Five Stories Moving the Market:
China to open borders as COVID-19 cases rise – WSJ. Beijing plans to lift quarantine requirements on international arrivals early next month, taking one of its biggest steps to ease restrictions since the pandemic began even as case numbers remain high.
Chinese cities see COVID peaking in January as official data gets obscured – Bloomberg. China’s cities and provinces are reporting hundreds of thousands of daily COVID infections surpassing the official national tally as infections spread unabated across the country, predicting that outbreaks will peak during January.
Putin says Russia ready to negotiate over Ukraine, Kyiv says Moscow doesn't want talks – Reuters. Russia is ready to negotiate with all parties involved in the war in Ukraine but Kyiv and its Western backers have refused to engage in talks, President Vladimir Putin said in an interview aired on Sunday.
Housing slump set to give Fed an inflation-fighting assist – WSJ. The Federal Reserve’s interest rate increases have brought on a housing slump as severe, by some metrics, as that of 2007-09, inflicting pain on prospective buyers, homeowners, builders, and other industries linked to real estate.
China aims to rebuild U.S. ties in diplomatic push for 2023 – Bloomberg. China said it will strive to “recalibrate” its relationship with the U.S. and increase communication with Europe as the country outlines its major diplomatic tasks for next year.
Seventy-one Chinese air force aircraft including fighter jets and drones entered Taiwan's air defense identification zone in the past 24 hours, the island's government said on Monday, the largest reported incursion to date – Reuters.
Japan agreed to purchase more liquefied natural gas from the U.S. and Oman in the latest move to secure fuel supplies and avoid future shortages - Bloomberg.
Bank of Japan Governor Haruhiko Kuroda on Monday brushed aside the chance of a near-term exit from ultra-loose monetary policy, although markets and policymakers are signaling an increasing focus on what comes after Kuroda's tenure ends - Reuters.
Three Russian service members were killed during a Ukrainian drone attack on a Russian military air base, Moscow said, the latest apparent demonstration of Kyiv’s ability to strike military targets inside Russia - WSJ.
Russian Foreign Minister Sergei Lavrov gave Ukraine an ultimatum on Monday to fulfill Moscow's proposals, including surrendering territory Russia controls, or its army would decide the issue, a day after President Vladimir Putin said he was open to talks - Reuters.
Profits at industrial firms in China declined in the first 11 months of the year, as production slowed and factory-gate prices fell amid Covid disruptions - Bloomberg.
The United States is concerned by China's military activity near Taiwan, which it called "provocative" and "destabilizing," the White House said on Monday - Reuters.
European Central Bank Executive Board member Isabel Schnabel says interest rates will have to move into “restrictive territory” to bring inflation back to target - Bloomberg.
European Central Bank policymaker Klaas Knot said the rate-setting Governing Council believes it has only just passed the halfway point of its tightening cycle and needs to be “in there for the long game” to tame high inflation - FT.
U.S. natural gas supplies are still constrained after wells and pipes froze due to extreme cold, while some recovery seems to be underway - Bloomberg.
Millions of people are poised to lose Medicaid coverage after the recently enacted omnibus spending bill changed the healthcare program’s enrollment rules, and congressional Democrats and the Biden administration are working to steer eligible people to other types of coverage - WSJ.
U.S. retail sales rose 7.6% between November 1 and December 24, which encompasses a majority of the holiday season, as steep discounts lured deal-hungry consumers, a Mastercard report showed on Monday - Reuters.
Peloton Interactive is offering refurbished bikes across the continental U.S. and Canada at a discount of up to $500 over new bikes, the company said on Monday - Reuters.
Samsung Electronics plans to increase chip production capacity at its largest semiconductor plant next year, despite forecasts of an economic slowdown, a South Korean newspaper reported late on Sunday - Reuters.