Global stocks hit 5-1/2 year lows

HONG KONG (Reuters) - A rout in Asia pushed world stocks to their lowest in 5- years on Thursday, while oil fell to below $53 a barrel and safe havens such as the yen gained as economic data indicated a global recession could get even uglier.

Central banks may respond with another wave of rate cuts. The U.S. Treasury two-year yield hit a record low at one point, while other regional bonds such as in Japan surged amid the turbulence.

Investors are bracing for tough conditions ahead after the latest bearish signals for the global economy: The Federal Reserve slashed its U.S. growth forecasts, U.S. consumer prices fell at a record pace last month, and Japan's October exports fell by the most in seven years.

The bleak outlook, which is hitting sectors from South Korean chip makers to U.S. auto makers, comes amid renewed worries about the financial system. Citigroup shares tumbled to a 13-year low on Wednesday as investors questioned its survival prospects on concerns about mounting losses from credit cards, mortgages and toxic debt.

"Everybody is accepting the fact that we are in for a prolonged global recession and we are seeing a lot of pullbacks," said Lucinda Chan, a division director with Macquarie Equities in Australia.

Like dominoes, Asian markets fell a day after U.S. stocks hit their lowest in more than five years. The MSCI All-Country World Index fell 1.2 percent as of 0330 GMT (10:30 p.m. EST on Wednesday), having hit its lowest level since May 2003.

Japan's Nikkei average dropped 5 percent, below the key technical level of 8,000 points for the first time in three weeks.

South Korean and Hong Kong shares tumbled more than 5 percent, while markets in Sydney, Singapore and Taiwan fell more than 3 percent each.

More broadly, the Asia-Pacific ex-Japan MSCI index was down nearly 5 percent.

Expectations for a sharp slowdown sent oil prices down for a fifth consecutive session, and down 83 cents to $52.79.

"The lack of any positive news on the demand front as well as continued global economic turmoil continue to result in a dearth of bullish news," said Jonathan Kornafel, Asia director of Hudson Capital Energy.

Oil on Wednesday fell to its lowest settlement since late January 2007 for a commodity that just in July hit a record high at about $147 a barrel.

STAYING SAFE

Investors are finding plenty to worry about. Federal Reserve officials on Wednesday pared their outlook for growth in the world's biggest economy to minimal levels and appear poised to cut interest rates further.

The weaker forecast came on a day in which data showed U.S. consumer prices in October posted their biggest drop since monthly records began in 1947, sparking concerns about a deflationary spiral.

The sharply weaker global growth bodes ill for Asian economies that need healthy overseas demand for their products. Japan on Thursday said exports logged their biggest annual decline in seven years in October.

Regional bonds were highly sought as investors looked for relative safety. The 10-year Japanese government bond yield fell 2 basis points to 1.445 percent after dropping earlier to 1.430 percent, the lowest since early October.

Expectations that the Fed could cut rates next month sent the two-year Treasury yield to a record low of 1.0685 percent in early Asian trade, according to Reuters data. By midday in Tokyo it was at 1.093 percent, up 2 basis points from late U.S. trading on Wednesday.

Risk aversion also kept the yen and the dollar firm on Thursday. Safe-haven capital flows have benefited the Japanese currency as investors, in times of stress, tend to sell assets financed with the cheaply-borrowed yen.

The dollar was up 0.1 percent at 95.83 yen, slightly above a one-week low of 95.66 yen hit on Wednesday. The euro inched up 0.2 percent against the yen to 119.80 yen, also a tad above a one-week low.

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Sen. Ted Cruz (R-Texas) joined the "Glenn Beck Radio Program" to explain how mail-in ballots are typically disqualified during recounts at a far higher rate than in-person, Election Day ballots, and why this is "good news" for President Donald Trump's legal battle over the election.

"One of the things that gives the greatest cause for optimism is, this election ... there's a pretty marked disparity in terms of how the votes were distributed. On Election Day, with in-person voting, Donald Trump won a significant majority of the votes cast on in-person voting on Election Day. Of mail-in voting, Joe Biden won a significant majority of the votes cast early on mail-in voting," Cruz explained.

"Now, here's the good news: If you look historically to recounts, if you look historically to election litigation, the votes cast in person on Election Day tend to stand. It's sort of hard to screw that up. Those votes are generally legal, and they're not set aside. Mail-in votes historically have a much higher rate of rejection … when they're examined, there are a whole series of legal requirements that vary state by state, but mail-in votes consistently have a higher rate of rejection, which suggests that as these votes begin being examined and subjected to scrutiny, that you're going to see Joe Biden's vote tallies go down. That's a good thing," he added. "The challenge is, for President Trump to prevail, he's got to run the table. He's got to win, not just in one state but in several states. That makes it a lot harder to prevail in the litigation. I hope that he does so, but it is a real challenge and we shouldn't try to convince ourselves otherwise."

Watch the video clip below to catch more of the conversation:

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Fox News senior meteorologist Janice Dean is perhaps even more disgusted with New York Gov. Andrew Cuomo (D) for his coronavirus response than BlazeTV's Stu Burguiere (read what Stu has to say on the subject here), and for a good reason.

She lost both of her in-laws to COVID-19 in New York's nursing homes after Gov. Cuomo's infamous nursing home mandate, which Cuomo has since had scrubbed from the state's website and blamed everyone from the New York Post to nursing care workers to (every leftist's favorite scapegoat) President Donald Trump.

Janice joined Glenn and Stu on the "Glenn Beck Radio Program" Tuesday to ask why mainstream media is not holding Gov. Cuomo — who recently published a book about his leadership during the COVID-19 pandemic — accountable?

"I'm vocal because I have not seen the mainstream media ask these questions or demand accountability of their leaders. [Cuomo] really has been ruling with an iron fist, and every time he does get asked a question, he blames everybody else except the person that signed that order," Janice said.

"In my mind, he's profiting off the over 30 thousand New Yorkers, including my in-laws, that died by publishing a book on 'leadership' of New York," she added. "His order has helped kill thousands of relatives of New York state. And this is not political, Glenn. This is not about Republican or Democrat. My in-laws were registered Democrats. This is not about politics. This is about accountability for something that went wrong, and it's because of your [Cuomo's] leadership that we're put into this situation."

Watch the video excerpt from the show below:

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As America grows divided and afraid to disagree with the Democrats' woke plan for America, Megyn Kelly is ready to fight back for the truth. For nearly two decades, she navigated the volatile and broken world of the media. But as America leans on independent voices more than ever, she's breaking new ground with "The Megyn Kelly Show."

She joined the latest Glenn Beck Podcast to break down what's coming next after the election: Black Lives Matter is mainstream, leftists are making lists of Trump supporters, and the Hunter Biden scandal is on the back burner.

Megyn and Glenn reminisce about their cable news days (including her infamous run-in with then-presidential candidate Donald Trump) and to look into the chaotic and shady world of journalism and the growing entitlement it's bred. For example, many conservatives have been shocked by how Fox News handled the election.

Megyn defended Fox News, saying she believes Fox News' mission "is a good one," but also didn't hold back on hosts like Neil Cavuto, who cut off a White House briefing to fact check it — something she never would have done, even while covering President Obama.

Megyn also shared this insightful takeaway from her time at NBC: "Jane Fonda was an ass."

Watch the full podcast here:

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Glenn Beck has had enough of exposing scandal after scandal, just to have everyone look the other way: Benghazi, Hillary Clinton's emails, Joe and Hunter Biden's dealings in Ukraine and China … the list goes on, but no consequences are paid. Now, the media have called the election for Joe Biden and insist no one can question it. But for many of the more than 71 million people who voted for President Trump, our search for the truth isn't over yet.

On his Wednesday night special this week, Glenn called out the left's long list of alleged corruption that has gone unchecked and stressed that Donald Trump's legal team must be allowed to go through the process of investigating the multiple allegations of election fraud to ensure our voting systems are fair.

"I don't know about you, but I'm tired. I am worn out. I am fed up!" Glenn said during his opening monologue. "I've had enough. I am tired of exposing corruption, doing our homework, even going overseas and having documents translated to make sure they're exactly right, [and] presenting the evidence ... except, once we expose it, nothing happens. Nobody goes to jail. Nobody pays for a damn thing any more!"

Watch the short video clip from the full show below:


Because the content of this show is sure to set off the Big Tech censors, the full episode is only be available on BlazeTV. The election and its aftermath are the most important stories in America, so we're offering our most timely discount ever: $30 off a one-year subscription to BlazeTV with code "GLENN."