Plugging the hole
Today's news headlines:
'Sunak explores tax rises and spending cuts of up to £50bn'. Jeremy Hunt and newly appointed PM Rishi Sunak have begun exploring ways to plug the £45bn hole in public finances left by Liz Truss and her government during her short stint in power. Tax increases and spending cuts are both on the cards, but ministers hope these policies won't have to be fully implemented in the Treasury's delayed autumn statement in mid-November. After becoming Prime Minister on Tuesday, markets have somewhat calmed, but Sunak and his Cabinet have warned that the UK faces a 'profound economic crisis'. (Financial Times)
'Meta's value plunges by $89bn amid falling sales and rising costs'. After failing to convince investors that emerging sectors such as the metaverse and AI are prudent investments, almost $90 billion was wiped from Meta's market capitalization yesterday. The tech giant has targeted an economic slowdown affecting its advertising business as the culprit for the 25% share price drop yesterday, as brands are forced to tighten their belts and spend less on marketing. Meta's net income fell by 52% to $4.4bn for Q3 meanwhile, revenues fell by 4%, marking the slowest pace of growth for the company since going public in 2012. (Financial Times)
French and Spanish GDP data failed to impress this morning as both came in below forecast expectations. German GDP figures will follow shortly, along with Italian inflation data, later this morning. US stocks are expected to open lower this morning as Meta's hammering sent shock waves through the big tech community. Companies such as Amazon, Alphabet and Snap reported painfully slow growth followed by a massive stock sell-off.
Bank of Japan Policy Rate: -0.1% vs -0.1% previously.
Canada GDP m/m (Aug): 1:30PM
US Core PCE Price Index m/m (Sep): 1:30PM
Revised UoM Consumer Sentiment: 3:00PM
US Pending Home Sales m/m (Sep): 3:00PM
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