What Moved The Markets This Week 📈
Credit Card Debt Surges To $1.1T, China Slips Back Into Deflation, Tesla's New €25K Car, OpenAI's DevDay Releases, and UBER + DIS + DDOG Earnings
Sunday Morning Markets
Trading Week 45, covering Monday, Nov 6 through Friday, Nov 10. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Credit card debt surges to $1.08 trillion
30Y mortgage rates drop to 7.61%
China’s economy slips back into deflation
UK economy fails to grow in third quarter
Nvidia to release three new chips for China
Tesla to build €25,000 car in Germany
OpenAI’s demo day reveals ChatGPT4.0-Turbo
Earnings from UBER, DIS, DDOG — see breakdown below
US Markets 🇺🇸
Credit card balances spiked to $1.08 trillion in the third quarter, a new record. Outstanding balances increased by $154 billion over the year, notching the largest increase since 1999, the New York Fed found.
30Y mortgage rate plunges by most in 16 months on the back of a rally in the Treasury market. The MBA noted the average contract rate on a 30-year fixed-rate mortgage dropped 0.25% last week to 7.61%.
Disney taps PepsiCo veteran Johnston as new CFO as the company contemplates several major transactions, including potentially selling ABC and looking for strategic partners for ESPN.
Citigroup considering at least 10% job cuts in several major businesses under CEO Jane Fraser’s ‘Project Bora Bora’. The bank currently employs 240K people, meaning a 10% cut would be the largest on Wall Street in years.
FDA approves Eli Lilly’s tirzepatide for weight loss paving the way for even wider use of the blockbuster medication. The drug, Zepbound, will be available in the US by year-end and will cost roughly $1,060 for a month’s supply.
Prime members can now get primary care for $9/month or $99/year through One Medical, versus the standard cost of $199 annually. Amazon continues its healthcare push after acquiring One Medical in July 2022 for $3.9 billion.
Hollywood actors reach deal with studios to end strike after 118 work days. The new $1 billion three-year contract includes increases in minimum salaries and a new "streaming participation" bonus.
Global Markets 🌏
China’s economy falls back into deflation as its recovery stutters. CPI shrank 0.2% year-on-year in October, more than an expected 0.1% decline. PPI dropped 2.6% last month, falling for the 13th month in a row.
Stagflation in the UK economy persists in the third quarter as the finance minister says high inflation remains the “single greatest barrier to economic growth” in the country. GDP remained flat in Q3.
Canada's Ivey PMI shows activity expanding for the third month in a row as the seasonally adjusted index rose to 53.4, from 53.1 in September. The employment gauge fell to an adjusted 54.7, from 58.5.
Australia's central bank raises rates to 12-year high, hiking their cash rate 25 bps to 4.35%. The Reserve Bank of Australia gave a hawkish message and left the door open for more tightening ahead.
Nvidia plans to release three new chips for China after the U.S. blocked it from selling two high-end AI chips and one of its top gaming chips to Chinese firms. Nvidia has previously enjoyed a 90% share of China's $7B AI chip market.
Tesla to build a €25,000 car in Germany as the company aims to hit mass market and scale annual deliveries to 20 million by 2030. The average retail price of an EV in Europe for the first half of 2023 was €65,000.
Adyen lowers its medium-term sales targets and now expects sales to grow between low to high twenty percent. Adyen added it would aim to improve its EBITDA margin to 50% by 2026. Shares surged 35% this week.
Tech ⚡
OpenAI unveils new GPT-4 Turbo at its DevDay, its most powerful model yet. The company also announced that users can build their own GPT with no coding required, as well as a new app store.
Tech startup, Humane, reveals its new AI pin device that you clip onto your shirt and wear all day. The device allows you to talk, gesture, take photos, send texts, search the web, and be your daily virtual assistant.
Samsung launches its Gauss AI model that can understand human language and answer questions like ChatGPT. It can help you write and edit emails, summarize documents, and translate languages.
U.S. Spotify users can now access over 200,000 audiobooks as part of their premium plan and can listen for up to 15 hours per month. Spotify hopes to reignite growth with this new category.
Take-Two Interactive confirms GTA6 is launching soon and said “the first trailer for the next Grand Theft Auto” would be released in early December. TTWO 0.00%↑ shares rose 6% this week and are up 44% YTD.
Palo Alto acquires Talon Cyber Security for $625 million, marking the second major M&A deal after the company acquired cloud data specialist, Dig Security, for $400 million last week.
Wonder Group gets $100 million investment from Nestle as the startup looks to sell high-tech kitchen equipment and prepared ingredients to businesses such as hotels, hospitals, and sports arenas.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - OPEC Report🇺🇸
Earnings Reports: Tyson Foods, Monday.com💰
Tuesday
US - CPI Inflation (OCT)🇺🇸
UK - Employment Report (OCT)🇬🇧
CN - Industrial Production (OCT)🇨🇳
JP - GDP (Q3)🇯🇵
Earnings Reports: Home Depot, Nu Holdings, Sea Ltd💰
Wednesday
US - Retail Sales (OCT)🇺🇸
US - PPI Inflation (OCT)🇺🇸
US - NY Empire State Manf. Index (NOV)🇺🇸
UK - CPI Inflation (OCT)🇬🇧
Earnings Reports: Cisco, Palo Alto Networks, Target, JD, NetEase, Xpeng💰
Thursday
US - Philly Fed Manf. Index (NOV)🇺🇸
US - Import Export Price Index (OCT)🇺🇸
CA - Housing Starts (OCT)🇨🇦
Earnings Reports: Walmart, Alibaba, Applied Materials💰
Friday
US - Housing Starts (OCT)🇺🇸
US - Building Permits (OCT)🇺🇸
UK - Retail Sales (OCT)🇬🇧
EU - CPI Inflation (OCT)🇪🇺
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