Treasury market shifts, US retail sales, AI trends...

The $30 trillion Treasury market has seen a resurgence in voice trading, driven by the increasing complexity of leveraged hedge fund strategies. According to the Financial Times, traders are reverting to phone and messaging transactions for executing complex deals, contrasting the digitalization trend in other markets. Analysts suggest this shift stems from the need for greater flexibility and human intervention when managing large, risk-heavy positions. Financial Times

US retail sales rose by 0.2% in September, reflecting a slowdown compared to the stronger gains of previous months. The Commerce Department attributed the deceleration to high prices impacting household budgets, despite earlier summer spending surges. Economists forecast a 3% annual growth rate for the third quarter, buoyed by robust consumer activity, though concerns about inflation and tariffs persist. The delayed report, caused by the earlier government shutdown, highlights lingering challenges in federal data dissemination. bostonglobe.com

New York hedge fund Engine Capital has initiated a proxy fight to push UniFirst, the uniform supplier, to consider a sale to competitors like Cintas Corp. The hedge fund claims the company has underperformed since the passing of its former CEO and aims to secure board seats to influence strategy. UniFirst, valued at $3 billion, faces pressure to address alleged inefficiencies, with its fate primarily in the hands of the Croatti family, who maintain control through special voting shares. bostonglobe.com

A federal judge has endorsed Elliott Investment Management’s $6 billion bid for Venezuela's Citgo Petroleum, deeming it the most viable despite not being the highest offer. The judgment provides a resolution to long-standing disputes over the asset, which has been entangled in Venezuelan debt litigation. This decision underscores the strategic importance of Citgo, a key player in the U.S. energy sector, as well as the challenges for creditors navigating Venezuela’s financial turmoil. Wall Street Journal (Markets)

Ahead of her 2025 Budget, UK Chancellor Rachel Reeves announced a 4.1% minimum wage increase, aimed at alleviating the effects of the cost-of-living crisis. However, the measure comes alongside plans to extend a "stealth tax" by freezing personal tax thresholds, which could disproportionately impact middle-income earners. The Financial Times notes that this dual approach reflects a balancing act between short-term relief and long-term fiscal consolidation. Financial Times

Altice USA has accused several prominent creditors, including Apollo, Ares, BlackRock, and Oaktree, of forming an illegal cartel to control its distressed debt market. The company alleges that these creditors, who collectively own a significant portion of its $26 billion debt, coordinated actions to manipulate terms in their favor. Legal experts suggest that this case could set a precedent for how corporate debt negotiations are regulated in the future. Financial Times

The Wall Street Journal highlights the entrenched position of Venezuelan President Nicolás Maduro, who faces limited options for a peaceful exit due to international sanctions and the lack of viable exile opportunities. Unlike past leaders, Maduro is constrained by the regime's dependency on his leadership for survival, making a negotiated transfer of power highly improbable. Analysts view this as a significant hurdle to resolving Venezuela’s political and economic crises. World Street Journal (International)

Central Vietnam has experienced catastrophic flooding, with over 90 deaths in the past week and widespread destruction of homes and agricultural land. Government reports indicate that 200,000 homes have been submerged, and coffee harvesting has been disrupted. Experts attribute the unprecedented rainfall to climate change, with the region experiencing a record-breaking 14 typhoons this year. The Boston Globe notes that this disaster underscores the need for enhanced climate resilience in vulnerable regions. bostonglobe.com

China has surpassed the US in developing open AI models, according to the Financial Times. While American tech giants like Google and Microsoft maintain a preference for closed systems, Beijing-backed initiatives are fostering advancements in open frameworks, gaining international traction. Analysts suggest this shift could reshape global AI collaboration, positioning China as a leader in accessible technological innovation. Financial Times

The appointment of Louisiana Surgeon General Dr. Ralph Abraham as the deputy director of the CDC has drawn scrutiny due to his controversial stance on vaccines. Known for opposing mass vaccination campaigns and promoting unproven treatments, Abraham's leadership raises concerns about the agency's commitment to evidence-based public health strategies. Critics argue this decision could undermine trust in the CDC during a critical period for global health. USA Today bostonglobe.com