US ECONOMY & POLITICS

US Pending Home Sales Index Holds at Lowest Level on Record – Bloomberg, 12/28/2023

• A gauge of pending US existing-home purchases held at a record low in November, indicating a weak resale market beset by a lack of inventory and high prices.
• The National Association of Realtors’ index of contract signings to purchase previously owned homes was unchanged at 71.6, the lowest in data back to 2001.
• The median estimate in a Bloomberg survey of economists called for a gain of 0.9%.
• Pending home sales decreased 5.1% from a year earlier on an unadjusted basis.
• The index of contract signings for existing homes declined in the South, the biggest US housing market, to the lowest level on record.
• Pending sales climbed in the other three regions.

US Initial Jobless Claims Rise to 218,000, More Than Estimated – Bloomberg, 12/28/2023

• Initial applications for US unemployment benefits increased in the week leading up to Christmas, while remaining at a level that is consistent with a resilient labor market.
• First-time claims rose by 12,000 to 218,000 in the week ended Dec. 23.
• The four-week moving average, which offers a clearer picture of the trend, was little changed at 212,000 last week, the lowest since late October.

• Continuing applications, a proxy for the number of people collecting unemployment benefits, rose to 1.88 million the week prior.
• On an unadjusted basis, initial claims increased by 31,570 to 272,610.
• California, Missouri and New Jersey led the advance, while claims fell the most in Texas.
• Economists forecast a still-healthy 170,000 increase in December payrolls, consistent with resilient labor demand that has been key in powering the economy.

Child-Care Costs at $56,000 Force Parents Into Side Hustles – Bloomberg, 12/28/2023

• A dramatic increase in child-care costs since the pandemic is forcing parents to find new ways of making ends meet, from working part time at a daycare for a discount to driving for a ride-share service on weekends.
• Monthly payments for childcare were 32% higher in September than the pre-pandemic average, according to an analysis by the Bank of America Institute of the lender’s customer data.
• The average cost in the US for full-time, in-home infant care like a nanny is around $39,270 per year, according to Care.com data, and is even higher in cities like New York and San Francisco, where the expense can top an eye-watering $45,000 or $56,000, respectively.
• Center-based care can also be pricey: In cities like Washington, care for a toddler at a center can exceed $24,000 annually.

EUROPE & WORLD

Brazil’s Annual Inflation Tops All Economist Estimates in Early December – Bloomberg, 12/28/2023

• Brazil’s annual inflation slowed less than expected early this month, highlighting the difficulties facing central bankers as they cut interest rates while attempting to haul prices to the tolerance range by year’s end.
• Official data released Thursday showed consumer prices rose 4.72% in mid-December from a year earlier, above all forecasts in a Bloomberg survey that had a 4.56% median estimate.
• Monthly inflation hit 0.40%.
• Transportation costs rose 0.77% on the month, while food and beverages gained 0.54%.
• More expensive airline tickets explain most of the surprise in the mid-December inflation print.
• The monetary authority targets annual inflation at 3.25% this year and 3% in 2024, with a tolerance range of plus or minus 1.5 percentage points.

Xiaomi Unveils Its First EV, With Ambition to Be China’s Porsche or Tesla – Bloomberg, 12/28/2023

• The billionaire co-founder of Xiaomi Corp. unveiled the company’s first electric vehicle Thursday, declaring ambitions to become a top global carmaker in 15 to 20 years and compete against Tesla and Porsche.
• The SU7, which stands for Speed Ultra, rolled onto a stage at the China National Convention Center in Beijing with no drivers visible, ending a presentation by CEO and co-founder Lei Jun in front of thousands of people.
• Lei spent hours detailing the car’s features, which include a range of up to 800 kilometers (500 miles) on a single charge, adjustable spoilers, unique colors and a top speed of 265 kilometers an hour.
• The five-seat sedan will be powered by batteries from Chinese market leaders Contemporary Amperex Technology and BYD, depending on whether it has a single or dual motor configuration.
• The Model S starts at 698,900 yuan and the Taycan at 898,000 yuan, which is much higher than the medium price bracket of 200,000 yuan to 300,000 yuan that many expect the SU7 to fall into.
• Xiaomi hasn’t yet said how much the SU7 will cost. Lei hinted that it wouldn’t be 99,000 yuan as some on social media had joked. Cars with the same specs often go for 400,000 yuan or more, he said.

South Korea Chip Output Jumps in Sign of Returning Global Demand – Bloomberg, 12/28/2023

• South Korea’s semiconductor industry recorded the largest gains in years in both production and shipments, underscoring a revival of technology momentum that bodes well for the nation’s economic outlook next year and for the global tech sector.
• Chip production jumped 42% in November from a year earlier, the most since early 2017, while shipments soared 80%, the biggest gain since late 2002, according to data released Thursday from the national statistical office.
• The numbers suggest South Korea’s most important industry is roaring back from a slump that weighed on the economy for more than a year and add to optimistic signals for chipmakers such as Samsung Electronics and SK Hynix, two of the country’s biggest companies.
• The figures also suggest a nascent recovery in global tech sector demand may be gaining momentum.
• Inventories expanded by 36% in the smallest rise since February.

Japan to Make Third Attempt at Launching H3 Rocket in February – Bloomberg, 12/28/2023

• Japan plans to launch its flagship H3 rocket in February following two failed attempts to inaugurate the craft during what was a woeful 2023 marred by costly missteps and major setbacks.
• The H3 rocket should now take off between 9:20 a.m. and 1:00 p.m. local time on Feb. 15 from the Tanegashima Space Center in southern Japan.
• The 63-meter-tall heavy payload rocket, built by Mitsubishi Heavy Industries Ltd., represents Japan’s latest attempt to capitalize on growing demand for launch vehicles in the global space industry.
• The Japan Aerospace Exploration Agency (JAXA) wants it to compete with the Falcon 9, the reusable rocket from Elon Musk’s SpaceX as it is more commonly known.
• While the H3 has some parts that can be recycled, the Japanese rocket is single use only.
• The H3 is meant to replace the H2-A, which was first introduced in 2001 as the country’s flagship rocket.

Tensions Between Israel and Iran Heighten Fears of a Larger Conflict – Wall Street Journal, 12/28/2023

• Iranian-backed militants and Israeli forces traded fire across Israel’s northern border while Israeli leaders warned that time was running out for diplomatic efforts to defuse tensions in that area, heightening fears that the war in Gaza could spill into a broader regional conflict including Lebanon and Syria.
• “The stopwatch for a diplomatic solution is running out,” said Benny Gantz, a senior member of the Israeli war cabinet, on Wednesday.
• “If the world and the Lebanese government don’t act in order to prevent the firing on Israel’s northern residents, and to distance Hezbollah from the border, the Israeli military will do it.”
• The Israeli military said it returned fire on Wednesday after Hezbollah militants in Lebanon fired rockets into Israel.
• A separate Israeli airstrike on Wednesday killed three people, including two Lebanese-Australian citizens.
• An Iranian-backed Iraqi militia claimed responsibility for an uncrewed aircraft carrying explosives that crash-landed into part of the Golan Heights annexed by Israel.
• Israel on Thursday intercepted another uncrewed aircraft from Lebanon in the Krayot area of northern Israel, the military said.
• The escalation in violence along Israel’s northern frontiers is raising concerns that its war with Hamas in Gaza could spiral into an all-out confrontation with Lebanon’s militant Hezbollah movement and a range of other Iranian-allied militant groups across the region.

Factmonster – TODAY in HISTORY

• Westminster Abbey consecrated. – 1065
• John C. Calhoun became the first vice president in U.S. history to resign from office. – 1832
• Iowa became the 29th state in the United States. – 1846
• William F. Semple patented chewing gum. – 1869
• Congress officially recognized the Pledge of Allegiance. – 1945
• Elizabeth Jordan Carr, the first American test-tube baby, was born in Norfolk, Va. – 1981