Opening Bell: 9.2.26

The Bond Market Issues World Leaders a Failing Grade [WSJ]“The world is awash in debt…and the only way for us to get out of this is to grow our way out of this,” [U.S. Treasury Secretary Scott] Bessent said at the start of the summit…. This is not a credible solution. First, growth hasn’t come to the rescue yet. U.S. GDP is up 2.1% in the past 12 months, in line with Joe Biden’s last year in office. The federal deficit is likely to top 6% of GDP this fiscal year, in line with or higher than in Biden’s last full fiscal year. A War That Won’t End Is Complicating the Fed’s Next Move [WSJ]“It is my belief that we’ve seen a supply shock,” [Bessent] said on CNBC. “Traditionally, you don’t raise [rates] into a supply shock unless you see second- or third-order effects, and we are seeing the core inflation has remained very, very restrained.”Goldman Sachs, BofA and others plan to issue dollar stablecoin together in 2027 [Reuters]The group will compete with a separate consortium of 37 financial institutions which formed ‌a ⁠company called Qivalis and said they plan to launch a euro-pegged stablecoin later this year…. Still, there are few signs of ​demand for stablecoins issued ​by banks.The private sector added 38,000 jobs last month, missing expectations, ADP says [Yahoo!]Economists polled by Bloomberg had been expecting a gain of 47,000 jobs. July's job gains were revised up slightly to 46,000…. On Friday, the Labor Department will release its own August jobs data gathered from surveys of public and private sector employers. ADP's data is based on payroll data from millions of private-sector employers. Economists expect the government data to show that the US added 55,000 jobs.Trump Crypto Ally David Bailey Rebuilds After 99% Stock Collapse [Bloomberg]“It’s been a very rough year for us,” Bailey said in an interview at this year’s Bitcoin Asia conference. “We bought Bitcoin at the top, and then Bitcoin performed very poorly….”Nakamoto now trades well below the value of its Bitcoin holdings, making it far harder to issue stock to buy more of the cryptocurrency. Bailey is instead turning to a more conventional source of firepower: businesses that generate cash.UBS Faces Protracted Capital Battle as Minister Hits Back [Bloomberg]“This is a solution in favor of the bank and against taxpayers,” [Karin] Keller-Sutter said Tuesday in Basel.Her comments come after a committee of the Swiss parliament on Monday endorsed a proposal that would allow the country’s largest bank to use a type of hybrid debt known as AT1 bonds to meet half of the new capital requirements.