Latest

Israeli attack on Syrian Aleppo airport puts it out of service [Reuters]

Centre-right's Luxon wins New Zealand election [BBC]

Australians reject historic Indigenous Voice referendum [BBC]

What's Moving Markets

ISRAEL - HAMAS - GAZA

Currently  ( 2.34 am GMT Sunday ) no boots on the ground yet so we all wait to see what happens. 

We're watching Iranian news outlets, and the incident at Aleppo airport was extremely concerning.

Any event that brings Iran, Syria, Turkey, Egypt and Saudi Arabia into the conflict would have devastating global economic consequences.

Israel tells Gaza residents to head south on two routes [BBC]

In a flight-to-safety who buys what? Gold seems to be the recent answer. It had no friends just two weeks ago.

Gold Daily

Global government bonds should benefit (even US Treasuries). The developments in Crypto this week (below) could be important too.

GLOBAL BOND ROUT & LIQUIDITY CONSEQUENCES

Mohamed Aly El-Erian is an Egyptian-American economist and businessman. He is President of Queens' College, Cambridge, and chief economic adviser at Allianz, the corporate parent of PIMCO where he was CEO and co-chief investment officer. 

Stocks Plunge, Yields Soar After Horrific 30Y Auction Tails Most In Two Years [Zerohedge]

US Treasury Bonds are the "risk-free" investment, the collateral of the world. Suddenly their value is being revised by investors. Inflation expectations are now higher for longer and this has forced a repricing to reflect the extra term premium being demanded.

Along with this, a monster current US debt issuance schedule, government shutdowns and possibly funding wars on two fronts mean dealers don't want to own US inventory, but they got left with a load at the 30 year auction.

US INFLATION DATA UNCOMFORTABLY STICKY

Adding to the mix, US CPI and PPI (below) came in slightly higher than expected. It wasn't that bad but the near focus is that inflation is still way too high and not declining any more. Too high above the 2% goal that the FED and other central banks seem determined to go for.

In The Background

Chinese officials urge calm after Evergrande fears reportedly spark small bank run [CNN]

In Case You Missed It

US

US PPI September 2023

US CPI September 2023

EU

European Industrial Production August 2023

German CPI September 2023

China

Mainland Chinese banned from opening new offshore trading accounts with local brokers [Reuters]

China Weighs New Stabilization Fund to Prop Up Stock Market [Bloomberg]

China YoY Imports / Exports September 2023

China CPI / PPI September 2023

Japan

IMF sees recent yen falls as reflecting fundamentals [Reuters]

Crypto

Ferrari to accept crypto as payment for its cars in the US [investing.com]

US SEC does not plan to appeal court decision on Grayscale bitcoin ETF [Reuters]

Australia

The Voice referendum was a massive fail for the Government, with only ACT voting Yes

The RBA Financial Stability Report from last week , has been picked up everywhere in the press.. Non-bank credit issues, housing affordability, future rate hikes and the mortgage cliff (real or not) adds up to a consumer who won't be very confident going into the Christmas period

This Week's Important Economic Indicators [London time]