Finimize - 🇺🇸 US inflation rose

US inflation sped up, German consumer confidence fell, and Champagne and turkey |
Finimize

Hi Reader, here's what you need to know for November 28th in 3:14 minutes.

  1. The US central bank’s preferred measure of inflation sped up
  2. Why this might be a good time to think about commodities – Read Now
  3. The mood in Germany dimmed, with folks fearing job losses and a widening downturn

🧭 Strategize with the best of ’em. Attend our Modern Investor Summit next week and get the savvy tactics you need from Ninja Trading’s Anthony Crudelle, CME Group’s Erik Norland, and Saxo’s Jacob Erichsen. Grab your free ticket

The Quick And The Fed
The Quick And The Fed

What’s going on here?

American consumers paid 2.3% more for goods and services last month than they did a year ago, as inflation sped its pace, according to new data.

What does this mean?

The personal consumption expenditures report is a broad measure of price activity and the Federal Reserve’s (Fed’s) preferred inflation gauge. And its latest update showed that prices rose faster in October, compared to the 2.1% pace seen in September. That aligned with what economists were predicting, but wasn’t what the Fed was hoping for at this stage of its inflation battle. Meanwhile, the core pace (which excludes volatile stuff like food and energy) ticked slightly higher to 2.8%, as prices of services – like portfolio fees from big investing houses – rose.

Why should I care?

For markets: Tortoise and the hare.

Inflation is way lower than its 2022 peak, but it’s still above the Fed’s 2% target. The good news is that the economy is still growing and employment is holding its own. And that suggests the central bank won’t need to rush those rate cuts. Makes sense, then, that the Fed has kicked itself into a slower gear, cutting rates by just a quarter of a percentage point last time around. And traders are wagering that the Fed will stick to the current tempo: they’re betting on another quarter-point trim in December. That is, unless the jobs report throws a curveball next week.

The bigger picture: A potential wrench in the works.

The president-elect has been promising some big new tariffs when he takes office in January. That’s worth watching: higher import taxes lead to higher prices, as companies seek to pass costs along to consumers. If that happens, it will complicate the Fed’s work in bringing inflation to heel. And that means the prospect of higher-for-longer interest rates – which would create a drag on growth in the world’s biggest economy and potentially undo the 2024 stock rally.

Copy to share story: https://app.finimize.com/content/the-quick-and-the-fed

🙋 Ask a question

TODAY'S INSIGHT

What The Bond Market Is Trying To Tell You About The Next Four Years

What The Bond Market Is Trying To Tell You About The Next Four Years

America’s frustration with inflation was a big motivator in the most recent presidential election.

But the party they voted for is likely to add trillions to the national debt with its policy, which, in turn, could stoke more inflation.

And in a way, that’s just how it goes. Life is full of little paradoxes.

But this one matters if you’re investing because inflation worries the bond markets.

That’s today’s Insight: why this might be a good time to think about commodities.

Read or listen to the Insight here

Eur-woes
Eur-woes

What’s going on here?

German consumer confidence is down in the dumps, with news about job cuts in the country adding to folks’ worries about a worsening economic slowdown.

What does this mean?

The forward-looking GfK consumer indicator, which asks people how they feel about the economy, dropped to minus 23.3 points in December, from minus 18.4 the month before. And you can hardly blame Germans for feeling glum: big layoffs at major companies like Bayer, Volkswagen, and Thyssenkrupp don’t exactly scream optimism. Plus, the German government has just predicted that the economy will shrink by 0.2% this year, a second straight yearly decline that could weaken the country’s standing among Europe’s other big economies. And if Germany hopes to get growth moving again, anxious consumer sentiment is the last thing it needs.

Why should I care?

For markets: A domino effect.

It’s not just Germany: consumer confidence has taken a dive in France too and it won’t be easy to turn the mood around. See, the government’s been fighting to pass a difficult budget without being ousted. That’s led the prices of French bonds to rise even higher than German ones – with that gap now at its widest since the euro crisis, as investors start to bet on a government collapse in Paris. It’s a reminder of how bad news sometimes spreads like wildfire – with the economy, politics, and consumer sentiment all feeding into a kind of doom loop.

The bigger picture: Looking out for number one.

Europe's answer to the US’s "America First" policy is "Europe United" – and the bloc has just elected some new leaders to put that into action. And those folks have plenty on their plate: they need to boost innovation to catch up with the US and China, strengthen security, bolster the EU’s support for Ukraine, and juggle internal politics – all while keeping an eye on the budget. No pressure then.

Copy to share story: https://app.finimize.com/content/eur-woes

🙋 Ask a question

QUOTE OF THE DAY

"When someone shows you who they are, believe them the first time."

– Maya Angelou (an American writer)
Tweet this

🎯 On Our Radar

1. A bit of bubbly. This hack might just level up your turkey game.

2. Build a portfolio that stands the test of time. Learn the key steps to long-term success with expert insights.*

3. Go big, for less. Here are some great early black Friday deals on hefty kitchen appliances.

4. Tax advantages, compounded returns, flexible inheritances. ISAs can have it all – so long as you choose the right one.*

5. Dinosaur junior. The closest living relative to a T-Rex might surprise you.

When you support our sponsors, you support us. Thanks for that.

🌍 Finimize Live

🤩 Grab your tickets...

All events in UK time.
🚀 2024 Modern Investor Summit: December 3rd and 4th
Spotlighted Sessions:
🤖 Investing In AI: Opportunities In Pre-IPO And Private Markets: 5:45pm, December 3rd
🎅🏻 Beyond The Santa Claus Rally: How To Navigate High-Risk Trading In 2025: 8:15pm, December 3rd
🎓 Mastering ETFs To Capitalize On 2025’s Biggest Themes: 12:15pm, December 4th
💵 How To Build A Winning Portfolio With $10,000: 1pm, December 4th

Thanks for reading Reader. If you liked today’s brief, we’d love for you to share it with a friend – here’s a link: Share this email

You stay classy, Reader 😉

Any thoughts on today’s email? Give feedback

Want to advertise with us? Get in touch

Image credits: Midjourney | Midjourney

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2024

View Online

When you support our sponsors, you support us. Thanks for that.

Older messages

💉 A slimming proposal

Tuesday, November 26, 2024

Obesity drugs could be covered for millions more Americans, the president-elect proposes new tariffs, and meat-eaters versus veggies | Finimize TOGETHER WITH Hi Reader, here's what you need to know

🤖 Amazon's buddy

Monday, November 25, 2024

Amazon invested big in Anthropic, a hedge fund manager was tapped for the US Treasury, and quacking at the bottom of the ocean | Finimize TOGETHER WITH Hi Reader, here's what you need to know for

🪙 Big on bitcoin

Friday, November 22, 2024

MicroStrategy raised more cash for bitcoin, Europe's business activity slipped, and going to a haunted house | Finimize TOGETHER WITH Hi Reader, here's what you need to know for November 23rd

💔 Google's big breakup

Thursday, November 21, 2024

Google faces a breakup, xAI hits a $50 billion valuation, and lots of manatees | Finimize TOGETHER WITH Hi Reader, here's what you need to know for November 22nd in 3:00 minutes. US justice

👁️ Nvidia opened up

Wednesday, November 20, 2024

Nvidia released results, UK inflation jumped, and some really big coral | Finimize TOGETHER WITH Hi Reader, here's what you need to know for November 21st in 3:15 minutes. Nvidia reported record

You Might Also Like

Is your Medicare coverage falling short?

Tuesday, December 3, 2024

This may be the perfect time to get a Medigap plan Explore all your Medigap options All Medigap plans cover certain costs, such as copayments, coinsurance, and deductibles that Medicare doesn't

The Grass Isn’t Always Greener

Tuesday, December 3, 2024

Transplants are learning tough lessons ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Missed Out? Here’s Your Final Opportunity to Join F.A.S.T Profits!

Tuesday, December 3, 2024

Last call ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Dirt-cheap toys imported into U.S. can be dangerous

Tuesday, December 3, 2024

If you're tempted to buy kids' toys at rock-bottom prices online this holiday season, consumer advocates want you to think twice — and maybe three times. View this email online Planet Money I

Adaptation is to mitigation what Robin is to Batman

Tuesday, December 3, 2024

Jenny Clark and Theresa Löber The UK's climate continues to change, getting wetter and warmer, with extremes becoming ever more pronounced. Even if we limit global warming to 1.5°C above pre-

🦾 OpenAI's big target

Monday, December 2, 2024

OpenAI is aiming for one billion users, China's manufacturing activity was up, and one intrepid cat | Finimize TOGETHER WITH Hi Reader, here's what you need to know for December 3rd in 3:14

Identity theft is more common than you might think

Monday, December 2, 2024

Three in 10 Americans were affected in 2023 ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

The One-Big-Side-Bet Model of Wealth Creation

Monday, December 2, 2024

Plus! Diff Jobs; Building Japan's Financial Ecosystem; The New Balance of Trade; Where Return on Investment Goes; Broken ETFs; Swipe Fees and Accounting The One-Big-Side-Bet Model of Wealth

This is not a Cyber Monday deal

Monday, December 2, 2024

But you have one month free of Ellevest. ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌

Spring semester is approaching — are you ready?

Sunday, December 1, 2024

Invest in your career with a private student loan for grad school Your future starts today — apply for a private student loan Postgraduate studies can propel your career forward, helping unlock higher