* North Korea reportedly fires ballistic missile into the sea
* Protests in Kazakhstan intensify: government declares state of emergency
* Stock market ignores rising bond yields, for now
* Global manufacturing expansion continued at end of 2021
* Can US regain some of mfg output lost to foreigners? Companies aim to try
* Toyota tops GM for US car sales–first time foreign firm leads
* US home prices set to continue surging in 2022, Zillow predicts
* Job openings in US fell in Nov, but remained near record high
* Small-company wages up 4%-plus in December, a record high estimates Paychex
* US mfg activity slowed in Dec to 11-month low via ISM Mfg Index:

The expected risk premium for the Global Market Index (GMI) continued to hold at the 6.0%-plus level in December. Today’s 6.1% estimate (fractionally above the previous month’s forecast) marks the third straight month at 6.0% or higher.

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* US sets new daily record of 1 million-plus Covid-19 cases
* Severe cases and hospitalizations due to Covid-19 have yet to soar
* Passive ETFs pay a high price for predictable rebalancing techniques
* China’s factory activity grew at fastest pace in 6 months in December
* Supply shortages kept US manufacturing constrained in December
* UK manufacturing expansion continued at 2021’s close
* US construction spending rose for ninth straighth month in November:

US real estate shares were the big winner for the major asset classes in December and for 2021 overall, based on a set of ETFs. Although several corners of risk assets rallied last month and for the year, real estate investment trusts (REITs) left the competition in the dust.

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* Biden reaffirms ‘decisive’ support to Ukraine if Russia invades
* Hospitalization rate is the main stress test for Omicron, says Fauci
* Economists expect US employment to strengthen despite Covid-19 surge
* ‘Inflation’ is most frequently cited term in Wall Street firms’ 2022 outlooks
* Trading suspended in Hong Kong for troubled property developer Evergrande
* At least 20 US states set to raise minimum wage rate
* China manufacturing sector continued expanding in December via survey data
* BlackRock and Vanguard are cautious on US Treasury market outlook for 2022
* US 10yr Treasury yield starts 2022 at middling rate relative to 2021’s range:

Here’s the follow-up to Best of Books 2021: Part I, which recaps some of the highlights that appeared on these pages during the year that expires at the stroke of midnight. Whatever you think of 2021, the calendar year that’s about to pass into history certainly dispatched several captivating reads that are worthy of your time. Here’s five:

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The future’s always uncertain and that’s not going to change when attempting to weigh the risks and opportunities for the year ahead. But this much is obvious: inflation will be front and center in 2022 as a catalyst for surprises.

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* US coronavirus deaths have been ‘comparitively low’. Will that last?
* Airlines across US continue to cancel flights due to staffing shortages
* Forecasting is always challenging. Covid-19 and inflation is making it worse
* Biden and Putin to speak on phone today amid Ukraine tensions
* US oil output set to rise further in 2022, predicts industry expert Dan Yergin
* Pending home sales in US were unexpectedly weak in November
* US trade deficit in goods fell to a new record in November:

The US stock market is on track to end the year with a red-hot gain and a lot of the credit goes to sizzling performances in energy and real estate shares.

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