This week ahead || Jan 8th - Jan 12th 2024
Here's your news for this week
An inflation print and bank earnings: What to know this week
As the fourth quarter reporting season kicks off on Wall Street, investors await crucial economic indicators and earnings reports from major financial institutions. The week will feature the Consumer Price Index (CPI) for December, with the Producer Price Index (PPI) released on Friday. Notable bank earnings from JPMorgan, Wells Fargo, Bank of America, BlackRock, and Citi are expected to provide insights into consumer spending and the financial sector's performance amid a higher interest rate environment. The recent debate on when the Federal Reserve will cut interest rates continues, with expectations of a rate cut in March. Meanwhile, Wall Street economists anticipate a slight uptick in December's CPI, with a focus on core inflation trends.
Logan Says Fed Should Slow Asset Runoff as Reverse Repo Dwindles
Lorie Logan, the President of the Federal Reserve Bank of Dallas, has suggested that the US central bank might need to slow down the pace of its balance-sheet reduction due to diminishing liquidity in financial markets. While Logan noted that there is still sufficient liquidity in the financial system, she emphasized that individual banks might encounter constraints. Logan suggested that it is now "appropriate" to discuss the parameters around a decision to slow the pace of balance-sheet runoff. She mentioned that slowing down the balance-sheet reduction could help achieve a more efficient balance sheet by smoothing redistribution and reducing the risk of premature stops. This suggestion aligns with discussions among policymakers about a potential slowdown in the balance-sheet reduction at the Fed's December meeting.
US grounds some Boeing MAX planes for safety checks after cabin emergency
U.S. regulators have temporarily grounded 171 Boeing 737 MAX 9 jetliners for safety checks following a cabin panel blowout that forced a new Alaska Airlines jet to make an emergency landing. The Federal Aviation Administration (FAA) decision is a blow to Boeing as it tries to recover from back-to-back crises over safety and the pandemic. While not as extensive as the global grounding of Boeing MAX jets almost five years ago after two crashes, it raises concerns about the safety of the MAX aircraft. The FAA has called for immediate inspections of certain Boeing 737 MAX 9 planes before they can return to flight.
This week in EVs: Chinese brands deliver in 4Q
Chinese electric vehicle (EV) companies released their 4Q delivery figures, showing positive trends for major players. Xpeng delivered 20,115 vehicles in December, marking a 78% surge from the same period last year. Nio achieved 18,012 vehicle deliveries, surpassing its 4Q 2023 volume guidance. Li Auto reported the delivery of 50,353 vehicles, exceeding its projected delivery range for the 4Q. Leapmotor delivered 18,600 vehicles in December, reflecting a 119% YoY increase. Tesla, despite challenges in China, sold 94,139 China-made EVs in December, representing a significant 68.7% surge compared to the same period last year.
