Bloomberg - Evening Briefing - Victory in sight

Looking for some economic cheer in your stocking this year? Well you’re in luck (if you are an American, anyway). The US Federal Reserve’s preferred gauge of underlying inflation barely rose last month and—by one measure—even trailed the policymaker’s 2% target. That marks the first time in three years the Fed has achieved its definition of price stability after waging war on inflation triggered by the pandemic, Russia’s war on Ukraine and various other things. Through most of it, US employment remained solid—often at half-century record highs—as wages and consumer sentiment improved and Americans kept spending—in turn keeping the economy pumping. All of this points to a central bank that basically achieved what was loudly considered impossible by big name Wall Street recessionistas and a media echo chamber that unified in nearly two years of wrong calls. Fed Chair Jerome Powell may very well have his soft landing after all.

Americans can now look ahead to a likely reduction in interest rates next year and more affordability of almost everything (though savers may grumble). But the lingering effects of higher borrowing costs will surely be felt for a while, and there’s still some question about timing for the Fed’s expected retreat. The pain for consumers, particularly those with lower incomes, can be seen through surging credit card debt and rising auto loan delinquencies. So what’s to do now? “Fed rate cuts must come sooner rather than later,” writes Karl W. Smith for Bloomberg Opinion. 

Apple has halted the sale of some versions of its smart watches ahead of a ban tied to a patent dispute, just in time for a busy holiday shopping season. And while the company added almost $1 trillion in market value this year, such gains in 2024 will be harder to come by thanks to factors including China’s crack down on foreign-made devices. 

The US and Russia abstained from a United Nations resolution passed by the Security Council that would increase humanitarian aid to the Gaza Strip without directly calling on Israel for a ceasefire. The vote comes amid rising pressure on Israel to scale back its assault on the enclave. US efforts to counter Yemen’s Houthi rebels as they attack ships in the Red Sea hit a roadblock because of disagreements among Washington’s Arab allies. Hundreds of merchant ships have veered away from the strait, including an oil tanker hauling US crude, as the Iranian-backed militants step up attacks on targets they view as supportive of Israel. 

Donald Trump’s eligibility to serve again as president faces a new legal challenge. A Colorado Supreme Court ruling barring the twice-impeached Republican from the state’s primary ballot raises the question of whether his role leading up to and on the day of the deadly Jan. 6, 2021 attack on the US Capitol makes him an insurrectionist, and whether that would disqualify him from the presidency. The new year, barring intervention by the US Supreme Court (which yesterday handed Trump his first victory), could see the Republican frontrunner face as many as four trials on everything from accounting fraud to subverting American democracy. In past weeks, he’s echoed the 20th century’s most infamous dictator—saying migrants are “poisoning the blood” of America—while praising modern day autocrats such as Vladimir Putin. All the while, Trump is garnering overwhelming support among fellow Republicans. President Joe Biden and his campaign, ramping up attacks on Trump’s statements, are warning that America will “lose everything” if Trump is re-elected. 

In the market for a used EV? Probably not. Buyers are shunning pre-owned electric vehicles for a number of reasons, including a lack of subsidies, anticipation of improving technology and continued shortfalls in charging infrastructures. The founder of electric truck company Nikola, Trevor Milton, was sentenced to four years behind bars for lying to shareholders about the company’s progress. Then there’s Hyperloop One, the futuristic transportation company building tube-encased lines to zip passengers and freight from city to city at airplane-like speeds. The firm is shutting down after raising millions of dollars to reinvent transit. 

From affordable housing to the ecosystem and transit woes, many cities can feel almost impossible to live in. For the amateur urban planner inside all of us, we’ve compiled a list of 15 new books about cities and how to fix them. Then there are airports: A lot of travel luck (or woe) can depend on which one you’re using. Check out the list of the world’s best and worst. And it turns out mega mansions that cost more than $50 million weren’t immune to this year’s real estate slowdown. Here’s some of the priciest home sales of the last year (and yes, most of them are still in the New York City-area).

The Gilded Age Greenwich mansion known as Copper Beech Farm sold for $138.8 million. Source: Bloomberg

• The Pope leads Christmas Eve Midnight Mass.
• Markets around the world are closed for Christmas Day. 
• Reserve Bank of India releases its financial stability report.
• US Census Bureau releases annual projection of the population.
• Kenya, Uganda inflation; results on Chad’s constitutional referendum.

Retro Biosciences, a startup with $180 million from OpenAI’s Sam Altman, has a simple and audacious goal: Add 10 good years to your life. The firm has operated in secrecy, but now it’s giving a glimpse of its work—from breakthroughs in autophagy (the removal of damaged cells) to rejuvenation of blood plasma and research into partial cell reprogramming.

Photographer: Bloomberg

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