* Senate Republicans block legislation to avoid government shutdown
* Will Dems drop fight on debt limit to avoid government shutdown?
* Treasury and Fed heads set to warn that Delta variant slowing economy
* Europe’s energy crisis is warning for US, says gas trader
* US bank mergers expected to reach highest level since 2008
* Power outages in China create challenges for factories
* US durable-goods orders rose sharply in August
* Brent crude oil (international benchmark) tops $80 a barrel–highest since 2018:

In a week of mostly lower prices for the major asset classes, a broad measure of commodities bucked the trend with a solid gain, based on a set of ETFs for the trading week ended Friday, Sep. 24.

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* House will vote this week on infrastructure bill approved by Senate
* Germany’s center-left party claims narrow win over Merkel’s party
* Is risk rising for a US debt default?
* Nomura’s chief China economist cuts forecast for Chinese GDP growth this year
* China may now be the biggest risk factor for emerging markets
* New US home sales rose for a second straight month in August
* Conditions may now be favorable for rising yields
* US 10-year Treasury rebounds to 1.47%, near three-month high:

● The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance
Eswar S. Prasad
Q&A with author via Bloomberg
Q: Why is there such urgency for central banks to develop digital currencies?
A: The reality is that the end of physical cash is not too far away. We are seeing digital payments in various forms beginning to dominate in economies small and large, developing and advanced. So I think for central banks, if you think about their money being used at the retail level, this is at some level an existential question. Central banks will still be able to conduct their main functions and maybe they can continue doing so without having their money being used for retail payments, but having a CBDC has a variety of advantages.

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The US economy remains on track to post a strong increase in output for the third quarter, but the current estimate reflects an ongoing deceleration from previous nowcasts.

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* House Speaker Pelosi: Congress won’t let government funding expire next week
* Senate may vote on Monday on raising the US debt ceiling
* Treasury Secretary Yellen under pressure as possible debt default approaches
* China flies fighter jets into Taiwan airspace
* China’s central bank says all cryptocurrency-related transactions are illegal
* China Evergrande silent on whether it will make a key interest payment
* US Leading Economic Index continues to indicate strong growth
* US jobless claims rose again last week, increasing more than forecast
* Chicago Fed Nat’l Activity Index: slower but-still above-average growth in August
* US economic growth continued to slow in September via PMI survey data:

Recent updates continue to suggest that the recent surge in US inflation is cresting. The mystery is how long the peaking process will last.

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* FDA authorizes Pfizer booster shots for older and higher-risk Americans
* Pace of new US Covid-19 cases expected to rise in weeks ahead, experts predict
* Federal Reserve expects ‘transitory’ inflation to persist
* Fed chief says taper may start ‘soon,’ perhaps as early as November
* US economy continued to strengthen, but at a slower rate, Fed says
* Eurozone growth eases to 5-month low in September via PMI survey data
* UK economic output rises at softest pace in 7 months via PMI survey data
* Chip shortage will take a heavy bite out of auto company revenues in 2021
* US existing home sales fell more than expected in August:

And now for something completely (or at least partially) different: The ETF Portfolio Strategist herewith rolls out two actively managed strategies that will be periodically updated and discussed on these pages. Why would we do that? So glad you asked.

continue reading at The ETF Portfolio Strategist

In the first installment of kicking the tires on alternatives to the standard 60/40 US stock/bond asset allocation, I reviewed three relatively tame possibilities. The results, based on adding various flavors of foreign equities and fixed income, were less than impressive, albeit in part because US markets have been on a tear in recent years. Let’s take another dive into the possibilities with a more radical approach with a volatility ETF.

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