US Market Outlook: Secretary Yellen “Major Progress Due to Reduced Inflation” The Dow Average starts at a lower price of $14

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Yellen says the US has made “considerable progress” by lowering the inflation rate
US Treasury Secretary Yellen stated on the 20th that the United States has made “considerable progress” in lowering the inflation rate, and expressed the idea that this is remarkable based on the fact that the labor market continues to be strong. “Considerable progress has been made by lowering the inflation rate, but Americans are aware that prices are higher than they were used to,” he said. “And what is important is that progress around inflation has been realized while maintaining a strong economy and a strong labor market,” he said.

Has Americans' “love for EVs” cooled down
Americans' wasting habits against electric vehicles (EVs) have abated somewhat. In order to rekindle the love for EVs on a limited budget, a new generation of products is necessary. The sales volume of EVs (BEVs) that use only electricity in the US has passed a period of rapid growth, and the past six months have plateaued at around 100,000 units per month. Inventory has piled up, and rice is at the top $Tesla(TSLA.US)$Prices are falling, leading the way. According to Cox Automotive, the average sales price of a new car in October was about 52,000 dollars, down from about 65,000 dollars a year ago.

Former OpenAI Altman Moves to Microsoft
$Microsoft(MSFT.US)$Chief Executive Officer Satya Nadella (CEO) of said on Monday that Sam Altman, who was dismissed as CEO of the US startup Open AI, and Greg Brockman, who was an executive at the company, will join Microsoft and lead a new advanced AI research team. On the 19th, Open AI appointed Mr. Emmett Shea, the former CEO of the game commentary distribution service “Twitch (Twitch),” as the interim CEO.

Black Friday and Cyber Monday rice consumption to hit record highs
While facing economic pressure such as rising prices and rising interest rates, American consumers plan to spend an average of 567 dollars (about 84,500 yen) in search of bargains during Black Friday the day after Thanksgiving and Cyber Monday the following Monday. It was discovered in the Black Friday/Cyber Monday (BFCM) survey by the consulting company Deloitte, and there is a 13% increase in expenditure compared to the previous year. The estimated amount of expenditure hit a record high in the same survey conducted by Deloitte every year.

Warning about the risk of rapid increase in government bond interest payments due to YCC flexibility - financial review submits proposal
On the 20th, the Financial System Council (advisory body for the finance minister) submitted proposals for 2024 budgeting to Finance Minister Suzuki Shunichi. Against the backdrop of rising interest rates associated with the flexibility of the Bank of Japan's yield curve control (long and short interest rate manipulation, YCC) policy, an alarm is sounding to prepare for the risk of rapid increase in interest payment costs on government bonds.

Interest rate cuts by the central banks of the US, Europe, and the UK intensifies observations of the “mid-24” market
In the market, there is growing observation that central banks in the US, Europe, and the UK will turn to cutting interest rates in 2024. Interest rate cuts are expected to begin as early as the middle of next year against the backdrop of slowing inflation and economic deceleration. However, a decline in long-term interest rates and stock appreciation could reduce the tightening effect, and the authorities are also showing an attitude of fighting back. The risk that the reaction of expectations of interest rate cuts will increase market fluctuations is also smoldering.

I think yen will rise and expand against the dollar, the first half of the 148 yen range - the end of the US interest rate hike is close to ending
The dollar extended its decline in the London Foreign Exchange Market on the 20th, and temporarily depreciated by 1% to 148 yen 10 yen. The US is preparing to bid on 20-year bonds, and US bond yields are rising. Speculation grew that the US Federal Reserve's interest rate hike was about to end, and the dollar depreciated against all G10 currencies.

ー MooMoo News Sherry
Distribution source: Bloomberg, Nihon Keizai Shimbun, Dow Jones