antitrust lawsuits. The two senior officials were heavily involved in negotiating a proposed settlement in June that allowed Hewlett Packard Enterprise to acquire a competitor, Juniper Networks.' — 'Alford called on a federal court in San Jose, Calif., that is overseeing the Justice Department's proposed resolution to 'examine the surprising truth of what happened.'' He accused Bondi's chief of staff Chad Mizelle of 'favoring outside lawyers and lobbyists with whom he is friends,' per WSJ. 'Mizelle and another top aide to Bondi, Stanley Woodward, played significant roles in how the department settled with HPE and Juniper in June, Alford said.' DOJ and HPE both defended the settlement, and rejected Alford's claims. Jobs report — Christopher Kirchhoff is joining Scale AI as head of applied AI strategy and global security. He founded the Pentagon's Silicon Valley office and is a National Security Council and Google alum. — The National Association of Manufacturers is adding Ted Allen as senior director of corporate finance policy, Reagan Giesenschlag as director of chemicals, materials and sustainability policy and Kevin Doyle as director of international policy. Allen previously was vice president of policy and advocacy at the Society for Corporate Governance. Giesenschlag previously was director of government affairs at the Fertilizer Institute. Doyle previously was an international trade specialist at the Commerce Department. — Talia La Schiazza is joining Qualcomm as manager of policy and legal communications. She previously was policy comms manager at Intel and is a Burson alum. — Bishop Garrison has launched Orange Court Strategies. He most recently was vice president for policy with the Intelligence and National Security Alliance and is a Biden DoD alum. — Forrest Carman is joining Wharton Law as an associate working in the white collar defense and federal investigations practice. He is a Republican National Lawyers Association, America First Legal and House and Senate Judiciary alum. — Jodi Niehoff has joined Medical Alley as senior director of government affairs and communications. Niehoff was previously deputy state director for Sen. Amy Klobuchar (D-Minn.). — Adam Greenfield has rejoined Latham & Watkins as a partner in the intellectual property litigation practice. He previously was a partner at White & Case. — Gerardo Bonilla Chavez is joining The Century Foundation as director of government affairs. He previously was chief of staff for Rep. Alexandria Ocasio-Cortez (D-N.Y.) and was a 2024 Pritzker fellow at the University of Chicago Institute of Politics. — Andrew Knudsen is now a partner at McGuireWoods. He previously was an attorney at the Justice Department's Environmental Defense Section. — Maheen Haq is now a program and policy administrative assistant at the U.S. Council for International Business. She previously was at DGA Group. New Joint Fundraisers Cooper Ossoff Victory Fund (Sen. Jon Ossoff, Cooper for North Carolina, North Carolina Democratic Party - Federal, Georgia Federal Elections Committee) Friends of Hoan Huynh and Esther Kim Varet (Hoan for 9, Esther Kim Varet for Congress) Georgia Senate Victory 2026 (Sen. Jon Ossoff, DSCC) Jeffries Battleground Protection Fund (DCCC, Reps. Hakeem Jeffries,Josh Harder, Adam Gray, George Whitesides, Derek Tran, Dave Min, Jahana Hayes, Frank Mrvan, Jared Golden, Kristen McDonald Rivet, Don Davis, Nellie Pou, Gabe Vasquez, Dina Titus, Susie Lee, Steven Horsford, Tom Suozzi, Laura Gillen, Josh Riley, John Mannion, Marcy Kaptur, Emilia Sykes, Janelle Bynum, Henry Cuellar, Vicente Gonzalez, Eugene Vindman, Marie Gluesenkamp Perez) Ohio Grassroots Victory Fund (Friends of Sherrod Brown, Ohio Democratic Party - Federal, America Works Federal PAC, DSCC) Ohio Senate Victory 2026 (DSCC, Friends of Sherrod Brown) WARRIOR PAC (Ranger PAC, Special Operations for America) New PACs A NEW BIRMINGHAM PAC (Super PAC) Anti-Zionist America PAC (PAC) Bright Green (PAC) Common Sense Recovery Project (PAC) THE ETHIOPIAN WORLD FEDERATION, INCORPORATED HOUSE COMMITTEE (PAC) LIFE & LIBERTY PAC (Super PAC) Zeta Global Holdings Corp. Employee PAC (PAC) New Lobbying REGISTRATIONS C2 Strategies: Ultra Pcs Caresource Mission: Caresource Mission Cornerstone Government Affairs, Inc.: Accreditation Council For Graduate Medical Education Mehlman Consulting, Inc.: Harting, Inc. Sonoran Policy Group, LLC D/B/A Stryk Global Diplomacy, Formerly Known As Sonora: District Of Columbia Fire Fighters Association, Iaff Local 36 New Lobbying Terminations Ats Communications, Inc. (Dba Silbey Strategies) (Fka Ats Communications, Inc.): Trellisware Technologies Madison Government Affairs: City Of Del Rio And Val Verde County
Yahoo
an hour ago
- Yahoo
Stocks Mostly Lower as Chip Makers and Megacap Tech Companies Retreat
The S&P 500 Index ($SPX) (SPY) Tuesday closed down by -0.59%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.39%. September E-mini S&P futures (ESU25) fell -0.54%, and September E-mini Nasdaq futures (NQU25) fell -1.37%. Stock indexes settled mixed on Tuesday, with the Nasdaq 100 falling to a 1.5-week low and the Dow Jones industrials posting a new all-time high. Tuesday's selloff in chip makers and the Magnificent Seven megacap technology stocks weighed on the overall market. More News from Barchart Trade the Warren Buffett Rally in UnitedHealth Stock With This High-Reward, Low-Risk Options Strategy Apple Expects $1.1 Billion Tariff Hit in 4th Quarter After $800 Million Q3 Hit; CEO Tim Cook Warns 'Many Factors That Could Change' Cathie Wood Is Buying BLSH Stock After the Bullish IPO. Should You? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. On the positive side, Home Depot recovered from early losses and closed up more than +3% to push the Dow Jones industrials to a new record high after it reported a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday. Lower bond yields on Tuesday were supportive of stocks, as the 10-year T-note yield fell -3 bp to 4.30%. US government debt garnered support Tuesday after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will 'generally offset weaker fiscal outcomes.' Tuesday's US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million. Diplomatic talks over the war in Ukraine continue to make headway. Ukrainian President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security. The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming. Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, 'I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after.' Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips. In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced 'within the next week or so.' According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 87% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 54% for a second -25 bp rate cut at the following meeting on October 28-29. Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates. Overseas stock markets on Tuesday settled mixed. The Euro Stoxx 50 rose to a 4.75-month high and closed up +0.89%. China's Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan's Nikkei Stock 225 retreated from a new record high and closed down -0.38%. Interest Rates September 10-year T-notes (ZNU25) Tuesday closed up +8 ticks, and the 10-year T-note yield fell -3.2 bp to 4.302%. Sep T-notes rallied Tuesday after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US's fiscal health from the president's tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks on Tuesday also supported safe-haven demand for T-notes. Gains in T-notes were limited due to concerns that last week's bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting. European government bond yields on Tuesday were mixed. The 10-year German bund yield fell -1.3 bp to 2.750%. The 10-year UK gilt yield rose to a 2.5-month high of 4.756% and finished up by +0.2 bp to 4.740%. Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers The weakness in the Magnificent Seven stocks on Tuesday was a drag on the overall market. Nvidia (NVDA) closed down more than -3%, and Meta Platforms (META) closed down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) closed down more than -1%. In addition, Apple (AAPL) fell -0.14%. Advanced Micro Devices (AMD) closed down more than -5% to lead chipmakers lower after GF Securities downgraded the stock to hold from buy. Also, Marvell Technology (MRVL) closed down more than -5%, and ARM Holdings Plc (ARM) closed down more than -4%. In addition, Broadcom (AVGO) closed down more than -3%, and Qualcomm (QCOM), Microchip Technology (MCHP), ON Semiconductor (ON), GlobalFoundries (GFS), NXP Semiconductors NV (NXPI), and Micron Technology (MU) closed down more than -1%. Viking Therapeutics (VKTX) closed down more than -42% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns. Fabrinet (FN) closed down more than -12% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components. Amer Sports (AS) closed down more than -4% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%. Vertiv Holdings (VRT) closed down more than -4% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112. Medtronic Plc (MDT) closed down more than -2% after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%. Intel (INTC) closed up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company's stock. Trucking companies moved higher on Tuesday. JB Hunt Transport Services (JBHT) and Knight-Swift Transportations Holdings (KNX) closed up more than +3%. Also, Old Dominion Freight Line (ODFL), FedEx (FDX), and Schneider National (SNDR) closed up more than +2%. In addition, CSX Corp (CSX) closed up more than +1%. Home Depot (HD) recovered from an early decline and closed up more than +3% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%. Prologis (PLD) closed up more than +5% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118. Best Buy (BBY) closed up more than +3% after announcing the launch of a new third-party seller platform, which more than doubles the number of its available products online. Palo Alto Networks (PANW) closed up more than +3% after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion. Earnings Reports(8/20/2025) Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe's Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Dollar Recovers as Stocks Falter
The dollar index (DXY00) on Tuesday rose by +0.12%. The dollar recovered from early losses on Tuesday and posted modest gains as weakness in stocks boosted liquidity demand for the dollar. The dollar also garnered some support Tuesday after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will "generally offset weaker fiscal outcomes." Lower T-note yields on Tuesday were bearish for the dollar. Also, signs of progress in peace talks over Ukraine are curbing safe-haven demand for the dollar. Losses in the dollar are limited due to concern that last week's stronger-than-expected July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting. More News from Barchart Dollar Gains as Fed Rate Cut Chances Slip Dollar Supported by Higher T-Note Yields Signs of Peace Progress in Ukraine Boosts the Euro and Weighs on the Dollar Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Tuesday's US housing news was mixed for the dollar. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million. Ukrainian President Zelenskiy said late Monday that he came away with a commitment from President Trump to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. President Trump is pushing for a summit between Presidents Putin and Zelenskiy in the near future, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security. The markets continue to adjust to the inflation outlook following last Thursday's hawkish PPI report. Following the report, the markets erased any hopes of a -50 bp rate cut at the Fed's September meeting and pulled back expectations for a -25 bp rate cut to 84% area from 93% before the report. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 87% at the September 16-17 FOMC meeting and at 54% for a second -25 bp rate cut at the following meeting on October 28-29. EUR/USD (^EURUSD) Tuesday fell by -0.15%. The euro gave up an early advance and turned lower on Tuesday after the dollar rebounded from early losses and moved higher. The euro initially moved higher on Tuesday on signs of progress in peace talks over Ukraine. US and European officials said they will immediately work on providing Ukraine with robust security guarantees to open a path for a meeting between Presidents Putin and Zelenskiy. Swaps are pricing in a 7% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) Tuesday fell by -0.28%. Higher Japanese government bond yields on Tuesday strengthened the yen's interest rate differentials and boosted the yen after the 10-year JGB bond yield rose to a 3-week high of 1.604%. Also, lower T-note yields on Tuesday were supportive of the yen. Gains in the yen were limited by concern that US tariff policies would harm the Japanese economy. December gold (GCZ25) on Tuesday closed down -19.30 (-0.57%), and September silver (SIU25) closed down -0.697 (-1.83%). Precious metal prices tumbled to 2-week lows on Tuesday. Dollar strength on Tuesday undercut metals prices. Also, signs of progress in peace talks over Ukraine have curbed some safe-haven demand for precious metals. US and European officials said they will immediately work on providing Ukraine with robust security guarantees to open a path for a meeting between Presidents Putin and Zelenskiy. In addition, reduced chances for a Fed rate cut at next month's FOMC meeting are bearish for precious metals, following a bearish July PPI report last Thursday that knocked the chance of a Fed rate cut down to 84% from 93% before the report. Silver prices gave up an early advance Tuesday and turned lower on demand concerns for industrial metals after US Jul building permits, a proxy for future construction, fell more than expected to a 5-year low. Lower T-note yields on Tuesday were supportive of precious metals. Gold continues to have safe-haven support related to US tariffs and geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a 2-year high last Friday, and silver holdings in ETFs reached a 3-year high Monday. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
