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Good morning. US stock futures moved higher in Monday morning trading as investors prepared for the start of a busy week for corporate earnings.

📉 US CEOs brace for a recession

📝 Our report: Looks like US CEOs are putting on their economic rain coats and preparing for a potential recession. According to the latest Conference Board survey, 72% of CEOs are expecting a recession to hit over the next 12-18 months.

 🔑 Key points:

• Heightened geopolitical risks, along with unabating inflation pressures, surging bond yields, and the Federal Reserve’s “higher for longer” vision, has business leaders bracing for a contraction.

• Big bank CEOs have been the most vocal about the potential economic risks that may unfold in 2024.

• A key factor involved in the likelihood of a recession will be the health of US consumers.

💡 So what: Predicting a recession is still anyone’s guess! Part of the reason making such predictions is problematic is due to the fact consumers have shown incredible resilience in spite of historically high levels of inflation and job losses — consumer spending accounts for nearly 70% of US GDP. Avoiding a recession would be optimal as it would preserve economic growth and keep workers employed.

Monday - Philadelphia Fed President Harker Speaks

Tuesday - US Retail Sales, Fed Gov. Bowman Speaks

Wednesday - Fed Beige Book, New York Fed President John Williams Speaks

Thursday - Fed Chairman Jerome Powell Speaks, Initial Jobless Claims (wk end Oct 13)

Friday - No Major Economic News

🎞️ Taylor Swift takes over the box office

📹 TikTok takes action over war videos

🤖 Will AI displace blue collar workers?

💸 ECB President: Eurozone inflation still too high

WHAT: Christine Lagarde, President of the European Central Bank isn’t pleased with where inflation in the Eurozone currently stands! In fact, she still thinks it’s way too hot. “Core inflation remains at elevated levels reflecting the fact that the fading impact of the past surge in input costs is being counterbalanced by rising labor costs” Lagarde said as she delivered remarks at the IMF’s annual meetings in Morocco.

WHY: Lagarde said she still expects inflation to slow to the ECB’s 2% target in 2025, but cautioned that it was too early to tell if the ECB’s rate increases had accomplished the goal of arresting inflation in the near term.

🏎️ Crypto for cars?

WHAT: Ferrari has decided to join the crypto joyride, accepting digital coins as payment for their sleek, speed machines in the US. Ferrari said the decision came in response to requests from the market and dealers, as many of its clients have invested in crypto.

WHY: The Italian company, which sold 13,200 cars in 2022, plans to expand the crypto scheme to Europe by the first quarter of next year and then to other regions where crypto is legally accepted.

💵 X fined over abuse gaps

WHAT: Elon Musk’s social media platform X just got hit with a fine Down Under! The e-Safety Commission of Australia fined X A$610,500 ($386,000), for failing to cooperate with a probe into anti-child abuse practices.

WHY: Most recently, the European Union said it was investigating X for potential violations of its new tech rules after the platform was accused of failing to rein in disinformation regarding the Israeli-Palestinian conflict.

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See ya next time, Daily Market Briefs