The U.S. stock market achieved impressive returns for the week ending November 27, 2020, becoming the top performer among major asset classes, as illustrated by a range of exchange-traded funds. This broad rally rejuvenated almost all sectors of global markets, with the sole exception being U.S. investment-grade bonds.
Trump reportedly plans to add China’s SMIC and CNOOC to the defense blacklist: RTRS
Fauci alerts of a potential ‘surge upon a surge’ in COVID-19 cases: NPR
Biden is expected to unveil his economic team this week: NYT
Biden suffers a foot injury while playing with his dog: AP
Congress faces imminent deadlines on government spending and stimulus: BBG
China’s Manufacturing PMI indicates growth for the ninth consecutive month in November: CNBC
Will Senate Republicans obstruct Biden’s judicial nominations? PLTC
OPEC+ is considering extending oil production cuts: RTRS
German 10-year bond yield dips to a three-week low, approaching -0.6%: RTRS
Financial data consolidation: S&P Global is nearing a deal to acquire IHS Markit: WSJ
This week’s U.S. payroll report for November is on track for another increase: BBG
The U.S. Treasury yield curve continues to indicate a steepening trend:
Frederick Kaufman
Summary via publisher (Other Press)
This compelling book intricately weaves together the many tales surrounding cash, revealing its profound ability to both empower and captivate us. Kaufman explores the complex history of money, from ancient myths to the intricate machinations of modern Wall Street. Through this exploration, he uncovers allegorical narratives, archetypal characters, and conventional metaphors that have been historically associated with money and commerce, including Melanesian trading customs, the ideologies of medieval church members confronting global trade, the principles of Mercantilism, and the 1971 detachment of the U.S. dollar from gold.
The Trade-off between Inflation and Unemployment in an MMT World
Emilio Carnevali (Northumbria University) and Matteo Deleidi (Roma Tre University)
October 2020
This paper examines Modern Monetary Theory (MMT) with a focus on its approach to inflation within an open economy framework. It delves into how MMT articulates the inflation process and presents empirical evidence supporting this perspective. Additionally, it employs a stock-flow consistent model to highlight certain limitations of the theory when applied to a relatively open economy that operates under a flexible exchange rate regime. The findings challenge the assertion of MMT proponents that initiatives like job guarantee programs can achieve full employment without encountering a trade-off between inflation and unemployment.
The Supreme Court has ruled against restrictions on religious gatherings imposed to combat the virus: CNN
Fauci expresses concerns regarding a potential surge in COVID-19 cases during the holidays: USAT
COVID-19 hospitalizations in the U.S. exceed 90,000 for the first time: WSJ
Trump states he will leave if the Electoral College votes for Biden: CNN
Eurozone economic confidence drops sharply in November: BBG
Can Black Friday provide a much-needed boost to struggling retailers? AP
Has the pandemic signaled the end of the Hollywood blockbuster era? BBC
Bitcoin experiences a sharp decline after nearing its all-time high: CNBC
Amazon expands its global workforce to over 1.2 million employees: NYT
Disney announces it will lay off 32,000 workers due to the pandemic’s impact on its theme parks: MW
Jobless claims in the U.S. rise for the second consecutive week, reaching the highest level in five weeks: CNBC
2020 has been a challenging year, yet we always find reasons to be thankful. On my short list of gratitude this year is the resilience of American democracy. Although it has faced significant challenges, these trials serve as potent reminders of what we must protect. As Judge Billings Learned Hand aptly stated, “Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court can save it.”
Before the pandemic struck, U.S. inflation rates were low, and as the nation braces for a difficult winter amidst a resurgence of COVID-19, prospects for increased inflation in the near future remain slim. Nevertheless, as investors, economists, and policymakers begin to navigate life after the pandemic, discussions regarding the potential for heightened inflation are increasingly becoming a focal point for forecasting.
Yellen, the incoming Treasury Secretary, is expected to be a pivotal figure in shaping Biden’s economic policies: NYT
The Biden administration outlines its foreign policy agenda for the upcoming term: CNBC
The Biden administration will take over a labor market that is among the weakest in history: PLTC
The Dow Jones Industrials have reached a record high of 30,000: WSJ
COVID-19 cases are overwhelming hospitals across America’s heartland: RTRS
Expectations for high levels of jobless claims in today’s update: WSJ
The Richmond Fed Manufacturing Index has decreased in November but remains in positive territory: RF
Consumer confidence in the U.S. is declining as COVID-19 cases rise: PLTC
The U.S. home price index sees its one-year growth accelerating to a six-year high: WSJ
In a landscape filled with various risk factors, the traditional quantitative measure of investment risk has significantly diminished in prominence. A brief internet search will reveal extensive criticism aimed at the relevance of beta, particularly when it comes to assessing individual stocks. Critics highlight several inherent flaws in using beta as a risk measure within that context. However, when applied to asset classes for portfolio structuring and management, beta remains a valuable tool.
The key government agency has officially acknowledged Biden’s victory: CNN
Biden selects former Federal Reserve Chair Yellen as the Treasury Secretary: WSJ
The Eurozone falls back into recession as per November survey data: IHSM
Business sentiment in Germany continues to decline, indicating a potential economic downturn in Q4: RTRS
The Chicago Fed President forecasts that interest rates will remain near zero through 2024: RTRS
Bitcoin surpasses $19,000 for the first time since 2017: BBG
The U.S. economy evidenced accelerated growth in October via the Chicago Fed index: CF
The U.S. PMI survey data indicates that the recovery momentum is strengthening in November: IHSM
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