Buttigieg narrowly wins Iowa caucuses, state party reports: Reuters
Chinese President Xi’s gov’t under pressure after death of hero doctor: BBG
White House announces death of leader of terrorist group in Yemen: CNN
Trump ‘apoplectic’ over UK’s decision on China’s Huawei 5G technology: CNBC
Earnings are beating expectations, but shareholders’ reaction is muted: WSJ
US small-business optimism eased but remained strong in early Jan: Gallup
German industrial output fell sharply in Dec, raising recession worries: Reuters
US job cuts surged in January: CG&C
Jobless claims for US fell, near 50yr low, signaling tight labor mkt: MW

The US stock market (S&P 500) rallied to a record high on Wednesday (Feb. 5), which unleashed fresh warnings from some corners of elevated bubble risk. Perhaps, but whenever you hear someone claim with authority that there’s a bubble, and it’s about to burst, ask the oracle what model he’s using.

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Senate acquits Trump of impeachment charges: Politico
Coronavirus infections and death toll continue rising–no signs of slowing: CNN
China announces plans to halve tariffs on US goods: CNBC
US trade deficit shrank in 2019, partly due to rising oil production: NY Times
German factory orders fell at steepest annual pace in 10 years in Nov: Bloomberg
Global economic output in Jan grew at fastest pace since March 2019: IHS Markit
Services PMI for US rose to 10-month high in January: IHS Markit
US services sector growth continued to pick up in January: ISM
US private payrolls rose 291,000 in January–best gain in 5 years: ADP

US equity sector performance in 2020 is a study in contrasts. At the high end of year-to-date results: technology shares. Meanwhile, energy continues to suffer as the big loser, based on a set of ETF proxies.

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Buttigieg maintains slim lead in partial, delayed Iowa caucus results: CNN
Coronavirus could delay, not derail, US-China trade deal: WSJ
Trump highlights economic growth in State of the Union speech: WSJ
Senate expected to acquit Trump in impeachment trial today: Reuters
Will coronavirus ‘wildcard’ cause central banks to react? Bloomberg
Eurozone Composite PMI ticks up, suggesting economy is stabilizing: IHS Markit
China Services PMI continues to reflect slow growth in January: MW
UK Services PMI rose sharply in Jan–first growth reading in 5 months: IHS Markit
US factory orders rose sharply in December, but 1-year trend remains negative:

The expected risk premium for the Global Market Index was steady in January after edging higher in recent months. Today’s revised estimate leaves GMI’s long-term ex ante return at an annualized 5.0% (before factoring in a “risk-free” rate).
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Chaos in Iowa as Dems’ voting results delayed over technical issues: CBS
China prepares new support for economy hurt by coronavirus outbreak: Reuters
Turkey launches airstrike against gov’t forces in Syria: NY Times
Wall St worries about Sanders winning the White House: CNN
Chinese virus threatens to cut supply chain for US companies: WaPo
Global Mfg PMI rises to 9-mo high in Jan, reflecting modest growth: IHS Markit
Atlanta Fed’s GDPNow modestly raises Q1 growth nowcast to 2.9%: AF
Construction spending in US fell in Dec for first time since June: Reuters
US Mfg PMI slipped in Jan but still shows modest growth: IHS Markit
US ISM Mfg Index in Jan rebounded to growth after 5 months of contraction:

Stocks, crude oil and high-yield bonds were clobbered in January as investors ramped up demand for investment-grade bonds and gold. Driving the risk-off sentiment in the latter half of last month: rising concern that the coronavirus that’s spreading in China and beyond will take a bit out of the global economy.
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Isolating China over virus outbreak will strain global economy: WSJ
China’s stock market plunges on Monday following extended holiday: CNBC
China’s central bank rolls out new monetary stimulus to offset virus risk: BBG
Post-Brexit Britain will not align with EU rules, says UK foreign sec: BBC
China complains that US is spreading fear about coronavirus: Reuters
UK mfg sector activity flat in Jan as political stability returns: IHS Markit
Mfg sector in Eurozone continued to contract in Jan via PMI data: IHS Markit
Eurozone growth slowed in Q4, slumping to softest quarter since 2013: BBG
US Consumer Sentiment Index edges up to “very positive” level in Jan: UoM
US consumer spending’s 1yr trend accelerated sharply to +5.0% in Dec:

● Arguing with Zombies: Economics, Politics, and the Fight for a Better Future
By Paul Krugman
Interview with author via Marketplace.org
The zombies that haunt Paul Krugman aren’t undead people, but ideas — false ideas about how the economy works that just won’t die, despite evidence proving them wrong. According to the New York Times opinion columnist and Nobel laureate in economics, they won’t die because politicians won’t let them. “The ultimate zombie, the one that you see most often, is that tax cuts pay for themselves,” Krugman told “Marketplace Morning Report” host David Brancaccio. This is the premise of Krugman’s new book, “Arguing With Zombies: Economics, Politics, and the Fight for a Better Future.”
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