The Day at a Glance | November 16 2023

*The US once again avoided a government shutdown after the Senate approved a bill that extends government funding until at least January 2024.

*New unemployment claims in the US surged to a three-month high of 231,000 (+13,000 w/w) during the week ending November 11th, bringing the four-week average to 220,250 claims (+7,750).

*In October, US export prices logged their first decline in four months, with a -1.1% m/m change (vs. -0.5% e.), resulting in an annual -4.9% figure. Import prices also recorded their first drop in the same period, the largest since March, with a -0.8% m/m decrease (vs. -0.3% e.), which contributed to an annual -2.0% reading. 

*The Philadelphia FED´s Manufacturing Index logged slight improvement (3.1 points compared to the previous month) and set at -5.9 points in November. This figure is higher than the expected -9.0 according to consensus estimates but marked the sixteenth negative reading in the last 18 months. Additionally, the Philadelphia FED’s Business Conditions Index also recorded its first negative reading since May, with a -2.1 point figure.

*US President Joe Biden and Chinese President Xi Jinping met on Wednesday with the goal of stabilizing the relationship between the two nations. However, hours later, President Biden stated that he still considers Jinping a dictator, a comment that was labeled as “extremely erroneous” by the Chinese Ministry of Foreign Affairs.

*The United Nations’ Humanitarian Chief, Martin Griffiths, stated on Wednesday that “the killing in Gaza cannot be allowed to continue,” adding that the war has so far resulted in the death of 1,200 in Israel and 11,255 in Gaza.

*In response, President Biden accused Hamas of committing a “war crime” by operating what the US and Israel claim is a command center that works under the Al-Shifa hospital in Gaza, which is now inoperative for medical assistance.

Economic environment

The US Senate approved a bill that prevents a government shutdown at least until January 2024. On Wednesday night, with a 87-11 vote, the US Senate passed a temporary bill that would avert a government shutdown this weekend. The document, which was approved on Tuesday by the House of Representatives, includes a temporary extension of government funding until January 19^th, and will now be sent to President Biden for it to be signed. In addition, White House officials commented that the to-be-signed bill “maintains current funding levels and does not contain harmful political provisions.” Lastly, the approval of the temporary law provides US lawmakers with more time to negotiate and eventually pass spending bills for the entirety of 2024.