The real ‘Fed pivot’

Beneath the surface of a Wall Street still crowded with bears, some money managers are reacting to the latest signs that a “Fed pivot” has finally arrived (as opposed to all the other times) by renewing bullish bets. As the central bank ties itself in knots trying to land the plane without cratering the runway, investors more worried about interest rates than unemployed Americans are starting to see some light at the end of their tunnel. This optimism is showing up across a range of assets. A rush to corporate credit is favoring the riskier edges of the market, with junk bonds drawing their biggest passive inflows on record. Equity exposure among quants has turned positive and that of active fund managers is back near long-term averages. The inflation bid is crumbling, with the dollar heading for its steepest monthly decline since 2009 and benchmark Treasury yields down 30 basis points in November. Faith in the Fed restored, investors ended the week with the S&P 500 on course for a second monthly advance. Even Europe’s beleaguered equity index has gained for six consecutive weeks. Here’s your markets wrap. —David E. Rovella

The spectacular plunge of online used-car dealer Carvana is bringing pain to many investors, but one group is really taking it in the teeth: hedge funds.

Beijing’s streets are deserted and grocery delivery services are running out of capacity as rising Covid-19 cases trigger lockdown-like restrictions across large swaths of the Chinese capital. Indeed, China’s wider outbreak is reaching record levels and panic seems to be setting in again. Though food remains plentiful in many stores, delivery apps were overwhelmed as residents shut themselves in. Globally, confirmed infections and deaths remain relatively flat, but in the US confirmed cases and deaths are edging up again as winter approaches.

For more than a decade, Washington's Arab partners in the Persian Gulf have feared that the US is slowly abandoning the region, Hussein Ibish writes in Bloomberg Opinion. This view however ignores strong evidence that the American security commitment remains high, even given the recent US-Saudi Arabia quarreling over oil prices.

The Kremlin is threatening to prohibit Russian companies and any traders buying the nation’s oil from selling it to anyone that participates in a price cap. As Europe looks to put the finishing touches on its latest sanction effort against Russia, Vladimir Putin continues his effort to punish Ukrainian civilians by destroying their ability to keep warm this winter with deadly missile strikes at energy infrastructure. Russian soldiers, struggling to gain back any of the ground they’ve lost in recent months, have killed potentially tens of thousands of Ukrainian civilians in Putin’s nine-month-long war. In the city of Kherson, from which Kremlin forces retreated in the face of a counteroffensive, more civilians are being killed daily as Russia bombs it from a distance.

US retailers are experiencing what appears to be a muted Black Friday as high inflation and sagging consumer sentiment seem to be eroding demand for material goods. Perhaps restaurant gift cards are the way to go.

The number of Hong Kong residents applying for a path to UK citizenship fell 44% in the third quarter, showing that demand for the program is waning almost two years after it was created in response to China’s move to crush demonstrations, free speech and the press.
When Malaysia’s King Sultan Abdullah Sultan Ahmad Shah asked the two men vying to be the next prime minister if they would agree to form a unity government after neither had majority, one of them completely rejected the idea. That turned out to be the wrong move.

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

Back in the days when bands like Led Zeppelin or The Who toured America, teens lined up overnight at ticket booths, hoping for great seats. As time went on, the queue moved to the telephone and online. All the while, one company—Ticketmaster—increased its grip on the market. But this week, a bizarre confluence of events involving Covid-revenge spending and furious Taylor Swift fans may have set the stage for legislators and attorneys general to break Ticketmaster’s spell.

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