Macro Briefing: 6 November 2023

* The price of money (natural rate of interest) is rising, and only due to Fed
* Qatar and China sign 27-year deal for liquefied natural gas
* Big Tech’s outlook for Q4 dims after strong Q3 results
* Eurozone economy contracts in October at fastest pace in almost 3 years
* Are cheap valuations for small caps signaling a buying opportunity?
* Berkshire Hathaway reports 40% rise in operating earnings
* US private payrolls decelerating faster than total payrolls (including govt):

Nearly two-thirds of prospective home buyers (defined as those plan to buy a home in the next three years) say they would tolerate a recession if it lowers interest rates and thereby makes it easier to purchase a home. The view is based on a new survey. “According to a new study conducted by The Harris Poll on behalf of Intuit Credit Karma among 2,053 US adults ages 18+, more than 4 in 5 Americans (82%) believe the country is facing an unprecedented housing affordability crisis,” the financial analytics firm reports. “Perhaps that’s why more than 3 in 5 Americans who have never purchased a home (61%) don’t think they’ll ever be able to afford to do so.” Aniva Hinduja, general manager of home and mortgage at Credit Karma, says: “When a majority of potential home buyers are wishing for a recession so they can afford a mortgage, you know the situation is dire.”