- The energy crunch in Europe escalated into a crisis this past week after Putin cut off the pipeline that supplies a third of the natural gas that Russia sends to Europe. Natural-gas prices soared 30% at one point, and analysts projected that Europeans would see their monthly energy bills triple this winter.
- Many believe Europe is entering into a recession which will impact the US as well since 20%-25% of the revenue generated by companies in the S&P 500 comes from the region.
- The S&P 500 has closed in the green (i.e. higher) on just 44.6% of days this year, the lowest number of positive days since 2002.
- U.S. inflation has averaged more than 8% over the past year. Yet wages have advanced only 5.3%. Some believe this will increase workers interest in joining unions for bargaining power. In 1983 one in five workers were in a union but that steadily decreased over the next several decades.
Barrons- "How Europe's Energy Crisis Could Play Out"
Barrons- "Pay Attention to Europe's Unfolding Crises. They Could Impact U.S Stocks"
Money Magazine- "Infographic"
Barrons- "With Inflation Hot, 2023 Looks Like a Prime Year for Labor Unrest"
Economic Calendar
Monday: NY Fed 3-year inflation expectations (Aug)
Tuesday: NFIB small-business index (Aug), Consumer price index (Aug), Core CPI (Aug),CPI (year-on-year) (Aug), Core CPI (year-on-year) (Aug), Federal budget (Aug)
Wednesday:
Producer price index final demand (Aug)
Thursday:
Initial jobless claims (Sep), Continuing jobless claims (Sep), Retail sales (Aug), Retail sales excluding vehicles (Aug), Philadelphia Fed manufacturing index (Sep), Empire State manufacturing index (Sep), Import price index (Aug), Industrial production index (Aug), Capacity utilization (Aug), Business inventories (Jul)
Friday: UMich consumer sentiment index (Sep),UMich 5-year consumer inflation expectations (Sep)
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