By Robert B. Talisse
Summary via publisher (Oxford U. Press)
We find ourselves in a time marked by intense political division. As beliefs shift towards the extremes on both the left and right, our social circles reflect this divide; interactions with opposing viewpoints are increasingly rare. This polarization is further exacerbated by companies appealing to our entrenched beliefs—whether it’s our choice between Starbucks and Dunkin’ Donuts, Costco or Sam’s Club, soccer or football, or the New York Times versus the Wall Street Journal. Such choices reinforce our commitment to our particular political communities, deepening our divisions. This pervasive influence of political identity in daily choices indicates that we might be overextending democracy, resulting in further separation rather than unity.
In mid-September, I questioned whether the nascent recovery in value stocks was a fleeting moment or the beginning of a more sustained trend. A month later, this historically challenged segment of the market continues to exhibit promising signs of a revival, based on the analysis of several exchange-traded funds. While the recovery remains fragile, it currently appears that the value factor may have a favorable momentum.
White House pressure on Ukraine extended beyond military aid suspension: WaPo
Pentagon is considering deploying tanks to Syria to safeguard oil fields: CNN
Turkey insists that the US extradite the Syrian Kurdish leader: Reuters
German business outlook improved in October after hitting a decade low: BBG
Fed is likely to reduce interest rates next week: BBG
US Composite PMI slightly improved in October, yet still indicates slow growth: IHS Markit
KC Fed Manufacturing Index: Activities continued to decline in October: KC Fed
New home sales in the US decreased in September but remain near post-recession highs: MW
Jobless claims fell last week, reflecting tight labor market conditions in the US: CNBC
Business investment (core capital-goods orders) in the US continued its downward trend in September: MW
This year, the competition among sectors in the US equity market is fierce, particularly between real estate investment trusts (REITs) and technology stocks. Both sectors have shown remarkable year-to-date gains, significantly outperforming other segments of the market based on analysis from various exchange-traded funds as of October 23.
Trump has lifted sanctions on Turkey: BBC
House Financial Services Committee Chair considers the potential breakup of Facebook: CNBC
Declining demand for automobiles poses challenges for the global economy: WSJ
Recent survey indicates that the latest truce in the US-China trade war has not alleviated recession risks: Reuters
Eurozone policy is at a crossroads as ECB President Draghi’s term nears its end: MW
Germany’s economy continues to contract in October according to PMI survey data: IHS Markit
Economic activity in the Eurozone remains stagnant in October: IHS Markit
Japan has slipped into recession as indicated by PMI data in October: IHS Markit
US banks’ commercial lending growth rate fell to a 12-month low in September:
It has become increasingly evident that the US manufacturing sector has faced challenges, contributing to a wider deceleration in economic output this year. However, recent October data suggests a potential stabilization in manufacturing’s downward trajectory.
The top US envoy to Ukraine testified that Trump linked aid to the Biden investigation: Politico
Johnson’s Brexit proposals are currently in “limbo” following a parliamentary vote: BBC
China is reportedly planning to replace Hong Kong’s leader by March: CNBC
Unlike other major central banks, China is avoiding rate cuts: CNBC
The latest Fed survey of manufacturing in October suggests the sector is stabilizing: RichFed
US home sales fell in September to their slowest pace in three months: Bloomberg
A central question is increasingly shaping discussions about the US business cycle: How slow can the economy go before slipping into recession? While the answer remains elusive, the latest indicators point to a continued deceleration in growth, suggesting that the narrow margin between expansion and contraction may be tested in the near future.
Increasing business challenges are impacting low-rated US corporations: WSJ
UK’s Johnson faces obstacles as he pushes for finalizing Brexit by October 31: BBC
Results from the elections indicate that Canada’s Justin Trudeau will remain Prime Minister for a second term: CNN
JP Morgan’s Dimon warns that negative interest rates have unforeseen consequences: CNBC
McKinsey & Company predicts more than half of banks may not survive the next financial crisis: BBG
Unexpectedly, civil unrest has shaken investor confidence in Chile: Reuters
Eurozone banks loosened lending standards in Q3: Reuters
The 10-year to 2-year Treasury yield curve has risen to +18 basis points, marking a three-month high:
After a prolonged period of stagnation, corporate fixed income in international markets surged last week, reflecting the strongest performance among the major asset classes, as indicated by various exchange-traded funds.
