Bloomberg - Evening Briefing - Inflation finally slows

US inflation fell in October by more than forecast, perhaps giving the Federal Reserve room to maneuver as it considers smaller interest-rate hikes, something it has said was possible in the coming months. More importantly for the central bank, the core measure that excludes food and energy also slowed more anticipated. “There’s some evidence that we’re moving from peak inflation down lower,” said Matthew Luzzetti, chief US economist at Deutsche Bank. “Where do we end up I think is the big question.” Wall Street seemed to think it had the answer: The S&P 500 climbed 5.5%, its best one-day performance in 2 ½ years and the best first-day reaction to a CPI report since at least 2003 when records began. More than 90% of stocks in the benchmark were in the green. The rally set fire to the shorts, spurring outsized gains. The sentiment shift also helped crypto markets stabilize despite the turmoil surrounding crypto exchange FTX. Nevertheless, don’t go looking at your 401(k) just yet. The S&P 500 remains down 17% and the Nasdaq 100 is off almost 30%, with both headed for their worst year since 2008. —David E. Rovella 

Despite the real prospect that his party could lose both houses of Congress to the GOP as vote tallies continue, US President Joe Biden praised the midterm elections as good for American democracy. He also said he intends to run for re-election in 2024, but will formally make the call next year. One person who put her stamp on the 2022 election was Michigan Governor Gretchen Whitmer. She crushed her Republican rival by double digits, and along with re-elected California Governor Gavin Newsom, is fast becoming a star of the Democratic Party.

Gretchen Whitmer Photographer: Ting Shen/Bloomberg

There’s a scramble to sell assets inside FTX.US, the part of Sam Bankman-Fried’s crypto empire where he insisted on Thursday that “users are fine.” Bankman-Fried’s firms descended into chaos this week after a liquidity crunch at FTX.com, an international crypto exchange affiliated with FTX.US. The 30-year-old is the chief executive of both. Now employees of his US-based crypto exchange are in talks about selling parts of the business, including some assets Bankman-Fried amassed on a sweeping acquisition tear across the industry. And in some cases, they’re doing it without Bankman-Fried’s participation. 

For retail traders who poured their life savings into crypto, the stunning demise of FTX.com is a worst-case scenario. After rival Binance walked away from a potential bailout and Bankman-Fried said he’ll shut down Alameda Research, the trading house at the heart of his crumbling empire, the outlook for those with money on FTX is bleak.

Sam Bankman-Fried Photographer: Jeenah Moon/Bloomberg

Biden says he’ll meet with Xi Jinping at the G20 in Bali, but won’t give any ground amid continuing tension over the independence of Taiwan. Vladimir Putin is giving mixed signals about his intentions in his war on Ukraine, supposedly retreating from Kherson while sprucing up bomb shelters at home. Caught in the middle in a dangerous world, what is the European Union to do? Go to Australia, of course, and mend fences.

China’s top leaders reinforced the need to stick with Xi’s “Covid zero” policy, but urged officials to be more targeted with their restrictions, a move potentially aimed at modulating Beijing’s hardline approach amid widespread public anger.

The Mississippi River—the immense, quiet highway that courses down the middle of America, moving food, wood, coal and steel supplies to global markets—is shrinking from drought, forcing traffic to a crawl at the worst possible time.

After leaving EA a mess, Unity CEO John Riccitiello is betting his company’s future on commercializing virtual worlds. One of gaming’s most controversial executives, it turns out, is jumping into the “metaverse.”

John Riccitiello Photographer: Krista Kennell/EA/Sipa Press

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

• For the Twitter workers he didn’t fire, Elon Musk says no more WFH.
• But it may not matter: He also says the platform could go belly up.
• And Biden says Musk’s foreign connections may warrant scrutiny.
• Trump knew of an alleged tax scam, controller testifies at NY fraud trial.
• Alex Jones’s assets are frozen by judge in Sandy Hook defamation case.
• Bloomberg Opinion: The most surprising thing about the midterms.
• Now we know who sold the winning Powerball ticket.

Whoever wrote that it’s better to give than to receive never lived through 2022. Or 2021 or 2020, for that matter. These days, if there’s anything we’re craving, it’s to be spoiled. So when we were searching for the best gifts for our annual guide this year, we focused on the kinds of things which speak that universal language of love: indulgence.

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Bloomberg CEO Forum: CEOs and business leaders will convene on the sidelines of the G20 Friday to discuss actionable solutions to the most pressing issues the world now faces to ensure responsible, inclusive and sustainable growth. Register here to secure your spot and join us in Bali or virtually.