Eurozone inflation sinks to 2y low as Eurozone economy shrinks:
CPI slowed to 2.9% in Oct, down from 4.3% and better than expected 3.1%. But Core CPI – that excluding food & energy is retreating less rapidly. It moderated to 4.2% in October from 4.5% the previous month. Our take: disinflationary trend is firmly in place in the EZ although wage inf’still stickiness and more difficult comps in H2 prevent core inflation to decline more meaningfully. We believe there is enough progress for the ECB to stay put (i.e rates hike cycle is over) and potentially cut rates next year if EZ economy slows down meaningfully Source: HolgerZ, Bloomberg
Is Germany already the sick man of Europe?
Source: Michael A.Arouet
This chart from Robin Brooks highlights what is curently happening at ECB level: QE for some and QT for others
This was NOT supposed to happen. Remember: founding principle for the ECB is separation of monetary and fiscal policy. That's why ECB QE was initially subject to the capital key, so it couldn't favor one country over another. Could this last for ever? Source: Robin Brooks
There are good reasons why European stocks are so cheap compared with US stocks
Overregulation, lack of innovation, to name a few Source: Michel A.Arouet, Bloomberg
European gas price jumped to 6mth high as security threats to region’s infrastructure added to rising tensions in Middle East
Q3 Revenue +9% Y/Y to €20.0B (in cc). 🍷 Wines & Spirits -14% to €1.5B. 👜 Fashion & Leather goods +9% to €9.8B. 💅 Perfumes & Cosmetics +9% to €2.0B. 💍 Watches & Jewelry +3% to €2.5B. 🛍️ Selective retailers +26% to €4.1B. Source: Quartr, App Economy Insights
Here's a visual comparing the 5 largest companies in the U.S. to the 5 largest in Europe by market cap
It's absolutely remarkable that $AAPL alone is almost twice the size of all five European giants combined. Source: Quartr
Novo Nordisk weight loss drug Ozempic is causing selloff in candy and beer stocks, per Bloomberg.
Walmart said it’s already seeing an impact on shopping demand from people taking Ozempic. That sent shares of food and beverage companies sliding, some to multiyear lows. Source: Bloomberg, TME
A death cross on the Euro-dollar
Watch out the key 1.05 support level. There is not safety net underneath Source: TME Activate to view larger image,
