Boyd Watterson Asset Management

WEEKLY MARKET MINUTE For the month of June, sales of existing homes and new homes fell to seasonally adjusted annualized rates of 3.52 million and 617,000, respectively. Months’ supply for existing homes increased to 4.0, its highest level since May 2020, while months’ supply for new homes increased to 9.3, its highest level since October 2022. The median price for existing homes notched another record high at $432,700, above the $417,300 median price for new homes. Trends in the housing market can have near-term impacts on economic outcomes given all the activity related to transaction volume. Additionally, the current inventory/price dynamics could likely lead to a reacceleration of the shelter component in CPI, which may cause further uncertainty around the pace and amount of FOMC rate cuts as we move into 2025. #weeklymarketminute Author: Joseph Khoury

WEEKLY MARKET MINUTE Chinese real GDP growth slowed to 4.7% y/y in 2Q24 from 5.3% in the prior quarter. For the month of June, industrial production, retail sales, and loan growth decelerated on a y/y basis. China’s economic setup has broad implications for global economic activity, and ultimately that global dynamic may influence the trajectory of U.S. economic activity. #weeklymarketminute Author: Joseph Khoury

WEEKLY MARKET MINUTE Total nonfarm payroll growth came in at 206,000 for the month of June, down from 218,000 a month ago. May and April data were revised lower, resulting in 111,000 fewer jobs added than initially reported. Average hourly earnings rose 0.3% m/m, below the 0.4% pace in the prior month, and the y/y growth rate slowed to 3.9% from 4.1%. #weeklymarketminute Author: Joseph Khoury

WEEKLY MARKET MINUTE Retail sales accelerated 0.1% m/m in May, up from -0.2% in the prior month, but the y/y pace slowed to 2.3% from 2.7%. On an inflation-adjusted basis, retail sales decelerated further into negative territory to -1.0% y/y from -0.6%. Importantly, the Retail Control Group, a series that tends to be a good forward indicator for the direction of consumer spending within the GDP calculation, was flat on a rate of change basis at 3.1% y/y. #weeklymarketminute Author: Joseph Khoury

WEEKLY MARKET MINUTE Total nonfarm payrolls increased by 272,000 in the month of May but decelerated y/y to 1.77%. JOLTS openings decelerated by 19% y/y to 8.059 million, its lowest level since February 2021. Indeed job postings through June 7th were negative y/y in 43 of 47 industries reported, but more than half of them accelerated on a rate of change basis. While the full scope of labor data was somewhat mixed through the first two-thirds of 2Q24, the pace of payroll declines has mostly slowed and initial claims remain relatively low, which should be a positive for the consumer setup.  #weeklymarketminute Author: Joseph Khoury

WEEKLY MARKET MINUTE Overnight index swaps (OIS) are pricing in a near 100% chance of a 25-basis point rate cut from the European Central Bank (ECB) at their June 6th meeting. Given the base effect setup for economic activity and upward direction in market data out of Europe, we will be noting how council members of the ECB talk about the decision to cut its policy rate, should they do as the market expects. Ultimately, we believe the current environment is not conducive to reoccurring policy easing, which may impact other central banks and the Fed’s decision making. #weeklymarketminute Author: Joseph Khoury

We are excited to announce that Boyd Watterson Asset Management and Amber Infrastructure Group have jointly announced a strategic combination to form a global diversified Real Estate, Infrastructure, and Fixed Income asset management platform with approximately $35.7 billion in assets under management. We believe this strategic transaction enhances our global reach and provides expanding investment opportunities and product offerings to best serve our clients.   We are excited to embark on this new chapter, confident that our enhanced scale and expertise will drive future growth and innovation. Together, we look forward to delivering exceptional service and performance to our clients worldwide.   “With the combination of Amber Infrastructure Group, we are broadening our scope and opening up exciting new investment opportunities for our clients.”  - Brian Gevry, CEO of Boyd Watterson.    #BoydWatterson #AmberInfrastructure #StrategicTransaction #GlobalInvestment #ClientService #RealEstate #FixedIncome #Infrastructure Read more here.

We are excited to announce that Boyd Watterson Asset Management and Amber Infrastructure Group have jointly announced a strategic combination to form a global diversified Real Estate, Infrastructure, and Fixed Income asset management platform with approximately $35.7 billion in assets under management. We believe this strategic transaction enhances our global reach and provides expanding investment opportunities and product offerings to best serve our clients.   We are excited to embark on this new chapter, confident that our enhanced scale and expertise will drive future growth and innovation. Together, we look forward to delivering exceptional service and performance to our clients worldwide.   “With the combination of Amber Infrastructure Group, we are broadening our scope and opening up exciting new investment opportunities for our clients.”  - Brian Gevry, CEO of Boyd Watterson.    #BoydWatterson #AmberInfrastructure #StrategicTransaction #GlobalInvestment #ClientService #RealEstate #FixedIncome #Infrastructure Read more here.

We are excited to announce that Boyd Watterson Asset Management and Amber Infrastructure Group have jointly announced a strategic combination to form a global diversified Real Estate, Infrastructure, and Fixed Income asset management platform with approximately $35.7 billion in assets under management. We believe this strategic transaction enhances our global reach and provides expanding investment opportunities and product offerings to best serve our clients.   We are excited to embark on this new chapter, confident that our enhanced scale and expertise will drive future growth and innovation. Together, we look forward to delivering exceptional service and performance to our clients worldwide.   “With the combination of Amber Infrastructure Group, we are broadening our scope and opening up exciting new investment opportunities for our clients.”  - Brian Gevry, CEO of Boyd Watterson.    #BoydWatterson #AmberInfrastructure #StrategicTransaction #GlobalInvestment #ClientService #RealEstate #FixedIncome #Infrastructure Read more here.

WEEKLY MARKET MINUTE The Consumer Price Index (CPI) decelerated y/y in April, but the m/m growth rate stayed above 0.3% and the y/y comparison eases in May and June. At the same time, the Producer Price Index (PPI) and many key metals and agricultural commodities have been accelerating. This setup likely makes the path to the Fed’s 2% inflation target more difficult in the near term. #weeklymarketminute Joseph Khoury