Wholesale inflation rose 0.5% in September, more than expected (2 min read) The US Producer Price Index (PPI), which measures wholesale prices, rose 0.5% in September from the last month, higher than the 0.3% expected increase. On a yearly basis, it rose 2.2%, also more than anticipated and the highest since April this year. Despite the hot data, markets had a mild reaction as many await the Consumer Price Index release the next day for further insight into how inflation may impact the Fed’s upcoming rate decision.
Fed officials see ‘restrictive’ policy staying in place until inflation eases, minutes show (3 min read) Fed’s September FOMC meeting minutes showed that officials held different views on the need for additional rate hikes. While some favored one more hike to contain inflation, others believed further increases were not necessary. Despite the disagreements, there was unanimity that rates should stay elevated until the Fed is confident inflation is heading back to its 2% target. The minutes also revealed that the majority anticipated one more rate hike in the future.
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Business & Stocks
Exxon Mobil agrees to buy Pioneer Natural Resources for nearly $60 billion (2 min read) Exxon Mobil is set to acquire Pioneer Natural Resources for $59.5 billion in an all-stock deal. Pioneer stockholders will receive 2.3234 Exxon shares for each Pioneer share, which equates to about $253 per share. The deal is expected to close in the first half of 2024. After the merge is complete, Exxon anticipates doubling its production volume in the Permian Basin to 1.3 million barrels per day.
LVMH shares plunge after luxury giant reveals sharp slowdown in sales growth (2 min read) LVMH shares dropped 8% after reporting much slower Q3 revenue growth. Although the company’s revenue grew 9% last quarter, it was significantly lower than the 17% growth in Q2 and Q1. The lackluster demand in China, which is a key market for LVMH, contributed the most to the decline, with Q3 Asia revenue rising only 11% compared to 34% in Q2.
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Funds & ETFs
Bill Gross Is Wrong About Bond ETFs (2 min read) “Bond king” Bill Gross said individual investors selling bond ETFs had contributed to the recent sell-off in US long-term bonds. However, recent data contradicts this claim, as inflows in US-listed fixed-income ETFs have surged to $4 billion in the past week. Despite the iShares 20+ Year Treasury Bond ETF (TLT) losing $160 million in assets, it was only a fraction of the $17 billion it received this year. This suggests outflows had not been as significant as Bill thought.
Japan ETFs Top Dividend Fund Rankings for September (2 min read) In September, small-cap Japanese ETFs were the best-performing dividend fund and one of the few that had positive returns. The worst performer was ALPS REIT Dividend Dogs ETF (RDOG). Dividend funds were broadly underperformers last month due to the continued rise in interest rates, with REITs specifically lagging the most.
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Portfolios & Investing
How to Develop a Dividend Investing Strategy (8 min read) This article is a comprehensive guide to developing a dividend investing strategy. It covers key aspects such as the benefits and risks of dividend investing, how to analyze dividend stocks, creating and implementing the strategy, and common mistakes to avoid.
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