November 1st Financial News

Daily News

Economic

Summary:

Japan's factory activity in October shrank at its fastest pace in three months due to weak demand; Oil gains extend after settlement on reports of Iran preparing an Israel attack...

[Quick Facts]

1. Japan's factory activity declines accelerate as demand sags.

2. Oil gains extend after settlement on reports of Iran preparing Israel attack.

3. UK's Reeves seeks to calm markets after post-budget selloff.

4. Investors take money off the table ahead of the U.S. election.

5. Canada's Q3 economic growth may fall short of expectations.

[News Details]

Japan's factory activity declines accelerate as demand sags

The final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) fell to 49.2 in October from 49.7 in September. It was slightly up from 49.0 reported in the flash reading. But the index remained below the 50.0 threshold that separates growth from contraction for the fourth straight month. Declines in domestic and global demand, particularly in the semiconductor and automotive sectors, dampened sales and output.

Due to weak new orders and excess inventory, the production sub-index continued to decline, reaching its lowest level since April. The new orders index also dropped, remaining below the 50.0 mark for the 17th consecutive month, indicating further declines in sales due to weak demand in the automotive and semiconductor sectors. Companies believe that subdued domestic and international demand is the reason for the deterioration in new orders.

Oil gains extend after settlement on reports of Iran preparing Israel attack

News website Axios reported on Thursday, citing two anonymous Israeli sources, that Israeli intelligence suggests Iran is preparing to launch an attack on Israel from Iraq in the coming days, possibly before the U.S. election on November 5. The anticipated attack would reportedly involve numerous drones and ballistic missiles launched from within Iraq.

The report indicates that using pro-Iranian militia groups in Iraq could be Tehran's way of avoiding further Israeli strikes on strategic targets within Iran. This news extended oil price gains on Thursday after settlement, with prices rising over $1. Additionally, the possibility of OPEC+ delaying its planned oil production increase also supported oil prices on Thursday. As the month draws to a close, multiple international events could lead to volatility in the oil market in early November.

UK's Reeves seeks to calm markets after post-budget selloff

After the budget proposal caused a sharp drop in the price of UK government bonds, Chancellor of the Exchequer Rachel Reeves worked to calm the financial markets, emphasizing that the "top priority" of the Labour government is "economic and fiscal stability."

"We have more headroom than the previous government left us, and that is important," Reeves said Thursday in a Bloomberg TV interview. "We have now put our public finances on a stable and solid trajectory." She also mentioned the support from the International Monetary Fund (IMF) for the UK's plans. However, the markets reacted negatively to the debt scale implied in Reeves' budget proposal on Wednesday. Her budget includes an annual increase of £70 billion in public spending and an additional £100 billion in capital project investment.

Official forecasts indicate that the UK will require an additional £142 billion in borrowing over the next five years. Since many investors view this as an inflationary budget, there is a widespread expectation that the Bank of England will keep interest rates high for a longer period.

Investors take money off the table ahead of the U.S. election

As of Thursday's close, gold plummeted by 1.8% to $2,738.30 per ounce, marking the largest single-day drop since July 25, though it remains the sixth-highest closing price of the year.

The main reason was strong U.S. data, including initial jobless claims, which dampened expectations for a rate cut by the Federal Reserve. Additionally, "good progress" was reported in ceasefire negotiations between Israel and Lebanon's Hezbollah, which reduced safe-haven demand. Also, some bulls took profits ahead of the non-farm payroll data and the U.S. election.

Gold prices still rose by 4.15% in October, marking the fourth consecutive monthly increase. Similarly, bearish "engulfing" top signals occurred on October 23, September 27, and August 22, but gold prices continued their upward trend, repeatedly hitting record highs, so bears should remain cautious about potential high-level fluctuations.

At present, gold is influenced by various factors, making it difficult to determine if this significant pullback is a brief episode in the rally or a deeper, multi-week consolidation, as many elements could impact the future direction of gold prices.

Canada's Q3 economic growth may fall short of expectations

Canada's GDP remained unchanged in August compared to the previous month, while it is projected to grow by 0.3% in September, suggesting that the Canadian economy may have fallen short of the central bank's growth expectations for the third quarter. A 1.2% contraction in manufacturing in August was the largest drag on the economy, partly due to restructuring and maintenance activities at several auto plants.

The Bank of Canada's preliminary estimate indicates a 0.3% GDP growth in September, driven by gains in the finance and insurance, construction, and retail trade sectors. Meanwhile, the GDP growth rate for July was revised down from the initially reported 0.2% to 0.1%.

When converting the monthly GDP data to an annualized growth rate, the third quarter shows a 1.0% growth, whereas the central bank had projected growth to slow to 1.5% from July to September before picking up in the fourth quarter.

In addition to manufacturing, the transportation and warehousing sectors also weighed on the economy in August. Rail transportation, which declined due to strikes at Canada's two largest rail companies, was the primary factor in the transportation sector's drop. Overall, Canada's goods-producing sector contracted by 0.4%, while the service sector grew by 0.1%.

[Today's Focus]

UTC+8 15:30: Switzerland CPI MoM (Oct)

UTC+8 20:30: U.S. Non-Farm Payrolls (Oct)

UTC+8 22:00: U.S. ISM Manufacturing PMI (Oct)

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Owen Li

Economic

For many in the progressive movement, the question of whether to keep Federal Trade Commission Chair Lina Khan represents a pivotal question about the party’s future: whether it will double down or walk away from the cause of taking on big corporations and breaking up monopolies and concentrations of power.

“If Vice President Harris wins, her decision whether to replace Lina Khan and other enforcement officials will be the first big test of whether she wants to preserve the broad coalition built by the Biden-Harris administration, or whether she’ll choose ongoing conflict with progressives instead,” said Dan Geldon, a consultant and former chief of staff to Sen. Elizabeth Warren, D-Mass.

With Republicans favored to win the Senate, Harris may have few opportunities to pursue an ambitious legislative agenda, shifting the Democratic ideological fight to key personnel decisions.

“Her decision on Biden-era enforcement officials will also set the tone in her administration around whether officials will be penalized for standing up to powerful people and corporations,” Geldon told NBC News.

Likely flashpoints have already emerged in the closing weeks of the campaign, as Harris embraces figures like businessman Mark Cuban who have called for the ouster of progressive financial regulators like Khan and Securities and Exchange Commission Chair Gary Gensler. Billionaire Democratic mega-donors Barry Diller and Reid Hoffman have also pushed for Khan’s removal, with Hoffman claiming she is “waging war on American business.”

“After the election, there will be a battle for the soul of the Democratic Party when it comes to economics,” said Adam Green, the co-founder of the Progressive Change Campaign Committee. “So it’ll be a big fork in the road for Kamala Harris.”

While outgoing President Joe Biden did not come out of the progressive movement, he made major entreaties to the left to consolidate their support after the factious 2020 Democratic primary. That resulted in a strong working relationship for activists with key Biden officials, like his first chief of staff, Ron Klain, and the installation of progressive favorites in key policy posts.

That includes Khan, who has led sweeping efforts to crack down on alleged monopolies, such as Amazon and Facebook; gone after drug companies for allegedly inflating insulin prices; and headed the administration’s ban on noncompete agreements.

Danielle Deiseroth, executive director of the progressive Data for Progress, said her polling firm has tested FTC actions under Khan and found them to be “really popular,” even if “most Americans probably have not heard of Lina Khan by name.”

That aggressive stance, though, has also made Khan a target for some business-minded Democrats, who see her as overly hostile to free enterprise, including Hoffman.

Avoiding a confirmation fight

While the prospect of a Trump comeback has motivated progressives to rally around Harris in the near term, many still worry about the direction of the party, particularly as it welcomes more affluent and center-right voters who are turned off by the MAGA-infused GOP. Will Democrats continue to be a populist, worker-oriented party? Or will the electoral realignment cause them to start catering more to business?

If Harris loses, Democrats will have bigger problems, of course. But if she wins, activists and party stakeholders will be looking at what she does with Khan as one clue about how she sees the future of the party.

“It’d be a strategic blunder for Harris to pick an ugly fight over Lina Khan’s future when there’s already strong consensus among Democrats. Moderate senators like Bob Casey and Jackie Rosen are actively campaigning on the FTC’s work to lower prices,” said a Senate Democratic aide, who was granted anonymity to discuss a sensitive subject. “Progressives are ready to fight, but if Harris caves to her billionaire donors it will be her prosecutor brand and the entire Democratic Party that gets bruised in an unnecessary brawl.”

Cuban’s call for Khan’s ouster led Rep. Alexandria Ocasio-Cortez, D-N.Y., to issue a warning to the “billionaires ... trying to play footsie” with Harris: “Anyone goes near Lina Khan and there will be an out and out brawl. And that is a promise,” she said on X.

Sen. Bernie Sanders, I-Vt., also threw in for Khan, calling her “the best FTC chair in modern history.”

The Harris campaign declined to comment for this story.

Progressives have inertia on their side. Khan, whose term expired last month, can remain in the role until she is replaced. Removing her would not only infuriate the left but it could provoke a confirmation fight with Senate Republicans over her replacement.

Some in the progressive movement believe Harris should simply leave her there without going through confirmation again in the Senate if need be. Khan has broad support among Democrats and even some Republicans, including moderates outside the progressive movement.

“Khan has a lot of allies in Congress,” said Deiseroth. “Keeping her is the path of least resistance that will make the most people on the left happy.”

Meanwhile, the cryptocurrency industry and its allies also want to replace Gensler atop the SEC, since he has taken a skeptical view of the nascent industry.

The main pro-Crypto super PAC Fairshake has spent more than $204 million on the 2024 elections, cultivating a slew of new allies in Congress and in Harris’ orbit, including Cuban.

Harris herself has said relatively little about her thoughts on cryptocurrency, which makes progressives worry that in the absence of strong views of her own, and little organized opposition from crypto skeptics, they could have a hard time being heard.

Jeff Hauser, the founder of the progressive watchdog Revolving Door Project, said he’s hoping Ohio Democratic Sen. Sherrod Brown, the current chair of the Senate Banking Committee, will win his tough re-election contest to serve as a countervailing voice inside the party.

“The more an issue touches on crypto, the less confident I am in her team,” he said.

Echoing campaign themes

Progressives are already feeling a bit more comfortable about Khan after Cuban on Monday walked back his criticism of Khan and said he’s not trying to influence personnel.

Geldon said keeping Khan would be consistent with the populist themes in Harris’ campaign platform and messaging, which have been a major part of her pitch to voters even as she campaigns with anti-Trump Republicans to court center-right voters.

“The Harris campaign’s advertisements have been overwhelmingly populist in nature, focusing on price gouging and other issues of corporate accountability,” Geldon said. “And that’s a strong indication they’re looking to continue the momentum built under the Biden-Harris administration.”

As with Khan and Gensler, in the case of a divided government, progressives are urging Harris to keep acting cabinet secretaries and their deputies in place and using a vacancies law to make recess appointments, instead of trying to find replacements who could be confirmed by a hostile Republican-led Senate.

Current cabinet officials may be asked to stay on to avoid a replacement fight but at least some will depart key roles, such as Attorney General Merrick Garland, who has few fans on the left for a number of reasons, including the perceived tentativeness with which he oversaw the federal prosecutions of former President Donald Trump.

Regardless of which party controls Congress, Harris will be confronted with the challenge of working with Republicans almost immediately without alienating her left flank. The new Congress and president will need to raise the debt ceiling and fund the government again early next year.

Some on the left are already preparing to push a potential Harris administration to essentially disregard the nation’s debt limit, promoting the interpretation of legal scholars Michael Dorf and Neil Buchanan that it is unconstitutional.

Ezra Levin, a co-founder of the progressive advocacy network Indivisible, said his group’s members who are “very attuned” to Washington see Khan as one of the most effective Biden administration officials when it comes to taking on concentrated economic and political power.

“If it came to that in a new Harris administration we’d be pushing strongly to make sure that she stays in,” Levin said.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Economic

US election in the spotlight

The US presidential election continues to monopolize the market’s interest. While the outcome is uncertain, most investors have a pretty good idea of the economic agendas of both candidates. Former president Trump is probably gearing up for a repeat of his first term of protectionism and trade wars, while Vice President Harris is expected to continue in President Biden’s footsteps.

Amidst these developments, the Fed is meeting next week. While its easing path might potentially be affected by the US election result, next week’s decision will most likely depend on the economic progress made since mid-September.

Will the US data continue to surprise?

Since the September 18 Fed gathering, US data has been decent with inflation, retail sales and durable goods orders surprising on the upside. However, the labour market remains the critical factor in the Fed’s decision-making process. In this context, on Friday, the October jobs report will be published.

Economists forecast an 115k rise in non-farm payrolls, following a sizeable 254k increase in September, with both the unemployment rate and average earnings growth expected to remain stable at 4.1% and 4% respectively. It is worth nothing that there is a small possibility of this data being affected by the recent Hurricane Helene.

Wednesday’s ADP print and Thursday’s weekly jobless claims figures have potentially opened the door to an upside surprise on Friday, despite the fact that market participants are fully aware of the very weak correlation between the ADP report and the non-farm payroll data.

Could next week’s Fed rate cut be under threat?

The market is very confident that, regardless of Friday’s data, a rate cut will be announced next week, currently assigning a 95% probability for this move. However, following the stronger US data in mid-October, certain Fed hawks openly talked about a pause in November.

A strong set of figures, especially a non-farm payrolls print above 250k, could really add weight to their arguments. While the Fed rate cut seems to be safe at this stage, a decision taken with a slight majority could mean that the Fed’s rates outlook is more uncertain than currently foreseen.

On the flip side, a downside surprise in Friday’s data releases would confirm the universally expected outcome of the November 7 Fed meeting, potentially forcing the hawks to take a back seat and just follow Chairman Powell’s lead.

Dollar/yen rally pauses temporarily

The constant stream of strong US data, the imminent US election and the inconclusive outcome of the recent Japanese general election have pushed dollar/yen higher. Another positive set of US data releases on Friday could add to the recent bullish move with dollar bulls trying to push dollar/yen comfortably above the 154.52 level. On the other hand, weaker data prints could open the door to a selloff, which could become more protracted if the bears manage to break below the 151.54-151.94 area.

To stay updated on all economic events of today, please check out our Economic calendar

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TD Securities

Economic

Canadian economic growth stalled in August after modest GDP growth in July. This print landed in line of Statistics Canada’s advanced guidance and consensus expectations. Early estimates from Statistics Canada point to decent growth in September (0.3% m/m).

August’s reading was broad-based, with output expanding in 12 of 20 industries. A 0.1% m/m gain in the services sector offset the drag in goods-producing industries (-0.4% m/m).

On a weighted basis, the manufacturing sector posed the biggest headwind for August activity, falling 1.2% m/m with most subcomponents also seeing declines. Elsewhere on the goods side, mining/quarrying/oil & gas (+0.6% m/m) and construction activity (0.3% m/m) rebounded from their declines in July.

On the services side, August’s rail strike led to a 7.7% m/m drop in rail transportation activity, extending losses from July’s wildfire-induced slide in rail activity. The public administration sector was up for a fourth consecutive month (0.5% m/m), while finance and insurance (0.5% m/m) and retail trade (0.6% m/m) also helped push the overall services sector into positive territory.

Behind the advanced reading of a pickup in growth in September is an increase in the finance and insurance sector as well as construction and retail trade. Weaker expected activity in the mining/oil & gas sector offset some of the growth.

Key Implications

Yesterday’s GDP data confirm economic momentum is cooling after somewhat decent growth in the second quarter. Even with current guidance pointing to a strong bounce back in September, downward data revisions to prior months has third quarter growth tracking around 1.0% quarter-on-quarter (q/q) annualized. This poses downside risk to the Bank of Canada’s recently revised Q3 forecasts of 1.5% (down from a hefty 2.8% previously).

The BoC’s next rate decision isn’t until mid-December and there is still a lot of data to digest between now and then. We don’t think this will ring any alarm bells for the Bank but it puts more emphasis on their fears around a weakening economy. That said, we think the cumulative 125 bps of cuts delivered to date will do it’s part in reigniting economic activity into the end of they year. Looking ahead, more cuts are on the way, with the focus now shifting to upcoming labour market and inflation data.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Warren Takunda

Cryptocurrency

Bitcoin needs to avoid a “local top” as institutions pile into the United States spot Bitcoin exchange-traded funds (ETFs).

In a thread on X on Oct. 30, popular analyst Mark Cullen cautioned over potential “ETF FOMO.”

Bitcoin ETF inflows see mixed reactions

Institutional investors are sparking hundreds of millions of dollars in net inflows to the US spot Bitcoin ETFs daily.

The latest data from sources, including UK-based investment firm Farside Investors, puts the tally for Oct. 30 alone at nearly $900 million — its second-largest ever. BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_1

BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_1

US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors

For longtime market participants, however, their success feels like the elephant in the room. During Bitcoin’s run to current all-time highs in March, ETFs saw similar success, but institutional enthusiasm ultimately formed a multimonth BTC price consolidation.

“The last couple of times the Bitcoin ETF flows were ~$900m+ and Price was > 70k, it signaled a local top. Just something to think about,” Cullen acknowledged.

Larger ETF inflows have become synonymous with bad omens for BTC price performance, but there remains a chance that the current trend may form an exception.

“With another huge inflow day for the Bitcoin ETF's but little to now progress in price, lets hope the ETF FOMO isn't going to mark a local top again this close to a new ATH,” Cullen added. BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_2

BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_2

US spot Bitcoin ETF flows vs. BTC/USD chart. Source: Mark Cullen/X

Unlike earlier in the year, the amount of BTC available on so-called over-the-counter (OTC) desks is large enough to form a buying venue for the ETFs. This, onchain analytics platform, CryptoQuant explains, allows large purchases that do not impact spot price.

“Higher Bitcoin availability on OTC desks makes daily purchases from ETFs add up to a lower share of inventory,” it explained in its latest weekly report seen by Cointelegraph.

Currently, total daily Bitcoin purchases from ETFs represent between 1% and 2% of the total Bitcoin balance on OTC desks. This contrasts with a share of 9%–12% of total OTC balances in Q1 2024.” BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_3

BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily_3

Bitcoin ETF demand to OTC balance ratio (screenshot). Source: CryptoQuant

For the status quo to change, CryptoQuant said, ETF demand would need to be even higher.

“The bright spot is that OTC desks’ total Bitcoin balance is no longer growing at the pace it did in Q2–Q3 2024,” it acknowledged.

“The 30-day change in OTC desks’ total Bitcoin balance is now 3K Bitcoin, down from +77K in August and +92K Bitcoin in June. Bitcoin prices rallied in Q1 2024 to record highs as the growth in OTC desks’ balance remained mostly in negative territory.”

BTC price discovery anticipated

BTC/USD traded near $72,000 at the time of writing on Oct. 31, per data from Cointelegraph Markets Pro and TradingView.

Already at new all-time highs in various global currencies, including the euro, a return to US dollar BTC price discovery is increasingly viewed as a matter of time.

“All of the suits who aped the ETF are now in profit and can start shilling IBIT to their other suit friends who just watched gold go on an insane move into price discovery,” William Clemente, co-founder of crypto research firm Reflexivity, summarized to X followers.

Clemente referred to the largest ETF product from asset management giant BlackRock, the iShares Bitcoin Trust (IBIT), whose net inflows totaled $875 million on Oct. 30.

Eric Balchunas, a dedicated ETF analyst at Bloomberg, predicted that the combined BTC holdings of the ETF providers would imminently pass 1 million BTC.

IBIT, reaching $30 billion in assets under management, he added on X, had come in record time for an ETF product — just 293 days.

Source: Cointelegraph

Risk Warnings and Disclaimers

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Justin

Political

The last few years have not been easy, with high inflation and increased inequality. Yet more Americans have jobs, and the stock market is at a record high. There will be lots of opportunity to pick the bones from the result but for investors the key question is whether robust cash-flows in the US corporate sector can continue to support returns from bonds and equities. At the very least, the balance between expected returns and volatility of returns may shift as the outcome of 5 November vote is digested.

Real returns solid

The rate of inflation is important in markets. If nominal fixed rate bond yields are 5% and inflation is expected to be 2%, then the expected real return from bonds is 3% over the lifetime of the investment. If investors believe that we are close to inflation stability again, then bond markets do currently offer decent prospective real returns. The back-up in bond yields since the Federal Reserve (Fed) cut interest rates by 50 basis points (bp) on 18 September has returned some value to that equation. Personally, I don’t think the cut was a mistake nor do I blame the back-up in yields on the Fed’s decision (the counter factual of what would have happened with a 25bp cut is impossible to know, but the outcome might not have been that different). Instead, the rise in yields across the curve is more a combination of policy uncertainty the closer we get to the US election, and some risk premium that the very “goldilocks like” return to a neutral interest rate level in 2025 might not be as straightforward as the perfect pricing of early September would have suggested. Today, the market based expected inflation rate in the US for the next 10-years is 2.3%. The nominal 10-year Treasury bond yield is 4.2%, so real prospective returns are just under 2% annualised. That seems fine for a risk-free rate.

The level of prices

For voters, however, the inflation story needs to be looked at differently. When assessing whether to vote for an incumbent government or something new, voters will have a view on what has happened to their standard of living. Key to this is what has happened to prices, and the lower down the income scale it is the price of essentials – food, energy, transportation, healthcare and so on – that is important. Voters look at the price of things today and how much of their income they need for the weekly grocery shop compared to how they remember that being in the past. According to the official CPI data, food prices are 26% higher today than they were four years ago.

I looked at what happened to the broad consumer price index in the US during Presidential terms of office ending in the September prior to election day (September normally being the latest monthly available data assuming elections take place in early November). Under the current Administration, the consumer price index rose by 20% between November 2020 and September 2024. This is the highest accumulated increase in prices during a discrete Presidential term since Ronald Reagan’s first term in office between 1981 and 1985. It is noticeable that both Presidential candidates have discussed ways of controlling inflation instead of discussing the arguably more important issue of long-term fiscal deterioration. They know that higher prices for food and gasoline have left a bad taster in voters’ mouths. They must be seen to be promising to do something about it (cue picture of bolted horse looking back to see the stable door being shut).

Bond volatility higher

Of course, the election outcome is not going to be determined by what happened to the CPI over the last four years. It is important but there are other factors – unemployment is low, the stock market is at a record high, housing is recovering. These should work in Kamala Harris’s favour. Against that are the populist totems of immigration and issues that are portrayed as a “leftist woke agenda”. It makes for an election outcome that is hard to call. We could be faced with another disputed election result on 6 November. Volatility in rates markets has picked up over the last month and it may be sometime before that subsides, which makes taking bets on the direction of long-term yields difficult. Bond returns might be volatile for some time. The case for higher quality, shorter-duration or a buy and hold exposure in credit markets again seems strong.

Beyond the polls, the US has strength

Ultimately, what matters for investors is whether the US economy can keep performing. If higher rates have not been enough to cause a recession so far, then we need to question what will? Disruptions to spending because of actual or feared policy decisions might do it, especially if they are transmitted to the evolution of cash-flow. If uncertainty about growth emerges, the fiscal outlook might become a more present concern for investors. The risk in long-end risk premiums, arguably evident in the Treasury market today, could extend. Monetary policy may also become compromised by fiscal uncertainty, leading to a permanently higher level of interest rates. That, with less clarity on corporate revenues, would undermine the valuation case for US financial assets as it stands today. Not much of this will actually be evident for some time, so making long-term strategic asset allocation decisions regarding US financial assets – which have delivered strong returns – is not easy.

There will be a lot to assess for the US economy in the weeks ahead. Bad outcomes are possible which would be reflected in poorer returns from equities and bonds. However, as one bank pointed out in a note to its clients this week, GDP growth and equity returns have historically been remarkably stable no matter who sits in the Oval Office.

Source:live wire

Risk Warnings and Disclaimers

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Justin

Political

President Biden is getting hit with a resolution in Congress condemning his "garbage" remarks while discussing former President Donald Trump’s supporters earlier this week.

"President Biden must be condemned for calling millions of Americans who support Donald Trump garbage," Rep. John Rose, R-Tenn., who is introducing the measure later this week, told Fox News Digital.

He linked it to former Secretary of State Hillary Clinton’s infamous quip that half of Trump supporters were a "basket of deplorables" during her doomed 2016 presidential bid.

"First, Democrats called half the country deplorables. Now, they are doubling down, calling us garbage. Democrats’ disrespect for half the country’s views and opinions is exactly what is wrong with the leadership of extreme far-left liberals," Rose said.

Republicans have been hammering Biden – and by extension 2024 Democratic nominee Vice President Kamala Harris – over the remarks, even forcing top Democrats to distance themselves from the controversial comment.

The White House has denied that the president called Trump supporters "garbage," and interpretations of what the 81-year-old leader said have been hotly debated.

Biden was asked about Trump’s rally at Madison Square Garden during a virtual call with Voto Latino. Democrats had accused Republicans of racist rhetoric during the event, particularly one of comedian Tony Hinchcliffe’s jokes referring to Puerto Rico as a "floating island of garbage."

He responded by saying, "Donald Trump has no character. He doesn't give a damn about the Latino community. He's a failed businessman. He only cares about the billionaire friends that he has and accumulating wealth for those at the top."

"And just the other day, a speaker at his rally called Puerto Rico a ‘floating island of garbage.' Well, let me tell you something…in my home state of Delaware, they're good, decent, honorable people. The only garbage I see floating out there is his supporters – his demonization of Latinos is unconscionable, and it's un-American. It's totally contrary to everything we've done, everything we've been," Biden said.

White House press secretary Karine Jean-Pierre insisted Wednesday that he was referring to Hinchcliffe’s joke.

"He does not view Trump supporters or anybody who supports Trump as garbage. That is not what he views," she said.

Biden himself posted a similar explanation on X earlier this week.

"His demonization of Latinos is unconscionable. That's all I meant to say. The comments at that rally don't reflect who we are as a nation," the post said.

However, that has done little to stem the Republican backlash, particularly with Election Day less than a week away.

Trump arrived at his Wednesday campaign stop in Wisconsin in a garbage truck and wore a high-visibility vest throughout his rally.

Vivek Ramaswamy, one of his surrogates, posted a video of himself on the job with sanitation workers.

Harris distanced herself from the comments Wednesday morning, telling reporters, "I think that, first of all, he clarified his comments. But let me be clear, I strongly disagree with any criticism of people based on who they vote for."

Rep. Elissa Slotkin, D-Mich., who is running in one of the most closely watched Senate races in the country, went even further.

"In terms of what President Biden said yesterday, he shouldn’t have said it. I mean, it’s inappropriate. And, for me, I just think that kind of talk is the last thing we need in our politics," Slotkin told Michigan radio station WWJ Newsradio.

Source:Fox.News

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November 1st Financial News

[Quick Facts]

[News Details]

[Today's Focus]

Progressives Gear up for their First Big Fight if Harris Wins: Protecting Lina Khan

Avoiding a confirmation fight

Echoing campaign themes

Source: CNBC

Dollar Could Get A Boost From Friday’s US Jobs Data

US election in the spotlight

Will the US data continue to surprise?

Could next week’s Fed rate cut be under threat?

Dollar/yen rally pauses temporarily

Canada’s Economy Flatlined In August, With A Pickup Expected In September

Key Implications

BTC Price Risks New 'FOMO' Top as Bitcoin ETF Inflows Near $1B Daily

Bitcoin ETF inflows see mixed reactions

US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors

US spot Bitcoin ETF flows vs. BTC/USD chart. Source: Mark Cullen/X

Bitcoin ETF demand to OTC balance ratio (screenshot). Source: CryptoQuant

BTC price discovery anticipated

Source: Cointelegraph

Prices, Jobs, and Personalities: Here Comes the US Election

Real returns solid

The level of prices

Bond volatility higher

Beyond the polls, the US has strength

Source:live wire

Biden Targeted by GOP Resolution Condemning 'garbage' Remark About Trump Supporters

Risk Disclosure