Global equity valuations show investors are paying unusually high prices for current earnings based on expectations about the future, with the US standing out as the most expensive market relative to its history. Relative to historical medians, valuations are elevated across many markets, but nowhere as markedly as in the United States; Switzerland and France sit near the top of their historical ranges, while Japan and Italy remain below their medians. Germany and Italy offer a striking contrast despite similar long-term norms: historical PE ratios for both hover around 13.5, yet Germany now trades well above that mark while Italy’s PE is about 10.7, based on data from 1987 onward. This suggests investors see a relatively stronger growth outlook for listed German firms despite economic concerns. On a sector level, only healthcare is close to its historical valuation standard; no sector trades below its past median. The report notes that US sector valuations heavily influence global peers and that expectations of unusually high long-term profit growth for US healthcare may coexist with higher perceived risk. Analysts also highlight parallels between Japan and Switzerland in returning toward a pre-2020 partial equilibrium characterized by inflation below central-bank targets, a backdrop that appears to affect investor valuation perspectives in different ways. #equities #USMarkets #Japan #Germany #Italy #FiatNews

Economist Scott Sumner warns that talk of imminent "fiscal dominance" — where central banks are forced to monetize government debt, driving high inflation — is overblown, though he says the concept merits careful definition. Sumner notes three U.S. monetary regimes since 1879: gold standard (1879–1933), quasi‑gold (1934–1968) and fiat (March 1968–present). He argues most quantitative easing merely swapped interest‑bearing reserves for interest‑bearing government bonds and thus did not directly raise governments’ financing costs. "In reality, most QE involved an exchange of interest‑bearing reserves for interest‑bearing government debt, which has no primary effect on the government's financing cost," he writes. Sumner also disputes the narrative that fiscal pressures drove the high inflation of 1968–1981, pointing out that public debt was low and even falling as a share of GDP then; he attributes that episode to a flawed Phillips‑curve view among policymakers. He defines true fiscal dominance as a regime in which monetary policy generates high inflation primarily to serve fiscal needs rather than to support the real economy or employment, and considers such a scenario unlikely in the near term. Source: The Pursuit of Happiness. #inflation #Fed #monetarypolicy #fiscalpolicy #FiatNews

Market snapshot: PX -0.44% today; DAX +0.33%; STOXX 600 +0.47%; NASDAQ +2.04%; S&P 500 +1.65%; Dow Jones +2.00%. FX: CZK/EUR 24.53 (+0.15%), CZK/USD 20.92 (+1.17%), USD/EUR 1.1723 (+1.01%). #markets #FX #FiatNews

Chinese EV maker Nio unveiled a lower-cost ES8 SUV priced at 308,800 CNY (~$43,000) under a battery subscription plan. The model launch intensified price competition among Chinese electric vehicle makers and sent Nio shares higher. #NIO #FiatNews

David Zervos, Jefferies chief strategist, said on CNBC he would cut rates by 50 basis points and described recent PPI readings as "information noise," adding that we are in the "final phase of the inflation battle." #rates #FiatNews

US political developments could affect the Fed: President Donald Trump is pushing to remove Fed Governor Lisa Cook; a successful removal could allow him greater influence over the seven-member Board of Governors, the report noted. #Fed #Trump #FiatNews

Eurozone composite PMI for August rose to 51.1, the report said, marking the best mood in European industry in three years and suggesting mild growth in the euro area in Q3. The surprise uptick supports the view of stabilization in activity. #PMI #Eurozone #FiatNews

Germany’s economy contracted 0.3% in Q2 versus the prior quarter, final data from the Federal Statistical Office show. The GDP decline confirms a short-term downturn in Europe’s largest economy. #Germany #GDP #FiatNews

Podcast 'Traders Talk' highlighted markets awaiting the Fed, investor focus on possible nationalization of utility ČEZ, and key items to watch in the US and Europe, including Fed policy, geopolitics and corporate developments. #TradersTalk #CEZ #FiatNews

Elon Musk reportedly sought help from Meta CEO Mark Zuckerberg to finance a bid to buy OpenAI for $97.4 billion, according to the report. Musk approached Zuckerberg about backing the proposed acquisition. #OpenAI #Musk #Zuckerberg #FiatNews