* North and South Korea engage in missile launches aimed at each other’s coasts
* Brazil’s Bolsonaro breaks silence, allows transfer of power to proceed
* Netanyahu poised for comeback as Israel prime minister, exit polls show
* Eurozone factory downturn accelerates amid record inflation
* Fed expected to announce another 75-basis-points rate hike today
* China orders Covid lockdown around iPhone factory in Zhengzhou
* US job openings rebound in September despite Fed efforts to cool labor market
* Construction spending in US rebounds in September, surprising analysts
* US manufacturing activity is virtually stagnant in October via ISM Mfg Index:

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Most markets around the world rebounded in October, reversing some of the losses that have dominated the major asset classes for much of the year to date, based on a set of proxy ETFs.

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* Brazil President Bolsonaro remains silent after election loss
* Delta Air Lines pilots vote to authorize a strike
* The worst is yet to come for housing market, says homebuilders
* China manufacturing activity contracts for third month in October
* China workers flee Foxconn’s giant iPhone plant amid Covid outbreak
* US Circuit Court blocks sale of Simon & Schuster to Penguin Random House
* Texas manufacturing output grows but new orders slide and outlook worsens
* Chicago manufacturing PMI weakens further in October
* US 10-year Treasury yield near 14-year high ahead of Wednesday’s Fed decision:

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For a second week in a row, the major asset classes rallied, with a notable exception: stocks in emerging markets. Otherwise, risk assets continued to recover in the trading week through Friday, Oct. 28, based on a set of ETFs.

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* Lula reclaims Brazil’s presidency and beats Bolsonaro in narrow victory
* Eurozone inflation reaches new record high as economy slows in Q3
* Russia suspends grain deal that allowed Ukraine exports
* Goldman Sachs expects Fed rate hikes will peak at 5% in March
* China manufacturing and services sectors contract in October
* No end in sight for China zero-Covid policy
* Germany’s economic link to China in focus as chancellor heads to Beijing
* US consumer spending rose in September despite inflation’s bite
* Pending home sales in US fell fell further than expected in September:

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● Overreach: How China Derailed Its Peaceful Rise
Susan L. Shirk
Quote from author via Time.com
“In the past, everyone took for granted that the Chinese leadership is going to make the adjustments it needs to make to keep its economy humming,” says Susan Shirk, a Deputy Assistant Secretary of State for East Asian and Pacific Affairs under Bill Clinton, and author of Overreach: How China Derailed Its Peaceful Rise. “But now they’re overreaching and harming their own economic development.”

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Can the Federal Reserve tame inflation with more rate hikes without pushing the US into recession? It’s the critical macro question these days and everyone has an opinion, including a former vice-chairman of the Federal Reserve Board, Alan Blinder, who says threading this policy needle is possible.

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* European Central Bank hikes interest rates by 75 basis points
* German economy grows slightly in Q3, defies forecasts of recession
* Fossil-fuel demand may peak in a few years, IEA advises
* Elon Musk takes control of Twitter and fires top executives
* Amazon shares tumble on weak Q4 earnings outlook
* Durable goods orders in US rose in September but momentum is fading
* US jobless claims edged up last week but remain near historically low levels
* US economy recovers in Q3, posting solid 2.6% increase after first-half decline:

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Last year’s spike in Covid-19 cases, deaths and hospitalizations has faded from the public’s focus, and for an obvious reason. The numbers have fallen and worries about other issues – inflation, the economy, energy supplies, next week’s elections, to name a few – are now front and center. But with the winter approaching, is a rebound in pandemic troubles lurking?

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* US mortgage interest rates rise to 7.16%, highest since 2001
* Ukraine war will accelerate shift to cleaner energy sources, IEA forecasts
* Oil giant Shell set to hike dividend after quarterly profit surges
* Europe now has glut of natural gas, sending prices lower
* American middle class facing biggest decline to its wealth in a generation
* New US home sales fell 11% in September after sharp rise in mortgage rates
* US broad money supply continues to slide in real terms in September:

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