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Good morning. US stock futures moved lower in Monday morning trading as investors digested news of a change in ratings outlook on the US.

🛑 US government shutdown averted…for now

📝 Our report: The looming threat of a US government shutdown just got a bit of a makeover thanks to US House Speaker Mike Johnson’s compromise plan! Johnson’s plan comes with less than one week to go before the current temporary spending bill runs out, which could ultimately have led to a shutdown of critical US government services. 

 🔑 Key points:

• The proposal, which omits new funding for Israel and Ukraine, would extend funding for some government agencies to January, and others to February.

• The extensions until January 19th will apply to funding for the departments of Veterans Affairs, Energy, Agriculture, Transportation, as well as Housing and Urban Development.

• Illustrating the critical implications of a pending government shutdown, Moody’s Investor Services lowered the US’ credit rating outlook to negative from stable.

💡 So what: A U.S. government shutdown is a bit like an unexpected office closure but on a much larger scale. If lawmakers can't agree on a budget or a temporary funding measure, certain federal agencies and programs might go into hibernation. That means non-essential government services could pause, federal employees might be furloughed (sent on unpaid leave), and things like national parks, museums, and immigration courts might temporarily close their doors.

Monday - Fed Governor Cook Speaks

Tuesday - US Consumer Price Index, Fed Vice Chair Jefferson Speaks

Wednesday - New York Fed President John Williams Speaks

Thursday - Initial Jobless Claims (wk end Nov 10th), Philadelphia Fed Manufacturing Survey, Fed Governor Waller Speaks

Friday - No Major Economic News

💳 Do you know which credit card is right for you?

🎥 Hollywood actors union close out strike with new deals

📈 Understanding the power of compound interest

💸 Moody’s switches tone on US credit rating outlook

WHAT: Moody’s, the ratings aficionado, just hinted at a possible US ratings downgrade, citing America’s budget gaps and political bickering as cause for concerns. The ratings assessor lowered the outlook to negative from stable while affirming the nations Aaa rating.

WHY: Moody’s is the only of the three main credit companies with a top rating on the US after Fitch Ratings downgraded the US government in August following the latest debt ceiling battle. S&P Global Ratings stripped the US of its top score in 2011 amid that year’s debt limit crisis.

💰 Americans continue to dip into their savings

WHAT: It looks like 401K retirement accounts are getting more workout reps than the gym lately! According to a survey from Bank of America, the number of participants taking “hardship withdrawals” from their 401K was up 13% in the third quarter versus the second quarter.

WHY: There are many tax implications for making withdrawals from retirement accounts. A withdrawal from a 401K account is typically taxed as ordinary income.

🚫 US Treasury Secretary warns Chinese firms of consequences for Russia support

WHAT: US Treasury Secretary Janet Yellen just did some financial detective work, hinting that Chinese companies might be moonlighting as equipment suppliers to Russia’s war efforts in Ukraine despite Western sanctions. Yellen, in conversations with Chinese officials said she “stressed that companies must not provide material support to Russia's defense industrial sector and that they will face significant consequences if they do".

WHY: Yellen added that the Chinese firms in question were private and said she was not suggesting that this was occurring with knowledge from the Chinese government.

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