World Street: Stocks await $5.7-tn tailwind; gold glitters more in China; new fuel for EVs; and brightest Black Friday

Some experts see the cash as a bullish signal and a potential tailwind for stocks and bonds if the inflation outlook continues to improve.

Investors in US bonds have some reasons to cheer, and there could be some good news for equity investors as well. China continues to hoard gold, and an alternative to fossil fuels has been developed for vehicles that are hard to electrify, while US President Joe Biden's clean energy agenda fails to make smooth progress. Also, have you ever wondered why wait times for your complaint calls are getting longer. That and more in this edition of World Street.

Keeping power dry

Institutions and investors together have a record $5.7 trillion parked in cash-like money-market funds, many of which are churning out more than 5 percent, reports WSJ, quoting data by the Investment Company Institute. Some experts see the cash as a bullish signal and a potential tailwind for stocks and bonds if the inflation outlook continues to improve.

Down and up

Up to a third of US office real estate could be wiped out because of emptying of downtowns and the closure of much white-collar work in towers, reports CNBC, quoting realty intelligence firm CoStar Group. At the same time, the top tier of commercial buildings will face a shortage in the years ahead, because the construction of elite Class-A properties is heading for a fresh low.

Break in the clouds

The Bloomberg US Treasury Index turned positive after the recent rally in bonds from a decade's lows. Investors are heartened by signs of a slowing inflation and measured job growth. While the index stayed almost flat for the year, the undertone remained positive and many US debt watchers see the pathway clearing for a real revival, reports Bloomberg.

Gold

Chinese traders bought around 17.5 tonnes of notional gold in the past week, reports Kitco.com, quoting a TD Securities report. The purchases coincide with buying momentum in the yuan as the People's Bank of China sold US dollar and bought the yuan.

Criminal probe

Chinese authorities said they launched criminal investigation into the money management business of Zhongzhi Enterprise Group Co, days after the embattled shadow banking giant revealed a shortfall of $36.4 billion in its balance sheet, reports Bloomberg. Beijing police have urged investors to report cases or provide leads to the authorities, including filing complaints online.

New electro-fuel

An electro-fuel aimed at vehicles that are difficult to electrify has been produced from green hydrogen and carbon dioxide, reports Mining.com. It was tested on a diesel-powered tractor at AGCO Power’s Linnavuori factory in Nokia, Finland.  “The fuel can be used to replace fossil diesel in sectors such as heavy road transport and shipping. It can also be used in machinery,” VTT professor Juha Lehtonen said in a media statement.

Ground reality

Soaring financing and materials costs, unreliable supply chains, delayed rulemaking in Washington and sluggish approvals are hurting President Joe Biden’s clean energy development agenda, reports Reuters. The result: offshore wind projects, imperilled solar factories, fading demand for electric vehicles.

Double speak

Petrobras plans to expand Brazil's oil production, aiming to become the fourth largest global producer by 2030, reports Oilprice.com. It was ranked ninth globally last year. Environmental concerns arise as Petrobras seeks to drill near the Amazon river, conflicting with President da Silva's ecological promises.

Long waiting times

No matter what the time of day you call, “due to the unusually high call volume, there will be long wait times”. As is obvious to anyone who hears this message over and over again, the problem is not the high number of callers, says a Zerohedge.com article. It is the low number of answerers. The intention is to discourage you from seeking human help, so more people can be laid off.

Record Black Friday sales

Black Friday shoppers spent a record $9.8 billion online in the US, up 7.5 percent over last year, according to Adobe Analytics. The uptick marks a recovery from last year’s holiday season, when high inflation hit consumers’ pockets and retailers discounted heavily to get rid of bloated inventory.