MARKET RECAP at 4 pm ET

Uncertainty around a coronavirus

stimulus deal pushed equity indexes

lower, while Tesla hit a lifetime high in

anticipation of their addition to the S&P

500 next week. The Treasury yield

curve steepened. Hopes for additional

distribution of coronavirus vaccines

helped push oil prices higher. The

dollar rebounded, while gold prices

slipped.

Coming Up - On Monday Top officials from the World Health

Organization (WHO), including

Director-General Tedros Adhanom

Ghebreyesus, are expected to give a

press conference in Geneva on the

latest developments in the COVID-19

pandemic.

The European Medicines Agency

said an expert panel would convene to

evaluate the coronavirus vaccine made

by U.S. company Pfizer Inc and its

German partner BioNTech SE.

Mexico's statistics agency is expected

to report retail sales data for October.

The country's retail sales in September

rose 2.7% from the previous month,

while they decreased 7.1% from a year

earlier. Mexico's jobless rate data is

also scheduled for release.

LIVECHAT-REUTERS GLOBAL

MARKETS FORUM

Reuters FX Buzz Analyst Jeremy

Boulton looks at the weekly outlook for

G7 currencies and select EM FX pairs.

(0700 ET/1200 GMT) To join the

conversation, click here

KEY ECONOMIC EVENTS

National Activity Index for November 0830 -- 0.83

Events ET Poll Prior

STOCKS Close %Chng Yr-high Yr-low Chng

DJIA 30187.86 -115.51 -0.38 30325.79 18213.65

Nasdaq 12755.64 -9.11 -0.07 12765.25 6631.42

S&P 500 3709.41 -13.07 -0.35 3725.12 2191.86

Toronto 17534.63 -118.31 -0.67 17970.51 11172.73

FTSE 6529.18 -21.88 -0.33 7689.67 4898.79

Eurofirst 1528.72 -4.28 -0.28 1691.19 1051.38

Nikkei 26763.39 -43.28 -0.16 26894.25 16358.19

Hang Seng 26498.60 -179.78 -0.67 29174.92 21139.26

TREASURIES Yield Price

10-year 0.9479 -6 /32

2-year 0.1230 0 /32

5-year 0.3814 -1 /32

30-year 1.6972 -17 /32

FOREX Last % Chng

Euro/Dollar 1.2247 -0.15

Dollar/Yen 103.32 0.21

Sterling/Dollar 1.3493 -0.66

Dollar/CAD 1.2780 0.48

TR/HKEX RMB 95.12 0.17

COMMODITIES ($) Price Chng % chng

Front Month Crude /barrel 49.04 0.68 1.41

Spot gold (NY/oz) 1879.76 -6.11 -0.32

Copper U.S. (front month/lb) 0.0363 0.0003 0.92

CRB Index Total Return 176.86 1.02 0.58

S&P 500 Price $ Chng % Chng

GAINERS

Fortinet Inc 145.85 9.43 6.91

Vulcan Materials Co 145.29 5.75 4.12

Martin Marietta Materials Inc 276.61 10.88 4.09

LOSERS

Intel Corp 47.46 -3.19 -6.30

FedEx Corp 275.50 -16.76 -5.73

Vornado Realty Trust 36.64 -1.74 -4.53

Coming Up - Week Ahead

On the U.S. economic schedule, the

Commerce Department on Tuesday is

expected to report final gross

domestic product for third-quarter

rose 33.1%. b likely dropped 0.9% to a

seasonally adjusted annual rate of

990,000 units in November, the

Commerce Department is expected to

report on Wednesday. On Tuesday, the

National Association of Realtors is

expected to post existing home sales

dropped 1% to a seasonally adjusted

annual rate of 6.70 million units in

November. Building permits data for

November is due for release on

Wednesday. The Labor Department on

Wednesday is expected to report initial

claims for state unemployment

benefits likely increased to a

seasonally adjusted 900,000 for the

week ended Dec. 14 from 885,000 in

the prior week. Personal income likely

fell 0.3% in November after a 0.7% fall

in October, the Commerce Department

is expected to report on Wednesday.

The personal consumption

REUTERS/Shannon Stapleton

2

expenditures (PCE) price index for

November is scheduled for release on

Wednesday. The core-PCE price

index is expected to rise 0.1% in

November, after remaining flat in

October. On Wednesday, the

Commerce Department is expected to

report orders for durable goods

increased 0.6% in November, following

a 1.3% rise in October. On

Wednesday, a survey by the University

of Michigan is expected to show

consumer sentiment remains

unchanged at 81.4 in December.

On Wednesday, Brazil's Sao Paulo

state government and the biomedical

center Butantan Institute are

scheduled to announce preliminary

efficacy results from late stage trials for

CoronaVac, the COVID-19 vaccine

developed by China's Sinovac

Biotech Ltd.

Canada's gross domestic product

data for October is scheduled for

release on Wednesday. The country's

September's GDP rose by 0.8%.

Statistics Canada is expected to report

building permits data for November on

Thursday. The value of Canadian

building permits fell by 14.6% in

October.

Mexico's economic activity data for

October is due for release on

Wednesday. The economy grew 1% in

September. Mexico's trade balance

data for November is set for release on

Thursday. The country posted a trade

surplus of $6.224 billion in October.

Mexico's consumer price inflation

figures for the first half on December is

scheduled for release on Wednesday.

On Tuesday, Brazil's IPCA-15

consumer price index data for the

month to mid-December is due for

release. The country's IPCA-15

consumer price index rose 0.81% in

the month to mid-November.

Argentina's trade balance data for

November is expected on Tuesday.

The country posted a $612 million

trade surplus in October. Argentina's

economic activity for October and

current account data for the third

quarter will be released on

Wednesday.

The CN Tower stands at dusk above office buildings and condominiums in the downtown core of

Toronto, Ontario, Canada September 20. REUTERS/Chris Helgren

KEY RESULTS

No major S&P 500 companies are scheduled to report for the day.

3

U.S. stocks ended lower, pulled down

by uncertainty around a coronavirus

stimulus deal, while Tesla shares hit a

lifetime high in anticipation of their

addition to the S&P 500 next week.

The S&P 500 technology index fell

0.34% to 2,252.06. Tesla rose 5.96%

higher to end at $695. FedEx fell

5.73% after it did not give an earnings

forecast for 2021, even as its quarterly

profit almost doubled. Microsoft was

down 0.38% after it said it found

malicious software in its systems

related to a massive hacking campaign

disclosed by U.S. officials this week.

Shares in cyber security companies

climbed rapidly as investors bet that a

spate of cyber attack disclosures would

boost demand for security technology.

Fireye's shares ended 33.73% higher

while Palo Alto Networks ended

7.21% higher. The Dow Jones

Industrial Average fell 0.38% to

30,187.86, the S&P 500 lost 0.35% to

3,709.41 and the Nasdaq Composite

dropped 0.07% to 12,755.64. For the

week, the S&P 500 rose 1.25%, the

Dow added 0.44%, the Nasdaq gained

3.05%

The Treasury yield curve steepened

as investors waited to see whether the

U.S. Congress would agree on $900

billion in fresh COVID-19 relief by the

end of the day. The spread between

the 2 and 10-year yields, the most

common measure of the yield curve,

rose to 82.50 basis points. With Brexit

and U.S. fiscal negotiations expected

to stumble across the finish line this

weekend, and U.S. stock market

indexes lower, U.S. Treasuries

"showed hardly any sympathy to

established correlations," wrote Edward

Acton, U.S. rates strategist at

Citigroup. 2-year notes were flat,

yielding 0.12%. 10-year notes were

5/32 lower to yield 0.94%. 30-year

bonds were 13/32 lower, with a yield of

1.70%.

The dollar rose as doubts about an

agreement on U.S. COVID-19 aid and

Brexit trade negotiations deflated

investor confidence. The U.S.

Congress looked increasingly unlikely

to meet a deadline to agree on $900

billion in fresh COVID-19 aid and

instead may pass a third stopgap

spending bill to keep the government

from shutting down at midnight.

Brexit "is a major risk item that is not

being resolved," said Juan Perez,

senior foreign exchange trader and

strategist at Tempus Inc. "That ruins

the whole global stability narrative and

that helps the dollar," Perez said. The

lack of a U.S. stimulus resolution and

mounting global COVID-19 deaths are

also fueling the flight to safe-haven

assets, Perez said. The dollar index

was last up 0.20% to 90.00, after

dropping to 89.723. The pound was

last down 0.66% to $1.3493.

Oil rose more than 1% and was

headed for a seventh straight weekly

gain as investors focused on the rollout

of COVID-19 vaccines and looked past

rising coronavirus cases across the

world. "Oil prices are very healthy

under the circumstances," said Bjornar

Tonhaugen of Rystad Energy. "Market

euphoria has not stopped really." Brent

crude was up 1.38%, at $$52.21 per

barrel after touching $52.25. U.S. West

Texas Intermediate (WTI) crude was

up 1.32% at $49.00 per barrel, after

reaching $49.18.

Gold prices slipped after three days of

gains as the dollar's rebound offset

support from hopes of a U.S. fiscal

stimulus package. "Gold has attached

itself entirely to the negotiations on the

stimulus package. ... The market will

rally if there's positive momentum

towards reaching a stimulus deal, and

if there's any indication of a delay gold

pulls back," said Jeffrey Sica, founder

of Circle Squared Alternative

Investments. The precious metal was

still on track for a third straight weekly

gain. Spot gold was down 0.3% at

$1,880.18 per ounce U.S. gold futures

fell 0.19% to $1,886.80 per ounce.

Market Monitor

A file photo shows a trader wearing a protective face mask walking, as the global outbreak of the

coronavirus disease (COVID-19) continues, outside the New York Stock Exchange (NYSE) in the

financial district of New York, U.S., November 19. REUTERS/Shannon Stapleton

4

Top News

Tesla shares rise in busy trade

ahead of S&P 500 debut

Shares of Tesla rose to a record high

on heavy volume, as investors geared

up for the electric car maker's much

anticipated entrance into the

benchmark S&P 500 index. The

company headed by billionaire Elon

Musk on Monday will become the most

valuable ever admitted to Wall Street's

main benchmark, accounting for over

1% of the index. The shares have

surged over 60% since mid-November,

when its debut in the S&P 500 was

announced, and have soared some

700% so far in 2020. Tesla's addition to

the S&P 500 is forcing index-tracking

funds to buy about $85 billion worth of

the shares by the end of Friday's

session so that their portfolios reflect

the index, according to S&P Dow

Jones Indices. Those funds

simultaneously have to sell other S&P

500 constituents' shares worth the

same amount.

Google trial judge suggests

potential trial date, and it is in 2023

The judge hearing the U.S. Justice

Department's antitrust case against

Alphabet's Google suggested a trial

date of Sept. 12, 2023. U.S. District

Judge Amit Mehta suggested the date

during a status conference, and

counsel for the two sides did not object.

Mehta noted that the two sides

appeared to expect that discovery

would be completed in March 2022,

with other pretrial matters not

addressed until early 2023. "It seems

to me that we're looking at late

summer, early fall of 2023 for a trial, a

potential trial," said Mehta before

suggesting Sept. 12, 2023, for a

potential trial date. The two sides also

began the process of at least partially

consolidating the government's case

with a lawsuit that 38 states and

territories filed against Google on

Thursday, specifically in terms of pre-

trial matters.

U.S. blacklists dozens of Chinese

firms including SMIC, DJI

The United States added dozens of

Chinese companies, including the

country's top chipmaker SMIC and

Chinese drone manufacturer SZ DJI

Technology Co Ltd, to a trade blacklist

as U.S. President Donald Trump's

administration ratchets up tensions with

China in his final weeks in office. The

U.S. Commerce Department said the

action against SMIC stems from

Beijing's efforts to harness civilian

technologies for military purposes and

evidence of activities between SMIC

and Chinese military industrial

companies of concern. The Commerce

Department will "not allow advanced

U.S. technology to help build the

military of an increasingly belligerent

adversary," Secretary Wilbur Ross said

in a statement. The department also

said it was adding the world's biggest

drone company DJI to the list along

with AGCU Scientech; China National

Scientific Instruments and Materials,

and Kuang-Chi Group for allegedly

enabling "wide-scale human rights

abuses."

U.S. Vice President Pence says

Moderna's COVID-19 vaccine could

be approved Friday

U.S. Vice President Mike Pence said

the U.S. approval for Moderna's

coronavirus vaccine could come within

hours later on Friday, after President

Donald Trump tweeted that the vaccine

had been approved. The U.S. Food

and Drug Administration has made no

public announcement yet regarding its

decision, and redirected Reuters to its

statement from Thursday that the

agency was working to rapidly

authorize the vaccine. A panel of

outside FDA advisers met to discuss

Moderna's vaccine on Thursday and an

agency decision on its emergency use

authorization was expected as soon as

Friday. The panel had endorsed its use

with a 20-0 vote, and one abstention,

that the vaccine's benefits outweighed

its risks. Separately, Moderna said the

European Commission had exercised

its option to purchase an additional 80

million doses of its experimental

COVID-19 vaccine. To read more,

click here

A Tesla car is seen in Los Angeles, California, U.S., July 9. REUTERS/Lucy Nicholson

5

SolarWinds hackers broke into U.S.

cable firm and Arizona county, web

records show

Suspected Russian hackers accessed

the systems of a U.S. internet provider

and a county government in Arizona as

part of a sprawling cyber-espionage

campaign disclosed this week,

according to an analysis of publicly-

available web records. The hack, which

hijacked ubiquitous network

management software made by

SolarWinds to compromise a raft of

U.S. government agencies, is one of

the biggest ever uncovered and has

sent security teams around the world

scrambling to contain the damage. The

intrusions into networks at Cox

Communications and the local

government in Pima County, Arizona,

show that alongside victims including

the U.S. departments of Defence,

State, and Homeland Security, the

hackers also spied on less high-profile

organisations. A spokesman for Cox

Communications said the company

was working "around the clock" with

the help of outside security experts to

investigate any consequences of the

SolarWinds compromise.

Centene expects 2021 profit miss on

low Obamacare enrollment, shares

slip

Health insurer Centene forecast 2021

adjusted profit that missed Wall Street

estimates, after it said membership in

its Obamacare business fell short of

expectations. The company expects

adjusted 2021 profit between $5 and

$5.30 per share, missing estimates of

$5.44 per share. Total revenues are

likely to be between $114.1 billion and

$116.1 billion, Centene said, while it

expected a health benefits ratio, which

is the amount spent on medical claims

compared to the income from

premiums, of around 86.6% to 87.2%.

Shares of the company closed 1.41%

down to $61.22.

Walgreens, CVS start administering

Pfizer vaccine in U.S. nursing

homes, care facilities

Walgreens Boots Alliance and CVS

Health said they have begun

administering Pfizer's COVID-19

vaccine to residents and staff at some

U.S. long-term care facilities. The

companies, which run the nation's

largest pharmacy chains and offer

other offsite pharmacy services, have

agreed with the federal government to

vaccinate nursing home residents

across the country through a voluntary

program. Walgreens said it plans to

administer the vaccine to about 3

million residents and staff in 35,000

long-term care facilities. The company

said it would provide vaccinations in

about 800 long-term care facilities

across 12 states in the coming week.

CVS did not say how many people

would be given the vaccine on Friday,

but that it is administering them at a

"handful" of long-term care facilities in

Connecticut and Ohio. Its national

rollout also begins next week in 12

states.

U.S. charges China-based Zoom

executive with disrupting

Tiananmen crackdown

commemorations

U.S. prosecutors charged a China-

based executive at Zoom Video

Communications with disrupting video

meetings commemorating the 31st

anniversary of the Tiananmen Square

crackdown at the request of the

Chinese government. Xinjiang Jin, 39,

faces up to 10 years in prison if

convicted of conspiring since January

2019 to use his company's systems to

censor speech, the U.S. Department of

Justice said. Zoom was not named in

court papers, but its identity was

confirmed by a person close to the

matter. Papers filed in federal court in

Brooklyn said Jin's employer is based

in San Jose, California, where Zoom is

headquartered. Prosecutors said Jin, a

software engineer and his employer's

main liaison with Chinese law

enforcement and intelligence, helped

terminate at least four video meetings

in May and June, including some

involving dissidents who survived the

June 4, 1989, student protests.

Separately, friends and families kept

apart by COVID this Christmas and

New Year will not find their virtual

gatherings over Zoom cut short by the

usual 40-minute limit for free

subscribers. To read more, click here

GM's union in S.Korea approves

second tentative labour deal -union

official

The union representing workers for

General Motors in South Korea have

voted in favour of a preliminary labour

deal with the automaker, a union

official told Reuters. The result came

after union negotiators reached a

second tentative agreement with GM

last week after the union members

rejected the first deal. The two sides

have had 26 rounds of negotiations

since July. About 54% of members

approved the agreement while around

44% rejected the terms. The remaining

votes were invalid. In the second deal,

GM agreed to drop a damage suit filed

against its union and offered the lump-

sum payment worth 4 million won for

each member by end of the year, an

official at GM's South Korean operation

told Reuters. The automaker also

offered to raise discount rates on cars

for employees and their families.

Philips buys U.S. cardiac care

company BioTelemetry in $2.8

billion deal

Dutch health technology company

Philips is set to buy U.S. cardiac

diagnostics and monitoring firm

BioTelemetry in a $2.8 billion deal that

will strengthen its offering of remote

care products. Philips said it would pay

$72 per outstanding BioTelemetry

share in cash, in an offer supported by

the U.S. company's board at a 16.5%

premium to the stock's closing price on

Thursday. It will become part of Philips'

connected care business, which offers

a range of platforms and devices that

allow patients to stay at home while

being monitored. Philips banks on

rising life expectancy and associated

chronic diseases to make this business

a pillar for future growth. This year the

COVID-19 pandemic led to a surge in

demand for remote monitoring

solutions. "We have always been very

optimistic about connected care," its

Chief Executive Frans van Houten told

reporters. “With COVID we have seen

an acceleration of the demand and we

think this acquisition fits perfectly in this

era where remote patient monitoring

will become ever more important.”

6

Debate over pulling fuses widens

regulatory cracks on 737 MAX

Boeing's 737 MAX is set to return to

the skies in Canada with a local twist in

the cockpit, after Ottawa became the

last major Western regulator to lift a 20-

month safety ban. Small print in

Thursday's Transport Canada

announcement sheds light on a

regulatory split over the use of a less

common tactic to overcome cockpit

distractions, deepening international

disunity over the lessons from two fatal

crashes. Transport Canada joined the

U.S. Federal Aviation Administration

and other regulators in requiring more

training and revisions to MCAS anti-

stall software implicated in the crashes

in Indonesia and Ethiopia, which killed

346 people.

Nike's free workout apps are key to

its high-end pricing strategy

With consumers under lockdown

logging into Nike's workout apps and

digital store, the company has been

able to gather additional data on

purchasing habits, personal information

and exercise routines of tens of millions

of people. Between January and

November this year, the Nike Run Club

app was downloaded 15.4 million times

around the world, up 45.3% versus the

same period in 2019, according to data

firm Sensor Tower. The Nike SNKRS

online store app was downloaded

59.5% times more than last year.

Through its apps, Nike has information

ranging from people’s height and

weight to locations and browsing

habits.

The Empires Strike Back: Disney,

Comcast, AT&T set streaming battle

Next year, as coronavirus vaccines roll

out around the world, consumers are

expected to return to restaurants,

sports arenas and cinemas. But with

films like “Matrix 4,” “In the Heights”

and “Dune” hitting TVs at the same

time as theaters, and Marvel series

“The Falcon and the Winter Soldier”

and “Loki” streaming on Disney+, will

they even want to? The pandemic

accelerated a push to subscription

streaming video services like Netflix

and Disney+ that was already

underway, leading to a surplus of top-

shelf content being available to

consumers in 2021. But behind the

scenes of this new golden age of

television is a battle over the future of

Hollywood.

U.S. Vice President Mike Pence receives the COVID-19 vaccine at the White House in Washington, U.S., December 18. REUTERS/Cheriss May

Insight and Analysis

7

CANADA COMING UP - ON MONDAY Market Monitor

Top News

Canada budget deficit soars over

first seven months of 2019/20

Canada's budget deficit from April to

October soared to C$261.62 billion

from C$9.05 billion a year earlier,

reflecting massive amounts of

government stimulus to combat the

coronavirus epidemic, the finance

ministry said. Revenues fell by 19.3%

in the April-October period, reflecting a

broad-based reduction in revenues.

The deficit in October jumped to

C$18.51 billion compared to a shortfall

of C$3.25 billion in October 2019.

Canada October retail sales grew by

0.4%

Canadian retail sales grew by 0.4% to

$54.59 billion in October, led by motor

vehicle and parts dealers, Statistics

Canada said. Sales increased in six of

11 subsectors, representing 50.9% of

retail trade. In volume terms, sales

edged up 0.2%. Statscan said a flash

estimate showed that sales in

November were relatively unchanged.

Canada to get 500,000 Pfizer COVID-

19 doses in January, PM Trudeau

says

Canada will receive about a half million

doses of the Pfizer COVID-19 vaccine

in January and the rollout of the shots

is going as planned, Prime Minister

Justin Trudeau said, as some areas

braced for possible new restrictions.

Canada began inoculations on Monday

with the Pfizer vaccine, and will receive

about 255,000 total doses in

December, slightly more than the

249,000 announced earlier this month,

Procurement Minister Anita Anand

said. "In January, we'll be getting

125,000 doses of the Pfizer vaccine

per week, for a total of 500,000 doses

that month," Trudeau said.

Canada, Britain very close to deal to

avoid post-Brexit tariffs -sources

Canada and Britain are on the verge of

a deal to ensure that free trade

between the two, post-Brexit, can

continue until the Canadian Parliament

approves a new bilateral agreement,

according to four well-placed sources.

The two sides are discussing a bridging

mechanism allowing them to

temporarily waive tariffs, the sources

said. This would likely take the form of

a memorandum of understanding that

Ottawa could agree to without needing

approval from legislators.

Canada's small lenders face post-

pandemic growth hurdle as bigger

rivals win deposits

Canadians are stuffing savings into

bank deposits at some of the fastest

rates since the global financial crisis,

but smaller lenders are losing out to

bigger rivals, facing a tough time when

the economy and lending begin to

recover. The biggest banks grew

personal deposits by 21% in the three

months to Oct. 31 from a year earlier to

a record C$1.7 trillion, driven by

government stimulus and business

closures that have crimped spending.

Smaller lenders, however, struggled to

record growth figures in the single

digits, despite offering higher interest

rates, as savers stuck with familiarity

and size in an uncertain economic

climate, analysts said.

Canada pension investor CDPQ to

invest $1 billion in Invenergy

Canadian pension fund Caisse de

dépôt et placement du Québec said it

would invest $1 billion in Invenergy

Renewables, the largest private

developer, owner and operator of wind

and solar projects in North America.

The $1-billion investment by CDPQ is

the largest since it began its

partnership with company in 2013 said

Executive Vice-President and Head of

Infrastructure Emmanuel Jaclot at

CDPQ.

Canada's financial watchdog head

Rudin to retire in June

Canada's Superintendent of Financial

Institutions Jeremy Rudin will retire at

the end of his current mandate in June,

the financial regulator said. Rudin will

conclude his seven-year term on June

28, and will not seek a second term,

the Office of the Superintendent of

Financial Institutions said. Rudin

served for six years as assistant deputy

minister of the financial sector policy

branch at the department of finance

before being appointed superintendent.

TSE's S&P/TSX composite Price C$ chng % chng

GAINERS

Trillium Therapeutics Inc 15.97 0.71 4.65

Ballard Power Systems Inc 27.12 1.10 4.23

Methanex Corp 58.10 2.11 3.77

LOSERS

BlackBerry Ltd 8.85 -1.66 -15.79

Enghouse Systems Ltd 61.86 -6.03 -8.88

OceanaGold Corp 2.39 -0.15 -5.91

Canada's main stock index shed

initial gains to snap its three-day

winning streak due to weakness in

materials sector

The S&P/TSX composite index ended

0.67% lower to 17,534.63. The

Materials sector ended 1.5% down at

323.32.

BlackBerry fell 15.79% after the

cybersecurity firm missed Wall Street

estimates for third-quarter revenue.

The U.S. dollar was 0.5% higher

against the Canadian dollar at

C$1.27.

No major events are scheduled.

8

WEALTH NEWS

GRAPHIC

Retail traders leave Wall Street for dust in

2020 stocks rally

Retail traders have ridden 2020's stock market

rally better than the professionals, with their

most popular picks outperforming market

indexes and well-resourced investors such as

hedge funds. Online trading platforms have

reported a retail rush since the COVID-19

pandemic hit markets in March, with near-zero

interest rates and a roaring rebound luring a

new generation of stuck-at-home traders

wanting to sharpen their skills on stocks. And

while the scramble into fast-growing but highly-

valued stocks has echoes of the 2000 dotcom

bubble, plentiful cheap cash means retail

traders do not yet look ready to cash in.

ECONOMY IN NUMBERS

U.S. current account deficit rises to more than 12-year high

The U.S. current account deficit surged to its highest level in more than 12 years in the third quarter as a record rebound in

consumer spending pulled in imports, outpacing a recovery in exports. The Commerce Department said the current account

deficit, which measures the flow of goods, services and investments into and out of the country, widened 10.6% to $178.5

billion last quarter. That was the highest since the second quarter of 2008.

COVID-19 AID

Late-breaking dispute over Fed rules risks U.S. COVID-19 relief as deadline nears

Backed into a corner, the U.S. Congress risked blowing through a midnight deadline to keep the government open and

address the coronavirus crisis, as a partisan fight over federal lending rules caused a fresh delay on a $900 billion COVID-19

relief bill.

WALL STREET WEEK AHEAD

Investors bet old-school retailers will rebound in 2021

As holiday shopping season wraps up, U.S. equity investors are gauging whether long-languishing shares of brick-and-mortar

retailers can sustain their recent rebound in anticipation of a full economic reopening in 2021.

ANALYSIS

Billions for bar service? Fed bond buying now tied to service sector rebound

As U.S. housing starts surged in November to close in on 14-year highs, keeping builders and contractors on the job,

consumer spending slumped and in particular the flow of people back to restaurants reversed itself as the coronavirus

pandemic intensified. Construction added 27,000 jobs last month. The food and beverage service industry shed 17,000. Guess

which is more on the minds of Federal Reserve policymakers these days?

COINBASE LISTING

Coinbase picks Goldman Sachs to lead listing plans -source Cryptocurrency exchange Coinbase has hired Goldman Sachs to lead preparations for its planned stock market listing, a person familiar with the matter said.

FEDERAL RESERVE AND CLIMATE CHANGE RISK

Fed's Brainard lays out case for Fed's climate change focus

Federal Reserve Board Governor Lael Brainard laid out the case for the U.S. central bank to take climate change risks into

account as part of its financial stability writ, pushing back against some Republican lawmakers who say doing so would be ill-

advised.

9

ON THE RADAR

Events ET Poll Prior

Tue: Corporate profits revised for Q3 0830 -- 27.5%

GDP final for Q3 0830 33.1% 33.1%

GDP sales final for Q3 0830 -- 25.6%

GDP cons spending final for Q3 0830 -- 40.6%

GDP deflator final for Q3 0830 -- 3.7%

Core PCE prices final for Q3 0830 3.5% 3.5%

PCE prices final for Q3 0830 -- 3.7%

Existing home sales for November 1000 6.70 mln 6.85 mln

Existing home sales percentage change for November 1000 -1.0% 4.3%

Rich Fed Composite Index for December 1000 -- 15

Rich Fed, Services Index for December 1000 -- 13

Rich Fed Manufacturing Shipments for December 1000 -- 20

Wed: Build permits R number for November 0800 -- 1.639 mln

Build permits R change mm for November 0800 -- 6.2%

Personal income mm for November 0830 -0.3% -0.7%

Personal consumption real mm for November 0830 -- 0.5%

Consumption, adjusted mm for November 0830 -0.2% 0.5%

Core PCE price index mm for November 0830 0.1% 0%

Core PCE price index yy for November 0830 1.5% 1.4%

PCE price index mm for November 0830 -- 0.0%

PCE price index yy for November 0830 -- 1.2%

Durable goods for November 0830 0.6% 1.3%

Durables ex-transport for November 0830 0.5% 1.3%

Durables ex-defense mm for November 0830 -- 0.2%

Nondefense cap ex-air for November 0830 0.6% 0.8%

Initial jobless claims 0830 900,000 885,000

Jobless claims 4-week average 0830 -- 812,500

Continue jobless claim 0830 -- 5.508 mln

Monthly home price mm for October 0900 -- 1.7%

Monthly home price yy for October 0900 -- 9.1%

Monthly Home Price Index for October 0900 -- 302.6

U Mich Sentiment Final for December 1000 81.4 81.4

U Mich Conditions Final for December 1000 -- 91.8

U Mich Expectations Final for December 1000 -- 74.7

U Mich 1 year inflation final for December 1000 -- 2.3%

U Mich 5-year inflation final for December 1000 -- 2.5%

New home sales units for November 1000 0.990 mln 0.999 mln

New home sales change mm for November 1000 -0.9% -0.3%

Dallas fed PCE for November 1200 -- 0.6%

The Day Ahead - North America is compiled by Nachiket Tekawade and Siddharth Athreya in Bengaluru.

For questions or comments about this report, email us at: TheDay.Ahead@thomsonreuters.com.

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(The Day ahead – North American will not be published through the year-end holiday season, from December 25,

2020 to January 1, 2021. Normal service will resume from January 4, 2021. Season’s Greetings and Happy New Year.)

A pedestrian walks through the falling snow in Boston, Massachusetts, U.S., December 17. REUTERS/Brian Snyder