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The World
President Biden will tap Fed Chairman Jerome Powell for a new term, opting for policy continuity despite resistance from some progressives. Fed governor Lael Brainard will be nominated as vice chairwoman. Over his first term in office, Powell became arguably the most dovish chairman in the Fed’s modern history, giving priority to full employment in an era in which inflation seemed extinct. In his second term, he may have to execute the reverse: giving priority to inflation at the risk of sacrificing jobs. (Wall Street Journal)
Wall Street stocks dropped as traders interpreted Biden’s renomination of Powell as a sign that the US president approves of a hawkish pivot by the central bank to fend off soaring inflation. The S&P 500 had risen on the announcement of Powell’s renomination but gave up those gains to close the day 0.3% lower. The Nasdaq closed 1.3% lower. Tech stocks are considered to be particularly sensitive to rising interest rates and Powell’s renomination is expected to result in a more hawkish tilt to Fed policy than if the other contender for the job, Lael Brainard, had been chosen. (Financial Times)
A U.S. warship again sailed through the sensitive Taiwan Strait, part of what the U.S. military calls routine activity but which always riles China whose government believes Washington is trying to stir regional tensions. The U.S. Navy said the Arleigh Burke-class guided-missile destroyer Milius conducted a "routine Taiwan Strait transit" through international waters in accordance with international law. (Reuters)
90% of US federal employees vaccinated ahead of mandate deadline. (Financial Times)
U.S. issues 'Do Not Travel' Covid-19 warning for Germany and Denmark. (Reuters)
As the Florida state health department sets workplace COVID vaccine rules, there’s a lot of leeway. For example, those who agree to periodic testing can claim an exemption. (Miami Herald)
U.S. home sales are on track for biggest year in 15 years: Existing-home sales increased 0.8% in October from the prior month to a seasonally adjusted annual rate of 6.34 million, the highest pace since January. Still, October sales fell 5.8% from a year earlier, when the market was at its peak for this cycle. (Wall Street Journal)
Uber Technologies will allow users in Ontario, Canada, to place orders for cannabis on its Uber Eats app, marking the ride-hailing giant's foray into the booming business. Uber Eats will list cannabis retailer Tokyo Smoke on its marketplace, and customers can place orders from the Uber Eats app and then pick it up at their nearest Tokyo Smoke store. (Reuters)
Chinese outbound tourism numbers are set to jump by more than 25% this year from 2020 but remain "basically at a standstill" compared to pre-pandemic levels, state broadcaster CCTV reported on Monday, citing official projections. The dramatic drop in travelers from China, the world's most populous nation, since the rapid spread of coronavirus early last year, has left a $255 billion annual spending hole in the global tourism market. (Reuters)
Bali is still a shadow of its former self as foreign tourists stay away: When Indonesia opened Bali to vaccinated international travelers from a string of countries in October after nearly two years, it was supposed to herald a return to normality for the tourism-dependent island that was hit hard by the pandemic. But, a month on, the "Island of the Gods" remains a shadow of its former self, with shuttered shops and restaurants dominating its once-bustling streets, and little to no sign of overseas visitors. (Nikkei Asian Review)
Economy
Global bank stocks are on track to record their best year since the wake of the financial crisis, benefiting from expectations of higher borrowing costs as rate-setters battle widespread inflation. An MSCI benchmark tracking global bank shares — measured in U.S. dollars — has jumped by around 30% so far in 2021, a stronger performance than the roughly 20% rise for the index provider’s all-sector gauge. Banks have not achieved such gains since 2009, when the same MSCI share index rose more than a third as lenders recovered from the depths of one of the worst crises to hit the financial industry. (Financial Times)
Paid family leave support grew during COVID-19, Stanford study finds. (Stanford University)
The pitch went out to eye doctors, McDonald’s franchisees, and payroll companies: “Reduce your taxable income burden to Uncle Sam.” In phone calls, emails and in-person meetings with thousands of business owners, American Express salespeople laid out the strategy. Use AmEx to pay your employees and suppliers, they said. You’ll have to pay a fee, but you’ll come out ahead. That’s because you can earn rewards on the transaction that can be converted into untaxed cash, while also deducting the transaction fees for tax purposes. The pitch helped AmEx bring in billions of dollars of transaction volume since at least 2018, according to people familiar with the matter and documents reviewed by The Wall Street Journal. But there was a problem: The strategy relied on a shaky interpretation of how tax law treats rewards points. (Wall Street Journal)
Fourteen of the biggest crypto mining companies in the world have moved more than 2m machines out of China in the months following the ban, according to data gathered by the Financial Times. The lion’s share of machines was hastily moved to the US, Canada, Kazakhstan and Russia. Bit Digital, one of the largest US-listed crypto mining companies, hired an international logistics firm to extract its property from China and is still waiting for a batch of almost 1,000 machines to be released from the docks at the Port of New York. (Financial Times)
Citi appointed a head of digital assets — a newly-created position dedicated to the crypto space — and plans to fill 100 new digital asset-related roles. (Blockworks)
Texas, which has the most vulnerable power grid in the US, is attracting crypto miners with incentives, cheap power, and lax regulation. (Bloomberg)
Technology
Zoom beat estimates even as revenue growth is poised to slow after pandemic: Revenue increased 35% from a year earlier in the quarter, which ended Oct. 31, slowing from 54% growth in the prior period. Net income jumped 71% to $340.3 million. While Zoom is reckoning with decelerating growth because so many businesses made their purchases last year, the company is expanding its usage within big organizations. Zoom said that over 2,500 customers are spending more than $100,000 a year, up 94% from the same period a year earlier. And the company’s Zoom Rooms software is enjoying growth as organizations equip conference rooms for meetings with participants who are not on site. “The conference room strategy has become even more important than it was pre-pandemic,” Kelly Steckelberg, Zoom’s finance chief, said on a Zoom call with analysts. (CNBC)
Samsung plans to build a roughly $17 billion chip-making plant in Taylor, TX, a mega investment by the South Korean tech giant, as the Biden administration pushes for an expansion of U.S. semiconductor production. An announcement could come as early as today. Gov. Greg Abbott is scheduled to make an “economic announcement” at 5 p.m. local time. The Taylor facility plans to create around 1,800 jobs, though chip production isn’t expected to start until the end of 2024. To woo Samsung, Taylor had offered incentives that include the equivalent of property-tax breaks of up to 92.5% for the first 10 years, with the write-offs gradually declining over the next several decades. (Wall Street Journal)
Women in tech still perceive inequity: Consulting firm New View Strategies recently surveyed 1,000 women in tech to get a better picture of their experience in the male-dominated industry: 38% reported having witnessed gender bias in the workplace. 46% of people said their tech company is not "actively prioritizing" gender equality in the hiring process or company culture. 43% of respondents still believe there is a gender pay gap at their tech organization. (Protocol)
NBCUniversal is considering removing much of its content from Hulu and making it exclusive to its Peacock platform, as the media giant determines how to best play its hand in the streaming wars. NBCUniversal, which owns one-third of Hulu, with Walt Disney controlling the rest, has to make a decision soon. NBCUniversal has a one-time window to exit from the content-licensing agreement between the two early next year. If it doesn’t exercise the option, the content would remain there until at least 2024. (Wall Street Journal)
The number of seasonal workers hired by Amazon in the U.S. in preparation for the holiday season. (Statista)
Smart Links
JPMorgan’s Jamie Dimon and Tesla’s Elon Musk feud behind the scenes. (Wall Street Journal)
Apple tells workers they have right to discuss wages, working conditions. (Reuters)
Jeff Bezos donates $100M to the Obama Foundation in honor of Congressman John Lewis. (Obama Foundation)
Dodge will phase out gas-powered Charger and Challenger in 2024 to make way for EVs. (The Verge)
GoDaddy discloses recent security breach that exposed 1.2 million accounts. (Engadget)
Labor, supply chain pressures mount for US hospitals, Fitch says. (Healthcare Dive)
100 Notable Books of 2021. (New York Times)