The main headlines that the global financial media focused on last night and this morning were:
U.S. mortgage rates rose sharply in October, but home prices still recorded the biggest increase in 2023
According to the S&P CoreLogic Case Shiller Home Price Index report, U.S. home prices rose 4.8% year-over-year in October 2023 compared to October 2022. This is up from the 4% year-on-year increase in September and the largest year-over-year increase in 2023.
The composite house price index of the top 10 cities rose 5.7% year-on-year, up from 4.8% in September. The composite house price index in the top 20 cities rose 4.9% year-on-year, up from 3.9% in September.
The report showed that home prices moved higher despite a sharp rise in mortgage rates in October.
U.S. holiday season retail sales growth was much lower than a year earlier
Preliminary data from Mastercard SpendingPulse shows that holiday retail sales in the U.S. are growing much slower than in 2022, as discerning shoppers look for great deals and promotions throughout the shopping season.
The results of the study showed that from November 1 to December 24, retail sales excluding automobiles increased by 3.1% year-on-year. The study used transaction data from Mastercard's payment network, as well as survey-based estimates of other payment methods. In 2022, a similar study by Mastercard SpendingPulse showed a 7.6% increase in holiday sales.
Mastercard Economics Institute首席经济学家Michelle Meyer说，消费者“花钱很在意”。
The White House refused to overturn the ruling after a review of the ban on the sale of Apple Watch in the United States
The White House's refusal to overturn Apple's ban on the sale of smartwatches in the U.S. failed to give the tech giant a respite.
The U.S. International Trade Commission (ITC) found in October that the Apple Watch infringed two Masimo patents related to blood oxygen monitoring. The White House has 60 days to evaluate the import ban, and the decision rests with U.S. Trade Representative Katherine Tai.
"After careful consultations, Ambassador Tai has decided not to overturn the ITC's ruling, which becomes final on December 26, 2023," the USTR said in a statement Tuesday. ”
MicroStrategy bets heavily on Bitcoin, with its share price rising by more than 300% in 2023
MicroStrategy was founded nearly 35 years ago, and for most of its history, it has been a little-known software company focused on business intelligence.
But in 2023, the stock soared 337%, making it one of the biggest gainers among U.S. companies with a market capitalization of $5 billion or more, even outpacing Nvidia's 234% gain and Meta Platforms' 194% gain. Unlike tech peers that rely on revenue growth and market share growth to drive stock prices, MicroStrategy's investor appeal is almost entirely due to Bitcoin. The company started buying cryptocurrencies in mid-2020 and has since accumulated about 174,530 bitcoins. As of late Friday, the bitcoins were worth about $7.65 billion.
Wall Street investors were so fascinated by the story that the stock has risen about twice as much this year as Bitcoin has risen over the same period.
The agency predicts that aviation fuel demand will continue to recover and prices will rise in 2024
U.S. jet fuel demand continues to recover from the pandemic in 2023. The commercial aviation industry is beginning to increase the production and use of sustainable aviation fuel (SAF) to meet its net-zero carbon commitments.
The U.S. Energy Information Administration (EIA) estimates that the peak of average jet fuel demand in the United States in 2023 occurred in the week ending June 23, reaching an average of 1.942 million barrels per day. This was followed by 1.917 million barrels per day in early May. In 2023, jet fuel consumption averaged 1.9 million barrels per day for only the two weeks mentioned above. In 2022, the average daily jet fuel consumption of the U.S. aviation industry reached or exceeded that figure for only one week. In 2021 and 2020, jet fuel demand never reached this level.
According to the International Air Transport Association, which represents about 320 airlines and accounts for 83 percent of global air traffic, the average cost of jet fuel next year is about $2.7095 per gallon. That's higher than its forecast for 2023 at an average of $2.6643 per gallon.
Wrightson: The Federal Reserve's bank term funding program could end in March next year
Wrightson ICAP said the gap between the interest rate on the Fed's new financing instrument and the interest rate paid by the central bank to institutional reserves is widening, suggesting that the Fed will make the program expire in March.
The Federal Reserve launched the Bank Term Funding Program (BTFP) at a time when the banking crisis roiled markets earlier this year. The program allows banks and credit unions to borrow money at face value against U.S. Treasuries and agency bonds for a term of up to one year. The funding rate, which is the one-year overnight index swap rate plus 10 basis points, is currently at 4.84%, which is 56 basis points lower than the reserve rate.
Since the Fed switched to predicting further rate cuts next year earlier this month, OIS rates have fallen, and BTFP has fallen with them, raising the appeal of the carry trade.