[Morning Report] Stocks in '24 are recommended, but don't follow the rise - City Yellen says the US economy achieved a soft landing　

Market Overview
On the 23rd, the Dow Jones Industrial Average ended at 37466.11 dollars, up 25.77 dollars. The Nasdaq Composite Stock Price Index, which has a high tech stock ratio, ended 13.77 points higher at 14524.07. The S&P 500 average, which consists of stocks of 500 companies, which are large US stocks, ended at 4697.24, an 8.56 point increase. The Tokyo Stock Exchange will be closed on the 8th.

Top news
Treasury Secretary Yellen Says US Economy Has Achieved a Soft Landing
US Treasury Secretary Yellen expressed the view on the 5th that the US economy had achieved a soft landing. Historically, it is unusual for high inflation to be suppressed without a significant impact on the labor market.

Even though it is recommended to buy stocks in '24, don't chase the rise - City advises
While global stocks in 2024 are expected to rise slightly from 23, US Citigroup strategists recommended push buying and advised not to follow the rise.

Emergency loans to leading banks in the shadows as the Fed approaches mitigation, disturbing surge
If the US Federal Reserve (Fed) were to start cutting interest rates, when and how large would it be? It's a major theme covering the first market in 2024. There is a movement that seems to be entangled here as the “protagonist of the shadows.” The balance of the emergency loan system created by the Federal Reserve due to bank bankruptcy last spring is now continuing to expand.

Weaknesses hidden in US administration's dangerous “soft landing declaration” employment statistics
Employment statistics for 2023/12 announced by the U.S. Department of Labor on the 5th showed strength that exceeded the market's advance expectations. The US Biden administration quickly appealed the results of economic management, but there are many experts who point out weaknesses hidden in the details of statistics. There is a sense of danger in the air of optimism about the soft landing (soft landing) of the US economy.

Prime Minister Kishida is motivated to achieve “wage increases that will not lose to rising prices”
Prime Minister Fumio Kishida appeared on the NHK program “Sunday Debate” on the morning of the 7th and said “I want to mobilize public and private policies and realize wage increases this year that will not succumb to rising prices.”

Honda considers rewinding new EV plant in Canada, including batteries
$Honda Motor(7267.JP)$It became known on the 7th that they are considering building a new electric vehicle (EV) plant in Canada. Battery manufacturing is also in view, and there is a possibility that related investments will total 2 trillion yen. It will be Honda's largest investment ever, and it will be a stepping stone to reverse EV production, which has been delayed compared to Western manufacturers.

Is Mr. Musk regularly using illegal drugs concerned about the impact of US reports on business
The US paper Wall Street Journal reported on the 6th that US entrepreneur Elon Musk regularly uses illegal drugs such as cocaine. Mr. Musk is a major electric vehicle (EV) company $Tesla(TSLA.US)$He led the space company SpaceX, etc., and it is said that there are voices from executives concerned about the impact on the business. Meanwhile, Mr. Musk's agent explained that Mr. Musk undergoes regular drug tests and that it has never been a problem.

US suspends Boeing 737 MAX9 operation due to door flying accident
The US Federal Aviation Administration (FAA) is on the 6th, US $Boeing(BA.US)$An emergency simultaneous inspection of the small aircraft “737 MAX9” and a temporary suspension of operations were ordered. After the same aircraft operated by Alaska Airlines took off from the airport on the west coast of the United States on the 5th, the side wall and window covering the door part blew away, turned back, and made an emergency landing. The aircraft was brand new and had just been introduced at the end of last year. The suspension of operations covers 171 aircraft worldwide, mainly in North America.

Richmond Federal Reserve Governor Says “Interest Rates Will Also Normalize” - Along with Economic Normalization
President Birkin of the US Richmond Federal Reserve stated on the 5th that if the economy normalizes and confidence about the downward trajectory of inflation strengthens, the Federal Open Market Committee (FOMC) should lower interest rates. President Birkin, who has voting rights at the FOMC this year, stated to reporters that “there is no conceptual objection to returning interest rates to normal levels as confidence and confidence grows that inflation is following a persuasive path of falling to the target.”

Development for terminals such as Intel into the “Edge Generated AI” Era in '24
In the technology industry in 2024, “edge AI,” which incorporates artificial intelligence (AI) into products, is likely to become a big topic of conversation. Since the device device itself, such as a personal computer, instead of a server, processes AI, generative AI functions such as chatbots can be used. The market for personal computers and smartphones has continued to be sluggish, but will generative AI be the savior?

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