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Global recession fears, an options expiry event, and US senators cracking down on TikTok. - Nour Al AliRecession concerns around the globe f [View in browser]( [Bloomberg]( Global recession fears, an options expiry event, and US senators cracking down on TikTok. - [Nour Al Ali]( Recession Fears Recession concerns around the globe for next year are mounting. [Data from France]( show that it faces a greater recession risk, with the Purchasing Managers Index falling to its lowest level in two years. Similarly UK companies are [steeling themselves]( for an economic contraction, with both the manufacturing and service sectors experiencing a slump in the fourth quarter. “Businesses are battening down the hatches, most notably by reducing headcounts in a sign that the downturn not only has further to run but could yet accelerate,” according to Chris Williamson at S&P Global Market Intelligence. And US steelmakers are [highlighting]( slowdown worries, with Nucor Corp, the US's largest steelmaker, noting that rising energy costs and falling demand will lead to "considerably" lower earnings. Witches Ahead Watch out for volatility ahead, with a contract expiry [event](bbg://news/stories/RMXSS6T0AFB4) that’s about to hit on Friday. Nominal open interest crossed $8t this week for put and call options on the S&P 500. That’s just shy of a record set in December 2021 ahead of the quarterly triple witching where contracts for stock index futures, equity index options and stock options all expire. Last year, the December event saw Stoxx 600 volume jump to levels reminiscent of the pandemic shock on significant intraday volatility. Looks like money managers will have to work at least one more day before they break out the eggnog. TikTok Crackdown US Senators in both parties [pressed](for more action by the Biden administration to address national security [concerns]( raised by widespread use of TikTok a day after voting to ban the video-sharing app on government phones. Senate Intelligence Chairman Mark Warner said Congress and states may take further steps soon to limit TikTok because of security concerns if the Biden administration doesn’t quickly come forward with a solution to protect American users of the Chinese-owned social media network. Selloff Deepens The equity selloff has [deepened]( amid rising concerns about recession risks as central banks press on with their fight against inflation. US futures extended declines, with S&P 500 contracts down 1.1% and Nasdaq 100 about 0.8% lower as of 6:16 a.m. New York time. In Europe, the Stoxx 600 declined 1.2% as all sectors fell, barring banks. European bond yields surged, led by the short-end of the curve. The yield on 10-year Treasuries rose more than 4 basis points, approaching 3.5%. The dollar turned marginally lower on the session again, with the Japanese yen outperforming peers in the Group of 10 currencies. Gold was little changed, while oil and Bitcoin fell. To catch up on the trading day in the UK and Europe, [check out today’s edition of City Latest.]( Coming up... After a very busy week things are taking a quieter turn today, with PMI data the only major release in the US. Later on, there's a speech on the economy from the Fed's Mary Daly. What we've been reading Here's what caught our eye over the past 24 hours. - Russian [missile barrage]( knocks out power in Ukraine. - How [cocaine smugglers]( infiltrated a shipping company. - [Musk suspends journalists]( who tweeted his location. - The [FTX-victim]( card is hard to play. - These [US towns]( got a lot more expensive. - Humans, not software, hold the [key to collaboration](. - [Malls welcomed dogs](, the results were ruff. And finally, here’s what Garfield’s interested in this morning The Federal Reserve raised rates half a point as expected to cap perhaps its most aggressive year of policy tightening ever. Bonds essentially [shrugged](. Even as Chairman Jerome Powell laid out a [higher path]( forward for interest rates, bond investors bet there’s not a lot of tightening left to come. Most of Bloomberg’s aggregate major indexes are up 1% or more this month. Confidence looks to be building that inflation will wane and economies slow following the global tightening spree. That’s making bonds look like a lot of fun for 2023 with yields sitting pretty just around 3.5% — that’s some 1.5 points above the average for the 10 years through 2021. Traders went into the Fed meeting confident rate cuts are [comingÂ](next year after November CPI sagged and nothing Powell said had much impact on that part of the market. That could be because inflation-linked debt shows [signsÂ](of being more noise than signal. For one thing, the notes have done a singularly [poor job]( of performing their stated role as an inflation hedge, delivering about as bad losses this year as nominal bonds. The mantra from central banks — and the [IMFÂ](— remains policymakers should err on the side of tightening [too far]( and setting off recessions rather than risk slowing down too soon. That was reinforced Thursday when the European Central Bank matched the Fed’s half-point hike and people with knowledge of the matter [told]( Bloomberg more than a third of its policymakers favored a bigger increase. The Bank of England joined the half-point club but was more cautious in doing so and [signaled]( high hopes inflation has peaked. Most bond investors seem to reckon just about enough has been done to tame inflation. BlackRock Inc. is sounding a rare [contrarian]( note, however, saying its top conviction is to avoid long-term sovereign securities. Garfield Reynolds is Chief Rates Correspondent for Bloomberg News in Asia, based in Sydney. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](