* High-mutation Covid-19 variant discovered in South Africa
* New Covid-variant fears take a bite out of global markets on Friday
* Flights from Europe, Asia to southern Africa suspended amid new Covid variant
* Money markets reverse rate-hike bets amid new coronavirus fears
* Beijing presses ride-sharing giant Didi to delist from US
* Fed prepared to hike rates if inflation stays hot, minutes show
* 10-year US Treasury yield pulls back sharply in early Friday trading:
Let the feasting and revelry begin!
Economic recoveries routinely fuel bull markets in stocks, but almost no one expected this.
* World’s biggest energy-consuming nations coordinate release of oil reserves
* Russian, Ukraine stage military drills amid rising tensions with EU and US
* US invite to Taiwan to attend democracy summit may anger China
* Germany considering a full Covid lockdown and mandatory vaccines
* Surging inflation forcing big investors to reassess portfolio strategies
* Turkey’s increasingly unpredictable policies will keep investors away
* Apple sues Israeli spyware firm to keep it from accessing phones
* Japan’s economy rebounds for second month in November via PMI data
* US economic growth eased in November but remains strong via PMI data:
Jerome Powell emerged victorious in the political war that threatened to derail his re-nomination to lead the Federal Reserve for a second term. Winning the economic war that awaits, however, will likely be a much tougher battle.
* Biden chooses Jerome Powell for second term as Fed chair
* New economic challenges await Powell in his second term as Fed chair
* US expected to announce release of oil from strategic reserve
* Turkish lira crashes as President Erdogan vows more rate cuts as inflation surges
* Eurozone economic growth rebounds in November via PMI survey data
* UK input inflation reaches new record high in November via PMI survey data
* Will higher rate of women attending college vs. men change the economy?
* US existing home sales rose to 9-month high in October
* US economy rebounded sharply in Oct via Chicago Fed Nat’l Activity Index:
US bonds edged higher for the trading week through Friday, Nov. 19, but red ink took a toll on the rest of the major asset classes, based on a set of ETFs.
* Rebounding US Covid-19 cases suggest a holiday surge is coming
* US intel suggests Russia preparing for possible Ukraine invasion
* Protests turn violent in Europe against new Covid-19 restrictions
* Migrant crisis on EU-Belarus border may get worse, warns Poland’s PM
* Japan working on plan to release crude-oil reserves to help tamp down prices
* Supply chain bottlenecks may be easing, but labor shortages could persist
* Inflation appears pandemic-driven v. excessive spending generally
* US 10yr-2yr yield curve near four month low:
Timothy J. Sinclair
Summary via publisher (Cornell U. Press)
To the Brink of Destruction exposes how America’s rating agencies helped generate the global financial crisis of 2007 and beyond, surviving and thriving in the aftermath. Despite widespread scrutiny, rating agencies continued to operate on the same business model and wield extraordinary power, exerting extensive influence over public policy. Timothy J. Sinclair brings the shadowy corners of this story to life by examining congressional testimony, showing how the wheels of accountability turned—and ultimately failed—during the crisis. He asks how and why the agencies risked their lucrative franchise by aligning so closely with a process of financial innovation that came undone during the crisis. What he finds is that key institutions, including the agencies, changed from being judges to being advocates years before the crisis, eliminating a vital safety valve meant to hinder financial excess.
With just over a month to go until we put a fork in 2021, high beta stocks look set to deliver the strongest performance among US equity factors this year, based on a set of ETFs.