Opendoor is the market’s latest Meme Stock w/insane trading volumes. Shares of the San Francisco-based tech group that focuses on the stagnant real estate sector have nearly tripled in value over the past week. The rally appears to have been sparked by a prominent investor discussing the stock on social media, which drew the attention of retail traders. The company has struggled since peaking at a $20.6bn valuation in February 2021, shortly after merging with the SPAC (special purpose acquisition company) Social Capital Hedosophia Holdings Corp II, led by Chamath Palihapitiya. That decline isn’t surprising: Opendoor’s core business is in the "instant buyer" market, where it aims to make home sales faster and bypass traditional realtor fees—an idea that has faced serious challenges in a cooling housing market.

Good Morning from #Germany, where over 60 of the country’s top companies have kicked off a major new investment push worth at least €100bn. The goal: to help revive Europe’s largest economy, which has been stuck in a prolonged slump. One of the biggest concerns is that business investment has been falling. Back in 2019, gross fixed capital formation – a key measure of investment in infrastructure, machinery, and equipment – made up 11.7% of GDP. Today, that share has dropped to below 9%, a clear sign of the country’s fading economic dynamism.

Good Morning from Germany, where electricity prices on the energy exchanges have surged again – topping €100 per megawatt hour. So far this year, prices have crossed that level on 68 days. At these rates, building and operating large, energy-hungry data centers in Germany becomes increasingly difficult.

The world has accelerated. ETF inflows into digital gold were significantly faster and more intense than into original gold. (Chart via SRP)

Good Morning from #Germany, which has rejected the EU’s proposed €2tn budget. The objection isn’t just about the size – Germany would cover about a quarter of the total – but also about the plan to introduce a corporate substance tax, which Berlin argues would do little to boost competitiveness.

#Argentina raised to Caa1 from Caa3 by Moody's.

Party like it’s 1999: Goldman Sachs’ Non-Profitable Tech Index is up 66% since hitting its low in April.

Good Morning from #Germany, where foreign investors now hold 48% of the country’s €2.69tn in govt debt, acc to Bloomberg Intelligence. That’s nearly double the share in Italy, but roughly in line with other major EU economies like France. While this is a notable figure, it’s still well below the peak of around 76% seen before the European Central Bank launched its quantitative easing (QE) program in 2015. Back then, foreign investors were crowded out as the ECB bought up large volumes of sovereign debt. Now, with the ECB in quantitative tightening (QT) mode and reducing its bond holdings, foreign ownership has risen again. Meanwhile, the Bundesbank’s share of German government debt has fallen to just 24%.

US 2y yields bounced back after President Trump says his administration is “very concerned”, but “not planning on doing anything” about Fed Chair Jerome Powell.

The US yield curve sharply steepened as short-term Treasury yields fell and 30y yields surged, after a White House official said President Donald Trump is likely to fire Fed Chair Jerome Powell soon. The 2s/30s yield spread widened by 12bps.