Daily Brief | August 26 2025

Top News

·     In the United States, demand for durable goods fell in July.

·     President Donald Trump announced yesterday afternoon that he will dismiss Federal Reserve Governor Lisa Cook, but the governor said she will not leave her post because the president does not have the authority to fire her.

·     In Mexico, the current account for the first half of 2025 stood at a deficit of -1.2% of GDP, compared to -2.6% of GDP in the same period of 2024.

·     French Prime Minister François Bayrou submitted his 2026 fiscal package to a vote of confidence to secure parliamentary support. The fiscal package aims to reduce the government deficit from 5.4% to 4.6% of GDP next year.

Economic Outlook

In the United States, demand for durable goods fell in July. In the United States, demand for durable goods fell by 2.8% month-on-month in July, after falling by 9.4% month-on-month a month earlier. However, excluding the most volatile items, such as transportation, demand grew by 1.1% in the seventh month of 2025, according to seasonally adjusted figures. Demand for capital goods, excluding defense and aircraft, also grew by 1.1% m/m in July. In annual terms, demand for durable goods grew by 3.5% in the seventh month of the year and, excluding transportation, advanced by 3.7%. Additionally, demand for durable goods, excluding defense and aircraft, grew by 4.5% y/y. Overall, demand for durable goods remains weak due to declines in transportation, but excluding this volatile component, new orders increased, showing that investment in the US remains resilient in a complex environment.

Markets and Stocks

Futures in the United States opened higher amid political tension after President Trump announced the dismissal of Fed Governor Lisa Cook. Attention also remains focused on Nvidia’s results, which will be released tomorrow and could set the tone for the technology sector. In Europe, markets are trading lower, particularly in France, amid uncertainty over the vote of confidence that Prime Minister François Bayrou will face on September 8. Finally, in Asia, markets closed in the red.

In the commodities market, oil moderated its recent gains and returned to negative territory, affected by risk aversion and tensions stemming from the conflict in Ukraine and threats of new sanctions against Russia. Gold, in contrast, is on the rise, reaching a two-week high of nearly $3,372 per ounce, driven by political uncertainty surrounding the Fed and expectations of a rate cut in September.

In fixed income, the 2-year bond fell to 3.70%, while the 10-year bond rose to 4.28%, reflecting investors’ expectations of cuts in the short term

Corporate News

– AT&T agreed to purchase wireless spectrum licenses from EchoStar for $23 billion in a cash transaction that would close in mid-2026. The deal will strengthen AT&T’s ability to deploy 5G and fiber services in the United States. EchoStar shares soared nearly 80% prior to the opening bell.

– Pharmaceutical company Eli Lilly presented encouraging results for its obesity pill. Lilly plans to seek regulatory approval before the end of the year, paving the way for a launch in 2026.

– Interactive Brokers will join the S&P 500 index on Thursday, replacing Walgreens Boots Alliance, which will be acquired by Sycamore Partners.