* The Senate has passed a bill to increase the debt limit and prevent a US government shutdown.
* US consumer inflation is projected to reach a 39-year high in today’s November update.
* Online inflation has reached a record high of 3.5% year-over-year, according to Adobe’s report.
* Efforts for a ceasefire between Ukraine and Russia have stalled in Eastern Ukraine.
* Germany’s foreign minister has issued a warning to Russia regarding its aggressive actions towards Ukraine.
* Insiders have been selling stock at unprecedented levels amid rising share valuations.
* China’s currency is surpassing the US dollar this year.
* In a positive sign for the labor market, US jobless claims have dropped to a 52-year low.
As the year draws to a close, the US economy is displaying indications of significant growth in the fourth quarter, as suggested by various nowcasts.
* US jobless claims seem to be stabilizing at pre-pandemic levels.
* Another hot inflation report is expected in tomorrow’s November update.
* A policy shift during next week’s Fed meeting could impact the central bank’s credibility negatively.
* Challenges related to US exports are increasing due to bottlenecks at American ports.
* Inflation in China continued to rise in November, although signs of peaking are emerging.
* The Chinese property developer Evergrande has defaulted on its debt, as reported by Fitch Ratings.
* A warning report suggests that the world is unprepared for another pandemic, potentially indicating serious risks.
* Italy has imposed a fine of $1.3 billion on Amazon for allegedly exploiting its market dominance.
* In an unexpected turn, US job openings increased in October, surprising forecasters.
Yes, economists anticipate that consumer prices will be detailed in this Friday’s November update (December 10).
* President Biden states that the US is preparing to impose ‘strong measures’ on Russia if it invades Ukraine.
* The House has taken initial steps to avert a potential US debt default.
* A study reveals that the Omicron variant partially evades the protection of the Pfizer vaccine according to findings.
* Inflation is a primary concern among American voters, as indicated by a recent poll.
* Concerns regarding debt-default continue to rise for two major property companies in China.
* Visa has launched a consulting service focused on cryptocurrencies.
* Olaf Scholz has been elected as the new chancellor of Germany.
* Experts debate whether the flattening yield curve suggests the Fed should not raise rates at this time.
* Post-COVID spending on goods has surged significantly.
How well is your bond allocation performing this year? If you opted for Treasury Inflation-Protected Securities (TIPS), you’re likely pleased with the results.
* President Biden is expected to issue a stark warning to Russia’s President Putin regarding an impending invasion of Ukraine.
* China has indicated that the US will ‘pay a price’ for its diplomatic boycott of the Olympics in Beijing.
* Federal Reserve officials have signaled that the termination of the bond-buying program may occur earlier than anticipated.
* A new data regulation in China could complicate foreign assessments of its economy.
* Consumer spending has been identified as the largest driver of Eurozone growth in Q3.
* Will diminished ‘excess’ cash reserves for the working class affect consumer spending?
* The policy-sensitive 2-year US Treasury yield has increased to a new pandemic high:
This week, US junk bonds and certain segments of foreign fixed-income markets exhibited mixed returns across major asset classes, as evaluated through a set of ETFs up to Friday’s close (December 3).
* Goldman Sachs has lowered its forecast for US GDP growth in 2022 due to the impact of Omicron.
* US health experts indicate that early signs suggest Omicron may be less threatening than the delta variant.
* The global economic influence of China is diminishing recently.
* China’s central bank has reduced the reserve requirement for banks to enhance liquidity.
* The Evergrande Group in China is again on the verge of default; its shares have plummeted.
* German industrial orders sharply declined in October due to weak foreign demand.
* US payroll growth in November was less than anticipated.
* The Services PMI hit a record high in the US, suggesting strong sector activity.
* The spread between the 10-year and 2-year US Treasury yields has shrunk to its narrowest gap in over a year:
Ray Dalio
Review via Forbes
Ray Dalio asserts that America’s internal challenges and decline as a global superpower transcend mere debate. He argues that the combination of rising US debt and wealth inequality, paired with a decrease in America’s global influence, places the nation at risk for not only economic strife but potential conflict. He highlights the consequences of soaring debt levels and near-zero interest rates, which have led to unprecedented money printing (estimated at $16 trillion of debt with negative interest rates this year), heightened polarization, and the rise of China as a formidable competitor to US dominance.
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