“Never follow the crowd.” ― Bernard M. Baruch

1. MSCI Prepares for Chinese A-share Inclusion Through ADRs — MSCI will begin to add overseas-listed Chinese shares to its emerging market indexes this month, which could eventually lead to mainland-listed stocks, known as A-shares, finding their way into global equity portfolios. The addition of American Depositary Receipts will be the first test of foreign demand for greater exposure to China since its stock market plunge over the summer. About $1.6T tracks the MSCI Emerging Markets Index (ETF: EEM), which will be the most affected fund by the ADR inclusion.
2. Google Plans to Start Delivering Packages By Drone in 2017 — Google disclosed a delivery drone initiative called Project Wing. Wing chief David Vos has publicized that the company aims to begin delivering packages to consumers via drones in 2017. However, details remain scant on what types of packages will be supported, where they’ll be delivered, and at what scale. The Atlantic previously reported Google’s (GOOG, GOOGL) drone design is “a hybrid of a plane and a helicopter that takes off vertically, then rotates to a horizontal position for flying around.”
3. More Car Pollution Problems at VW — VW (OTCQX:VLKAY) revealed it has understated carbon dioxide emissions for about 800K of its vehicles sold in Europe, and overstated the cars’ fuel economy, a move that could result in an estimated €2B in financial penalties. Those costs would be on top of the €6.7B the company has already set aside to address its central emissions crisis, which affects 11M diesel vehicles worldwide.
4. Facebook To Launch Notify App Next Week — Facebook’s new standalone news app called Notify is scheduled to launch next week, FT reports, featuring content from dozens of media partners including Vogue, The Washington Post, CNN and CBS. Notify, which will send out push notifications from news sources, follows a positive response from publishers and readers to Facebook’s (NASDAQ:FB) Instant Articles, which embeds stories in its mobile app.
5. U.S. Economy Added 271,000 Jobs in October, Unemployment Rate at 5% — the American economy added 271,000 jobs in October, the government reported. The unemployment rate dipped to 5 percent, from 5.1 percent in September. Average hourly earnings also bounced back, rising 0.4 percent in October after showing no increase in September; that lifted the gain to 2.5 percent over the last 12 months, the healthiest since 2009. The combination of the surge in job creation, rising wages and the falling unemployment rate, the odds of a hike by the Federal Reserve have jumped above 70%, according to the CME Group’s FedWatch tool.

The week ahead — Economic data from Econoday.com:

Tags: Job Report

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