US Consumer Spending Could Invert by Early 2024 (2 min read) A recent Bloomberg survey of 526 investors suggests that US consumer spending might lose steam by early 2024. Over 50% of respondents believe personal consumption will decline, with 20% expecting it by the end of 2023. The prolonged consumer spending surge this year, fueled by pandemic stimulus and savings, has helped offset interest rate hikes. However, these savings are expected to vanish in the coming months by some experts and prominent investors.
This week’s US inflation data is very important (2 min read) The US Consumer Price Index (CPI) and Producer Price Index (PPI) due on Wednesday and Thursday respectively will be crucial for market direction. Economists are expecting annual growth of 3.6% for CPI and 1.2% for PPI in August. If these inflation data come in lower than expected, it could signal the Fed won't hike rates further, providing confidence to the market. However, stronger readings might lead to additional hikes later this year, causing more market volatility.
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Business & Stocks
Apple to Sell Made-in-India iPhones on Launch Day for First Time (3 min read) Apple released the iPhone 15 on its global launch day and for the first time, the new model is manufactured in India rather than China. The move highlights India's growing manufacturing capabilities and Apple's efforts to reduce reliance on Chinese production. Apple taking the lead on this diversification strategy has also played a huge role in contributing to India’s recent growth as a major production hub for the tech giants globally.
Google’s dominance is being challenged in the biggest antitrust trial in decades (4 min read) The US Department of Justice has accused Google of abusing its dominance in internet search to stifle competition and innovation. The trial, one of the largest antitrust cases in the past 25 years, will examine whether Google unfairly manipulated the market by making its search engine the default option on many platforms. If found guilty, legal action to restrain the company will be determined, but a verdict isn't expected until next year.
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Funds & ETFs
ETF Investors Pour Cash Into EM’s Non-China Growth Engines (5 min read) Emerging-market ETF flows have been shifting towards regions like India and Latin America as China’s economic challenge persists. Over the past weeks, China-heavy ETFs saw significant outflows as investors rethink their allocation and the growth prospects in China. For example, the iShares Emerging Markets ETF which has a third of its holdings in China saw an outflow of $2 billion in August while iShares MSCI Emerging Markets ex-China ETF has attracted inflows.
Instacart's IPO Plans Put These ETFs in Focus (3 min read) The upcoming Instacart IPO has been drawing a lot of attention since there have been no major venture-backed Tech IPOs in the US since 2021. In the public market, Instacart will be joining the ranks of gig economy stocks like Uber or DoorDash which have surged in recent months. For this reason, some expect Instacart to also taste success if it enters the market soon. This article highlighted a few IPO and sector ETFs that are likely to include Instacart’s market debut.
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