Greetings,

The White House is renewing its focus on affordability after a string of election losses earlier this month, which many observers attributed to Democrats making high costs the cornerstone of their campaigns. The Trump administration previously announced efforts to explore housing affordability, and now moves are underway to cut the costs of some grocery staples. We'll likely see a lot more of this with the mid-term elections now less than a year away and control of Congress up for grabs.

Also in this edition:

• US convertible bond sales hit record $108.7B in 2025 🚀
• Corporate bankruptcies near 15-year high ☄️
• Oct. private data shows inflation steady but not accelerating 📈
• CFOs struggle to manage uncertainty's financial impact 🤹‍♂️
• FASB tax disclosure rule stays after funding threat fades 🗎
• EY picks audit cleanup leader to head US operations 🗳️

President Donald Trump is preparing significant tariff reductions and new trade agreements to address rising food prices. The administration has announced framework agreements with Argentina, Guatemala, El Salvador and Ecuador to reduce tariffs on items such as beef, bananas and coffee beans.

Homeownership and the increasing cost of living were key topics at a White House dinner attended by President Donald Trump and Wall Street executives, including JPMorgan Chase's Jamie Dimon, Blackstone's Steve Schwarzman, Morgan Stanley's Ted Pick, Goldman Sachs' David Solomon, Nasdaq's Adena Friedman and the New York Stock Exchange's Lynn Martin. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick also attended. Discussions reportedly centered on addressing affordability concerns, focusing on issues such as inflation, immigration and mortgages.

US stocks suffered their worst day in a month as the relief from the end of the government shutdown faded, with the S&P 500 and Dow Jones Industrial Average dropping 1.7% each and the Nasdaq Composite falling 2.3%. Investors are now worried about a deluge of delayed economic data potentially affecting market stability and the likelihood of an interest rate cut in December, which has dropped to 50%.

Federal Reserve officials are signaling growing caution over a potential rate cut in December. Neel Kashkari, who did not support the most recent cut, said he remains undecided as resilient economic data leaves the case for further easing unclear. He noted that arguments can be made for both holding rates steady and cutting, depending on how upcoming data evolves. St. Louis Fed President Alberto Musalem also urged prudence, warning that policy may already be near neutral and that the Fed has limited room to ease without becoming overly accommodative.

US convertible bond sales have reached a record $108.7 billion in 2025, surpassing the $105.6 billion raised in 2020 during the pandemic. The market's attractiveness stems from high stock volatility and persistent 10-year US Treasury yields above 4%, prompting companies such as Bloom Energy, DoorDash and GameStop to issue sizable convertible bonds.

Large US corporate bankruptcies are on track to reach their highest level in 15 years, with 655 filings through October, according to S&P Global. October alone saw 68 new filings, highlighting ongoing financial stress. The industrial sector led the way with 98 filings, followed by consumer discretionary with 80. Rising input costs and inflation are significant factors, as well as tighter monetary policy. Notable bankruptcies include First Brands and Tricolor.

Uncertainty remains a significant financial burden for CFOs, with the latest PYMNTS Intelligence report revealing that companies estimate it costs them about 6% of their annual revenue. While this drag is lower than the 17% peak seen in early 2024, unpredictability related to trade, regulation and supply chains continues to undermine financial performance. CFOs are now prioritizing tighter liquidity management and renegotiating supplier terms to offset these unpredictable costs, recognizing that uncertainty itself has become a persistent and costly risk premium.

The Financial Accounting Standards Board's income tax disclosure rules, issued in 2023, will require public companies to provide more granular reporting of their tax payments, including the disclosure of jurisdictions that receive more than 5% of total taxes paid. Despite initial opposition from some lawmakers and concerns from multinational companies about sensitive information, the rule remains in place and is set for first-year compliance.

SEC Chair Paul Atkins has announced plans to create a "token taxonomy," signaling a major shift in how digital assets are regulated. The proposal could mean that many tokens will no longer be treated as securities, aligning with recent legislative efforts like the Stablecoin Law and the GENIUS Act. While industry veterans have praised the approach for offering regulatory clarity, investor-protection lawyers have raised concerns about potential risks and the need for robust market-structure legislation.

EY has nominated Dante D'Egidio, the executive credited with leading recent audit cleanup efforts, as its next US managing partner. D'Egidio, who has overseen the US audit business since 2023, would succeed Julie Boland upon her retirement. His nomination is pending partner approval and marks a leadership shift following the firm's focus on audit improvements and the fallout from the failed 2023 split attempt.

The job market outlook for 2026 graduates is increasingly grim, with more than half of surveyed employers rating it as poor or fair -- the most negative forecast since the coronavirus pandemic. Hiring for new graduates is expected to grow by just 1.6%, a sharp drop from plans for the previous class. Many employers now prioritize candidates with experience, and the number of applications per job has surged by 26%. As a result, graduating seniors face heightened competition not just among themselves but also from laid-off junior workers willing to take entry-level roles.

A National Bureau of Economic Research paper highlights the effectiveness of remote work, citing a case study of Tempo BPO in Turkey, which saw a 10% productivity increase and a significant rise in female employment after shifting to remote work. The study emphasizes the importance of in-person onboarding for long-term success, a practice mirrored by the United States Patent and Trademark Office.

OpenAI CFO Sarah Friar spoke at a recent event, detailing how AI is reshaping the workforce, particularly by automating routine and repetitive tasks. In finance, for example, AI agents now handle data analysis and anomaly detection, enabling employees to focus on higher-value tasks such as generating insights and engaging in strategic discussions. While some job roles, especially in areas like customer support, are being replaced, Friar emphasized that AI is more often accelerating human productivity and enabling teams to have more meaningful conversations about business growth, rather than simply tracking historical data.