Bessenet: Fed should use caution with QE; Beige Book shows stable US economy; Sanhua denies order rumors.

Federal Reserve Beige Book: Little Change in US Economic Activity, Tariffs Driving Prices Up

The Federal Reserve's Beige Book, released on Wednesday, indicates that there has been little change in US economic activity in recent weeks.

Economic Growth Reports

• Three regions reported slight to moderate growth.
• Five regions noted no significant changes.
• Four regions experienced slight slowdowns.

The report also highlighted a slight decline in overall consumer spending, while employment levels remained stable. However, many regions reported that employers are reducing staff through layoffs or natural attrition.

Treasury Secretary's Remarks on Quantitative Easing

US Treasury Secretary Becerra emphasized that the Federal Reserve should use quantitative easing (QE) cautiously, similar to the use of antibiotics. He does not advocate for reducing the Fed's balance sheet or abandoning the ample reserves system.

Fed Chair Candidates

Becerra plans to submit three to four candidates for the next Fed chair to President Trump after Thanksgiving. He noted that Trump's decision-making involves extensive consultations.

Government Shutdown Update

The US Senate is set to vote for the tenth time on a "clean" temporary funding bill passed by the House. The bill requires 60 votes to advance but is expected to face rejection.

Defense Funding

The Senate will also vote on a procedural motion for the defense funding bill, which, if passed, could lead to funding for military salaries even if the government remains shut down.

UK Reform Party's Cryptocurrency Proposals

Nigel Farage, leader of the UK Reform Party, proposed several cryptocurrency policies, including establishing a £5 billion Bitcoin reserve using seized assets and imposing a 10% capital gains tax on cryptocurrencies.

Stock Market Overview

On Wednesday, US stocks showed mixed results, with the S&P 500 rising amid strong earnings from financial giants like Morgan Stanley and Bank of America.

• Dow Jones fell by 17.15 points to 46,253.31.
• Nasdaq rose by 148.38 points to 22,670.08.
• S&P 500 increased by 26.75 points to 6,671.06.

Major tech stocks had varied performances, with Nvidia fluctuating significantly.

Notable Company Updates

• Meta Platforms announced a $1.5 billion investment in a new data center in Texas to support AI projects.
• Apple faced a leadership change in its AI department as a key executive left for Meta.
• United Airlines reported better-than-expected Q3 earnings, driven by strong demand for premium seats.

Market Movements in Hong Kong

On October 15, southbound funds net sold HK stocks worth HK$54.43 billion, with Alibaba receiving a net buy of HK$857 million.

Upcoming Economic Data

Key upcoming data includes US retail sales for September and the Philadelphia Fed manufacturing index for October. Earnings reports from TSMC and BNY Mellon are also anticipated.