The Day at a Glance | November 8 2023

The Top

*Retail sales in the Eurozone fell less than expected in September. 

*G7 and the UN called for a humanitarian pause amidst the Middle East conflict. 

*FED member Lisa Cook said geopolitical tensions could change the US economic outlook. 

*The IMF says the ECB must keep rates close to 4% through 2024 in order to control inflation 

*Chinese authorities have asked Ping An Insurance Group to take a majority stake in embattled real-estate company Country Garden. 

*The El Niño meteorological phenomenon – associated with increased global temperatures – will persist until April 2024: UN. 

Economic environment

Retail sales in the Eurozone recorded an annual -2.9% decrease in September. September´s reading compared positively to the -3.1% forecasted by analysts, and fell for a twelfth consecutive month. At a monthly rate, retail sales fell -0.3%, surprisingly slightly to the downside (-0.2% e.) following a -1.2% drop logged in the previous month. The decline in retail sales was mainly attributable to a -1.9% decrease in online sales (-2.0% prev.) as well as a -0.9% drop in car fuels (-2.4% prev.). At an annual rate, the surprise in retail sales resulted mainly from the fall in fuel sales, which logged a -7.5% contraction (from a -7.4% figure in August). Overall, retail sales data in the Eurozone remained negative with inflation set at 4.3% in September, well above the ECB’s 2% target.