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U.S. News

The Wall Street Journal reports that the European Union is moving ahead with imposing tariffs on nearly $4 billion of Boeing jets and other U.S. goods in response to U.S. tariffs imposed on $7.5 billion of Airbus jets and EU products last year. The action is likely to be viewed as hostile by the U.S. given the prior repeal of the disputed subsidies, but European officials have expressed hope for reaching a negotiated trade settlement with the outgoing presidential administration. WSJ

According to the New York Times, despite the prospect of a divided Washington in January, the Biden team could follow the current administration’s lead and exert unilateral power over certain economic issues through executive action, regulatory tweaks, and personnel changes. Indirect economic stimulus, trade policy, and enhanced consumer protections are a few of the areas that a presidential administration could influence despite Congressional opposition. NYT

U.S. Economic Indicators

The U.S. economy gained 638,000 jobs in October, above expectations. The unemployment rate declined by 1.0 percentage point to 6.9% and the labor force participation rate rose 0.3 percentage point to 61.7%. BLS Report

U.S. News

The Wall Street Journal reports that Fed officials left policy essentially unchanged at the conclusion of their two-day meeting on Thursday while reemphasizing the scale of pandemic risks and the need for sustained stimulus. Fed officials remain insistent that additional fiscal support from Congress will be necessary given the limited effectiveness of the central bank’s tools to address the fallout from the pandemic. WSJ

U.S. Economic Indicators

Initial jobless claims fell 7,000 to 751,000 last week. The four-week moving average decreased 4,000 to 787,000. DOL Report

Nonfarm business sector labor productivity increased 4.9% in Q3 and was up 4.1% compare to a year ago. Hours worked increased 36.8% while unit labor costs fell 8.9%. BLS Report

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 365,000 jobs in October. The services sector gained 348,000 jobs, while the goods-producing sector gained 17,000 jobs. ADP Report

The ISM Services Index fell 1.2 points to 56.6 in October, indicating continued growth in the services sectors but at a slower pace than in September. The New Orders Index fell 2.7 points to 58.8, while the Employment Index decreased 1.7 points to 50.1. ISM Report

The U.S. trade deficit decreased from $67.0 billion (revised) in August to $63.9 billion in September. The goods deficit fell by $3.1 billion while the services surplus rose by less than $0.1 billion. Census Bureau Report

U.S. Economic Indicators

New factory orders for manufactured goods rose 1.1% in September following a 0.6% (revised) increase in August. New orders excluding transportation were up 0.5%, while new orders for nondefense capital goods excluding aircraft rose 1.0%. Census Bureau Report

U.S. News

Jeff Stein writes for the Washington Post that the next few months could see economic challenges intensify as coronavirus cases rise and winter weather exacerbates slowdowns in some of the hardest-hit U.S. industries. The challenges could be exacerbated by a post-election political gridlock that prevents passage of another round of stimulus and allows protections for renters, student borrowers, and unemployed workers to expire at the end of the year. WaPo