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  • U.S. stocks end higher after job report, and Dow scores longest weekly winning streak since February 2019

    U.S. stocks end higher after job report, and Dow scores longest weekly winning streak since February 2019

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    U.S. stocks closed higher Friday, with the Dow Jones Industrial Average scoring its longest weekly winning streak since February 2019, as investors digested the latest job report.

    How stock indexes traded

    • The Dow Jones Industrial Average
      DJIA
      rose 130.49 points, or 0.4%, to close at 36,247.87, its highest closing value since Jan. 12, 2022.

    • The S&P 500
      SPX
      gained 18.78 points, or 0.4%, to finish at 4,604.37, marking its highest close since March 29, 2022.

    • The Nasdaq Composite
      COMP
      climbed 63.98 points, or 0.4%, to end at 14,403. 97, scoring its highest closing value since April 4, 2022.

    For the week, the Dow eked out a gain of less than 0.1%, the S&P 500 edged up 0.2% and the Nasdaq advanced 0.7%. All three major indexes rose for a sixth straight week, according to Dow Jones Market Data.

    What drove markets

    U.S. stocks ended higher Friday as investors parsed a stronger-than-expected job report.

    The U.S. Bureau of Labor Statistics said Friday that the economy added 199,000 jobs in November, while the unemployment rate fell to 3.7% from 3.9%. Economists polled by the Wall Street Journal had forecast that 190,000 jobs would be added in the month.

    “It’s nice to see that a soft landing still can take place,” Yung-Yu Ma, chief investment officer at BMO Wealth Management, said by phone Friday. But the market had been getting “too optimistic” about potential interest-rate cuts by the Federal Reserve in the early part of next year, he added.

    The job report is “perhaps a wash” for markets as “average hourly earnings growth came in a little on the high side,” Ma said. That could contribute to inflationary pressures and push a Fed pivot on rate cuts further out in 2024 than markets were expecting. 

    “The Fed can probably be patient for a while,” he said. Fed Chair Jerome Powell may “strike a bit more of a hawkish tone” after the central bank’s monetary-policy meeting next week, potentially pushing back against some of the enthusiasm for earlier rate cuts, Ma said.

    Average hourly earnings rose 0.4% in November, up 4% year over year, the job report shows.

    “Even though the headline 199,000 new jobs created is just slightly above consensus estimates for 190,000 new positions, the lower unemployment rate of 3.7%, coupled with higher-than-expected average hourly earnings, caused a jump higher in Treasury yields,” Quincy Krosby, chief global strategist at LPL Financial, said in emailed comments.

    The yield on the 10-year Treasury note
    BX:TMUBMUSD10Y
    climbed 11.5 basis points Friday to 4.244%, according to Dow Jones Market Data. That’s below its high this year of about 5% in October.

    Meanwhile, the stock market’s so-called fear gauge remained low, with the CBOE Volatility Index
    VIX
    declining to 12.35 on Friday, FactSet data show.

    See: The VIX says stocks are ‘reliably in a bull market’ heading into 2024. Here’s how to read it.

    In other economic data released Friday, the University of Michigan’s gauge of consumer sentiment rose to a preliminary reading of 69.4 in December, its first increase in five months. Inflation expectations also moderated, the university’s survey of consumer sentiment showed.

    Such a big swing for a single reading of the survey is unusual, said Claudia Sahm, a former Federal Reserve economist who now runs a consulting business. “These data usually don’t move like that,” she said during a phone interview with MarketWatch.

    Next week’s economic calendar will include a reading on U. S. inflation from the consumer-price index as well as the outcome of the Fed’s two-day policy meeting, scheduled to conclude Dec. 13.

    Meanwhile, the S&P 500 notched a sixth straight week of gains, its longest such winning streak since the stretch ending Nov. 15, 2019, according to Dow Jones Market Data. The Dow Jones Industrial Average logged its longest stretch of weekly gains since February 2019.

    Companies in focus

    Steve Goldstein contributed.

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  • Hunter Biden indicted on 9 tax charges, adding to gun charges in special counsel probe

    Hunter Biden indicted on 9 tax charges, adding to gun charges in special counsel probe

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    WASHINGTON — Hunter Biden was indicted on nine tax charges in California on Thursday as a special counsel investigation into the business dealings of President Joe Biden’s son intensifies against the backdrop of the looming 2024 election.

    The new charges — three felonies and six misdemeanors — are in addition to federal firearms charges in Delaware alleging Hunter Biden broke laws against drug users having guns in 2018. They come after the implosion of a plea deal over the summer that would have spared him jail time.

    Hunter Biden “spent millions of dollars on an extravagant lifestyle rather than paying his tax bills,” special counsel David Weiss said in a statement. The charges are centered on at least $1.4 million in taxes Hunter Biden owed during between 2016 and 2019, a period where he has acknowledged struggling with addiction. The back taxes have since been paid.

    If convicted, Hunter Biden could face up to 17 years in prison. The special counsel probe remains open, Weiss said.

    In a fiery response, defense attorney Abbe Lowell accused Weiss of “bowing to Republican pressure” in the case.

    “Based on the facts and the law, if Hunter’s last name was anything other than Biden, the charges in Delaware, and now California, would not have been brought,” Lowell said in a statement.

    The White House declined to comment on Thursday’s indictment, referring questions to the Justice Department or Hunter Biden’s personal representatives.

    The charging documents filed in California, where he lives, details spending on everything from drugs and girlfriends to luxury hotels and exotic cars, “in short, everything but his taxes,” prosecutor Leo Wise wrote.

    The indictment comes as congressional Republicans pursue an impeachment inquiry into President Biden, claiming he was engaged in an influence-peddling scheme with his son. The House is expected to vote next week on formally authorizing the inquiry.

    No evidence has emerged so far to prove that Joe Biden, in his current or previous office, abused his role or accepted bribes, though questions have arisen about the ethics surrounding the Biden family’s international business.

    The criminal investigation led by Weiss has been open since 2018, and was expected to wind down with the plea deal that Hunter Biden had planned to strike with prosecutors over the summer. He would have pleaded guilty to two misdemeanor tax evasion charges and would have entered a separate agreement on the gun charge, getting two years of probation rather than jail time.

    It was pilloried as a “sweetheart deal” by Republicans, including former President Donald Trump, who is facing criminal charges in multiple cases.

    The agreement also contained immunity provisions, and defense attorneys have argued that they remain in force since that part of the agreement was signed by a prosecutor before the deal was scrapped.

    Prosecutors disagree, pointing out the documents weren’t signed by a judge and are invalid.

    After the deal fell apart, prosecutors filed three federal gun charges alleging that Hunter Biden had lied about his drug use to buy a gun that he kept for 11 days in 2018. Federal law bans gun possession by “habitual drug users,” though the measure is seldom seen as a stand-alone charge and has been called into question by a federal appeals court.

    The defense is planning to push next week for dismissal of the “unprecedented and unconstitutional” gun charges, Lowell said.

    Hunter Biden’s longstanding struggle with substance abuse had worsened during that period after the death of his brother Beau Biden in 2015, prosecutors wrote in a draft plea agreement filed in court in Delaware.

    He still made “substantial income” in 2017 and 2018, including $2.6 million in business and consulting fees from a company he formed with the CEOs of a Chinese business conglomerate and the Ukrainian energy company Burisma, but did not pay his taxes on a total of about $4 million in personal income during that period, prosecutors said in the scuttled Delaware plea agreement.

    He did eventually file his taxes in 2020 and the back taxes were paid by a “third party” the following year, prosecutors said.

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  • Republican debate: Chris Christie says Trump's China tariffs helped drive inflation

    Republican debate: Chris Christie says Trump's China tariffs helped drive inflation

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    ‘ ‘You want to know what has contributed to inflation in this country? Yes, it’s more government spending. Yes, it’s the fact that we’re printing too much money. Absolutely. But it is also the increase in prices that were driven by Donald Trump’s tariffs.’


    — Former N.J. Gov. Chris Christie

    That was former New Jersey Gov. Chris Christie swinging hard against GOP frontrunner Donald Trump during Wednesday’s Republican debate at the University of Alabama.

    Florida Gov. Ron DeSantis, former South Carolina Gov. Nikki Haley and tech entrepreneur Vivek Ramaswamy joined Christie onstage in the fourth Republican presidential primary debate, which aired on NewsNation and the CW. 

    Former President Donald Trump skipped this debate, as he has done with the first three. But his presence was still felt, especially on the heels of his Fox News interview with Sean Hannity the night before, where he refused to rule out abusing power or seeking retribution if he gets re-elected

    While discussing foreign policy and inflation, Christie placed much of the blame for higher prices at the former president’s feet, while also blasting his trade relations with China.

    “The proof that he wasn’t good on trade with China is that all he did was imposed tariffs, which raise the prices for every American,” Christie said.

    “You can’t say he was good on trade, because he didn’t trade. He didn’t change one Chinese policy in the process. He failed on it.”

    Related: Opinion: 5 questions about China that Wednesday’s Republican presidential debate needs to answer

    That wasn’t the only swing that Christie took at Trump. The moderators opened Wednesday night’s debate by pressing the candidates on whether they are really electable, when most polls show the majority of Republican voters supporting Trump. And Christie responded by warning that Trump is “unfit” to serve as the commander-in-chief for a second term — even comparing him to “Harry Potter” villain Voldemort, who was a facist, evil wizard.

    “We’ve had these three [candidates on stage] acting as if the race is between the four of us. The fifth guy [Trump] doesn’t have the guts to show up and stand here,” Christie said. “And yet, I’ve got these three guys who want to seemingly compete with Voldemort — he-who-should-not-be-named. They don’t want to talk about it.”

    Christie also blamed Trump’s high poll numbers on many of his Republican rivals, whom he accused of condoning Trump’s more controversial actions and comments, including those that have landed him in legal trouble.

    ‘You want to know why those [Trump] poll numbers are where they are? Because folks like these three guys on the stage make it seem like his conduct is acceptable.’


    — Former N.J. Gov. Chris Christie

    “This is an angry, bitter man who wants to be back as president because he wants to exact retribution to anyone who disagreed with him, anyone who has tried to hold him to accountable for his own conduct,” Christie said, noting that the other colleagues on stage had raised their hands during the first GOP debate in August to show they would still support Trump, even if he was convicted of federal crimes.

    “You want to know why those poll numbers are where they are? Because folks like these three guys on the stage make it seem like his conduct is acceptable,” Christie said. “Let me make it clear. His conduct is unacceptable. He’s unfit.”

    Read more: Nikki Haley says her big corporate supporters won’t affect her policies — and GOP rivals are ‘just jealous’ about them

    He continued: “My three colleagues are afraid to offend. If you’re afraid to offend Donald Trump, then what are you gonna do when you sit across from President Xi, you sit across from the Ayatollah, you sit across from President Putin?”

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  • Nikki Haley says GOP rivals are 'just jealous' about her corporate supporters

    Nikki Haley says GOP rivals are 'just jealous' about her corporate supporters

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    Republican presidential hopeful Nikki Haley pushed back when pressed at Wednesday’s primary debate on whether she’s too tight with billionaires and corporate interests, saying those supporters won’t affect her stances on key issues.

    “When it comes to these corporate people that want to suddenly support us, we’ll take it, but I don’t ask them what their policies are. They ask me what my policies are, and I tell them,” said Haley, a former ambassador to the U.N. and former South Carolina governor.

    “Sometimes they agree with me, sometimes they don’t,” she added. “Some don’t like how tough I am on China. Some don’t like the fact that I’ve signed pro-life bills. Some don’t like the fact that I may oppose corporate bailouts.”

    Also see: Republican debate: Chris Christie says Trump’s China tariffs helped drive inflation

    GOP rival Vivek Ramaswamy attacked Haley over her time on Boeing’s
    BA,
    +1.17%

    board of directors and the money she’s received from Silicon Valley billionaire Reid Hoffman.

    “Nikki, you were bankrupt when you left the U.N.,” the entrepreneur said. “Now you’re a multimillionaire. That math does not add up. It adds up to the fact that you are corrupt.”

    Florida Gov. Ron DeSantis criticized her as well, saying: “These Wall Street liberal donors, they make money in China. They are not going to let her be tough on China, and she will cave to the donors.”

    Presidential hopeful Vivek Ramaswamy holds up a sign that accuses rival Nikki Haley of being corrupt as he speaks during the fourth Republican presidential primary debate at the University of Alabama in Tuscaloosa.


    AFP via Getty Images

    Haley, meanwhile, said she wasn’t bankrupt after her stint as ambassador, but rather she and her husband had been in public service. She also spoke highly of Boeing, but noted she left the airplane maker’s board because she didn’t support its efforts to get a bailout during the COVID-19 pandemic.

    “In terms of these donors that are supporting me, they’re just jealous,” Haley added, referring to DeSantis and Ramaswamy. “They wish that they were supporting them.”

    The comments came Wednesday night at the 2024 Republican presidential primary’s fourth debate, held at the University of Alabama. Besides DeSantis, Haley and Ramaswamy, former New Jersey Gov. Chris Christie also took part in the clash.

    The primary’s frontrunner, former President Donald Trump, skipped the debate, just as he steered clear of the previous three.

    Related: Nikki Haley has ‘all of the momentum’ as the latest Republican debate hits but faces uphill battle to topple Trump

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  • New York Gov. Hochul picks February date for special election to Santos seat in House

    New York Gov. Hochul picks February date for special election to Santos seat in House

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    ALBANY, N.Y. (AP) — A special election to pick a successor to George Santos, the New York Republican who was expelled from the U.S. House last week, will be held on Feb. 13, Gov. Kathy Hochul announced Tuesday.

    The race for a seat representing some Long Island suburbs and a small part of the New York City borough of Queens is expected to be a high-profile contest that will mark the start of a year of consequential congressional elections in the state.

    For Democrats, the election will be a test of the party’s ability to flip districts around New York City that are seen as vital to their plans to retake control of the House. Republicans enter the contest with heavy momentum on Long Island and will fight to hold on to the district as they look to maintain their narrow House majority.

    From the archives (December 2022): Yes, top House Republicans knew of George Santos’s lies before his election in November

    Candidates in the special election will be picked by party leaders, not voters.

    Former U.S. Rep. Tom Suozzi has emerged as the potential frontrunner nominee for Democrats. Suozzi, 61, represented the district for six years before launching an unsuccessful campaign for governor last year, and previously held political posts as a county executive and mayor on Long Island.

    The centrist Democrat’s deep ties in Long Island politics may provide name recognition and the ability to quickly stand up a campaign — vital attributes in an narrowly focused election where voters will have a limited amount of time to pick their representative.

    From the archives (January 2023): George Santos has ‘disgraced’ U.S. House and should resign, say fellow Long Island Republicans

    Suozzi had announced his campaign for the seat before Santos was expelled, and has been promoting a series of endorsements from local politicians and labor groups after the district became vacant.

    Also vying for the Democratic nomination is former state senator Anna Kaplan, who has in recent days taken potshots at Suozzi’s record and sought to center the special election on passing federal legislation guaranteeing abortion rights.

    On the Republican side, potential names include retired police detective Mike Sapraicone, Air Force veteran Kellen Curry and Nassau County legislator Mazi Pilip, an Ethiopian-born Jewish woman who served in the Israeli military.

    Sapraicone, who is also the founder of a private security company, said he has been interviewed by county Republicans who will select the nominee, with the panel quizzing him on his political stances, his ability to fundraise and quickly launch a campaign.

    Like Suozzi, Sapraicone launched his campaign before Santos was expelled and has already begun to fundraise, with his campaign coffers including $300,000 of his own money, he said.

    “For us to maintain the House and retain the majority is so important,” Sapraicone said. “It’s so important that New York sets the tone here in February.”

    Democrats want to flip at least five House seats in New York next year, with the Santos seat being a potential early indicator of their chances in November.

    The party has dedicated significant financial and organizational resources to the state, after a series of losses last year in the New York City suburbs helped Republicans take control of the House and brought down heavy criticism on state Democrats.

    President Joe Biden won the district in 2020, but Republicans have notched electoral gains on Long Island in recent years as moderate suburban voters there, in contrast to urban areas in much of the country, have shown signs of gravitating toward the GOP.

    In the latest sign of Republican strength on Long Island, the GOP won several local elections last month, including races in the now-vacant district.

    Santos was expelled from the House last week following a scandal-plagued tenure in Congress and a looming criminal trial. He is only the sixth member in the chamber’s history to be ousted by colleagues.

    He had survived an expulsion vote just a month earlier.

    Read on:

    Will George Santos still qualify for a pension and strolling around the House floor?

    There’s a George Santos bobblehead with a Pinocchio-style nose — and that’s no lie

    John Fetterman buys a George Santos Cameo for ‘ethically challenged colleague’ Bob Menendez

    House Republicans scuttle Democrats’ effort to expel George Santos

    Why Republicans are opposing a Senate bid to tighten up Supreme Court ethics amid Clarence Thomas questions

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  • China’s debt outlook cut to negative by Moody’s

    China’s debt outlook cut to negative by Moody’s

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    Moody’s Investors Service on Tuesday cut the outlook on China’s debt to negative from stable citing expectations that the national government will have to step in to rescue regional and local governments.

    Moody’s kept China’s long-term rating at A1.

    “The change to a negative outlook reflects rising evidence that financial support will be provided by the government and wider public sector to financially-stressed regional and local governments and state-owned enterprises, posing broad downside risks to China’s fiscal, economic and institutional strength,” said the note from the rating agency, which last month cut the outlook on the U.S.

    China’s property troubles mean that regional and local governments face a loss of land sale revenue, which accounted for 37% of their revenue in 2022 outside of central government transfers. Moody’s says regions that relied most heavily on land sales won’t be able to offset that revenue loss from other sources.

    Moody’s estimates one-third of state-owned enterprises debt — some 40% of GDP — has an interest coverage below 1, which indicates weak debt sustainability. “While not all [state-owned enterprises] are likely to need direct government support, even a moderate proportion doing so over the medium term would represent a significant crystallization of contingent liabilities for the sovereign, increasing the costs of financial support and diminishing fiscal strength,” said Moody’s.

    In a rough day for Chinese stocks, the Hang Seng
    HK:HSI
    fell 1.9%, and the Shanghai Composite
    CN:SHCOMP
    dropped 1.7%.

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  • Israel fighter jets begin striking Gaza strip targets again as Hamas truce expires

    Israel fighter jets begin striking Gaza strip targets again as Hamas truce expires

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    JERUSALEM (AP) — The Israeli military said Friday that its fighter jets have begun striking Hamas targets in the Gaza Strip, in the clearest sign yet that the war has resumed with full force after a weeklong truce.

    The announcement came 30 minutes after the cease-fire expired at 7 a.m. (0500 GMT) Friday.

    Earlier Friday, Israel accused Hamas of having violated the terms of the cease-fire, including by firing rockets toward Israel from Gaza.

    The temporary truce in the Israel-Hamas war expired Friday morning, without immediate word from mediator Qatar on an extension, raising the possibility of renewed fighting.

    The halt in fighting began a week ago, on Nov. 24. It initially lasted for four days, and then was extended for several days with the help of Qatar and fellow mediator Egypt.

    During the week-long truce, Hamas and other militants in Gaza released more than 100 hostages, most of them Israelis, in return for 240 Palestinians freed from prisons in Israel. Virtually all of those freed were women and children.

    Reaching agreements on swaps appeared to be growing harder as most women and children held in Gaza had already been released.

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  • Henry Kissinger, the polarizing former secretary of state, dies at 100

    Henry Kissinger, the polarizing former secretary of state, dies at 100

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    WASHINGTON — Former Secretary of State Henry Kissinger, the diplomat with the thick glasses and gravelly voice who dominated foreign policy as the United States extricated itself from Vietnam and broke down barriers with China, died Wednesday, his consulting firm said. He was 100.

    With his gruff yet commanding presence and behind-the-scenes manipulation of power, Kissinger exerted uncommon influence on global affairs under Presidents Richard Nixon and Gerald Ford, earning both vilification and the Nobel Peace Prize. Decades later, his name still provoked impassioned debate over foreign policy landmarks long past.

    Kissinger’s power grew during the turmoil of Watergate, when the politically attuned diplomat assumed a role akin to co-president to the weakened Nixon.

    “No doubt my vanity was piqued,” Kissinger later wrote of his expanding influence. “But the dominant emotion was a premonition of catastrophe.”

    A Jew who fled Nazi Germany with his family in his teens, Kissinger in his later years cultivated the reputation of respected statesman, giving speeches, offering advice to Republicans and Democrats alike and managing a global consulting business. He turned up in President Donald Trump’s White House on multiple occasions. But Nixon-era documents and tapes, as they trickled out over the years, brought revelations — many in Kissinger’s own words — that sometimes cast him in a harsh light.

    Never without his detractors, Kissinger after he left government was dogged by critics who argued that he should be called to account for his policies on Southeast Asia and support of repressive regimes in Latin America.

    For eight restless years — first as national security adviser, later as secretary of state, and for a time in the middle holding both titles — Kissinger ranged across the breadth of major foreign policy issues. He conducted the first “shuttle diplomacy” in the quest for Middle East peace. He used secret channels to pursue ties between the United States and China, ending decades of isolation and mutual hostility.

    He initiated the Paris negotiations that ultimately provided a face-saving means — a “decent interval,” he called it — to get the United States out of a costly war in Vietnam. Two years later, Saigon fell to the communists.

    And he pursued a policy of detente with the Soviet Union that led to arms control agreements and raised the possibility that the tensions of the Cold War and its nuclear threat did not have to last forever.

    At age 99, he was still out on tour for his book on leadership. Asked in July 2022 interview with ABC whether he wished he could take back any of his decisions, Kissinger demurred, saying: “I’ve been thinking about these problems all my life. It’s my hobby as well as my occupation. And so the recommendations I made were the best of which I was then capable.”

    Even then, he had mixed thoughts on Nixon’s record, saying “his foreign policy has held up and he was quite effective in domestic policy” while allowing that the disgraced president had “permitted himself to be involved in a number of steps that were inappropriate for a president.”

    As Kissinger turned 100 in May 2023, his son David wrote in The Washington Post that his father’s centenary “might have an air of inevitability for anyone familiar with his force of character and love of historical symbolism. Not only has he outlived most of his peers, eminent detractors and students, but he has also remained indefatigably active throughout his 90s.”

    Asked during a CBS interview in the leadup to his 100th birthday about those who view his conduct of foreign policy over the years as a kind of “criminality,” Kissinger was nothing but dismissive.

    “That’s a reflection of their ignorance,” Kissinger said. “It wasn’t conceived that way. It wasn’t conducted that way.”

    Tributes for Kissinger from prominent U.S. officials poured immediately upon word of his death. Former President George W. Bush said the U.S. “lost one of the most dependable and distinctive voices on foreign affairs” and former New York City Mayor Michael Bloomberg said Kissinger was “endlessly generous with the wisdom gained over the course of an extraordinary life.”

    Kissinger’s consulting firm said he died at his home in Connecticut.

    Kissinger was a practitioner of realpolitik — using diplomacy to achieve practical objectives rather than advance lofty ideals. Supporters said his pragmatic bent served U.S. interests; critics saw a Machiavellian approach that ran counter to democratic ideals.

    He was castigated for authorizing telephone wiretaps of reporters and his own National Security Council staff to plug news leaks in Nixon’s White House. He was denounced on college campuses for the bombing and allied invasion of Cambodia in April 1970, intended to destroy North Vietnamese supply lines to communist forces in South Vietnam.

    That “incursion,” as Nixon and Kissinger called it, was blamed by some for contributing to Cambodia’s fall into the hands of Khmer Rouge insurgents who later slaughtered some 2 million Cambodians.

    Kissinger, for his part, made it his mission to debunk what he referred to in 2007 as a “prevalent myth” — that he and Nixon had settled in 1972 for peace terms that had been available in 1969 and thus had needlessly prolonged the Vietnam War at the cost of tens of thousands of American lives.

    He insisted that the only way to speed up the withdrawal would have been to agree to Hanoi’s demands that the U.S. overthrow the South Vietnamese government and replace it with communist-dominated leadership.

    Pudgy and messy, Kissinger incongruously acquired a reputation as a ladies’ man in the staid Nixon administration. Kissinger, who had divorced his first wife in 1964, called women “a diversion, a hobby.” Jill St. John was a frequent companion. But it turned out his real love interest was Nancy Maginnes, a researcher for Nelson Rockefeller whom he married in 1974.

    In a 1972 poll of Playboy Club Bunnies, the man dubbed “Super-K” by Newsweek finished first as “the man I would most like to go out on a date with.”

    Kissinger’s explanation: “Power is the ultimate aphrodisiac.”

    Yet Kissinger was reviled by many Americans for his conduct of wartime diplomacy. He was still a lightning rod decades later: In 2015, an appearance by the 91-year-old Kissinger before the Senate Armed Services Committee was disrupted by protesters demanding his arrest for war crimes and calling out his actions in Southeast Asia, Chile and beyond.

    Heinz Alfred Kissinger was born in the Bavarian city of Fuerth on May 27, 1923, the son of a schoolteacher. His family left Nazi Germany in 1938 and settled in Manhattan, where Heinz changed his name to Henry.

    Kissinger had two children, Elizabeth and David, from his first marriage.

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  • Remote workers are flexing their muscle, and the best-run companies won’t fight them

    Remote workers are flexing their muscle, and the best-run companies won’t fight them

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    When COVID-19 struck, companies had little choice but to adapt swiftly. Office spaces were replaced by living rooms and in-person meetings transitioned to virtual calls — a temporary solution, or so it was thought.

    But months have turned into years, and now it’s clear this is not just a fleeting phase but a profound transformation in work dynamics.

    The…

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  • Turkish interest rates jump to 40% as central bank gets tough on inflation

    Turkish interest rates jump to 40% as central bank gets tough on inflation

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    Turkey’s central bank raised interest rates to 40% on Thursday, delivering a bigger-than-expected hike that sparked a rally in the lira.

    Battling inflation that it sees running at an annual pace of 65% by the end of the year and 36% by the end of 2024, the Monetary Policy Committee (MPC) increased its one-week repo rate by 500 basis points from 35%.

    Investors…

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  • The price tag for happiness? Millennials say it’s $525,000.

    The price tag for happiness? Millennials say it’s $525,000.

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    Some people think money can buy happiness.

    Millennials say they need a $525,000 salary to achieve financial happiness, the highest among all generations, according to an Empower survey conducted by the Harris Poll.

    Here are the yearly salaries Americans of different generations say they need to feel happy, according to the poll:

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  • The U.K. is lifting its minimum wage to nearly double the U.S.’s hourly pay floor

    The U.K. is lifting its minimum wage to nearly double the U.S.’s hourly pay floor

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    Chancellor Jeremy Hunt has outlined a plan to lift what’s called the national living wage by nearly 10%, from £10.42 to £11.44 ($14.35). He called that the biggest increase in more than a decade.

    The minimum wage applies in the U.K. to those over the age of 23, though when the new rate goes into effect in April it also will apply to 21- and 22-year-olds.

    Internationally,…

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  • Would you lend your mom your fortune? Estate planning with a twist.

    Would you lend your mom your fortune? Estate planning with a twist.

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    When it comes to estate planning and family giving, the funds tend to run downstream to the younger generations. But one strategy — called upstream giving — could assist older generations during their lifetime and lessen taxes for the family overall.

    This complicated strategy isn’t for the faint of heart. There’s a lot to consider, and a lot of steps need to happen in perfect order for it to work as intended.

    “While…

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  • Argentina stocks and bonds surge after Milei’s victory. Can the party continue?

    Argentina stocks and bonds surge after Milei’s victory. Can the party continue?

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    Argentina stocks surged and bonds rallied following news that radical libertarian economist Javier Milei will become Argentina’s next president after an unexpected electoral win.  

    But investors have their doubts that the initial market moves can be sustained.

    In his campaign, Milei, who is known for brandishing a chainsaw at rallies, outlined…

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  • Senate passes bill to avert government shutdown

    Senate passes bill to avert government shutdown

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    The Democratic-run Senate has approved a short-term funding measure that prevents a partial government shutdown from hitting this weekend, with the vote coming after the Republican-controlled House of Representatives gave its OK on Tuesday to the continuing resolution.

    The measure passed late Wednesday night, by a vote of 87-11.

    “This Friday night there will be no government shutdown,” Senate Majority Leader Chuck Schumer, D-N.Y., said in a floor speech before the vote Wednesday night.

    The White House has said President Joe Biden plans to sign the two-tiered measure into law, noting it “maintains current funding levels and has no harmful policy riders.”

    The measure from House Speaker Mike Johnson, a Louisiana Republican, sets up a divided Washington for more funding fights in early 2024, as it extends government funding for some agencies and programs only until Jan. 19, and for others until Feb. 2.

    The government had been funded just through Friday, so a partial shutdown would have begun early Saturday if U.S. lawmakers hadn’t been able to find agreement on a spending package.

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  • Dow Jones slips after strong run as inflation data looms

    Dow Jones slips after strong run as inflation data looms

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    U.S. edged lower early Monday ahead of important inflation data in coming days, while gauging the possibility of a shutdown of the federal government at the end of the week.

    What’s happening

    • The Dow Jones Industrial Average
      DJIA
      was down 42 points, or 0.1%, at 34,242.

    • The S&P 500
      SPX
      fell 19 points, or 0.4%, to 4,396.

    • The Nasdaq Composite
      COMP
      shed 93 points, or 0.7%, to 13,705.

    The Dow, S&P 500 and Nasdaq Composite rose Friday to score back-to-back weekly gains.

    What’s driving markets

    The S&P 500 has jumped 7.2% over the past two weeks, helped by benchmark borrowing costs
    BX:TMUBMUSD10Y
    falling swiftly from 16-year highs on hopes that recent softer jobs data means inflation can ease further and the Federal Reserve has thus finished its campaign of interest rate rises.

    However, after that strong rally a more cautious tone prevails at the start of the new week as the market awaits a U.S. consumer-price index report for October, due Tuesday, that thus has the heft to underpin the latest bull run or bring it to a halt.

    Read: Stock-market rally faces make-or-break moment. How to play U.S. October inflation data.

    Core CPI growth — which strips out volatile items such as food and energy — is expected to remain steady at 0.3% month-on-month. The producer prices report for October will be published on Wednesday.

    See: This week’s October inflation data looms large on Washington’s economic radar

    October retail sales data is also on the docket this week, offering further clues to the health of the consumer on Wednesday.

    “Most eyes will be focused on the latest inflation numbers, but retail sales and retail earnings will also help set the tone,” Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, said in emailed comments.

    He warned that the market “may be a little more jittery than usual,” following a downgrade of the U.S. credit outlook by Moody’s Investors Service and the possibility of a shutdown of the federal government at the end of the week.

    Also see: House Republicans look to pass two-step package to avoid partial government shutdown

    Worries over a dysfunctional government contributed to Moody’s Investors Service late Friday cutting its outlook on the U.S. sovereign credit rating to negative from stable.

    “This week, we will plunge back into the U.S. political saga, as the government short-term funding deadline is due 17th of November and not much progress has been made to seal a fresh deal,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

    “Depending on the new funding resolution – or the lack thereof – we could see the U.S. 10-year yield return above 4.80%,” Ozkardeskaya added.

    Investors will also be keeping an eye out for a slew of earnings reports from retailers, including Home Depot Inc.
    HD,
    -1.24%

    on Tuesday, Target Corp.
    TGT,
    -0.50%

    on Wednesday and Walmart Inc.
    WMT,
    +0.15%

    on Thursday. Their comments on the health of the consumer may also play into thinking on the Fed.

    Indeed, the earnings season in general should have provided fundamental support to investor sentiment, according to analysts. “For Q3 2023, with 92% of S&P 500 companies reporting actual results, 81%…have reported a positive earnings per share surprise and 61%…have reported a positive revenue surprise,” said John Butters, senior earnings analyst at FactSet.

    The U.S. federal budget update for October will be published at 2 p.m. Eastern. Fed Governor Lisa Cook was due to deliver opening remarks at a Fed conference Monday morning.

    Companies in focus

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  • Sen. Tim Scott drops out of the 2024 Republican presidential race

    Sen. Tim Scott drops out of the 2024 Republican presidential race

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    COLUMBIA, S.C. — Republican presidential candidate Tim Scott announced late Sunday that he was dropping out of the 2024 race, about two months before the start of voting in Iowa’s leadoff caucuses.

    The South Carolina senator, who entered the race in May with high hopes, made the surprise announcement on Fox News Channel’s “Sunday Night in America” with Trey Gowdy. The news was so abrupt that one campaign worker told The Associated Press that campaign staff found out Scott was dropping out by watching the show. The worker was not authorized to discuss the internal deliberations publicly and spoke on condition of anonymity.

    “I love America more today than I did on May 22,” Scott said Sunday. “But when I go back to Iowa, it will not be as a presidential candidate. I am suspending my campaign. I think the voters who are the most remarkable people on the planet have been really clear that they’re telling me, ‘Not now, Tim.’”

    Scott’s impending departure comes as he and the rest of the GOP field have struggled in a race that has been dominated by former President Donald Trump. Despite four criminal indictments and a slew of other legal challenges, Trump continues to poll far ahead of his rivals, leading many in the party to conclude the race is effectively over, barring some stunning change of fortune.

    Scott, in particular, has had trouble gaining traction in the polls, despite millions spent on his behalf by high-profile donors. In his efforts to run a positive campaign, he was often overshadowed by other candidates — particularly on the debate stage, where he seemed to disappear as others sparred. It was unclear whether Scott would qualify for the fourth debate, which will require higher polling numbers and more unique donors.

    He was the second high-profile Republican to depart from the race in the last couple of weeks, coming after former Vice President Mike Pence, who was still dealing with fallout from his decision to reject a scheme by Trump to overturn the results of the 2020 election, which was won by Democrat Joe Biden, and avoid a constitutional crisis.

    Scott said he wouldn’t be making an endorsement of his remaining Republican rivals.

    “The voters are really smart,” Scott said. “The best way for me to be helpful is to not weigh in on who they should endorse.”

    He also appeared to rule out serving as vice president, saying the No. 2 slot “has never been on my to-do list for this campaign, and it’s certainly not there now.”

    Trump’s campaign did not immediately respond to news of Scott’s exit. But Trump has been careful not to criticize the senator, leading some in his orbit to consider Scott a potential vice presidential pick.

    The former president and his team had welcomed a large field of rivals, believing they would splinter the anti-Trump vote and prevent a clear challenger from emerging.

    Scott, a deeply religious former insurance broker, made his grandfather’s work in the cotton fields of the Deep South a bedrock of his political identity and of his presidential campaign. But he also refused to frame his own life story around the country’s racial inequities, insisting that those who disagree with his views on the issue are trying to “weaponize race to divide us,” and that “the truth of my life disproves their lies.”

    He sought to focus on hopeful themes and avoid divisive language to distinguish himself from the grievance-based politics favored by rivals including Trump and Florida Gov. Ron DeSantis.

    DeSantis responded to Scott’s announced departure by commending him as a “strong conservative with bold ideas about how to get our country back on track.

    “I respect his courage to run this campaign and thank him for his service to America and the U.S. Senate,” he wrote on social media.

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  • Stock-market rally faces make-or-break moment. How to play U.S. October inflation data.

    Stock-market rally faces make-or-break moment. How to play U.S. October inflation data.

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    It has been a while since a hot inflation report sparked wild gyrations in U.S. stocks, like it frequently did in 2022, but that doesn’t mean Tuesday’s consumer price index for October is destined to be a snooze-fest for markets.

    To the contrary, some Wall Street analysts believe it is possible, even likely, that the October CPI report could emerge as a critical catalyst for stocks, with the potential to propel the market higher on a softer-than-expected number.

    At least one prominent economist expects the data to show that consumer prices were largely unchanged last month, or even fell.

    “I would not be surprised to see a negative CPI inflation print for October,” said Neil Dutta, head of economics at Renaissance Macro Research, in commentary emailed to MarketWatch.

    “After all, retail gasoline and heating oil prices declined a little over 10% over the month and we know that energy, while representing a small share of total CPI, roughly 7%, can account for a large chunk of the month-to-month swings in CPI.”

    Markets at a crossroads

    The October CPI report arrives at a critical juncture for markets. Investors are trying to anticipate whether the Federal Reserve will follow through with one more interest rate increase, as it indicated in its latest batch of projections, released in September.

    Speaking on Thursday, Federal Reserve Chairman Jerome Powell left the door open to another move, but qualified this — as the Fed almost always has — by insisting that whatever the Fed decides, it will ultimately depend on the data.

    These comments added even more emphasis to next week’s data, said Thierry Wizman, Macquarie’s global FX and interest rate strategist, in commentary emailed to MarketWatch on Friday.

    “Our own view — expressed over the past few days — is that the Fed — and by extension the fixed-income markets — won’t be anticipatory. Rather, the Fed will be highly reactive to the data,” he said. “The next milestone is…CPI. It is likely to have a calming effect on markets, as traders weigh the prospect that a very low headline CPI result will further cool the prospect of excessive wage demands in the labor market.”

    Asymmetric risks

    While assessing the potential impact of a soft inflation report next week, at least one market analyst expects the market’s reaction to the June CPI report, released on July 12, might serve as a helpful template.

    Stocks touched their highest levels of the year within that month, as many interpreted the slower-than-expected increase in prices as an important turning point in the Fed’s battle against inflation. The S&P 500 logged its 2023 closing high on July 31, according to FactSet data,

    Tom Lee, who anticipated both the outcome of the June CPI report and the market’s reaction, told MarketWatch that, at this point, inflation would need to meaningfully reaccelerate to have an adverse impact on the stock market.

    The upshot of this is that the risks for investors heading into Tuesday’s report are likely skewed to the upside. Even a slightly hotter-than-expected number likely wouldn’t be enough to derail the market’s November rebound rally. While a soft reading could reinforce expectations that the Fed is done hiking rates, likely precipitating a rally in both stocks and bonds.

    “I’d say the setup looks pretty favorable,” Lee said.

    Even a modestly hotter-than-expected number likely wouldn’t be enough to derail the market’s November rebound.

    “I think the reaction function is changing for the stock market,” Lee said.

    “Because the Federal Reserve and public market kind of viewed the September CPI as a pretty decent number, and Powell even referred to it as such. Earlier in 2023, I think people would have viewed it as a miss.”

    U.S. inflation has eased substantially since peaking above 9% on a year-over-year basis last summer, the highest rate in four decades. The data released last month showed consumer prices climbed 0.4% in September, softer than the 0.6% from the prior month, but still slightly above expectations.

    However, the more closely watched “core” reading reflected only a 0.3% increase, which was in-line with expectations.

    How long will the ‘last mile’ take?

    There is a perception on Wall Street and within the Federal Reserve that driving inflation down from 3% to the Fed’s 2% target could pose more difficulty for the Fed. After all, most of the easing from last summer’s highs was driven by falling commodity prices and supply-chain normalization as the economic impact of the COVID-19 pandemic faded.

    Powell has repeatedly warned of a “bumpy ride,” and he reiterated on Thursday that the battle against inflation is far from over.

    See: Powell says Fed is wary of ‘head fakes’ from inflation

    Inflation data released this month, and in the months to come, could help to define investors’ expectations for how long this “last mile” might take, helping these reports regain their significance for markets.

    “I like a calm market, but I think CPI is coming more in focus these days now that we’re getting closer to that 2% target,” said Callie Cox, U.S. investment analyst at eToro, during a phone call with MarketWatch.

    Since the start of 2023, the S&P 500 index hasn’t seen a single move of 1% or greater on a CPI release day, according to FactSet data. By comparison, the biggest daily swings seen in 2022 occurred on CPI days, with the large-cap index sometimes swinging 4% or more in a single session.

    Economists polled by FactSet expect consumer prices rose 0.1% in October, following a 0.4% bump in September. They expect a 0.3% increase for core prices, which excludes volatile food and energy. Powell has said that he’s keeping a close eye on core inflation, as well as so-called “supercore” inflation, which measures the cost of services inflation excluding housing.

    To be sure, the CPI report isn’t the only piece of potentially market-moving news due during the coming week. Investors will also receive a monthly update from the Treasury that includes data on foreign purchases and sales of Treasury bonds, as well as a flurry of other economic reports, including potentially market-moving readings on housing-market and manufacturing activity.

    There is also the producer-price index, another closely watched barometer of inflation, which is due out Thursday.

    U.S. stocks have risen sharply since the start of November, with the S&P 500
    SPX
    up more than 5.3%, according to FactSet data.

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  • Dow ends nearly 400 points higher as tech rally leads stocks to highest close since September

    Dow ends nearly 400 points higher as tech rally leads stocks to highest close since September

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    U.S. stocks ended sharply higher Friday, more than shaking off weakness seen the previous session in the aftermath of a poor Treasury bond auction and fresh signs that interest rates may stay higher for longer.

    Technology stocks drove the bounce, with the Nasdaq Composite leading major indexes to the upside as it and the S&P 500 logged their highest finishes since September.

    What happened

    • The Dow Jones Industrial Average
      DJIA
      rose 391.16 points, or 1.2%, to close at 34,283.10.

    • The S&P 500
      SPX
      ended with a gain of 67.89 points, or 1.6%, at 4,415.24.

    • The Nasdaq Composite
      COMP
      advanced 276.66 points, or 2%, to finish at 13,798.10.

    The rally left the Dow with a weekly gain of 0.7%, while the S&P 500 advanced 1.3% and the Nasdaq booked a rise of 2.4%. The Dow saw its highest close since Sept. 20, while the S&P 500 ended at its highest since Sept. 19 and the Nasdaq at its highest since Sept. 14.

    Market drivers

    Tech was in the driver’s seat. Shares of Microsoft Corp.
    MSFT,
    +2.49%

    jumped 2.5%, with the Dow component scoring its third record close in four sessions. Intel Corp. shares
    INTC,
    +2.80%

    rose 2.8% to lead Dow gainers.

    Meanwhile, the S&P 500 tested important chart resistance at the 4,400 to 4,415 level, which marks the confluence of previous resistance and the 61.8% Fibonacci retracement of the July-October drop, according to Matthew Weller, global head of research at Forex.com, in a note (see chart below).


    Forex.com

    “From a bigger picture perspective, bulls will need to see the index conclusively break above 4415 before declaring that the post-July streak of lower lows and lower highs is over,” Weller wrote.

    The S&P 500 and Nasdaq Composite ended their longest winning streaks since November 2021 on Thursday, after a poorly-received $24 billion sale of 30-year Treasury bonds.

    A calmer bond market may have helped set the tone for stocks. The yield on the 30-year Treasury bond
    BX:TMUBMUSD30Y
    fell 3.2 basis points to 4.733%, after it nearly notched its biggest one-day jump since June 2022. The yield still saw a weekly decline, its third straight.

    It was unclear whether the Treasury auction had been affected by a reported ransomware attack against the U.S. unit of the Industrial & Commercial Bank of China that apparently disrupted the U.S. Treasury market.

    See: How ransomware attack on ICBC rattled the Treasury market and shook up a 30-year bond auction

    Thursday’s setback was also tied to comments from Federal Reserve Chairman Jerome Powell, who told an International Monetary Fund panel on Thursday that the central bank was wary of “head fakes” from inflation, and the “2% goal was not assured.”

    Much of Powell’s language was nearly identical to remarks he made on Nov. 1, when investors rallied stocks and bonds after the Fed chair didn’t explicitly commit to a further interest rate hike. But the subsequent rally for stocks after the Nov. 1 Fed meeting, with the S&P 500 jumping more than 6% over eight days, and a 50 basis point drop in the 10-year Treasury yield were “overdone and not governed by facts,” said Tom Essaye, founder of Sevens Report Research, in a note.

    “Meanwhile, if we think about what the Fed said last week, namely that the rise in the 10-year yield was doing the Fed’s work for it and as a result they may not have to hike rates, then the short/sharp decline in the 10-year yield we’ve seen could essentially remove the reason for the Fed not having to hike rates — and that could put a rate hike back on the table!” he wrote. “That’s essentially what Powell reminded us of yesterday and that, along with the poor Treasury auction, pushed yields higher,” setting up pressure on stocks.

    U.S. consumer sentiment fell in November for the fourth month in a row due to worries about higher interest rates as well as war in the Middle East. The preliminary reading of the sentiment survey declined to 60.4 from 63.8 in October, the University of Michigan said Friday. It’s the weakest reading since May.

    Investors were also tuning into more comments by Fed officials Friday, including San Francisco Fed President Mary Daly, who said she didn’t know if rates were high enough to bring inflation back down to the central bank’s 2% target.

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  • Foreign passport holders leaving Gaza for first time since war began

    Foreign passport holders leaving Gaza for first time since war began

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    Dozens of foreign passport holders could be seen entering the Rafah crossing from Gaza to Egypt on Wednesday. It appeared to be the first time foreign passport holders have been allowed to leave the besieged territory since the start of the Israel-Hamas war more than three weeks ago.

    Early Wednesday, providers Paltel and Jawwal reported a “complete disruption” of communications and internet services in Gaza, the second major cut in five days. Humanitarian aid agencies have warned that such blackouts severely disrupt their…

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