1. Inflation remains high in the US but stocks soar!

As NAB’s Skye Masters explains, shares initially fell on the higher-than-expected CPI read — 8.2% — but then staged a massive rebound later in the session, finishing markedly higher towards the close.  Bond markets responded more predictably, pricing in a more aggressive path of rate hikes for the Fed – maybe 150 basis points before Christmas!

2. S&P 500 rises over 2% on bad inflation number

Our market is tipped to start up 115 points and the Oz dollar spiked over 63 US cents. Trying to work out why a bad inflation number can be positively received, an expert on CNBC said rents were important to the size of this result and said “it was old data?” Experts are pondering if the Fed can keep raising by 0.75% when the inflation data is out of date. Shane Oliver of AMP has US Inflation Pipeline data, which is more up-to-date, that says US inflation has peaked.

3. Cheap Netflix coming

The SMH says “Australia is one of 12 countries that will be offered Netflix’s new ad-based budget subscription plan that will be rolled out next month.” The Basic with Ads plan will cost $6.99 per month in Australia, four dollars less than the cheapest ad-free plan currently on offer.

4. New British PM is “a lady for turning.”

The “Iron Maiden” PM Margaret Thatcher famously told her party conference that “The lady’s not for turning”.  Well her new age counterpart, Liz Truss, is for turning and is set to drop many of the central parts of her tax plan that has sunk the pound. The AFR says Ms Truss “could scrap her pledge to keep corporation tax unchanged next year, and instead raise it as planned by her predecessor Boris Johnson, The Sun said.”

5. BP will pay to turn us greener

The Australian reports that: “Energy giant BP may spend more than $10bn on a string of local renewable and low carbon projects but says Australia must replicate clean energy incentives put in place by the Biden administration to ensure new industries like green hydrogen can develop.”

The newspaper put the future of investing in renewables into perspective telling us that: “The oil and gas giant in June made one of its biggest bets on producing green hydrogen after buying into Western Australia’s $US36bn ($52bn) Asian Renewable Energy Hub in the Pilbara with plans to become a major exporter of the alternative green fuel.”

Where there’s investing smoke, look for stocks that will soon be on fire!