Global News   44 Billion USD Exits Bank of America, Morgan Stanley and BNY Mellon in Three Months As Deposit Flight Refuses to Relent.  The three US financial titans just witnessed the flight of deposits in excess of $44 billion in a single quarter. According to Bank of America’s most recent quarterly earnings press release, the lender’s average deposits fell by $26.2 billion in three months. Meanwhile, BNY Mellon and Morgan Stanley depositors pulled out approximately $15 billion and $3 billion, respectively, in the last quarter. Amid the decrease in deposits, JPMorgan, Wells Fargo and Citigroup are reportedly shelling out billions of dollars to keep customers from moving their funds. The Wall Street Journal reports JPMorgan and Wells Fargo paid approximately $21 billion and $9 billion in interest expense in Q3, respectively. Source: https://dailyhodl.com/2023/10/22/44354000000-exits-bank-of-america-morgan-stanley-and-bny-mellon-in-three-months-as-deposit-flight-refu...

Global News In the beginning of the week, the Pentagon ordered a second US Navy carrier strike group to the eastern Mediterranean. USS Dwight D. Eisenhower and several other vessels will join a group of ships already in the area. The US said its force posture was meant to support Israel and prevent the war with Hamas from spreading. In an exclusive interview to Sky News, Janet Yellen urged Republicans to appoint a new House of Representatives speaker to enable greater financial support to be agreed for both Israel and Ukraine. “America can certainly afford to stand with Israel and to support Israel's military needs and we also can and must support Ukraine in its struggle against Russia,” Yellen said. Later in the week, the USS Carney, a U.S. Navy guided-missile destroyer in the northern Red Sea, on Thursday shot down multiple missiles and drones launched by Iranian-backed Houthis in Yemen that the Pentagon said were potentially headed toward targets in Israel. It is the first time ...

News Summary   On the beginning of the week, Federal Reserve Bank of Dallas President Lorie Logan said the recent surge in Treasury yields may mean less need for the US central bank to raise its benchmark interest rate again. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said Monday in remarks at the National Association for Business Economics meeting in Dallas. Philip Jefferson, vice chair of the Fed’s board and a close ally of Chair Jerome Powell, said that he would remain cognizant of the higher bond rates and keep that in mind as he assesses the future path of policy. These dovish speeches calmed the bond market after the spike in US long-term yields that we saw in the previous week. President Joe Biden on Tuesday said he would ask Congress to take “urgent action” to aid Israel after what he called “sheer evil” attacks by Hamas. “When Congress returns we’re going to ask them to take urgent action to...

News Summary This week, manufacturing and services PMIs were released around the world. China's manufacturing PMI holds slightly above 50, in positive territory, but in the US and especially in Europe, namely Germany, there is a continued contraction. Regarding services PMIs, they are closer to neutral, and slightly positive in the US. Job openings in the US rose in August, relative to the previous month, and US nonfarm payrolls increased by 336K in September 2023, above the August number, and beating market forecasts of 170K. The unemployment rate in the US was at 3.8% in September of 2023, remaining unchanged from the previous month and slightly above market expectations of 3.7%. Average hourly earnings rose by 0.2% MoM and the labor force participation rate in the United States was unchanged, at 62.8% in September 2023.   Regarding the financial markets, for the week, the main stock market indices are mixed, with the S&P500 up 0.5%, the NASDAQ 100 up 1.8%, and the RUSSEL 2...