For this day ahead I’ll be focused on potentially the biggest software IPO ever – Snowflake as well as the Federal Reserve rate decision and UK CPI data.
Snowflake IPO
A late increase to its expected price range means Snowflake will be the biggest software IPO ever – valued at $2.9 billion – and possibly more if the price runs higher amid demand on the day. An uncharacteristic 570 million investment in a) software and b) an IPO from Warren Buffet has caught a lot of people’s attention on this one.
More so than the company’s business model- which is basically data management via the cloud. I will defer to my colleague Martin’s excellent write-up on the FlowBank blog more detail.
There’s actually a big data piece that could even sway the dollar more than the Fed, and that’s US retail sales, which are expected to have grown 1% in August in a slight loss of momentum from the 1.2% in July.
Jay Powell already announced the Big Kahuna at Jackson Hole on average inflation targeting – basically letting the job market run hot and forgetting about the inflationary implications until later - so no change is expected to policy this time around.
The Focus will be on economic projections – rates will be forecast at rock bottom for years – so the main point of interest will be the economy and employment. The Fed guesstimated a 9.3% unemployment rate at the end of the year – and its 8.4% now – so presumably we can expect some upward revisions there.
The UK consumer price index is expected to show zero year-over-year in August in a big drop from the 1% rise in July. Given expectations for zero, it would only take a 10th of a percentage point to see the UK re-enter a period of deflation.
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Let's follow this financial news on Snowflake IPO.
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