Bloomberg - Evening Briefing - Euphoric upswing

For most US consumers and investors, this week saw some banner headlines, from interest-rate cuts on the (possibly not-too-distant) horizon, to lower gas prices and a dip in mortgage rates below 7%. Inflation is showing continued signs of easing, giving pinched households a little breathing room, and it’s now forecast to return near its 2% target next year. After the steepest interest-rate hikes in a generation, the Federal Reserve may well have engineered a soft landing for the world’s largest economy, tamping down price surges without big job losses or a downturn. The central bank even projected rate cuts next year, a move that sent most everything—from global stocks to Treasuries to corporate bonds—on a euphoric upswing. 

In Europe, central bank policymakers have struck a more cautious tone, with the euro-zone’s economy weakening even as inflation recedes. Then there’s China, where its economy remains dogged by weak demand and a continuing property crisis. And back in America, even as the Fed’s predictions gave a jolt to many markets, the squeeze from the past few years may linger in some places. Take, for example, the housing space, where years of cheap mortgages enabled millions of millennials to buy homes. “As Gen Z looks to buy their starter homes in the next few years, they will face both high rates and high prices,” writes Allison Schrager for Bloomberg Opinion. “It may be years before the housing market is affordable again.”

US President Joe Biden warned Israel that it’s “starting to lose” the support of its allies, saying the bombing campaign that’s killed thousands of civilians in the Gaza Strip has been at times “indiscriminate.” US National Security Advisor Jake Sullivan traveled to Israel to urge Prime Minister Benjamin Netanyahu to shift to “lower-intensity operations” following more than two months of war triggered by the Oct. 7 Hamas attack. Indeed, the endgame sought by the US and most of the world is the elusive “two-state solution,” a goal Netanyahu has actively worked against his entire political life, and something even Israel’s opposition currently opposes. President Isaac Herzog of the Labor Party ruled out two states for now, saying “my nation is in trauma.”

A man searches the rubble of a building following an Israeli airstrike in a residential district of the Al-Shaboura refugee camp in Rafah, southern Gaza. Photographer: Ahmad Salem/Bloomberg

Republicans in the US House of Representatives voted to formally authorize an impeachment inquiry into Biden without any evidence of wrongdoing. Democrats contend the unprecedented move is being driven by a twice-impeached Donald Trump in an effort to muddy the waters ahead of an election year. The Republican frontrunner, who has threatened to abuse power and retaliate against opponents if he returns to the White House, faces four felony prosecutions, any one of which could land him in prison upon conviction. Nevertheless, Trump has pulled ahead of Biden in must-win Michigan, according to a Bloomberg News/Morning Consult poll, and leads in the monthly tracking poll of all seven swing states that will decide the 2024 presidential election.

Argentina’s new president might have dialed back some of his more radical rhetoric, but he still plans “shock therapy” to the country’s beleaguered economy. Far-right libertarian Javier Milei recommitted to eventually scrapping the Argentine peso (and slashed its value by nearly half) with an aim of eventual dollarization. With annual inflation galloping past 160%, his government pledged aggressive spending cuts and reduced subsidies for energy and transportation. But in a potential return to the anti-democratic stances of his campaign, Milei’s government also said it will move preemptively to curb protests against austerity measures. So far though, his plan has been well received by both Wall Street and regular Argentines. 

Javier Milei Photographer: Juan Mabromata/Getty Images

A new wealth hub is becoming wildly popular with billionaires from the Adani family to Ray Dalio: the skyscraper-studded emirate of Abu Dhabi.  Dozens of high-net-worth individuals have set up special purpose vehicles in the city’s international financial center this year. Meanwhile in Boston, a JPMorgan client dealing with dementia is suing the bank after his $50 million fortune slipped away. And Citigroup is offering to pay some staffers a portion of their bonuses early if they agree to leave. 

Leadership, creativity and of course longevity: Top business leaders pick 62 must reads from 2023 (that’s one book every 5.9 days for the really ambitious). Here are the five luxury hotels that wowed our travel editor this year—and why they’re worth the price. And our final 2023 list goes to the top 10 museum exhibitions.

The pool at Le Bristol in Paris hides at the end of a corridor with rooms rather than being in the spa or on the roof. Photographer: Romeo Balancourt

• Elon Musk to attend Meloni’s far-right party convention in Italy.
• Fed’s Bostic speaks on US economy and the business outlook.
• Final results are due in Egypt’s elections. 
• Pro-democracy media tycoon Jimmy Lai’s sedition trial in Hong Kong.
• Bank of Japan meeting, with stimulus settings unlikely to change.

Hospitals around the world use drugs from a small but crucial Indian supplier, including a treatment called methotrexate, prescribed for leukemia and other cancers. Often those doses are destined for patients in developing countries, including Colombia, were four kids died and more than a hundred fell ill. In the Bloomberg Originals mini-documentary The Threat of Tainted Cancer Drugs, we show how a months-long Bloomberg investigation found that, despite a track record of safety lapses and quality concerns, the Indian manufacturer continued selling its drugs. 

Yohana Rivas’ 4-year-old daughter Valery died after taking methotrexate.  Photographer: Nadège Mazars

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