The White House has metaphorical ear plugs in, when it comes to McCarthy’s threats about the government shutdown. Kevin has shown to have little leverage within his own party, and shutdowns do not force as much financial turmoil initially as a US default on government debt. Mitch McConnell, in the meantime, is trying to find a bipartisan solution. But time is running out.
Did anyone else do a double-read of the news this morning that US consumer spending growth for 2Q23 was revised down from 1.7% to 0.8%? A 50+% haircut? The US Bureau of Economic Analysis and Major Revisions blamed weaker services outlays as the culprit. GDP growth of 2.1% was not revised. The headline price index also was revised, from 2% to 1.7%. That’s actually dovish, so the market seems to be rebounding a bit this morning. But they also issued a comprehensive benchmark update with revisions to GDP reaching back a decade. Part of that revision? Americans saved $1.1 trillion less in the past six years than previously estimated. Another bad haircut.
JPM’s Kolanovic is holding firm on his downbeat view, noting greater equity volatility, per Bloomberg. Also, Bloomberg is out with a story about the selloff potentially getting worse due to short gamma and CTA sales. Want more? The White House is talking about headwinds from the shutdown, student debt repayments, higher rates, the UAW strike and Biden’s dog biting everyone. OK, maybe one of those was not included. Also, CFOs are reducing capex plans given higher rates, per the WSJ. And if you rushed to get a new iPhone 15 Pro and have a fire in your pocket…well, you are not alone.
GameStop lost a 2nd CEO in 3 years, and now its Chairman (founder of online pet food retailer Chewy) is taking the helm. Remember, the company also lost its CFO in August via her resignation.
BBG has a story about the police using Google user data to catch criminals and the privacy concerns some have around public data. If a crime is committed, the police can send a search warrant for location and search information. So, if an arson Googled someone’s address several times, set fire to it, and then was marked as being in the area of the crime at the time, the police would have an easier time catching the criminal. Some folks complain that their privacy is violated, because maybe they turn up on the list because they Googled that house address….but I say, fine with me.
Seems like Americans don’t make meaningful lifestyle decisions based on climate change concerns. Most of the US’ fastest-growing cities are on the list of places with weather extremes and natural disasters. Folks have built larger, more expensive houses that the insurance industry is backing away from. Below is the % change in pop from Jul 2021-2022.
BBG created a shame board for those known to be in the crosshairs for the WhatsApp/chat investigations by the SEC.
Micron gave a so-so forecast, which is fueling speculation that AI fever is cooling off. They are forecasting a steeper loss than expected in the current quarter. Part is from lower demand. It’s also pegged as a security risk by China.
NATO is working on tech/AI to enable real-time detection of suspicious activity near underwater critical infrastructure. We’re watching you, Russia. They are mapping allied cables and pipelines as possible future targets, so hopefully NATO will get a move on this.