🇺🇸💥 Blockbuster Q3 for U.S. Economy
Happy Wednesday all,
It was a pretty good bounce-back week from the economy. The Fed announced they’d be holding rates steady, and this week, we discuss the stellar Q3 we just had (much to the surprise of economists).
Hope you had an amazing Halloween!
Enjoy this week’s Hump Days!
- Humphrey, Rickie & Tim
👀 Eye-Catching Headlines
➡️ Fed holds rates steady, upgrades assessment of economic growth (CNBC)
💸 Wages boost U.S. labor costs; house price inflation picks up (Reuters)
🛢️ Record-high U.S. oil production surpasses 13M barrels a day (Bloomberg)
⚽️ Saudi Arabia’s lavish sports push earns it the 2034 World Cup (WSJ)
🇺🇸 U.S. cuts quarterly borrowing target to $776B, still record (Bloomberg)
🏪 Walmart to upgrade 1,400 stores with $9B investment (CNBC)
💻 Apple unveils new laptops, iMac, and trio of more powerful chips (Bloomberg)
👨💼 Mike Pence pulls out of presidential race (CNBC)
The Weekly Brief
1. U.S. Economy Delivers Blockbuster Performance in Q3 (Reuters)
The U.S. economy grew by 4.9% in Q3, defying warnings of a recession.
Higher wages from a tight labor market fueled consumer spending, and businesses met the strong demand.
Growth in consumer spending (2/3 of U.S. economic activity) accelerated by 4.0% after only rising 0.8% in Q2.
Consumers tapped into their savings to fund spending this quarter, resulting in the savings rate dropping to 3.8% from 5.2% in Q2.
Growth could slow in Q4 due to:
The United Auto Workers strikes
The resumption of student loan repayments
Lagged effects of rate hikes
2. Biden Administration Aims to Cut AI Risks with Executive Order (Reuters)
President Joe Biden seeks to reduce AI's risk to consumers, workers, minority groups, and national security with a new executive order.
It would require developers of AI systems that pose a risk to the public to share the results of safety tests with the government before they are released to the public.
“To realize the promise of AI and avoid the risk, we need to govern this technology,” Biden said. “In the wrong hands, AI can make it easier for hackers to exploit vulnerabilities in the software that makes our society run.”
Those within the industry criticize the feasibility of the executive order, saying that adherence may be minimal and that it will end up stifling new companies from entering the marketplace.
3. WeWork Plans to File for Bankruptcy as Early as Next Week (WSJ)
WeWork, once a venture valued at $47B, plans to file for bankruptcy as early as next week, according to people familiar with the matter.
WeWork missed interest payments owed to its bondholders on Oct. 2, starting the 30-day grace period it has to make the payments.
The company has been trying to renegotiate leases with landlords after signaling it had substantial doubt about its prospects for survival.
As of June, WeWork had 777 locations across 39 countries and $10B in lease obligations until the end of 2027.
You’ll Find This Interesting
Elon says Tesla aims to make 200,000 Cybertrucks a year (Reuters)
On Tuesday, Elon Musk said Tesla aimed to make 200,000 units of its electric pickup truck per year.
The company initially said it had the capacity to make more than 125,000 Cybertrucks annually, adding that there was potential to lift it to 250,000 in 2025.
Deliveries of the pickup truck will begin on Nov 30, nearly four years after Musk unveiled it at a Los Angeles event.