German, EU budget risk / Red Sea attacks / Powell lifted all markets Friday, a November to remember!

Snow is back with a vengeance
Powell's comments sent everything higher on Friday >>> Powell pushed back (didn't try very hard) against growing expectations of rate cuts in 1st half of 2024, so markets didn't buy it.. (10y UST down 15bps on the day)The risks of the Federal Reserve slowing the economy more than necessary have become "more balanced" with those of not moving interest rates high enough to control inflation, Fed Chair Jerome Powell said on Friday, reaffirming the U.S. central bank's intent to be cautious but also offering fresh optimism on its progress so far
"These attacks represent a direct threat to international commerce and maritime security. They have jeopardized the lives of international crews representing multiple countries around the world. We also have every reason to believe that these attacks, while launched by the Houthis in Yemen, are fully enabled by Iran."
From one of the most accurate strategists on Wall Street, Hartnett: "...everyone thinks we rally into Valentine’s Day, everyone emotionally bullish, but still intellectually bearish and likely to stay that way until leadership changes"
German Finance Minister calls for cuts in social spending. Lindner sets sight on welfare, international financial aid. Not yet’ convinced to suspend debt brake in 2024, he says
EU budget dispute threatens €50bn war lifeline for Ukraine
US warship and commercial vessels attacked in Red Sea, says Pentagon
Meta’s AI chief doesn’t think AI super intelligence is coming anytime soon, and is skeptical on quantum computing
Unearthed podcast: Why are central banks stocking up on gold?

Markets :

Huge November bond rally extended after Powell on Friday, 10's UST could well get down to 4% area, nearly there really, the big move already done >>> lifted all assets again >>> The Bloomberg US Aggregate Bond Index closed 4.5% higher, its best month since May 1985 and 8th best return since inception of the index in 1976
USDollar slightly weaker, together with CROSSJPY'S, EURJPY took a decent hit, overall if yields remain 'soft-er' overall JPY could pick up a bit of ground vs USD and crosses
GOLD hit a 2135$ high overnight
Equity markets loving it all, Fed pricing into 2024 move big timein Novemver, as Core PCE (excludes Food/Energy), the Fed’s preferred measure of inflation, moved down to 3.5%. This was the lowest level since April 2021, bears got hit and sent to hibernation for a while (again), the 60/40 portfolio back from the dead with
Crude OIL - the only price that moved lower in November
A LOT got price in rates last 4-6weeks..