Fed taper is near | Deere strike continues | Election results and policy impacts
In Today’s Digital Newspaper
Market Focus:
• Fed watch: taper is near
• Raising debt ceiling not currently an option for economic bill, but…
• Shipping company A.P. Moeller-Maersk reaping benefits of global supply strains
• Truckers also hauling in profits
• Inflation watch: Those cookies and candies you like are going to cost more
• UAW members reject Deere contract offer
• Weaker tone overnight
• Awaiting FOMC meeting conclusion
• China targets 1.8% cut in coal use for power by 2025
• UAW members reject Deere contract offer
• Cash cattle trade starts at higher prices
• Pace of decline in CME lean hog index slows, but it’s still dropping
Politics & Elections:
• Republicans send election message to Biden, Democrats: You overreached
• Youngkin wins Va. governor race; N.J. governor race too close to call
• Midterm elections and policy impacts from Dems’ devasting election night
• Rising GOP star wins Virginia lieutenant gubernatorial election
• In New York City, Democrat Eric Adams cruised to victory
• Minneapolis voted against replacing police department with department of public safety
Policy Focus:
• Five House Dems send letter demanding three things before voting on BBB
• Democrats reach deal on prescription drug pricing
• SALT option being discussed does not meet Sanders’ approval
• Democrats eye reconciliation next year
Afghanistan:
• Some Afghan women have married in haste to avoid forced marriages to the Taliban
• Taliban suddenly banned use of all foreign currencies
Biden Administration Personnel:
• Panel advances Phillips to be deciding FERC vote
China Update:
• China targets 1.8% cut in coal use for power by 2025
Energy & Climate Change:
• COP26: Biden rebukes Russia and China
• U.S. writing new rules to limit methane emissions from oil and gas production
• Using tariffs on trade to cut carbon emissions pushed by U.S., Europe, others
• Growth Energy threatens to sue EPA over delayed 2022 RFS levels, other issues
Livestock, Food & Beverage Industry Update:
• Food programs said to worsen nutrition problems
Coronavirus Update:
• CDC backs use of Pfizer-BioNTech’s Covid-19 vaccine in children 5 to 11 years old
Congress:
• Wife of Sen. Mike Rounds dies after two-year battle with cancer
• Senate Republicans threatening to rely on full-year stopgap funding measure
Other Items of Note:
• WSJ: Most federal agencies required to patch hundreds of cybersecurity vulnerabilities
• Justice Dept. suing to block Penguin Random House from acquiring rival Simon & Schuster
MARKET FOCUS
Equities today: Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes are pointed to mixed openings. Asian equity markets finished lower ahead of the conclusion of a US Federal Reserve meeting. The Hang Seng Index was down 74.92 points, 0.30%, at 25,024.75. China’s Shanghai Composite was down 7.09 points, 0.20%, at 3,498.54. Markets in Japan were closed for a holiday. European equities are mixed. The Stoxx 600 was little changed while other markets were mixed with losses of 1.1% to gains of 0.5%.
U.S. equities yesterday: The Dow added 138.79 points, 0.4%, to 36,052.63 (first close above 36,000). It was the index’s sixth 1,000-point milestone of the year, the most in a single year on record. In January, the Dow closed above 31,000 for the first time. The S&P 500 rose 16.98 points, 0.4%, to 4,630.65. The Nasdaq gained 53.69 points, 0.3%, to 15,649.60. With all three indexes ending the day higher, it is the third trading session in a row where they all set closing records.
On tap today (see detailed list of events and reports below):
• ADP employment report is expected to show that the U.S. private sector added 395,000 jobs in October. (8:15 a.m. ET)
• IHS Markit’s U.S. services index for October is expected to tick up to 58.5 from a preliminary reading of 58.2. (9:45 a.m. ET)
• Institute for Supply Management’s services index is expected to tick up to 62.0 in October from 61.9 one month earlier. (10 a.m. ET)
• U.S. factory orders for September are expected to increase 0.2% from the prior month. (10 a.m. ET)
• Federal Reserve releases a policy statement at 2 p.m. ET and Chairman Jerome Powell holds a press conference at 2:30 p.m. ET
Fed meeting conclusion awaited. The conclusion of the two-day Federal Open Market Committee (FOMC) meeting today is expected to see the U.S. central bank announce their intentions on tapering their bond purchases that have been taking place at $120 billion per month. The pace is expected to be steady once it starts and be wrapped up by mid-2022. However, that does mean until mid-2022, the Fed’s portfolio will continue to grow. And the attention will be on when the Fed may start towards boosting the target range for the Fed funds rate. But Fed Chairman Jerome Powell has indicated the conditions regarding any possible increase in the Fed funds rate are totally different from the ones used to determine when to start tapering the bond purchases.
Inflation will be the other focus as conditions appear to be that the rise in prices is potentially going to be in place longer than expected by the Fed. That will likely be in part addressed via the post-meeting statement, but the major focus will be on how Powell explains the situation in his post-meeting press conference.
Raising debt ceiling not currently an option for economic bill. House Democrats aren’t planning to include a measure raising the U.S. debt ceiling as part of their tax-and-social-spending bill, Majority Leader Steny Hoyer (D-Md.) said. The stance would remove one avenue for averting a showdown with Republicans over the debt ceiling in the next few months that could lead to the U.S. missing payments to workers, beneficiaries or bondholders. Republicans have pledged not to cooperate on another short-term debt-ceiling suspension.
Adding a debt-ceiling increase to a must-pass bill could resolve any uncertainty over a potential U.S. payment default sometime between December and February. Under Senate rules, the budget reconciliation vehicle that Democrats are using to advance Biden’s economic agenda could also be used to raise the debt ceiling. Addressing the matter in this way would let Democrats pass the measure without any Republican votes and avoid a GOP filibuster.
House Budget Chair John Yarmuth (D-Ky.) said lawmakers could still use the budget reconciliation avenue at a later time to bypass the filibuster. Under Senate rules, Democrats can amend the fiscal 2022 budget and then pass a standalone debt-ceiling bill, but the process would trigger days of unlimited amendment votes and other procedural delays on the floor.
Shipping company A.P. Moeller-Maersk is reaping the benefits of global supply strains that have pushed up ocean freight rates near record levels and caused backlogs at U.S. ports. The company reported a profit of $5.44 billion for the September quarter, more than five times the profit it had a year ago. Perspective: Maersk made almost as much money in three months as Amazon.com and United Parcel Service combined.
Truckers are also hauling in profits. Schneider National, a large trucking company based in Green Bay, Wis., boosted its net income by 147% to $110 million in the third quarter from the year-ago period and surpassed a quarterly record for earnings per share that the company had set just one quarter before, the WSJ reports. Fort Smith, Ark.-based trucking and logistics operator ArcBest more than doubled its quarterly profit from the year-ago period. Customers of the transport operators are feeling the pinch of rising costs and other supply-chain woes.
Inflation watch: Those cookies and candies you like are going to cost more. Mondelez International said prices for its cookies and candies would climb further in the months ahead as the snacking company aims to stay ahead of escalating costs. The maker of Oreo cookies, Toblerone chocolate and Sour Patch Kids candy is raising prices around the world as it pays more for ingredients, transportation and wages. U.S. consumers so far have proved willing to pay more for Mondelez’s snacks, the company’s chief executive said, because they are spending less on eating and drinking at restaurants. “We’ve been increasing prices, and we plan to increase prices more than we’ve done at least in the time that I’m here and probably for quite a while as a company,” said Mondelez Chief Executive Dirk Van de Put.
UAW members reject Deere contract offer. More than 10,000 members of the United Auto Workers (UAW) union at 12 facilities in Illinois, Iowa and Kansas on Tuesday rejected the second contract proposal from Deere & Co., with 55% of union employees voting against the offer. With the rejection, union workers will continue their strike, which began Oct. 14. Marc A. Howze, a senior Deere official, said in a statement that the agreement would have included an investment of “an additional $3.5 billion in our employees, and by extension, our communities.”
“With the rejection of the agreement covering our Midwest facilities, we will execute the next phase of our Customer Service Continuation Plan,” the statement continued, alluding to its use of salaried employees to run facilities where workers are striking.
Many workers had complained that wage increases and retirement benefits included in the initial proposal were too weak given that the was on pace for a record of nearly $6 billion in annual profits.
Background: According to a summary (link) produced by the union, wage increases under the more recent proposal would have been 10% this year and 5% in the third and fifth years. During each of the even years of the six-year contract, employees would have received a lump-sum payment equivalent to 3% of their annual pay. That was up from earlier proposed wage increases of 5% or 6% this year, depending on a worker’s labor grade, and 3% in 2023 and 2025. The more recent proposal also included traditional pension benefits for future employees and a post-retirement health care fund seeded by $2,000 per year of service, neither of which were included in the initial agreement.
Market perspectives:
• Outside markets: The U.S. dollar index is lower amid strength in the euro and British pound against the greenback. The yield on the 10-year US Treasury note fell, trading near 1.53%, with declines in most other global government bond yields. Gold futures were lower while silver is seeing gains, with gold trading around $1,786 per troy ounce and silver around $23.65 per troy ounce.
• Crude prices are under pressure ahead of U.S. trading with U.S. crude trading around $82.10 per barrel and Brent around $83.00 per barrel. Futures were lower in Asian action, with U.S. crude down $2.16 at $82.09 per barrel while Brent was off $2.02 at $83.01 per barrel.
• Zillow gets out of the house-flipping business. The real estate site known for estimating home values said it would shut its Zillow Offers division and lay off nearly a quarter of its 8,000 employees. The home-flipping business lost more than $420 million in the third quarter, and, Zillow said, made its bottom line too unpredictable.
• NWS weather: Another round of light to moderate Lake Effect snow accumulations expected across portions of Michigan and New York... ...Quasi-stationary boundary to bring heavy rain to portions of the Southern Plains today... ...Unseasonably cool temperatures to persist across the Central and Eastern US as above average temperatures dominate out West.
Items in Pro Farmer’s First Thing Today include:
• Weaker tone overnight
• Awaiting FOMC meeting conclusion
• China targets 1.8% cut in coal use for power by 2025
• UAW members reject Deere contract offer
• Cash cattle trade starts at higher prices
• Pace of decline in CME lean hog index slows, but it’s still dropping
POLITICS & ELECTIONS
— Republicans send election message to Biden, Democrats: You overreached. Republicans on Tuesday scored a victory in the Virginia gubernatorial race and are in a razor-thin battle in the Democratic stronghold state of New Jersey as the governor’s race there is too close to call. The events and analysis:
- Republican Glenn Youngkin, in his first run for office, defeated Democrat Terry McAuliffe for governor in Virginia, a state that’s been trending blue for a dozen years and would have been labeled a clear blue state had McAuliffe won, but he was shy of that mark — with 99% of the expected vote in, Youngkin had 50.7% of the vote compared to 48.6% for McAuliffe, a margin of approximately 67,000 votes out of nearly 3.3 million ballots cast.
- A too-close-to-call battle in New Jersey between incumbent Democratic Gov. Phil Murphy and Republican Jack Ciattarelli has a former state assemblyman, Ciattarelli, leading by just over 1,000 votes out of more than 2.36 million cast, but there’s still a lot of counting left. Biden won New Jersey by 16 points in 2020.
- House Minority Leader Kevin McCarthy (R-Calif.) texted this memo to lawmakers. In part it said: “By electing Republican Glenn Youngkin as their new governor, Virginia voters sent an undeniable message that extends beyond the Commonwealth to every corner of the country. In times of anxiety, Americans are focused on the success and stability of their families and communities. Americans want a change in leadership, and Virginia is just the first step. Glenn Youngkin understood this and won by listening to families and communities across Virginia that were being ignored by the Democrat-controlled state capitol. Meanwhile, Terry McAuliffe lost by listening to partisan political consultants and far-left activists.
- Among the reasons being cited for the Republican showing: President Joe Biden’s sagging approval ratings, an increasingly unhappy electorate, and Republican cultural fights over “critical race theory,” immigration and vaccine mandates. Those are issues that will likely resound into midterm elections in 2022.
- Youngkin built a coalition that showed other Republicans how to win office ahead: Expand the rural vote margin and numbers voting, cut into Democratic margins in suburban areas and capture independent voters. All this while not upsetting “Trump voters” even by keeping a distance from the former president. Trump, who endorsed Youngkin, lost Virginia in his 2020 presidential re-election bid by 10 percentage points. The suburbs struck back. White women who went 50-49 for Biden went 53-42 for Youngkin. The authoritarian decisions to keep schools closed engendered the Parents Matter rallies that proved to be a tremendous boon to Youngkin who ran a smart, disciplined campaign based on conservative principles without the bitter and divisive style of President Trump.
- In Virginia, Dems also look to have lost control of the lower House chamber of the Virginia legislature.
- Policy impacts could first surface among moderate and other Democrats relative to ongoing party battles over infrastructure measures.
- Vice President Kamala Harris’ prediction about the Virginia governor’s race may come back to bite her and her fellow Democrats. Wjen she was campaigning for former Gov. Terry McAuliffe, Harris said, “What happens in Virginia will, in large part, determine what happens in 2022, 2024, and on.”
Bottom line: The Atlanta Braves may not be the only group shutting out its opponents on Tuesday if the GOP candidate in New Jersey pulls off a major gubernatorial upset. In Virginia, governor-elect Youngkin handed Republicans their 2022 blueprint. It’s the Democrats’ reel not their New Deal that is being talked about now. If Tuesday’s results foreshadow a Republican takeover of Congress next year, Biden’s ability to get anything else done in the latter half of his term will be a lot harder — if not impossible. Finally: #wokelash is the leading Twitter handle right now.
— Rising GOP star wins Virginia lieutenant gubernatorial election. Winsome Sears (R) defeated Hala Ayala (D) to win Virginia’s lieutenant gubernatorial election. With 95% of precincts reporting, Sears received 50.9% of the vote and Ayala received 49.1%. The incumbent lieutenant governor, Justin Fairfax (D), ran for governor and lost in the Democratic primary. The lieutenant governor serves as the president of the Virginia State Senate and is first in the line of succession to the governor. Of the four lieutenant governors elected since 2002, two — Tim Kaine (D) and Ralph Northam (D) — became governor.
— Voters in Minneapolis rejected Question 2 — a citizen-initiated charter amendment — that would have replaced the Minneapolis Police Department with a Department of Public Safety. The measure would also have removed language from the city’s charter specifying minimum police funding requirements and mayoral control of the department. With 100% of precincts reporting, “no” votes were leading, 56% to 44%. Two of four notable candidates for mayor of Minneapolis, including incumbent Jacob Frey (D), opposed the measure.
— In New York City, the Democrat Eric Adams cruised to victory over the Republican Curtis Sliwa, while Alvin Bragg, also a Democrat, became Manhattan’s first Black district attorney.
POLICY FOCUS
— Five House Dem moderates give Pelosi conditions for support on spending. In a letter (link), the Democratic moderates listed three things they want:
- A score from the Congressional Budget Office (CBO).
- 72 hours to read and review the legislative text.
- Assurances that what passes in the House will clear the Senate parliamentarian.
The lawmakers were Reps. Stephanie Murphy (Fla.), Ed Case (Hawaii), Jared Golden (Maine), Josh Gottheimer (N.J.) and Kurt Schrader (Ore.).
— Democrats reach drug pricing deal. Democrats struck a deal to add provisions aimed at lowering the price of some prescription drugs to President Biden’s $1.75 trillion tax and spending bill, clearing one of the major hurdles to staging a House vote as soon as this week.
The deal would empower Medicare, the government insurance plan for those 65 and older, to negotiate with drugmakers on prices for the first time. But to win over party holdouts, the price cuts apply to a narrower set of drugs than House Democrats originally proposed. Under the plan, stating in 2023, 10 high-cost drugs will be subject to price negotiation with Medicare, the government insurance program for Americans 65 and older. It would put a $2,000 annual cap on Medicare drug costs. (That’s scaled back from Democrats’ original plan, which would have guaranteed negotiations for at least 50 drugs. Lawmakers have discussed gradually adding more drugs to the list.)
Sen. Kyrsten Sinema (D-Ariz.), a key vote in the 50-50 Senate, said she agrees on the proposed plan.
— SALT-cap suspension for five years is latest House option, but Sen. Sanders will not support. House Democrats are considering a five-year suspension of the cap on the federal state and local tax deduction before it’s reinstated in 2026, a move that may let lawmakers argue expanding the tax break won’t hurt revenue. Where to set the limit — currently $10,000 — when it goes back into effect is still under discussion. The suspension would kick in for deductions related to property taxes and state and local income taxes accrued in 2021 and would run through 2025. But once it gets to the Senate, opposition from Sen. Bernie Sanders (I-Vt.) is expected.
— Democrats eye reconciliation next year. Democrats plan to use the budget reconciliation process next year to extend the child tax credit and address any other loose ends from the current social tax and spending bill, House Budget Chairman r John Yarmuth (D-Ky.) told reporters. The plan to use a fiscal 2023 budget resolution to provide reconciliation instructions, which allow some legislation to avoid a filibuster and pass with 51 votes, would appear difficult in a midterm election year, when campaigns dominate more of lawmakers’ time. “We are going to have a fiscal ’23 reconciliation budget,” Yarmuth told reporters yesterday. The child tax credit would expire in December 2022 under the current reconciliation bill, creating a key deadline for Democrats next year. There’s no reason to believe Republicans would work with Democrats to extend it, Yarmuth said, though Democrats want it to run longer. “I think there’s almost unanimous support in the caucus for making it longer if not permanent,” Yarmuth said.
AFGHANISTAN
— Some Afghan women have gone into hiding or married in haste to avoid forced marriages to the Taliban. The new Taliban government hasn’t formally changed Afghanistan’s laws to significantly curb women’s freedoms. Yet, in practice, women’s rights have deteriorated sharply, in part because the Taliban’s central leadership exercises only limited authority over individual commanders and fighters. Forced “marriages” to Taliban members—which can often amount to kidnapping and rape, women say—have occurred frequently in recent months. Qari Saeed Khosti, a spokesman for the interior ministry, said marrying a woman against her will is prohibited, and that any such marriage under duress would be considered void according to the Islamic Shariah.
Meanwhile, Tuesday’s attack on Afghanistan’s main military hospital by Islamic State militants left at least 23 people dead.
— The Taliban suddenly banned the use of all foreign currencies, catching off-guard businesses and ordinary people already caught in Afghanistan’s economic collapse. The prohibition is not religious in nature; it is meant to avert an emerging financial crisis — though it is not clear how it would. After 20 years of American occupation, two-thirds of Afghans’ bank deposits are denominated in dollars.
BIDEN ADMINISTRATION PERSONNEL
— Panel advances Phillips to be deciding FERC vote. Willie L. Phillips Jr. got bipartisan support from the Senate Energy and Natural Resources Committee Tuesday to be the fifth — and decisive vote — on the Federal Energy Regulatory Commission (FERC). The committee voted unanimously by a voice vote to advance Phillips’ nomination to the Senate floor. Phillips would give the five-member commission its first Democratic majority since 2017. Phillips would fill the role vacated by Republican Neil Chatterjee, who stepped down as his term expired over the summer.
CHINA UPDATE
— China targets 1.8% cut in coal use for power by 2025. China said it is targeting a 1.8% reduction in average coal use for electricity generation at power plants over the next five years in a bid to lower greenhouse gas emissions. By 2025, coal-fired power plants in China must adjust their consumption rate to an average of 300 grams of standard coal per kilowatt-hour (kWh), the National Development and Reform Commission said, down from 305.5 grams per kWh in 2020. Average coal use for power generation in China has been reduced from 370 grams per kWh in 2005. The lower target comes as the world’s top climate negotiators have gathered in Scotland for the COP26 climate talks, which Chinese President Xi Jinping is not attending.
ENERGY & CLIMATE CHANGE
— COP26: Biden rebukes Russia and China. On Day 2 of the climate summit in Scotland, President Biden said the two nations’ leaders were wrong not to join more than 100 world leaders looking for solutions to the climate crisis. “I think it’s been a big mistake for China” not to show up at the conference, he said. “It just is a gigantic issue and they walked away,” Biden said. Of Putin, he said, “Literally, his tundra is burning.”
— U.S. is writing new rules to limit methane emissions from oil and gas production. The broad expansion was announced Tuesday as President Biden. Methane is a byproduct of drilling, livestock and landfills that traps roughly 85 times more heat than carbon dioxide. It accounts for about a tenth of U.S. greenhouse-gas emissions, according to the Environmental Protection Agency.
EPA’s proposed rules for the first time seek to regulate methane at existing wells nationwide, a move smaller producers have fought for years. The plan would put roughly one million new and existing wells under EPA methane regulation, with more stringent requirements for new wells in addition to the first-time regulations for old ones.
Separately at the Scotland summit, world leaders from more than 100 countries agreed to end and reverse the effects of deforestation by 2030, committing nearly $20 billion of public and private funds to the effort.
— Using tariffs on trade to cut carbon emissions is being pushed by governments in the U.S., Europe and other developed nations, the Wall Street Journal reports (link). The idea has the potential to rewrite the rules of global commerce. Policy makers on both sides of the Atlantic are looking at targeting steel, chemicals and cement. The tariffs would give a competitive advantage to manufacturers in countries where emissions are relatively low. Carbon tariffs, also called border adjustments, are intended to plug a hole in domestic policies that discourage emissions. But they also could push up production costs and prices, hurting businesses buying those products and consumers. They would hit the developing economies that depend heavily on exports and could undermine world trade rules as well as trigger trade disputes. Some countries say the proposals are protectionism in disguise.
Over the weekend, the Biden administration announced the first-ever trade agreement to incorporate such a concept. The pact with the European Union would jointly curb imports of steel that generate high levels of carbon emissions.
— Growth Energy threatens to sue EPA over delayed 2022 RFS levels, rulemaking for 2023 and beyond. Growth Energy submitted a notice of intent to sue to EPA if the agency fails to propose 2022 biofuel fuel levels under the Renewable Fuel Standard (RFS) and rulemaking for how the agency will set volumes for 2023 and beyond, noting EPA has yet to release either despite statutory deadlines. The notice of the potential suit to EPA Administrator Michael Regan gives the agency 60 days to promulgate 2022 Renewable Volume Obligations (RVOs) and “set” rulemakings for volumes in 2023 and beyond. The notice points out that the statutory deadline for setting 2022 RVOs is Nov. 30, while the deadline for the 2023 “set” rulemakings was Nov. 1. “As of today — 28 days before the statutory deadline — EPA has not even issued a notice of proposed rulemaking to establish those obligations,” the Nov. 2 letter noted regarding the 2022 biofuel levels.
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LIVESTOCK, FOOD & BEVERAGE INDUSTRY
— Food programs said to worsen nutrition problems. Federal food aid programs are failing to provide low-income homes with nutritious meals, exacerbating the public health “crisis” of diet-related diseases and obesity within the U.S., lawmakers and poverty analysts said Tuesday. “While the federal government tells us that our plates should consist largely of fruits and vegetables, currently less than 2% of our federal agriculture subsidies in the U.S. go to these healthy foods,” said Sen. Cory Booker (D-N.J.), chairman of the Senate Agriculture Committee Food and Nutrition, Specialty Crops, Organics, and Research Subcommittee.
CORONAVIRUS UPDATE
— Summary: Global cases of Covid-19 are at 247,665,089 with 5,016,077 deaths, according to data compiled by the Center for Systems Science and Engineering at Johns Hopkins University. The U.S. case count is at 46,171,230 with 748,621 deaths. The Johns Hopkins University Coronavirus Resource Center said that there have been 422,294,086 doses administered, 192,726,406 have been fully vaccinated, or 58.72% of the U.S. population.
— Pfizer vaccine available for children ages 5-11. Children ages 5-11 may receive the Pfizer-BioNTech Covid-19 vaccine Wednesday after the director of the Centers for Disease Control and Prevention (CDC) signed off on an expert panel’s recommendation. Health providers can start vaccinating children in this age group “as soon as possible,” the CDC said in a release. Earlier in the week, presidential advisor Jeffrey Zients said that the Biden administration has ordered enough vaccines to cover all 28 million American children in the 5 to 11 age group. The administration’s distribution program will be “running at full strength” the week of Nov. 8, he said. The vaccines will be available at 100 children’s hospitals, temporary clinics in the community and at schools, as well as pharmacies and pediatricians’ offices.
CONGRESS
— Wife of Sen. Mike Rounds dies after two-year battle with cancer. Jean Rounds, the wife of Sen. Mike Rounds (R-S.D.), died at the age of 65 Tuesday morning after a two-year battle with sarcoma cancer.
— Senate Republicans threatening to rely on a full-year stopgap funding measure if Democrats don’t agree to drop proposed policy changes in fiscal year 2022 spending bills, after early government funding talks got off to a rough start. Senate Appropriations Vice Chairman Richard Shelby (R-Ala.) told reporters he expects another continuing resolution (CR) to fund the gov’t beyond the Dec. 3 deadline, and that a full-year stopgap could be in the works, after meeting with Senate Appropriations Chairman Patrick Leahy (D-Vt.), House Appropriations Chair Rosa DeLauro (D-Conn.), and House Appropriations ranking member Kay Granger (R-Texas). The members didn’t settle on any kind of agreement in yesterday’s meeting. “We could be headed for a yearly CR,” Shelby told reporters yesterday. “A lot of people would like that. One that keeps all the riders off, you know? Think of that from our standpoint.”
OTHER ITEMS OF NOTE
— WSJ: Nearly all federal agencies will be required to patch hundreds of cybersecurity vulnerabilities, under an order expected today from the Biden administration. The new requirement covers about 200 known security flaws identified by cybersecurity professionals between 2017 and 2020 and 90 discovered in 2021 alone that have generally been observed being used by malicious hackers, according to a draft document detailing the order. The security flaws are considered major risks for damaging intrusions into government computer systems, officials said.
— Justice Department is suing to block Penguin Random House from acquiring rival Simon & Schuster, alleging that the nearly $2.18 billion deal would give Penguin Random House unprecedented control and outsize influence over which books are published in the U.S. and how much authors are paid.
EVENTS AND REPORTS
Wednesday, Nov. 3
· U.S. food supply chain. House Ag Committee hearing on “The Immediate Challenges to our Nation’s Food Supply Chain.”
· Produce industry issues. Agricultural Marketing Service teleconference of the Fruit and Vegetable Industry Advisory Committee to examine the full spectrum of fruit and vegetable industry issues and provide recommendations and ideas to the USDA Secretary on how USDA can tailor programs and services to better meet the needs of the U.S. produce industry, through Thursday.
· Climate and equity issues. Federal Emergency Management Agency teleconference of the National Advisory Council to discuss and consider with selected experts and leadership how to approach considering issues of equity, climate adaptation and readiness in 2022.
· Carbon border measures. Resources for the Future virtual discussion on “Carbon Border Measures: What Happens with Ambitious Climate Policies?”
· G20 and the pandemic. Center for Global Development virtual discussion on “Taking Stock of G20 Outcomes for Pandemic Response and Risks.”
· Economic Development Administration. Senate Environment and Public Works Committee hearing on “Examining Programs at the Economic Development Administration.”
· Energy issues. American Council on Renewable Energy virtual 2021 Grid Forum, including remarks from Rep. Kathy Castor (D-Fla.) and Mark Christie, commissioner at the Federal Energy Regulatory Commission.
· Cyberthreats to the financial system. Consumer Protection and Financial Institutions Subcommittee hearing on “Cyber Threats, Consumer Data, and the Financial System.”
· Small business entrepreneurship. House Small Business Committee hearing on “Entrepreneurship in the New Economy.”
· Cybersecurity. House Homeland Security Committee hearing on “Evolving the U.S. Approach to Cybersecurity: Raising the Bar Today to Meet the Threats of Tomorrow.”
· Biden trade policy. Hudson Institute virtual discussion on “What is President Biden’s Trade Policy for Asia?”
· Community banking. Federal Deposit Insurance Corporation teleconference of the Advisory Committee on Community Banking to discuss current issues affecting community banking.
· CFPB meeting. Consumer Financial Protection Bureau teleconference of the Consumer Advisory Board to discuss broad policy matters related to the Bureau’s Unified Regulatory Agenda and general scope of authority, including small business lending, age-friendly banking, and appraisal bias in the mortgage marketplace.
· Iran nuclear efforts. Center for Security Policy online discussion on “How to Stop Iran’s Nuclear Program.”
· Minority farmers. USDA Office of Partnerships and Public Engagement teleconference of the Advisory Committee on Minority Farmers.
· State legislative issues. FiscalNote virtual discussion on “State Legislative Preview: The Biggest Issues You Need to Focus on in 2022.”
· China and U.K. in CPTPP. Washington International Trade Association virtual discussion on “Are Pitcairn Island (UK), China and Taiwan really joining CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)?”
· Tax enforcement. Center for American Progress discussion on “Toward Stronger and Fairer Tax Enforcement.”
· Economic reports. ADP Employment Report | PMI Composite Final | Factory Orders | ISM Services Index | FOMC meeting conclusion and Fed chair presser
· Energy reports. EIA Petroleum Status Report | Weekly Ethanol Production | Genscape ARA weekly crude inventory
· USDA reports. NASS: Broiler Hatchery