Macro Briefing: 6 December 2022

* Ukraine drones extend attacks into Russia
* Global economic activity deepened during November, PMI survey data reports
* US factory orders rise more than forecast in October
* Global manufacturing operations shifting away from China
* Oil prices rise as new cap starts on the price of Russian crude
* Renewables will be biggest source of electricity generation by 2025, IEA says
* CEO optimism is waning on the outlook for 2023
* US Services PMI: “Business activity contraction gains pace” in November, but…
* ISM US Services Index reports stronger growth in November:

US Composite PMI, a GDP proxy, fell deeper into contractionary terrain in November, according to US Composite PMI, a GDP proxy. The slide signals “a solid decline in private sector business activity” for the world’s largest economy, reports S&P Global. “The fall in output was driven by a faster decrease in service sector activity and a renewed downturn in manufacturing production.”

Divergence between oil prices and big-energy shares sparks debate about energy sector’s outlook. “This pace of gains for a sector can’t last forever, especially when one of the key commodities driving its profits has been declining,” writes Paul Hickey, co-founder of Bespoke, in a note for clients.