Morning Brief: Hedge Funds Ramp Up Dollar Shorts; U.S. Hits Canada With 50% Tariffs; Bessent on Iran
Find here our morning brief which compiled the main macro news — released on Twitter — concerning Americas, Asia and Europe.
Americas
Markets
Goldman's prime desk like BofA sees selling in industrials, but they've seen buying in financials:
— Neil Sethi NEW account, please refollow (@neilsethinew) August 21, 2026
Industrials is the most net sold sector so far in August, driven entirely by short sales. Machinery, Electrical Equipment, and Trading Co’s & Distributors are the most net sold… https://t.co/oIKthdSKtK pic.twitter.com/UjXxbSugd9
"Mind The AI Gap" Warns Goldman As Momentum Cracks; Banks & Hard Assets Emerge As The Next Trade https://t.co/MVzyDnK2su
— zerohedge (@zerohedge) August 22, 2026
BofA notes though that when normalized by market cap buybacks are running well below the historic average this earnings season. https://t.co/OhHwss9FsG pic.twitter.com/ihf1YsGXJT
— Neil Sethi NEW account, please refollow (@neilsethinew) August 20, 2026
Citadel offloads 80% of positions scooped up from Situational Awareness https://t.co/frV2B6UIzp
— Financial Times (@FT) August 21, 2026
*Focus on AI
Economic Indicators and Prospects
US S&P Flash PMI – August 2026
— Neil Sethi NEW account, please refollow (@neilsethinew) August 21, 2026
Flash PMIs sees composite jump to 52-mth high (Apr ‘22) driven by services for 2nd month (20-mth high) as manufacturing eases from elevated levels.
Employment 2nd best in 4 yrs as prices moderate optimism improves..https://t.co/A9u1pkoYWV https://t.co/gJPDHJ4M5c pic.twitter.com/0NMi09J7vk
Trump’s economic challenge: $40tn debt, 6.7% mortgages and $5 diesel
— Marco Liera (@LieraMarco) August 23, 2026
https://t.co/LsNnbKJx6j
Monetary Policy
Fiscal Policy
BofA's rates team says their "big takeaway" from the "surprisingly announced" Treasury buyback increase is that the Treasury has turned "activist in debt management."
— Neil Sethi NEW account, please refollow (@neilsethinew) August 21, 2026
The first surprise is that this came barely two weeks after the August refunding when you would expect such an… pic.twitter.com/E0fL6IlLow
Trump says he did not direct Bessent to intervene in bond market https://t.co/bF731PJoyP https://t.co/bF731PJoyP
— Reuters (@Reuters) August 22, 2026
Trade, Politics and Geopolitics
Focus on Middle East conflict
Donald Trump is betting new sanctions, a naval blockade and ramped-up economic pressure can accomplish what thousands of bombs and missiles could not: force Tehran to accept a deal to end the war on US terms. https://t.co/6yI4xPj9zx
— Bloomberg (@business) August 22, 2026
Iran Says New Sanctions Threatened By 'Desperate' US Will Fail – RTRShttps://t.co/CL2fnKzg9u
— LiveSquawk (@LiveSquawk) August 23, 2026
As Yemen's Houthis make it harder for Riyadh to use a backup route that's been vital to the global economy since the Iran war began, Saudi Arabia must again overhaul how its oil gets to customers around the world. https://t.co/psiM08RgG9
— The Japan Times (@japantimes) August 24, 2026
Asia/Middle East
Markets
Alibaba shares plunge after $10bn new share placement to fund AI spending https://t.co/6uGUAtQOoh
— Nikkei Asia (@NikkeiAsia) August 24, 2026
Economic Indicators and Prospects
The 2026 World Humanoid Robot Games have begun. 666 teams from around the world are competing with more than 2,000 humanoid robots https://t.co/8GwBuNnNn1 https://t.co/KMF1kkBiI6 pic.twitter.com/yvbmitsH35
— Bloomberg (@business) August 22, 2026
Christophe makes an important point when you see the huge jumps in some Asian export statistics.
— Neil Sethi NEW account, please refollow (@neilsethinew) August 21, 2026
An "important nuance is that these are exports in value terms. The increase reflects higher volumes but also much stronger memory pricing and a far more favorable product mix."
A… https://t.co/HJcpmk0azj pic.twitter.com/HYC79Dilds
Housing
China's property crisis grinds on after Evergrande sentencing https://t.co/HWkfA90NWJ https://t.co/HWkfA90NWJ
— Reuters (@Reuters) August 23, 2026
Monetary Policy
This has arguably been one of the most consequential 20-day periods of America’s history.
— Otavio (Tavi) Costa (@TaviCosta) August 22, 2026
Two interventions to save the Treasury market.
Both failed.
We may look back on this as America’s emerging-market moment.
None of us own enough hard assets.https://t.co/RnZqdPy0sK pic.twitter.com/bysKqkzTMf
BREAKING: China acquired +40 tonnes of gold in June via the London OTC market, marking their 2nd-largest monthly purchase since early 2025.
— The Kobeissi Letter (@KobeissiLetter) August 23, 2026
This is 167% more than the official +15 tonnes reported by China's central bank for June.
This also follows an estimated +48 tonnes… pic.twitter.com/aSPZysWtWS
Fiscal Policy
Goldman Sachs estimates China's GDP growth has fallen to just 4%, which is well below Beijing’s 4.5%–5% target.
— TreasuryBonds.com (@TreasuryBonds1) August 23, 2026
The slowdown is demand-driven, yet policymakers remain focused on manufacturing and supply.
China may be forced to launch fresh stimulus by early October. pic.twitter.com/ndpVnMLeji
钟才文- representing the Central Financial and Economic Affairs Commission – has an article on page 2 of the 8.22 People's Daily titled "The Resilience and Vitality of the Chinese Economy 中国经济的韧性与活力", translated here https://t.co/axL4Swc4eh concludes "In the second half… pic.twitter.com/C4m8Uc97K1
— Bill Bishop (@niubi) August 22, 2026
Trade, Politics and Geopolitics
How Pacific nations walk a tightrope between Western security and Chinese tradehttps://t.co/sGHm32l0xn
— South China Morning Post (@SCMPNews) August 22, 2026
Europe
Markets
Economic Indicators and Prospects
Hotel rooms in rural Scotland have surged in price over the summer, the latest sign of growing interest from American tourists and domestic travelers seeking “coolcations” https://t.co/sUB1LqzANf via @malfonsinlarsen pic.twitter.com/HU0p34M6av
— Zoe Schneeweiss (@ZSchneeweiss) August 22, 2026
Monetary Policy
SNB would cut rates below zero if needed, Tschudin says https://t.co/oALN97ZHZl pic.twitter.com/dqu8kimlZx
— Zoe Schneeweiss (@ZSchneeweiss) August 21, 2026
Fiscal Policy
Germany, Italy, Spain, Austria, Poland, and Portugal reiterate calls for an EU-wide windfall tax mechanism pegged to rising energy prices. They ask the Irish presidency for it to be discussed and placed on the agenda at the September informal ministerial in letter seen by… pic.twitter.com/VM5hlJh3JY
— Maria Tadeo (@mariatad) August 23, 2026
Italy extends diesel tax cut as Meloni grapples with fuel prices https://t.co/jWmb9VGNmy via @donatopmancini pic.twitter.com/KW4wFlUOYM
— Zoe Schneeweiss (@ZSchneeweiss) August 23, 2026
UK Statistics Agency Turns To AI To Cut Costs And Improve Data – FThttps://t.co/POPaFijCkk
— LiveSquawk (@LiveSquawk) August 24, 2026
Trade, Politics and Geopolitics
EU lawmaker Glucksmann to seek French Socialist presidential nod https://t.co/I4YFrBlMIC via @Newsbaum_ pic.twitter.com/ZOO6wv5i2c
— Zoe Schneeweiss (@ZSchneeweiss) August 23, 2026
Ukraine offered Russia a truce on attacks against ships carrying agricultural commodities through the Black Sea, but Moscow rejected the deal, Volodymyr Zelenskyy said https://t.co/DU74fzipf8
— Bloomberg (@business) August 23, 2026
Why Switzerland keeps voting on everything https://t.co/wSVmU14hbU pic.twitter.com/uVIkZBohXa
— Zoe Schneeweiss (@ZSchneeweiss) August 22, 2026
Other Areas And Global Economy
*Note: Previous briefs can be found here