U.S. MORTGAGE RATES SURGE AS 30-YEAR FIXED HITS 7.50%

The MBA reports the 30-year fixed mortgage rate at 7.50%, up 53 basis points over four weeks and 108 basis points over the past year.

15-year fixed rates climbed to 6.87%, while jumbo mortgage rates reached 7.49%.

Elevated borrowing costs continue to pressure housing affordability and mortgage demand.
(@WalterBloomberg)

AI COSTS PLUNGE 13-FOLD ANNUALLY AS INVESTMENT NEARS $1 TRILLION

AI costs have fallen 47% per quarter since 2023, equivalent to a 13-fold annual decline, according to Epoch AI.

That's 6 times faster than computing costs and 18 times faster than lithium battery costs.

Meanwhile, U.S. and Chinese tech firms are projected to spend nearly $1 trillion on AI infrastructure this year, raising a critical question: Can AI generate enough returns to justify the spending?
(@WalterBloomberg)

IRAN ESCALATES HORMUZ ATTACKS TO KEEP OIL PRICES HIGH AHEAD OF U.S. MIDTERMS

Iran is changing its tactics to intensify attacks on ships in the Strait of Hormuz, aiming to keep global oil prices elevated ahead of the November 3 U.S. elections, Reuters reports.

A senior Iranian official says Tehran wants to undermine U.S. efforts to lower energy prices.

The escalation threatens a waterway that normally carries 20% of global oil and LNG supplies.
(@WalterBloomberg)

$MS MORGAN STANLEY Q3 EPS & REVENUE BEAT — EQUITIES TRADING SURGES

Results

🔸 EPS: $3.03 vs. $3.01 est. (BEAT)
🔸 Revenue: $20.34B vs. $19.89B est. (BEAT)
🔸 Net Income: $4.90B

Segment Performance

🔸 Equities Trading: $5.80B vs. $4.90B est. (+18%)
🔸 FICC Trading: $2.01B vs. $2.22B est. (MISS)
🔸 Wealth Management: $9.07B vs. $9.11B est. (MISS)
🔸 Investment Banking: $2.16B vs. $2.09B est. (BEAT)

Other Key Metrics

🔸 Net Interest Income: $3.25B vs. $2.78B est. (BEAT)
🔸 Deposits: $478.38B vs. $446.03B est.
🔸 Credit Loss Provisions: $148M vs. $84M est. (HIGHER)
🔸 Non-Interest Expenses: $13.71B vs. $13.56B est. (HIGHER)
(@WalterBloomberg)

U.S. MILITARY DEPLOYS NEW DRONE AND COMMUNICATION CAPABILITIES IN MIDDLE EAST

U.S. Central Command says Task Force 99 is introducing advanced drone and communication capabilities to American forces in the Middle East.

The initiative aims to enhance battlefield effectiveness through rapid testing of new technologies.
(@WalterBloomberg)

UKRAINE IN CONTACT WITH U.S., SPACEX AND NATO FOR CLARIFICATION ON STARLINK LIMITATIONS, SOURCE IN DEFENCE MINISTRY SAYS
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U.S. HOME SELLERS OUTNUMBER BUYERS BY RECORD 63%

Redfin reports 62.6% more home sellers than buyers in September, the widest gap since records began in 2013.

Homebuyer demand hit a record low, with just 929,000 buyers versus 1.51 million sellers.

A record 41 of the 50 largest U.S. metro areas are now buyer's markets, led by Miami, Nashville and Houston.

High mortgage rates and affordability pressures continue to crush housing demand.
(@WalterBloomberg)

STARLINK LIMITATIONS WILL AFFECT UKRAINE'S ABILITY TO DOWN RUSSIAN DRONES, SOURCES SAY
(@WalterBloomberg)

Tasnim "Some Arab sources are reporting a new missile attack by Yemeni forces on Saudi Arabia."
(@WalterBloomberg)

CONTAINER SHIP SINKS NEAR STRAIT OF HORMUZ AFTER BEING HIT BY PROJECTILE, MARITIME SECURITY SOURCES SAY

DRY BULK SHIP REPORTED TO BE SINKING AFTER BEING HIT BY PROJECTILE CLOSE TO STRAIT OF HORMUZ IN SEPARATE INCIDENT, MARITIME SECURITY SOURCES SAY
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🔸 U.S. September CPI Due 8:30 a.m. ET; Seen +0.6%; Core +0.2%
(@WalterBloomberg)

BANK OF AMERICA SHARES EXTEND LOSSES FURTHER, LAST DOWN 5.5% PREMARKET AFTER Q3 PROFIT MISS
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BLOOMBERG EXPECTS U.S. INFLATION TO SURGE TO 3.7%

Bloomberg Economics forecasts headline CPI rising 0.6% MoM, pushing annual inflation to 3.7%, up from 3.4%.

Core CPI is expected to rise just 0.23% MoM, with annual core inflation edging up to 2.46%.

Core goods inflation is set to accelerate, while services inflation is expected to cool.
(@WalterBloomberg)

U.S. INFLATION SURGES TO 3.7%, BEATING EXPECTATIONS

September CPI rose 0.6% MoM, matching forecasts, while annual inflation hit 3.7% vs. 3.6% expected.

Core CPI climbed 0.3% vs. 0.2% expected, with annual core inflation reaching 2.6% vs. 2.5% forecast.

Gasoline prices surged 9.1%, energy jumped 5.2%, and real earnings fell 0.5%, highlighting renewed pressure on consumers.
(@WalterBloomberg)

US Sept. Consumer Prices Rise 0.6% M/M; Est. +0.6%
US Sept. Consumer Prices Rise 3.7% Y/Y; Est. +3.6%

US Sept. Core CPI Rises 0.3% M/M; Est. +0.2%
US Sept. Core CPI Rise 2.6% Y/Y; Est. +2.4%
(@WalterBloomberg)

US INFLATION SURGES. FED HIKE ODDS JUMP.

September CPI hit 3.7% annually, above the 3.6% forecast, while core inflation rose 0.3% versus 0.2% expected.

Kalshi now prices a 33% chance of an October Fed hike, up from 21%, while hold odds have fallen from 79% to 65%.

https://t.co/qUEGIdb1ac
(@WalterBloomberg)

*TRADERS ADD TO BETS ON THREE MORE FED RATE HIKES BY END-2027
(@WalterBloomberg)

*BLOOMBERG DOLLAR SPOT INDEX JUMPS TO HIGHEST SINCE NOVEMBER
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U.S. INFLATION RUNS HOTTER THAN HEADLINE NUMBERS SUGGEST

Unrounded September CPI rose 0.649% MoM, beating the 0.58% forecast, while core CPI climbed 0.335% vs. 0.21% expected.

Annual inflation reached 3.738%, with core CPI accelerating to 2.564% from 2.446%.

Both headline and core inflation exceeded expectations.
(@WalterBloomberg)

*TREASURY 2-YEAR YIELD RISES 10 BASIS POINTS ON DAY TO 4.89%
(@WalterBloomberg)