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Good morning. US stock futures moved lower in Monday morning trading as investors considered the effects of geopolitical tensions in the Middle East.

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🏠 BofA: This isn’t the 2008 housing market…

📝 Our report: Bank of America economists are setting the record straight: the US housing market isn’t headed for a 2008-style crash. In a recently published note, the bank said the market more closely resembled the 1980’s where restrictive monetary policy was the main cause of housing market turbulence versus 2008 where the crash was precipitated by overdevelopment from builders, or excessive leverage from homebuyers.

 🔑 Key points:

  • The economists said that with rates likely to stay higher for longer, investors should expect a bumpy ride ahead for the housing market.

  • Contrasting the 2008 period to now, the bank said home loans were much easier to get in the lead up to the ‘08 crash versus now where borrowers face much higher standards.

  • The bank’s economist noted that housing inventory, high prices and labor shortages would remain headwinds for the housing market for some time.

💡 So what: Homeownership remains the bedrock of the “American Dream.” With mortgage rates and home prices at all time highs, the opportunity for homeownership seems to be drifting further away from the Millennial and Gen-Z generations.

Monday - Dallas Fed President Logan Speaks

Tuesday - NFIB Optimism Index

Wednesday - Fed’s September FOMC Meeting Minutes

Thursday - US CPI Y-o-Y

Friday - No Major Economic News

🤑 Are you always overspending?

💣 Middle East conflict spikes oil, hammers stocks, bonds.

📉 Is a financial crisis about to hit the UK?

🛢️ Arab states tow line on oil output cuts

WHAT: You can call it “team spirit” in the oil market! Bahrain, Iraq, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates promised to keep rocking those “collective and individual voluntary adjustments” to their oil production as the countries met on the sidelines of the UN MENA climate week event in Saudi Arabia.

WHY: OPEC+ agreed in June to extend voluntary oil cuts first introduced in April until the end of 2024.

🚀 Amazon enters internet space race

WHAT: Amazon just shot its first test satellites into space, playing the cosmic version of “anything you can do, I can do better” with rival SpaceX. The company’s Atlas V rockets blasted off with a pair of test satellites, kicking off a program that Amazon hopes will increase global internet coverage.

WHY: Elon Musk’s SpaceX has a huge head start over Amazon and its founder Jeff Bezos who has his own rocket company, Blue Origin.

💵 Down to our last $3 trillion…

WHAT: China’s stash of cash took an unexpected dip in September, on the back of a strengthening US dollar against other currencies. China’s reserves — the largest in the world — fell by $45 billion to $3.115 trillion in September as compared to $3.16 trillion in August.

WHY: China’s gold reserves also fell in value, dipping to $131.79 billion at the end of September from $135.22 billion at the end of August.

✏️ DMB Insider Quiz ✏️

How much did China's foreign exchange reserves fall by in September?

Extra points if you tell us the value of their gold reserves?

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