Spain set to impose direct rule on Catalonia on Friday: Reuters
US Defense Secretary in S. Korea emphasizes diplomacy: ABC News
House approves budget and clears the way for tax reform: NY Times
ECB announces it will slowly begin winding down QE stimulus: RTT
Pending Homes Sales Index for US close to 3-year low in September: CNBC
US jobless claims rise after dipping to four-decade low: MarketWatch
US merchandise trade deficit in August at four-month high: Bloomberg
10-year Treasury yield rises to 2.46% on Thursday — highest since March:

Value investing may not be a victim of the grim reaper, but the strategy’s certainly giving a convincing impression of a cadaver.
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European Central Bank expected to trim bond-buying stimulus: Reuters
House speaker Ryan says tax reform now faces its biggest challenges: The Hill
US new home sales surge, reaching the highest level in 10 years: Reuters
Sep. orders for US durable goods rise the most in three months: USA Today
Is the latest rise in Treasury yields just more noise? Alhambra Investments
Singapore central bank chief: global investors underrate risk: Bloomberg
How did Australia avoid a recession for the last 25 years? News.com.au
Economic costs of climate change will rise for US in decades ahead: GAO

The Treasury market continues to price in firmer odds of another rate hike by the end of the year. Notably, the policy sensitive 2-year yield edged up to 1.60% yesterday (Oct. 24) for the first time since 2008, signaling that a hawkish bias continues to dominate fixed-income trading.
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China’s President Xi lays groundwork for long rule: BBC
Despite Brexit, UK GDP growth picks up in Q3 to 0.4%: Sky News
US Composite Output Index rises to 9-month high in Oct: IHS Markit
Richmond Fed Mfg Index dips in Oct but still solidly positive: Richmond Fed
Rising earnings for key companies support market’s bullish trend: Bloomberg
Trump asks Senate Republicans for views on picking a new Fed chair: Reuters
US economic confidence improves after 2017’s first negative print: Gallup
US 10-year Treasury yield edges up to five-month high: MarketWatch

US economic activity has slowed recently, but the downshift still leaves the economic trend humming at a respectable pace, based on a broad set of indicators published to date.
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Japan tells S. Korea: N. Korea threat is “critical, imminent”: Reuters
Chicago Fed Nat’l Activity Index bounces back in Sep: MarketWatch
Business economists expect firmer growth in fourth quarter: CNBC
Will new tax cuts hurt the US economy? CNBC
Eurozone PMI: new jobs increase at fastest pace in over a decade: IHS Markit
US gov’t fiscal budget deficit is deepest in 4 years for FY2017: Haver Analytics
Betting on a flatter yield curve is the new new thing: Bloomberg

Losses dominated the major asset classes last week, based on a set of exchange-traded products. But three corners of the global markets bucked the trend with gains: US stocks, junk bonds in the US, and high-yield bonds in foreign markets.
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Catalonia crisis deepens after Madrid decides to take control: BBC
Italy’s Lombardy and Veneto regions vote for autonomy: Bloomberg
Japan’s Abe wins majority in parliamentary election: Nikkei
Trump outlines plan for “biggest tax cuts ever” in TV interview: Fox
US existing home sales rebound in September: Reuters
Yellen: Fed making “good progress” reducing its bond portfolio: NY Times
Is the oil market underestimating China’s demand?: Bloomberg
Bitcoin market cap tops $128 billion: Sydney Morning Herald
US 10-year Treasury yield rises to a 3-month-plus high:

The Oct. 22 edition of The US Business Cycle Risk Report has been published and emailed to subscribers.