Higher than expected US PPI + Powell's remarks yesterday sent rate-cut expectations notably lower - December less than 50-50 now...
Source: Bloomberg, www,zerohedge.com
Spoiler: France will continue to miss deficit targets.
It already has the highest tax burden in Europe, and there are no real structural reforms on the horizon. Source: Michel A.Arouet
⚠️US GOVERNMENT BORROWING EXPLODED IN OCTOBER⚠️
US budget deficit hit a STAGGERING $257.5 BILLION in October. This is up nearly 400% year-over-year versus $66.6 BILLION last year. This was also the 2nd highest deficit in the entire United States history. Mind-blowing numbers. Source: Global Markets Investor, zerohedge
It seems that the FED's neutral rate is higher.
Are they going to throw the towel on the 2% target? Source: Bloomberg, Lawrence McDonald
Both initial jobless claims and continuing claims were lower than expected last week.
🔊 Initial Jobless Claims came in at 217K versus the consensus forecast of 223K. 🔊 The 4-week average came in at 221K versus the consensus forecast of 226K. Source: CMG Venture Group
BREAKING 🚨 PPI data came out…
YoY Growth: • PPI (Oct), 2.4% Vs. 2.3% Est. (prev. 1.8%) • Core PPI, 3.1% Vs. 3.0% Est. (prev. 2.8%) MoM Growth: • PPI (Oct), 0.2% Vs. 0.2% Est. (prev. 0.0%) • Core PPI, 0.3% Vs. 0.2% Est. (prev. 0.2%) Source: Stocktwits
Fed cuts rates by 25bps in unanimous decision as expected. So what did the Fed do?
👉 FED LOWERS BENCHMARK RATE 25 BPS TO 4.5%-4.75% RANGE 👉 FED SAYS RISKS TO GOALS REMAIN 'ROUGHLY IN BALANCE’ 👉 FED: LABOR MARKET CONDITIONS HAVE 'GENERALLY EASED' No dissent on this rate-cut decision. 🚨 Key changes: - Most notably, removing language that Fed has "gained greater confidence that inflation is moving sustainable toward 2 percent". - Adding that labor market conditions have "generally eased" since earlier in the year, replacing "job gains have slowed". Source: Bloomberg, www.zerohedge.com
China on Friday announced a five-year package totaling 10 trillion yuan ($1.4 trillion) to tackle local government debt problems, while signaling more economic support would come next year.
The debt swap program, however, fell short of many investors’ expectations for more direct fiscal support. Source: Bloomberg
