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Livesquawk - US Briefing - Wednesday 13.10
US Briefing - Wednesday 13.10
Headlines
  • Fed’s Bullard: Supports Starting A Taper Of Bond Purchases In Nov.
  • US Set To Ease Restrictions On Land Travel With Canada, Mexico
  • EU’s Sefcovic To Hold Presser On NI Protocol Proposal At 1730BST
  • EU Has Made Concessions Over Checks On UK Goods Entering NI
  • EZ Aug. Industrial Production Falls 1.7% M/M, +5.1% Y/Y; Beats Views
  • UK Aug. M/M GDP: 2.9% Misses 3.0% Est; Prior Revised Up To 4.2%
  • UBS: Housing Bubble Risks Are Accelerating Across EU, Hong Kong
  • OPEC Stays Cautious On Oil-Demand Strength Despite Price Surge
  • Kremlin: Gazprom Gas Supplies To EU Hiked To Max Possible Levels
  • Iraq OilMin: Sees Balanced Market, Crude Topping Out At USD85/B
  • China Coal Prices Hit Record As Floods Add To Supply Chain Woes
  • China Sep. New Bank Loans Rise To 1.66Tln Yuan, Below Forecast
  • RTRS Poll Expects 2022 China GDP At 5.5%, Modest Policy Easing
  • US Overtakes China As Biggest Bitcoin Mining Hub After Beijing Ban
  • Apple Poised To Slash iPhone Production Goal Due To Chip Crunch
  • Fed’s Quarles To End Role As Chief Watchdog Of Wall Street Banks
  • JPMorgan Q3 Adj. Revenue, EPS Beat; Investment Bank Rev. Beats
  • BlackRock's Q321 Profit Beats As Rise In Assets Boosts Fee Income
  • FDA Staff: Moderna Did Not Meet All Criteria For Covid-19 Boosters
  • Deutsche Bank Faces EUR500M Lawsuit In A Widening FX Scandal
  • Cloud Firm SAP’s Shares Rally After Raising Its Full-Year Outlook
  • China Mulls Elevating Antitrust Agency Status Within Mkt Regulator
  • Luxury Giant LVMH Shares Rally; Reports Q3 Sales Rising By 20%
Commentary
UK GDP Inches Towards Pre-Pandemic Highs, Are We Losing Gas?

London – UK economic growth continued in August but fell short of a rebound to the pre-pandemic level of February 2020, remaining just 0.8% lower, month on month. The Office for National Statistics said GDP grew an estimated 0.4% on the month, missing the consensus forecast of 0.5% but still accelerating from last month’s revised 0.1%. This revision, according to the ONS, was driven downward by updated data for cars, oil, gas and improvements to how economic health is measured. Focusing on GDP service sector contributors, accommodation and food services continued to underpin activity in August as the public flocked to restaurants, bars and festivals for the first full month without Covid-19 restrictions in Britain. Health and social services held the median figure back the most due to fewer visits to doctors.

 

Furthermore, consumer-facing services increased 1.2% in August but remained 4.7% below pre-pandemic levels. UK production followed a similar narrative, shrinking to 0.8% month on month from 1.2% but remaining above the forecast of 0.2%. Output in this sector was also below its respective February 2020 level by 1.3%. Despite slightly softer overall readings, cable remained steady. However, MUFG’s Lee Hardman said this “looks more like USD weakness driving cable higher than anything pound specific”.

(LiveSquawk - Continue Reading)

'Patient' Or 'Aggressive'? Fed Policymakers Split On CPI Response

Source: Federal Reserve

US central bankers broadly agree they can soon begin reducing their support for the economy, but are divided over how much of a threat high inflation poses, and - more importantly - what they might need to do about it. Some indication of the intensity of that debate should emerge on Wednesday when the Federal Reserve releases the minutes of its Sept. 21-22 policy meeting, at which officials sent their clearest signal here yet that the days of crisis-era policy were numbered. With the economy set to grow this year at its fastest pace in decades, inflation riding well above the Fed’s comfort zone and the labour market much healed from the devastation of the coronavirus pandemic, most policymakers believe it is prudent to start cutting back the $120 billion in monthly asset purchases the central bank has been making to spur the economic recovery.

 

Fed Chair Jerome Powell said last month that, as long as the job market data is “decent,” he expects the wind-down of the Fed’s purchases of Treasuries and mortgage-backed securities to start next month and be complete by the middle of next year. After a government report on Friday showing U.S. employers added 194,000 jobs last month here, well below many economists' expectations, Fed Vice Chair Richard Clarida on Tuesday said the employment guidepost was "all but met," though he did not point specifically to November for the start of the tapering of the asset purchases.

(Reuters – Continue Reading)

EU To Propose Easing Checks On British Trade To N. Ireland

The European Commission will put to Britain on Wednesday a package of measures to ease the transit of goods to Northern Ireland, while stopping short of the overhaul London is demanding of post-Brexit trading rules for the province. The EU executive’s measures are designed to ease customs controls, such as the clearance of meat, dairy and other food products and the flow of medicines to the British province from the UK mainland. However, it will not open up for renegotiation the protocol governing Northern Ireland’s unique trading position, leaving Brussels and London on a potential collision course.

 

Maros Sefcovic, the commission vice-president in charge of EU-UK relations, will present the plans to EU countries and to members of the European Parliament on Wednesday afternoon before a news conference scheduled for 6:30 p.m. (1630 GMT). The commission will also set out plans to engage more with people in Northern Ireland. Oliver Dowden, the co-chairman of Britain’s ruling Conservative Party, said the British government would engage fully and constructively with the European Union on the proposals, adding that the steps he had read about so far were “welcome”.

(Reuters – Continue Reading)

Apple Set To Cut iPhone Production Goals Due To Chip Crunch

Apple Inc. is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units as prolonged chip shortages hit its flagship product, according to people with knowledge of the matter. The company had expected to produce 90 million new iPhone models in the last three months of the year, but it’s now telling manufacturing partners that the total will be lower because Broadcom Inc. and Texas Instruments Inc. are struggling to deliver enough components, said the people, who asked not to be identified because the situation is private.

 

The technology giant is one of the world’s largest chip buyers and sets the annual rhythm for the electronics supply chain. But even with strong buying power, Apple is grappling with the same supply disruptions that have wreaked havoc on industries around the world. Major chipmakers have warned that demand will continue to outpace supply throughout next year and potentially beyond. Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One TI chip in short supply for the latest iPhones is related to powering the OLED display. Apple also is facing component shortages from other suppliers.

(Bloomberg – Continue Reading)

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