Recent headlines highlight a range of significant events affecting global markets and economies. Among them are:
- Coronavirus cases continue to surge in China, with increasing fatalities: CBS
- Trump’s unusual involvement in the Roger Stone case surprises many in Washington: Politico
- Trump dismisses concerns over a potential reduction in military agreements with the Philippines: Reuters
- Central banks are adopting a cautious stance as the coronavirus crisis unfolds: WSJ
- The European Commission identifies the coronavirus as a major risk to the Eurozone: BBG
- Oil demand is projected to decline in Q1, marking the first downturn in a decade: CNBC
- A Senate hearing today will focus on Judy Shelton, a controversial nominee for the Federal Reserve: BBG
- The DFA indicates that new bond factors may be irrelevant to fixed-income investing: InstInv
- As investors seek higher yields globally, Greece’s ‘junk’ 10-year bond yield drops below 1%: FT
The U.S. stock market has made an impressive start in 2020, significantly outpacing markets worldwide, based on comparative Exchange-Traded Fund (ETF) performance.
In political news, Bernie Sanders has emerged victorious in the New Hampshire primary: CNN
U.S. officials report that China’s Huawei has the ability to secretly access mobile phone networks: WSJ
Official data hints that the infection rate of the coronavirus in China might be reaching its peak: Reuters
Fed Chairman Powell provided a positive outlook for the U.S. economy during his testimony in Congress: Reuters
Eurozone industrial output dropped by 2.1% in December, marking the most significant decline in four years: BBG
Concerns grow that the coronavirus’s repercussions could push Europe into recession: NY Times
Despite the challenges, small business sentiment remained “solid as ever” in January: NFIB
Job openings in the U.S. reached a two-year low in December: CNBC
Last November, the U.S. stock market took a calculated risk, bolstered by the belief that the economy could navigate through a temporary slowdown. The S&P 500 Index reached new heights, contrasting sharply with the Philadelphia Fed’s ADS Index, which signaled potential recessionary trends. However, the economy rebounded, and the stock market has since achieved even greater success. Just as confidence appeared to return, the ongoing coronavirus outbreak in China raises concerns about its possible impact on the global economy, particularly the U.S.
The coronavirus death toll has now exceeded 1,000: Bloomberg
Ray Dalio questions whether the economic risks stemming from the virus are overstated: CNBC
U.S. authorities have charged four Chinese intelligence officers with large-scale data breaches: Politico
Philippine President Duterte has terminated a troop agreement with the U.S.: Reuters
Fed Chair Powell is expected to deliver a positive economic outlook this week: Reuters
The UK economy showed no growth in Q4, following a strong Q3 performance: Guardian
Projections from the White House regarding a declining U.S. deficit appear uncertain: WSJ
Tech companies are increasingly dominant in the S&P 500: CNN
Goldman Sachs predicts the ongoing strength of tech stocks: MW
The 10-year to 3-month Treasury yield curve has inverted again: Reuters
China, the world’s second-largest economy, continues to bear the human and economic toll of the coronavirus. Despite this, last week’s performance of the U.S. equity market showed remarkable resilience, achieving the strongest gains among major asset classes, based on ETFs.
Trump’s proposed budget includes significant cuts to non-defense spending: Politico
As China resumes operations following the holiday, the coronavirus death toll surpasses 900: Reuters
Tensions rise as Taiwan scrambles jets for the second consecutive day to intercept Chinese aircraft: Reuters
Hubei province, China’s industrial hub, remains locked down for the third week: BBG
Political turbulence in Germany follows a surprising vote win by a far-right candidate: NY Times
Stock market analyst Ed Yardeni questions how long the pandemic’s threat will be ignored by investors: CNBC
Major tech companies dominate so-called ‘sustainable’ investment funds: WSJ
U.S. hiring picked up sharply in January: MW
The 10-year Treasury yield curve is on the verge of inverting again:
By Mara Hvistendahl
Review via NewAmerica.org
The ongoing practice of industrial espionage by Chinese companies remains a central concern within the United States, particularly in light of recent trade tensions. Despite a decade of efforts, the effectiveness of counterintelligence measures has been limited. Drawing from new FBI records and her own investigation in both the U.S. and China, Hvistendahl examines a troubling history of inadequate counterintelligence, often laced with racial bias, and raises critical questions about the influence of corporate interests in cases of trade secrets theft pursued by the government. “The Scientist and the Spy” serves as both an essential examination of these issues and an engaging narrative.
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American private payrolls showed a strong recovery in January, surpassing expectations and alleviating fears of an economic slowdown, according to data released by the Labor Department. Employers added 206,000 jobs, a significant improvement compared to December’s gain of 142,000 in the private sector. Although the year-on-year trend dipped slightly last month, nearing the lowest rate since the end of the recession, the data suggests that the job market remains resilient, allowing for optimism in the near term.
The recent emergence of negative interest rates globally raises concerns about potential deflationary pressures that could impact the world economy. While some optimists argue that these subzero yields are a temporary anomaly, research from the Bank of England suggests a different narrative shaped by historical trends.
