December 11, 2024

(BUY PRODUCTS NOW BEFORE TRUMP TARIFFS HIT)

December 11, 2024

Hello everyone

ON THE RADAR TODAY

November CPI report.

Economists expect a monthly increase of 0.3% for both the headline CPI reading and core CPI, which excludes volatile food and energy prices. The November producer price index, scheduled for Thursday, is expected to show an increase of 0.2% in its headline and core readings. The thinking on Wall Street is that the Fed is highly likely to cut interest rates next week if inflation comes in at or below expectations in those two reports. Still, there is an element who disagrees and believes the Fed will hold if the CPI reading came in above 0.40%. The Labor market remains front of mind for the Fed.

WHAT TO BUY BEFORE TRUMP’S TARRIFS ARE ROLLED INTO PLACE

According to Trump’s policy promise, he plans to issue a 25% tariff on products from Canada and Mexico on his first day in office, as well as an additional 10% on top of the rates still in place from his first administration on Chinese imports.

The importers paying the tariffs will likely pass them on to consumers.

Many retailers are already preparing their customers for increased prices and encouraging them to shop now.

Of course, it’s unclear how much prices will increase and which specific items will be affected, but it would be a good idea to start thinking about any large purchases you might be planning. For instance, do you need to upgrade your iPad or your MacBook? My advice: Do it now.

These are some of the categories where prices are expected to increase.

Laptops and tablets

Videogame consoles

Smartphones

Apparel, footwear and accessories

AUSTRALIAN NEWS CORNER

The Reserve Bank of Australia keeps interest rates on hold at 4.35%. People hoping for an early Christmas gift from the RBA were let down once again. Now, the odds are that the RBA won’t start to cut interest rates until about April next year, so Australia still has some time to wait.

WORLD NEWS CORNER

Syrian regime falls. Assad flees to Russia. Full implications are still unfolding, but the hope is that the factions that make up the rebel force can work together to bring some semblance of stability to the country.

QI CORNER

SOMETHING TO THINK ABOUT

Cheers

Jacquie

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