“Achieving gains usually has something to do with being right about events that are on the come, whereas losses can be minimized by ascertaining that tangible value is present, the herd’s expectations are moderate and prices are low. My experience tells me the latter can be done with greater consistency.” ― Howard Marks

1. Biden Keeps Powell as Fed Chief, Names Brainard Vice Chair — President Joe Biden selected Jerome Powell for a second four-year term as U.S. Federal Reserve chair and elevated Governor Lael Brainard to vice chair, maintaining consistency at the central bank as it grapples with the fastest inflation in three decades and the lingering effects of the coronavirus. Brainard would replace Richard Clarida in the vice chair slot and may face opposition from Senate Republicans for her confirmation given her tough line on bank regulation. She was interviewed by Biden for the chair position and was seen as a strong contender for the separate job of vice chair for supervision, which remains vacant.
2. Biden Orders Release of U.S. Oil Reserves in Challenge to OPEC+ — the U.S. will release 50 million barrels of crude from its strategic reserves in concert with China, Japan, India, South Korea and the U.K. — an unprecedented, coordinated attempt by the world’s largest oil consumers to tame prices that risks a backlash by OPEC+. Of the 50 million barrels, 32 million will be issued from the U.S. Strategic Petroleum Reserve as an exchange over the next several months, while 18 million will come from an accelerated release from previously authorized sales, the White House said in a statement Tuesday. It represents one of the biggest drawdowns ever from the reserve, surpassing U.S. interventions amid Libyan unrest in 2011 and Operation Desert Storm in 1991.
3. WHO Identifies New Covid-19 ‘Variant of Concern’ Omicron as Strain Triggers Global Fears — the World Health Organization said a new strain of the coronavirus first detected in southern Africa was a global “variant of concern” and that preliminary evidence suggested that it presented a higher risk of a person falling ill with Covid-19 for a second time. The WHO also said that the variant’s fast spread in South Africa indicated that it may be more transmissible than other strains of the virus and that more research was being done to understand the full effects of its many mutations. Dozens of countries have already restricted travel to and from South Africa and neighboring nations, hoping to contain the spread of the new variant. The Biden administration will restrict travel to the U.S. from South Africa and seven other countries beginning Monday, according to senior officials.
4. China Asks Didi to Delist From U.S. On Security Fears — Chinese regulators have asked Didi Global Inc.’s top executives to devise a plan to delist from U.S. bourses, people familiar with the matter said, an unprecedented request that’s likely to revive fears about Beijing’s intentions for its giant tech industry.
The country’s tech watchdog wants management to take the company off the New York Stock Exchange because of concerns about leakage of sensitive data, the people said, asking not to be identified discussing a sensitive matter. The Cyberspace Administration of China, the agency responsible for data security in the country, has directed Didi to work out precise details, subject to government approval, they said.
5. Merck’s Covid-19 Pill Was 30% Effective in Final Analysis — Merck MRK -3.79% & Co. and Ridgeback Biotherapeutics LP said a final analysis of their experimental Covid-19 pill found the drug less effective than an early look, prompting U.S. health regulators to continue a staff review of the drug’s application days before an outside panel meets. The FDA said it is still conducting its review of molnupiravir, after the companies told the agency earlier this week the pill was 30% effective in a final analysis of the late-stage study results. After taking an early look at results, the companies had reported in October that molnupiravir was 50% effective.

The week ahead — Economic data from Econoday.com: