U.S. Economy Growth in Q4 2023, Religiously Unaffiliated People rise
Fourth largest stock market
The United States economy outperformed expectations, growing at an annualized rate of 3.3% in the fourth quarter of 2023, according to the Commerce Department. This exceeded Wall Street's anticipated 2% gain and demonstrated a rebound from the previous quarter's 4.9% growth.
The robust performance in Q4 contributed to an overall annual growth rate of 2.5% for the entire year, surpassing the 1.9% increase recorded in 2022.
Consumer spending, which constitutes a significant portion of the U.S. economy, played a pivotal role in the expansion, increasing by 2.8% in the fourth quarter.
Government outlays and business investment played significant roles, with state and local government spending rising by 3.7%, and business spending accelerating to a 1.9% rate.
Current-dollar GDP increased by 6.3 percent, reaching $27.36 trillion in 2023.
Core prices for personal consumption expenditures rose by 2%, while the headline rate was 1.7%. On an annual basis, the Personal Consumption Expenditures price index increased by 2.7%, a decrease from the 5.9% reported a year ago.
Tesla Q4
Tesla reported Q4 2023 earnings, including a 3% revenue growth, reaching $25.2 billion, and adjusted EPS of 71 cents (missing the expected 74 cents).
Auto revenue increased only 1% from the previous year. In 2023, Tesla delivered 484,507 vehicles, surpassing expectations.
Tesla's overall automotive revenue for the full year 2023 reached $82.42 billion, a 15% increase from 2022. The energy division (selling solar energy generation and energy storage systems) experienced a 54% increase in revenue to $6.04 billion. The "Services and Other" revenue rose by 37% from the previous year to $8.32 billion.
Tesla warned of potentially lower vehicle volume growth in 2024, which resulted in the company's stock falling about 6% in extended trading.
Tesla's next-generation vehicle production is expected to start in the second half of 2025. Tesla also confirmed the release of a new version of its premium driver assistance software, marketed as Full Self Driving Beta.
Religiously Unaffiliated People
In a recent study by Pew Research, it was revealed that the religiously unaffiliated, often referred to as the "Nones," have become the largest single group in the United States, constituting 28% of the adult population surpassing both Catholics (23%) and evangelical Protestants (24%) in religious affiliation.
Among "nones," 17% identify as atheists, 20% as agnostic, and the majority—63%—describe their religious affiliation as "nothing in particular."
This marks an increase from 2007 when Nones made up just 16% of Americans.
Comprising atheists, agnostics, and those who identify as "nothing in particular," this diverse group exhibits a range of beliefs. Most Nones profess a belief in God or a higher power, yet very few attend religious services regularly.
Demographically, Nones skew younger, with 69% under the age of fifty, and less racially diverse, with 63% being white.
Investments
Meta, parent company of Facebook, Instagram, and WhatsApp, is set to invest $800 million in establishing its 22nd global data center, the 18th in the U.S. at Jeffersonville, Indiana, targeting completion by 2026. The 700,000-square-foot facility, supported by 100% renewable energy, is expected to create 100 jobs and achieve LEED Gold certification. Indiana Economic Development Corp has offered Meta a 35-year data center sales tax exemption on its $800 million investment. Meta's market cap has recently surpassed $1 trillion first time since 2021.
Amazon Web Services (AWS) plans a $10 billion investment in Mississippi, marking the largest capital injection in the state's history. This major initiative will establish two data center complexes, expected to generate at least 1,000 jobs.
AST SpaceMobile, a Starlink competitor, has secured a $155 million investment from AT&T, Google, and Vodafone, enabling AST SpaceMobile's mission to provide 5G broadband service from space to billions of people worldwide, with plans for commercial rollout.
FAA Freezes 737 MAX Production
Boeing faces disruptions in its 2024 plans as the Federal Aviation Administration (FAA) intervenes, freezing production increases for 737 MAX jets due to safety concerns until quality control issues are resolved.
The FAA's heightened scrutiny comes after a cabin panel tore off the Alaska Airlines jet mid-flight, leading to concerns about Boeing's manufacturing and quality-control processes.
This decision may delay plane deliveries, affecting Alaska Air Group, Southwest Airlines, and United Airlines, prompting them to adjust their 2024 plans.
Things to know:
India's stock market has surpassed Hong Kong to become the world's fourth-largest stock market. The total value of shares on Indian exchanges reached $4.33 trillion, exceeding Hong Kong's $4.29 trillion, according to Bloomberg data.
Foreign investors have shown confidence in India, with over $21 billion poured into Indian stocks in 2023. The S&P BSE Sensex, a benchmark index tracking Indian stocks, marked an eighth consecutive year of gains.
Bernard Arnault, the head of the luxury goods empire LVMH, has nominated two more of his children to join the company's board. The proposed appointments of Alexandre Arnault, 31, and Frederic Arnault, 29, will establish four out of Mr. Arnault's five children as key decision-makers within the company.
Delphine, 48, and Antoine, 46, already hold pivotal roles on the board, while Jean, 25, serves as Louis Vuitton's watch director.
The announcement coincided with the release of LVMH's 2023 financial results, LVMH reported a 9% increase in sales, reaching €86.2 billion ($94 billion), with a net profit of €15.2 billion.
IRS is set to introduce a free online tax filing system, known as Direct File. This initiative aims to eliminate the need for third-party intermediaries, allowing taxpayers to file directly with the agency
The Direct File system, initially characterized as a limited pilot program, is expected to launch to the public in March in 12 states including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Eligibility for Direct File is limited to individuals with form W2 income, covering standard wages, unemployment compensation, Social Security benefits, and interest of $1,500 or less.
The program currently supports standard income types and does not include support for returns on stock or other investments.
Saudi Arabia has opened its first liquor store in 70 years. The store, located in Riyadh's Diplomatic Quarter, will serve only non-Muslim diplomats. The liquor store opening is part of Prince Mohammed bin Salman's Vision 2030 initiative which aims to to transform Saudi Arabia into a global tourism and business destination. In 2017, King Salman recognized and granted women the right to drive. In 2018, the kingdom lifted a 35-year ban on cinemas.
Apple has adjusted its App Store guidelines, allowing for more flexibility in providing access to mini-apps and games within other apps. This change opens doors for services like Microsoft's Xbox Game Pass to release an iOS app supporting Xbox Cloud Gaming, enabling users to stream multiple games directly from the app.
Previously, such streaming was restricted to web browsers on Apple devices. Apple highlights that this modification also benefits in-app chatbots and plug-ins beyond gaming, addressing concerns raised by app developers.
Companies can now utilize Apple's In-App Purchase system within these mini-games and apps, enhancing the overall user experience.