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Stock futures slip.

US stock futures retreated on Friday morning, tracking steeper losses in Europe. The S&P 500 is up 4.3% so far this week. 

US equity funds took in $20 billion on Wednesday, the biggest daily addition in five months, according to Bank of America.

Fed Chair Jerome Powell said he would not resign from his role if asked to do so. The comment follows the Fed’s decision Thursday to cut rates by 25 bps. The dollar remains subdued, with a gauge of the greenback set for the first weekly loss since September.

US stocks hit fresh all-time highs after Federal Reserve Chair Jerome Powell said the economy is strong. The central bank cut interest rates by 25 basis points — as expected.

The Treasury market managed only a small rebound from Wednesday’s selloff, triggered by the Fed rate decision and jobless claims data showing some softening in the labor market. The 10-year Treasury yield slid about 11 basis points Thursday to 4.33%.

Banks face growing risk as double defaults on commercial loans mount

The number of US borrowers in danger of defaulting a second time on commercial property loans is at the highest level in a decade, raising concerns that a bank practice known as “extend and pretend” is hiding growing systemic risk. (Financial Times | Nov 7)

Wall Street rejoices as the bell tolls for Biden-era regulation

Bankers, private equity executives, and money managers anticipate changes in personnel and tone. (Financial Times | Nov 7)

Quants are set for $50 billion stock spree on volatility plunge

The stock market surge unleashed by the presidential election aftermath is triggering buy signals for rules-based investment funds, adding fuel to the rally. In the run-up to Tuesday’s election, Wall Street had been positioning for the risk of a rocky spell after the vote. (Bloomberg Markets | Nov 6)

US mortgage rates rise again with recent jump most in two years

US mortgage rates continued to climb, putting a further damper on refinancing and homebuying activity. The contract rate on a 30-year mortgage increased 8 basis points to 6.81% in the week ended Nov. 1, the highest since July, according to Mortgage Bankers Association data released Wednesday. In the last five weeks, the rate has risen 67 basis points, the most in two years. (Bloomberg Economics | Nov 6)

Internal auditors, CFOs should share the AI disruption risk

New technologies, cyber threats, and new regulations — such as the sustainability requirements recently announced by the Securities and Exchange Commission — further complicate an already massive and murky risk environment for finance chiefs. When it comes to artificial intelligence, for example, it’s becoming more common for organizations to turn to their CFOs to figure out where to invest in such technologies, how to implement them across the organization, and how to minimize their potential risks. (CFO Dive | Nov 4)

Chinese hackers burrowed into US telecommunications infrastructure over eight months or more. Photo: Agence France-Presse | Getty Image

China hack enabled vast spying on US officials

Hackers linked to Chinese intelligence used precision strikes to quietly compromise cellphone lines used by an array of senior national security and policy officials across the US government in addition to politicians. This access allowed them to scoop up call logs, unencrypted texts, and some audio from potentially thousands of Americans and others with whom they interacted.

— The Wall Street Journal

Accused Snowflake hacker arrested

According to Canada's Department of Justice, Alexander "Connor" Moucka (aka "Waifu" and "Judische") was taken into custody on Wednesday at the request of the United States and is scheduled to appear in court again today, as first reported by Bloomberg and confirmed by 404 Media.

— BleepingComputer

Fake invoices

Research from security company Wallarm shows hackers are exploiting DocuSign technology to create legitimate-looking invoices for scam recipients. The ploy involves using application programming interfaces from DocuSign, which provides software for electronic signatures and invoicing to connect to customer systems. No malware is needed, Wallarm said.

— Forbes

Illustration: Greg Clarke

Beef up your password security on three key accounts

You need to do two things to beef up your online security: Create a long, unique password and turn on two-factor authentication for each account. Yes, fortifying your entire digital life can be exhausting. The average person juggles hundreds of passwords. A password manager is the best way to manage them, but it can take days to configure. Forget that for now, and just focus on three key accounts: your bank, email and phone.

— The Wall Street Journal

Endangered bees stop Meta’s plan for nuclear-powered AI data center

Plans by Mark Zuckerberg’s Meta to build an AI data center in the US that runs on nuclear power were thwarted in part because a rare species of bee was discovered on land earmarked for the project. Zuckerberg had planned to strike a deal with an existing nuclear power plant operator to provide emissions-free electricity for a new data center supporting his artificial intelligence ambitions.

— ArsTechnica

Hedge fund basis trade faces scrutiny as regulators mull probe

Hedge funds’ record bet on US Treasuries faces fresh scrutiny as the world’s most powerful financial watchdog mulls a deep dive into the money-spinning trade. After running into difficulties with a mammoth project launched last year to gather data on the sprawling shadow banking system, the Financial Stability Board is now discussing a pivot to focus on a handful of priority areas, including the so-called basis trades, three people with knowledge of the matter said. (Bloomberg Markets | Nov 4)