US jobless claims remain high at 712,000 as virus escalates
Paul Wiseman, The Associated Press
The number of Americans applying for unemployment benefits fell as the nation celebrated Thanksgiving last week to a still-high 712,000, the latest sign that the U.S. economy and job market remain under stress from the intensified viral outbreak.
How Bipartisan Stimulus, McConnell Plans Stack Up: Side by Side
Erik Wasson, Bloomberg
The bipartisan $908 billion stimulus proposal increasingly backed by both Democrats and Republicans as a basis for negotiations on a final 2020 Covid-19 relief package differs from a smaller-scale GOP plan in ways going beyond size.
Wall Street’s Biden Fans Greet His Economy Team With Relief
Max Abelson, Bloomberg
Wall Street has spent years wondering how closely the next Democrat to occupy the White House would listen to the industry. As President-elect Joe Biden builds his administration, the reaction across the financial landscape is relief.
Wall Street Poised for Win on Money-Laundering Bill in Lame-Duck
Jesse Hamilton and Robert Schmidt, Bloomberg
Wall Street is on the verge of a long-sought lobbying win to relax anti-money laundering requirements, as Congress moves to wrap up its work for the year.
U.S. expected to report slowest job growth in six months
Lucia Mutikani, Reuters
U.S. employers likely hired the fewest workers in six months in November, hindered by a resurgence in new COVID-19 cases that, together with a lack of more government relief money, threatens to reverse the recovery from the pandemic recession.
In Blue States and Red, Pandemic Upends Public Services and Jobs
Patricia Cohen, The New York Times
The coronavirus pandemic has inflicted an economic battering on state and local governments, shrinking tax receipts by hundreds of billions of dollars. Now devastating budget cuts loom, threatening to cripple public services and pare work forces far beyond the 1.3 million jobs lost in eight months.
Mnuchin says pandemic loan to Trump donor’s company ‘not the spirit and the intent’ of program
Todd C. Frankel, The Washington Post
Wellshire Financial Services received a 3 percent Main Street loan but sells title loans at 350 percent.
Covid Shrinks the Labor Market, Pushing Out Women and Baby Boomers
Gwynn Guilford and Sarah Chaney Cambon, The Wall Street Journal
Since spring lockdowns were lifted, the demand for workers has snapped back faster than many economists expected. Between April and October the unemployment rate fell by more than half, to 6.9%, undoing more than two-thirds of its initial rise.
Activity Picks Up At U.S., Asia Services Businesses, While Europe Contracts
Gwynn Guilford and Paul Hannon, The Wall Street Journal
U.S. services businesses, a key driver of economic growth, gained ground for the sixth straight month in November, adding to signs the recovery is continuing.
November Bankruptcies Hit 14-Year Low With Steep Drop in Personal Filings
Alexander Gladstone, The Wall Street Journal
November bankruptcy filings in the U.S. hit a 14-year low, driven by a decline in individuals filing for protection from creditors as they continue to enjoy the benefits of eviction moratoriums and other government assistance stemming from the coronavirus pandemic.
U.S. Audit Watchdog Could Ramp Up Oversight Under New SEC Leadership
Mark Maurer, The Wall Street Journal
New leadership at the Securities and Exchange Commission is expected to spur increased oversight of public-company audits, according to former regulators and auditors.
Ahead of U.S. Audit Bill, Chinese Companies Are Finding Their Way Home
Joanne Chiu and Frances Yoon, The Wall Street Journal
New legislation that is likely to force some Chinese companies off U.S. exchanges will accelerate a migration under way since last year.
Stocks Gain Ahead of Key Jobs Data; Oil Climbs: Markets Wrap
Robert Brand, Bloomberg
Stocks edged higher on Friday as investors mulled the recent strength in global equities while awaiting key data on the U.S. labor market. Oil extended gains to a nine-month high after an OPEC+ deal.
Citigroup on track for trial over $900 million Revlon mistake
Jonathan Stempel, Reuters
A federal judge on Thursday said Citigroup Inc’s lawsuit to recoup some of the nearly $900 million it mistakenly paid Revlon Inc’s lenders appeared on track for trial next week after receiving assurances he had authority to conduct it.
Stripe to Offer Banking Services in Deal With Goldman Sachs, Citigroup
Peter Rudegeair, The Wall Street Journal
Stripe Inc. is teaming up with banks including Goldman Sachs Group Inc. GS -0.92% and Citigroup Inc. to offer checking accounts and other business-banking services, the startup’s latest attempt to become the internet economy’s financial supermarket.
US banks welcome delay to Libor switch affecting $200tn in assets
Philip Stafford et al., Financial Times
Financial industry has been struggling to make the shift away from the US dollar rate.
TikTok’s biggest star, 16-year-old Charli D’Amelio, is investing in a banking app for teens
Alexis Benveniste, CNN Business
D’Amelio — who earns an estimated $4 million a year from TikTok, according to Forbes — invested in teen banking app Step as part of its Series B funding round, a Step spokesperson told CNN Business.
Private equity firm Thoma Bravo raising blank-check acquisition vehicle: sources
Greg Roumeliotis, Reuters
Private equity investor Thoma Bravo has hired an investment bank to raise funds in an initial public offering for a special purpose acquisition company (SPAC), one of the first technology-focused buyout firms to join Wall Street’s SPAC craze, people familiar with the matter said on Thursday.
Investors seek inflation protection as economic optimism rises
Colby Smith and Eric Platt, Financial Times
Tips funds have enjoyed inflows for nine consecutive weeks.
Mortgage rates sink to record low again
Kathy Orton, The Washington Post
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average fell to 2.71 percent with an average 0.7 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 2.72 percent a week ago and 3.68 percent a year ago.
GOP blocks effort to make payroll tax deferral optional for federal workers
Naomi Jagoda, The Hill
Sen. Chris Van Hollen (D-Md.) on Thursday attempted to get the Senate to immediately pass his bill to make President Trump’s payroll tax deferral optional for federal workers and military members, but Republicans blocked the effort.
JPMorgan to Buy Fintech to Help Investor Clients Cut Taxes
Michelle F Davis and Annie Massa, Bloomberg
JPMorgan Chase & Co.’s asset-management unit agreed to buy fintech company 55ip, giving it control over technology that helps investors cut their tax liabilities.
Forget bitcoin. These cryptocurrencies are surging even more
Paul R. La Monica, CNN Business
While bitcoin has soared 15% in the past week to hit a new all-time high just under $20,000, ethereum — the second-largest crypto after bitcoin — is up more than 20% in the past seven days.
DealBook: How to Fix America
Andrew Ross Sorkin, The New York Times
As we face so many challenges, we asked top experts for one idea we could act on right now to make the country a better place. Here are their answers.
Unemployment Bonus Proves Its Harm
Casey B. Mulligan and Stephen Moore, The Wall Street Journal
Congressional Democrats and some Republicans are frantically trying to stitch together another $1 trillion “stimulus” bill. Why? The economy and jobs market have far exceeded expectations of recovery even without the spending spree first proposed by Speaker Nancy Pelosi in July.
2020 Annual Report
Financial Stability Oversight Council
The U.S. economy was in the midst of the longest post-war economic expansion, with historically low levels of unemployment, prior to the onset of the COVID-19 pandemic earlier this year. The global pandemic not only brought about a public health crisis but also caused a contraction of economic activity at an unprecedented pace. Initially, the pandemic reduced consumer spending, slowed manufacturing production, and led to widespread business closures. The unemployment rate surged from 3.5 percent in February to a record high of nearly 15 percent in April.