Inflation has been creeping higher from a postpandemic low of 2.3% earlier this year due in part to the highest U.S. tariffs in decades. ...

Economic Overview - The current economic landscape is characterized by a "K-shaped" recovery, where wealthier Americans are increasing their spending while lower-income consumers are pulling back due to rising costs [1][3]. Consumer Spending Trends - Lower- and middle-income consumers are facing significant pressure from rising prices on essentials like groceries and gas, leading to a decline in their spending [3]. - Wealthier consumers are benefiting from stock market gains and rising home values, which is contributing to their increased purchasing power [3]. Company Insights - Coca-Cola is experiencing divergent sales growth, with higher demand for premium products among wealthier consumers and increased sales at dollar stores catering to lower-income shoppers [4]. - McDonald's is responding to the divided consumer landscape by expanding its value menu, as traffic from lower-income consumers has dropped by double digits [5]. - Chipotle is also noting pressure on lower-income consumers, which will influence their pricing strategy moving forward [6]. Automotive Sector - The average price for a new vehicle has surpassed $50,000 for the first time, driven by wealthier households who have access to favorable loan conditions [8][9]. - Auto loan defaults are rising, particularly among consumers with lower credit scores, indicating financial strain in this demographic [8]. Airline Industry - Delta Air Lines anticipates that revenue from premium offerings will exceed that from coach cabins next year, reflecting a trend towards higher-cost tickets among affluent travelers [10]. Hospitality Sector - Hilton is observing a bifurcation in consumer spending but does not expect this trend to persist, predicting a shift as inflation and interest rates decrease [11][12]. - Revenue from luxury offerings at Hilton is performing well, while affordable brands are experiencing a drop in revenue [12][13].

Mexico’s annual inflation slowed more than expected in the first half of October, likely giving policymakers’ room to extend their easing cycle at the central bank’s early November interest rate meeting. https://t.co/Vl7zpIqtxk ...

Treasuries are poised to snap a three-day run of gains as a surge in oil prices brings price-growth concerns to the fore ahead of this week’s eagerly anticipated US inflation numbers https://t.co/RkWwLqn2Tj ...

Turkey’s central bank lowered the benchmark rate for the third time in a row, but policymakers slowed the pace of easing after inflation unexpectedly climbed https://t.co/31Pwf2qcsH ...

Core Insights - The Biden-era plan to expand access to Medicare assistance has been delayed to 2034 due to President Trump's legislation, impacting enrollment in state-run Medicaid programs for older Americans [1][2] - Nearly 5.8 million low-income older adults are eligible for Medicare cost assistance programs but remain unenrolled, which could significantly affect their access to necessary healthcare [2][3] - The rising costs of Medicare, including an increase in the standard Part B premium to $185 in 2025 from $174.70 in 2024, are placing additional financial strain on older Americans [4][5] Group 1 - The Biden administration's plan aimed to automate the application process for Medicare's Part D Low-Income Subsidy and facilitate automatic enrollment for eligible beneficiaries [1][2] - The delay in the plan is seen as a setback, increasing the bureaucratic burden on eligible individuals to find existing federal assistance [3] - The financial strain on Medicare households is significant, with an average expenditure of approximately $7,000 on healthcare in 2022, nearly double that of non-Medicare households [4][5] Group 2 - Many older Americans are delaying or forgoing medical care due to the inability to afford prescriptions, doctor visits, or dental work, exacerbated by rising costs of essential goods [4] - Inflation has diminished the purchasing power of retirees on fixed incomes over the past five years, further complicating their financial situations [4]

Gold was left looking rather ore-dinary this week, with a 5.7% drop on Tuesday marking the metal’s worst day since 2013. On Wednesday, futures stabilized. Up 0.2%, prices were close to flat, and investors were left to ponder whether factors that led the metal to a historic rally this year will continue to pan out. SUBSCRIBE:  Receive more of our free The Daily Upside newsletter. READ ALSO: Oil Spikes as US Sanctions Russian Producers to Undermine Putin’s War Machine and Quantum Computing Stocks Power Upwa ...

Equities traders are likely to shrug off any evidence of stubborn inflation in Friday’s CPI report https://t.co/wJ1QJ0yNKK ...

Core Insights - President Trump indicated that direct cash payments to Americans could be funded by increased tariff revenues, suggesting a shift in trade strategy towards economic stimulus ahead of the 2026 midterms [1][3] - The U.S. Treasury reported a significant increase in tariff revenues, totaling $267.7 billion in Q2 2025, marking a 188.7% increase from Q2 2024, with total revenues exceeding $360 billion as of June 2025 [2] - The proposed payments could resemble pandemic-era stimulus checks, although details on eligibility and payment amounts remain unclear [3] Tariff Revenue and Economic Implications - The U.S. government has raised substantial revenue from tariffs, with $267.7 billion collected in the second quarter of 2025 alone, contributing to a total of over $360 billion for the year [2] - Trump previously suggested that tariff revenues could be used to eliminate or significantly reduce income taxes for individuals earning under $200,000, and more recently considered using $10 billion in tariff revenue for farmer bailouts or $2,000 rebate checks to Americans [4] Economic Perspectives on Proposed Payments - Economists are divided on the potential economic impact of the proposed rebate checks, with some suggesting that increased consumer spending could exacerbate inflation in the long run [5][6] - Concerns have been raised that the payments may not be perceived as "free money" by consumers, potentially leading to increased savings or offsetting rising living costs rather than stimulating spending [6][7] - A study from the Federal Reserve Bank of Cleveland indicates that tariff revenues can lead to average welfare gains, but only under specific conditions [7]

Market Performance - Asian stocks exhibited mixed performance amid rising tensions between the U.S. and China, with Tesla reporting a significant drop in profits, causing investor unease [1] - China's Shanghai Composite index increased by 0.22% to 3,922.41, recovering from early losses as investors anticipated a meeting between Chinese President Xi Jinping and U.S. President Donald Trump [2] - The Nikkei average in Japan fell by 1.35% to 48,641.61, following a record high earlier in the week, as new Prime Minister Sanae Takaichi announced economic measures to alleviate inflation [3] - Seoul's Kospi index dropped by 0.98% to 3,845.56 after reaching record highs earlier, as the Bank of Korea maintained its benchmark interest rate [4] - New Zealand's S&P/NZX-50 index rose by 0.53% to 13,377.10, with gains across most sectors [5] Commodity and Economic Indicators - Oil prices surged over 3% following new sanctions imposed by U.S. President Donald Trump on Russia's largest oil companies, aimed at pressuring Russia regarding the Ukraine conflict [6] - The U.S. dollar strengthened against rivals as investors awaited delayed consumer inflation data for insights on the Federal Reserve's interest rate trajectory [5] - Gold prices fell below $4,100 an ounce for the third consecutive day due to profit-taking [5] U.S. Market Reactions - U.S. stocks declined as Netflix reported weaker-than-expected Q3 earnings and Texas Instruments provided disappointing Q4 guidance, alongside news of potential export curbs to China [7] - The Nasdaq Composite decreased by 0.9%, the Dow fell by 0.7%, and the S&P 500 dropped by 0.5% [7]