First-time unemployment claims in the U.S. rose to 778,000 last week, a 30,000 increase from the previous week. This is a clear indication that the rise in COVID-19 cases has started to affect the labor market.

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• Wednesday's numbers marked the first time since July that initial unemployment claims rose for two consecutive weeks. Despite the rise, the numbers are still well below the peak of nearly seven million in March.
• The rise in COVID-19 cases has started to hinder economic recovery as states and municipalities reimpose restrictions to curb the spread. In addition, the arrival of winter is expected to keep consumers indoors, which will negatively affect businesses like restaurants. 
• Retail sales rose in October for the sixth consecutive month. However, it was only by 0.5% the lowest gain since May.
• The consumer confidence index fell in November to 96.1, down from 101.4, from the previous month.
• The unemployment rate in October fell by one percent down to 6.9%, significantly below April's high of 14.7%. However, more than 20.4 million Americans are still relying on some type of unemployment benefit, and several major programs are going to expire on Dec 31.
• On Tuesday, the Dow Jones surpassed 30,000 for the first time, highlighting the disconnect between the stock market and economy. While the stock market continues to hit record highs, millions of Americans remain unemployed and talks over a new stimulus have stalled.

Treasury Secretary Steven Mnuchin relocated $455B of unused COVID-19 relief funds from the Federal Reserve to the Treasury’s General Fund.  The decision means President-elect Joe Biden's treasury secretary would need congressional approval to access the funds.

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• Last week, Mnuchin announced he was ending various emergency lending facilities that were set up to help businesses, nonprofits, and local governments as part of the $2.2T CARES Act. This angered Democrats, who accused Mnuchin of sabotaging the economy.
• Biden is expected to announce former Federal Reserve chair Janet Yellen as his Treasury secretary. If confirmed, she would become the first woman to ever occupy the position.
• Mnuchin's decision means Yellen would only have $80B to deploy at her discretion. Despite the outrage from the Democrats, Republican Senators, including Majority Leader Mitch McConnell, backed Mnuchin.
• Federal Reserve Chairman Jerome Powell has opposed Mnuchin's decision, but the treasury secretary reiterated on Wednesday that he has been in close coordination with the Fed throughout the pandemic. Mnuchin revealed he informed the central bank about his decision well in advance.

The International Air Transport Association (IATA) is estimating that the COVID-19 pandemic will cost airlines $157B. The Association explained that as long as quarantines are in place, and individuals are not travelling, airlines will continue to lose money. 

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• $118.5B in losses are expected this fiscal year, with an additional $38.7B in 2021. 
• These estimates are far worse than the initial forecasts released in June, which estimated losses of $84.3B in 2020 and $15.8B in 2021.
• The airline industry has been responsible for tens of thousands of job cuts, but the IATA warns that many more jobs are still at risk.  
• It is estimated that by the end of 2020, passenger volume will have fallen back down to levels not seen since 2003. It is not expected to return to pre-pandemic numbers until at least 2024. 

A version of this story first appeared in Inside Business, you can read the full issue here.

Special Envoy for Iran Elliott Abrams announced the U.S. will sanction four firms in China and Russia that it alleges promoted Iran’s missile program. Abrams warned that the U.S. will continue to apply sanctions on Iran throughout December and January before President-elect Joe Biden takes office.

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• A couple weeks ago, Elliot Abrams flew to Israel to meet Prime Minister Benjamin Netanyahu, followed by a trip to Saudi Arabia to discuss sanction plans.
• Relations between Iran and the U.S. have worsened over the past few years after President Donald Trump withdrew from the 2015 Iran nuclear deal and reimposed sanctions.
• President-elect Joe Biden, who was vice president when the Iran nuclear deal was signed, has said he will return the U.S. to the deal if Iran complies. Iran has expressed its willingness to return to the deal and on Wednesday President Hassan Rouhani, expressed hopes that tensions between the two countries will settle once Biden takes office.
• Netanyahu has emphasized the U.S. shouldn't return to the deal and Elliot Abrams warned the process would be lengthy, as negotiations could take months.

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• An algorithm that analyzes Twitter comments and invests in crypto is beating the S&P. *
• Diego Maradona has died from a heart attack at the age of 60. The Argentinian soccer legend has endured several health-related issues over the past few years, including a recent emergency surgery for a subdural haematoma. Maradona led Argentina to a world cup in 1986. President Alberto Fernandez has declared three days of national mourning.
• More than 100 pilot whales have died after being stranded on the Chatham Islands in New Zealand. On average, more than 300 whales and dolphins die on New Zealand beaches every year.
• Salesforce is in talks to purchase office messaging app Slack. The news sent Slack share price up by 32%, while Salesforce share price fell by 4%. Microsoft, a competitor of Slack and Salesforce, also saw its share price fall.
• University of Alabama's football coach Nick Saban tested positive for COVID-19 on Wednesday. This marks the second time Saban has tested positive and he is experiencing mild symptoms. Saban will miss Alabama's annual Iron Bowl game against its rival Auburn University.

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