Morning Report: GDP revised upward on inventory build 11/24/15

Markets are lower this morning after Turkey shot down a Russian plane in Syria and Brussels stays on lockdown. Bonds and MBS are up small.

The second revision to third quarter GDP came in at 2.1%, in line with estimates, and up from the initial 1.5% estimate. Personal consumption rose 3.0%, a little below expectations, while inflation was slightly higher. Inventory build accounted for a lot of the growth, which means the third quarter may have “borrowed” some growth from Q4.

Consumer Confidence took a big hit in November, falling from 97.6 to 90.4,

The Richmond Fed Manufacturing Index fall to -3 from -1 in November.

The S&P/Case-Shiller index rose .61% in September and is up 5.45% year-over-year.

The Allergan / Pfizer merger has brought out all the usual suspects jawboning about “corporate patriotism.” It is another inversion trade, where the larger Pfizer is getting bought by smaller Allergan in order for Pfizer to change its domicile to Ireland and lower its effective tax rate from 25% to 17-18%. The companies sure made themselves a target by doing this in an election year, however the reality remains: the US has the highest corporate tax rate in the world, and we double-tax foreign income, which most countries do not. Until corporate tax reform happens, these sorts of things will continue.

22 Responses

  1. The world has gone a little nutso this morning. But at least I’m frist! 🙂

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  2. Bah. You’re just lucky I’m busy at work.

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  3. Like

  4. Not “yuck”, brave. It’s a blow to the patriarchy.

    I HEAR HER VOICE!

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  5. Food as performance art…

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  6. This is what happens when you don’t have real problems.

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  7. obama considers the climate summit a “powerful rebuke” to terrorists.

    http://www.climatedepot.com/2015/11/24/obama-says-paris-climate-conference-a-powerful-rebuke-to-isis/

    that’ll show ’em!

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    • Brent:

      obama considers the climate summit a “powerful rebuke” to terrorists.

      Increasingly it looks like Obama’s presidency is a test of both the media and D’s to see just how much complete and utter nonsense he can spout before they will call out their leader for being a bumbling moron. I mean seriously….these are the same people who insist that Bush is a dumbass. Compared to what?

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  8. Progs must eat that idiotic stuff up.

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  9. “Moderate Independent” sounds like how most of PL-ers consider themselves.

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  10. Salon wants to ban salary negotiations: http://www.slate.com/articles/double_x/doublex/2015/11/don_t_teach_women_to_negotiate_their_salaries_just_ban_salary_negotiations.html

    Progressivism: The belief that government can (and should) set wages. And the naivete to think that they could do so fairly…

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  11. I can only echo Mark’s sentiment. Yuck!

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  12. HAPPY THANKSGIVING

    My pie filling is prepped with help from the twins. Question is whether to bake tonight or early tomorrow.

    If you are not with family I hope you are with friends.

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  13. Same to you, Mark (and everyone here)! I’ll be at Fairlington Blade’s tomorrow, with a nice green salad/antipasto dish. Should be a good time–around 20 people are expected, so it will be a full house.

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  14. Lucky you, ‘Goose. I hope the turducken variant is a huge success.

    Brent, this article points up the inanity of US corporate tax rates, IMO.

    http://www.nytimes.com/2015/11/29/business/dealbook/pfizer-didnt-need-an-inversion-to-avoid-paying-us-taxes.html?emc=dlbkpm&emc=edit_dlbkpm_20151125&nl=%3Fnl%3Ddlbk&nlid=55859017&_r=0

    There are proponents of lowering the corp tax rate in both parties and why it did not happen ten years ago is just beyond me. It is even more incomprehensible that the rate is higher for mid sized earners than for the top ones. As a first step the top rate must be lowered to the level of the nations with which we compete.

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  15. Almost like it favors those most able to pay graft.

    Weird.

    Can’t imagine why the grafter wouldn’t want to change it.

    Like

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