Housing Affordability Crisis in the US
Levels of housing affordability across the United States, particularly in cities like Milwaukee, are dropping. Sentiment is declining for homebuilders; their struggle is leading to incentives to stimulate demand. Housing starts and building permits are expected to decrease.
Global Central Banks' Monetary Policy
The Federal Reserve and Bank of Japan, along with eleven other central banks worldwide, are set to announce their monetary policy decisions. The US Federal Reserve’s “dot plot” may signal a more hawkish stance but is not a binding commitment. Divergent paths in inflation and economic conditions are leading central banks to respond differently, leading to varied investor responses.
Oil Price Surge and UK Financial Conduct Authority
Central banks are more concerned about inflation as oil prices approach $100 per barrel. Saudi Arabia and Russia contribute to a supply deficit causing output cuts. The UK Financial Conduct Authority (FCA) finds no evidence that politicians are denied bank accounts solely due to their political views. The FCA acknowledges data limitations and vows to ensure fair access to banking services.
Increased talk of a “soft landing” tends to precede a recession
In US company filings, transcripts and presentation, the frequency of mentions of the term “soft landing” has been increasing over the past several years. Canada's consumer confidence softens, and UK labor market slack builds. The Eurozone faces challenges in energy-sensitive industries, and China's stock market experiences foreign investor exits.
Works Cited on Monday, September 19, 2023: Bloomberg L.P. and John Authers and Isabelle Lee, Bloomberg Opinion columnist. The Guardian News & Media Limited, a member of Guardian Media Group PLC. Daily Shot Research authored by Lev Borodovsky ©. ChatGPT, an AI software developed by OpenAI for summarizing articles.