Rising energy prices, inflation, and supply shortages could be the perfect storm.
The US auto sector’s production slump this year is more than a big minus for Detroit – it’s a major drag on the entire economy. Gross domestic product growth slowed to the weakest pace in more than a year during the third quarter at just 2% annualized. That was less than a third of the growth rate in the preceding quarter.
The euro’s losses deepened on Friday, retracing nearly half of its gains in the previous session, as eurozone inflation shot past expectations this month to equal its all-time high, creating a policy dilemma for the European Central Bank.
An OPEC+ committee largely stuck to forecasts of a strong demand rebound this year and next ahead of a meeting next week, at which the group is expected to rubber-stamp a planned output increase of 400,000 barrels per day (bpd) in December.
US labor costs increased by the most since 2001 as companies boosted wages and benefits amid a severe worker shortage, suggesting inflation could remain high for some time. The Employment Cost Index, the broadest measure of labor costs, surged 1.3% last quarter after rising 0.7% in the April-June period, the Labor Department said on Friday.
The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform.
|Chevron Corp on Friday posted its highest quarterly profit in eight years on surging oil and gas prices, higher output, and a recovery in motor fuel demand that boosted refining margins.|
||Facebook Inc is now called Meta, the company said on Thursday, in a rebrand that focuses on building the “metaverse,” a shared virtual environment that it bets will be the successor to the mobile internet.|
|Panasonic has developed an advanced prototype battery for Tesla cars with five times the capacity of standard ones.|