📈 🙃 Inflation Driven Upward by Car Insurance

Happy Wednesday all,

For those of you who live a lot more North than me, I know April is the time where the weather is starting to look really great again! I know a lot of people plan bucket lists for the summer and while the weather in SF isn’t as bad what it can be in the northeast, I’m really looking forward to my plans in the summertime!

I really want to take one long vacation this summer, and by long, I mean 10 days. Lol. I feel like us Americans always feel guilty about taking vacation. Still unsure of what to do or where to go, but… I’ll figure it out!

I’m also gearing up for The Masters this weekend, I love watching the golf tournament on TV and I’m really hoping Rory McIlroy can win the illustrious major he still does not have. The Back 9 of the Masters is probably one of the most drama filled afternoons that you can watch! I hope you get a chance to tune in a bit.

Enjoy this week’s Hump Days!

- Humphrey, Rickie & Tim

👀 Eye-Catching Headlines

🖥️ TSMC posts fastest monthly revenue growth since 2022 on AI chip boom (CNBC)

🤑 Teens Are Spending Less This Year. Where Their Allowances Are Going. (Barron’s)

🔎 Google Expands In-House Chip Efforts in Costly AI Battle (WSJ)

📉 Fitch Cuts China Outlook to Negative on Steady Rise in Debt (Bloomberg)

🏅 Costco selling as much as $200 million in gold bars monthly, Wells Fargo estimates (CNBC)

🏦 Banks Strike Back Against Private Credit (WSJ)

🚀 Musk's Undisclosed Starlink Costs Undercut Profitability Claims (Bloomberg)

☕️ Starbucks Is Designing Quieter Stores to Make Sure It Gets Your Order Right (Bloomberg)

The Weekly Brief

Core Inflation Beats Expectations Again, Likely Delaying Rate Cuts

• Core CPI in the United States, which is an inflation tracker that excludes food and energy costs, exceeded forecasts for the third consecutive month, rising by 0.4% from February and marking a year-on-year increase of 3.8%.

• Gasoline and shelter accounted for over half of the overall monthly increase while costs for car insurance, medical care and apparel also increased in the month.

• With this report’s data coming in hot, it’s likely that any near-term odds of a rate cut have diminished.

If Inflation Measures Accounted for Rising Home Insurance Costs, It’d Be Even Higher

• Recent research from Bloomberg Intelligence found that including the rising cost of homeowners insurance in CPI could have added approximately 0.8% to the inflation measure last year.

• The average homeowners insurance premium surged to $1,905 in 2023, a 21% increase from the previous year, driven by more frequent and severe climate-related disasters.

• This stark rise contrasts with the more stable costs of renters insurance, leading to suggestions that the CPI, which currently includes only "tenants and household insurance," should be adjusted to reflect the true cost of living for homeowners.

Side Hustles Are Increasingly Becoming Real Businesses

• In 2023, 44% of new business owners starting their ventures as side hustles while still engaged in part- or full-time employment, a notable increase from 27% in 2022.

• Since the pandemic, interest in entrepreneurship has grown. The number of new businesses remains over 50% higher than pre-pandemic levels.

Boeing Quarterly Jet Deliveries Dip to Lowest Since Mid-2021

• Boeing experienced its lowest first-quarter aircraft deliveries since mid-2021, delivering 83 planes, primarily 737 Max jets, as it grapples with production challenges and quality control measures.

  • In contrast, Airbus SE delivered 142 aircraft in the same period, striving to meet an annual goal of 800 jets amid high demand.

• Boeing's efforts to improve workmanship and supply chain issues have led to a deliberate slowdown in the 737 production line, with US regulators imposing a cap on narrowbody output.

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