Federal Reserve Chairman Jerome Powell may signal a slowdown in future rate hikes at a press conference after the Federal Open Market Committee (FOMC) meeting on Wednesday. Bloomberg Economics (BE) illustrates this view. The unexpected increase in US job openings announced on Friday could complicate the Fed’s assessment of the situation, but it expects job openings to decline in the coming months. We expect the unemployment rate to worsen to 4.9% by 2024. Here are five news items to keep in mind as you start your day.
Demand is not weakening
from SeptemberThe number of job openings in the United States rose by 437,000 from the previous month to 10.72 million, contrary to market expectations. The market had expected a drop to 9.75 million. The previous month’s figure was also revised upwards to 10.28 million (preliminary figure of 10.053 million). The move, which is likely to lead to further wage rises, has increased pressure on the Fed to continue its aggressive tightening policy to keep inflation under control. The number of job openings for each unemployed person was around 1.9, up from around 1.7 in the previous month.
close to shrinking
October, published by the Institute of Rice Supply Management (ISM)The manufacturing business index is 50.2. It fell 0.7 points from the previous month to its lowest level since May 2020 and approached 50, which marks the line between expansionary and contracting activity. The orders index fell for the fourth time in five months, and the input price index fell to its lowest level in more than two years.
Start selling bond holdings
The Bank of England is the first of the portfolio built through 13 years of quantitative easing (QE)make the sale. The first auction was for 750 million pounds ($1.2 billion) worth of short-term British bonds, with 2.44 billion pounds of bids. The Bank of England stopped reinvesting maturity proceeds from its holdings in February, but has been slow to sell them so far. The sell-off had a limited impact on British bond prices, with two-year bond yields temporarily falling by 18 basis points (bp, 1bp = 0.01%). Some market participants said they were able to get through the situation almost without incident.
Sales forecast lower than expected
Advanced Micro Devices, the second largest processor manufacturer for computers (AMD’s third-quarter earnings, released after the close of regular trading, posted earnings per share of 67 cents, excluding certain items, beating market expectations of 65 cents. However, the sales forecast for the fourth quarter (4th quarter) was 5.2 billion to 5.8 billion dollars (about 770 billion to 860 billion yen), which fell short of the market forecast of about 5.9 billion dollars.
Uber stock soars
MeterUber Technologies’ third quarter (third quarter) financial results exceeded market expectations for sales. The recovery in the supply of drivers will support demand for rides, allaying investor concerns that higher inflation will curb consumer spending. Sales increased 72% year over year to $8.34 billion (about ¥1.23 trillion). Analysts surveyed by Bloomberg had forecast $8.1 billion. Shares surged to close 12% higher than the previous day.
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