North American Morning Briefing : Stock Futures -2-

November 24, 2021 at 05:57 am EST

Economists surveyed by The Wall Street Journal estimated that consumer spending rose 1% in October from a month earlier and that personal incomes edged up 0.2% last month. The Commerce Department's report on October personal income and spending is scheduled to be published at 10 a.m. Eastern time on Wednesday. It includes a key reading on inflation, the personal consumption expenditures price index.

U.S. Jobless Claims Expected to Edge Down

Filings for unemployment benefits likely continued their gradual decline last week amid a hot labor market.

Economists surveyed by The Wall Street Journal estimate that weekly jobless claims, a proxy for layoffs, fell to 260,000 in the week ended Nov. 20 from 268,000 the prior week. That would bring the four-week moving average for initial claims, which smooths out weekly volatility, to the lowest level since the Covid-19 crisis began last year.

Turkey's Erdogan Looks to Regional Rival for Investment Amid Currency Crisis

ANKARA, Turkey-Turkey's President Recep Tayyip Erdogan is set to host on Wednesday the de facto leader of the United Arab Emirates in search of foreign investment that could help ease the country's economic crisis after the local currency extended a sharp slide.

Abu Dhabi Crown Prince Mohammed bin Zayed al Nahyan's visit to Ankara marks a recent thaw in ties after years of animosity between the two countries, which have competed fiercely for influence in the Middle East. It comes as Turkey seeks much-needed foreign investment and offers the oil-rich U.A.E. potential support in a broader struggle against Abu Dhabi's other main regional rival, Iran.

German Business Sentiment Declined Again in November

German business sentiment worsened again in November, as supply bottlenecks and the rise in coronavirus cases clouded the short-term outlook.

The Ifo business-climate index decreased to 96.5 points in November from 97.7 points in October, data from the Ifo Institute showed Wednesday. This is the fifth consecutive decrease of the indicator after it peaked at 101.8 in June.

Japan Confirms It Will Tap State Oil Reserves

The Japanese government confirmed on Wednesday that it will tap its state oil reserves, following a similar announcement from President Biden overnight aimed at bringing down gasoline prices.

Japan plans to release several days' worth of oil by selling it on the market. It will then buy oil at a later date to replenish the stockpile. The government currently holds about 145 days' worth of oil.

Mexico's Former Finance Minister Arturo Herrera No Longer to Head Central Bank

MEXICO CITY -- Mexican President Andrés Manuel López Obrador has decided to withdraw the nomination of former finance minister Arturo Herrera to lead the Bank of Mexico, Mr. Herrera said Tuesday.

Mr. López Obrador named Mr. Herrera in June as his choice to head the central bank on Jan. 1 and submitted the proposal for Senate ratification in July. Ricardo Monreal, Senate leader for the ruling Morena party, told reporters Tuesday that Mr. López Obrador had withdrawn the proposal in August.

U.N. Nuclear Chief Leaves Iran Without Deal on Access to Nuclear Plant, Diplomats Say

BERLIN-The head of the United Nations atomic watchdog agency left Iran late Tuesday after failing to reach a deal to allow inspectors access to a factory making equipment for Tehran's nuclear program, diplomats said Wednesday, casting a fresh shadow over international nuclear talks set for next week.

The Wall Street Journal reported last week that the factory, in Karaj, Iran, had resumed producing key parts for centrifuges, which are used to enrich uranium, without any monitoring by the International Atomic Energy Agency. The diplomats said talks between the IAEA and Iran were continuing.

Germany's Olaf Scholz on Track to Succeed Angela Merkel as Chancellor

BERLIN-Germany's Olaf Scholz is on course to succeed Angela Merkel as chancellor after the victors of the September election reached a policy agreement to form the country's first three-party coalition, people involved in the negotiations said.

The policy program, which Mr. Scholz's center-left Social Democrats, the environmentalist Greens and the pro-business Free Democratic Party are set to unveil on Wednesday afternoon, aims to overhaul the German economy with a focus on combating climate change and updating the country's patchy digital infrastructure.

Biden to Nominate Shalanda Young as Budget Director

The White House intends to nominate Shalanda Young as director of the Office of Management and Budget on Wednesday, a person familiar with the plans said.

Ms. Young currently serves as acting director of the agency, which hasn't had a permanent leader in many months. If she is confirmed as budget director by the Senate, she would be the first Black woman to run the office. Ms. Young was confirmed as deputy director earlier this year in a bipartisan 63-37 vote.

Feud Between Billionaires Ken Griffin and J.B. Pritzker Likely to Shape Illinois Governor's Race

Two billionaires-one Democratic, one Republican-are facing off over the response to rising violence in Chicago and their broader running feud is raising the prospect of a new national spending record in a governor's race.

Illinois Gov. J.B. Pritzker, whose self-financing for his first campaign in 2018 helped set the current U.S. record, has found himself at odds with his state's richest man.

Covid-19 Antibody Tests in Demand as People Worry About Immunity

Some people are taking Covid-19 antibody tests to determine whether they might be protected against the virus. Many health officials and doctors wish they wouldn't.

Antibody tests are one tool some people are deploying to help them decide which precautions to take to protect themselves and curb the spread of Covid-19. Some vaccinated people say they want to know whether their protection has weakened to the point that they should get a booster, while some previously infected people say they want to measure the strength of the response the virus generated in their immune systems.

NRA Acknowledges New Findings of Excessive Benefits Paid to CEO Wayne LaPierre

The National Rifle Association said it had found additional examples of excessive benefits paid by the nonprofit gun rights organization in recent years to CEO Wayne LaPierre, including $44,000 in private jet flights, according to a new tax filing.

The NRA made similar admissions in its 2019 filing, when it disclosed that current and former top executives received at least $1.4 million in improper or excessive benefits from the organization in violation of nonprofit rules, the first time the group had publicly admitted such lapses.

Write to paul.larkins@dowjones.com TODAY IN CANADA

Earnings:

Calian 4Q

Economic Indicators:

None scheduled

Stocks to Watch:

Canada Goose Names Paul Cadman Pres of Its Asia-Pacific Division

Surface Transportation Accepts CP-KCS Merger Application as Complete, Sets Procedural Schedule; Kansas City Southern: Bd Also Set a Procedural Schedule for the Regulatory Review That Calls for Final Briefs on July 1, 2022; CP and KCS Anticipate STB Review of CP's Proposed Control of KCS Will Be Completed in the 4Q 2022

Other News:

Canada's Housing Imbalance Poses 'Greatest' Risk to Financial System, Watchdog Says

The current imbalance in Canada between solid demand for housing and the limited supply available is driving up prices and represents the "greatest" risk in the country's financial system, Canada's banking regulator says.

Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said Tuesday that demand for housing remains strong across the country, leading to "very significant" price increases.

Recent data from the Canadian Real Estate Association indicated benchmark house prices in October rose more than 23% compared with the same period a year ago. In part, this increase is related to a lack of inventory available for buyers.

CREA estimates that as of October, there were nearly two months of housing inventory--or the amount of time it would take, given the current pace of transactions, for every active residential real-estate listing on the market to sell. CREA said the historical inventory average is roughly five months.

"The greatest prudential risk in Canada's financial system is the supply-demand imbalance in housing," Mr. Routledge said in a virtual speech to financial analysts in Vancouver, British Columbia. "The imbalance tends to drive price increases to ever higher levels relative to income; this in turn induces more Canadians to resort to more leverage when buying a home."

Mr. Routledge cited recent data from the economics team at Bank of Nova Scotia, which calculated that Canada has the lowest number of housing units per 1,000 residents of any Group of Seven country.

Mr. Routledge added that the need to bring the level of housing construction aligned with demand "is an imperative for long-term financial stability."

Expected Major Events for Wednesday

00:01/UK: Nov REC JobsOutlook survey

00:30/JPN: Nov Japan Flash Manufacturing PMI

07:45/FRA: Nov Monthly business survey (goods-producing industries)

08:59/JPN: Sep Final Labour Survey - Earnings, Employment & Hours Worked

09:00/GER: Nov Ifo Business Climate Index

11:00/UK: Nov CBI Industrial Trends Survey

12:00/US: 11/19 MBA Weekly Mortgage Applications Survey

13:30/US: Oct Advance Economic Indicators Report

13:30/US: Oct Advance Report on Durable Goods

13:30/US: 3Q 2nd estimate GDP

13:30/US: 3Q Preliminary Corporate Profits