He probably has a point ->
"Key measures of inflation have reaccelerated in recent months...The implication for investors is that the Fed will keep rates high until nonfarm payrolls go negative, because that is what is needed to get inflation under control:" Apollo's Slok through Lisa Abramowitz
Amazon reports better-than-expected results, as revenue jumps 13%
Amazon said fourth-quarter sales will be between $160 billion and $167 billion. Analysts were expecting revenue of $166.6 billion, according to LSEG. At the mid-point of its guidance range, revenue of $163.5 billion would represent growth of 9.6% from $149.2 billion a year earlier. Revenue climbed 13% in the third quarter, a sign that the business is seeing some acceleration after a difficult 2022 that was marred by soaring inflation and rising interest rates. Amazon has been in cost-cutting mode for the past year as it became clear that it expanded too quickly during the pandemic. The company has laid off 27,000 employees since last fall, and it’s axed some of its more unprofitable bets.
US GDP grew 4.9% in Q3 QoQ annualized, way faster than +4.3% expected
However, bond yields dropped in the afternoon session. This Bloomberg US GDP chart shows why. Indeed, US GDP growth in Q3 was mainly driven by private consumption & inventories. This may not last. Source: Bloomberg, HolgerZ
The S&P 500 is now down over 10% from its high in late July, the largest drawdown thus far in 2023
Is such a decline unusual? Not at all according to Charlie Bilello. A 10% intra-year drawdown has happened every 1.6 years on average.
ECB's Lagarde: "Rate cuts weren't discussed, would be totally premature".
Meanwhile, markets see the first ECB cut at April 2024 meeting. Source: Bloomberg, HolgerZ
US stocks now account for 61% of the $60 Trillion MSCI All-Country World Index, the highest level in history
Source: FT, Barchart, Bloomberg
7 powerful quotes on life...
Source: Seek Wiser
G7 vs. BRICS GDP
Source: Visual Capitalist, Barchart
