(Bloomberg) -- A new week dawns and risk is on the menu. If you’re into markets with wild swings, but feel crypto is still a bit radioactive, why not join some of Wall Street’s heavyweight banks and start piling back into Chinese stocks?  In Egypt, climate envoys managed to secure an important last-minute compromise, while in Malaysia, the general election failed to produce an outright winner.

The big vote: Malaysia has its  first hung parliament after Prime Minister Ismail Sabri Yaakob’s Barisan Nasional (BN) coalition took a beating in Malay heartland states, while opposition leader Anwar Ibrahim’s Pakatan Harapan (PH) failed to gain enough ground outside its stronghold constituencies to form a majority. Both Anwar and ex-premier Muhyiddin Yassin, head of the third major alliance Perikatan Nasional (PN), said they can persuade enough lawmakers to join their alliances to form the next government. Ninety-seven year old former premier Mahathir Mohamad lost his parliamentary seat. 

The big deal: The COP27 climate talks in Egypt, which had appeared close to collapse on Saturday morning, secured a last-minute deal on an historic pact over loss and damage — the mechanism to pay poorer countries for harm caused by global warming. Still, as negotiations over the final agreement extended into the early hours of the morning, some groups were disappointed by the limited progress in phasing out fossil fuels. 

The big tweet: Yes, he’s allowed back on Twitter.

The big tournament: The FIFA World Cup begins today in Qatar, which had to build almost all the infrastructure and accommodation for the world’s biggest sporting event from scratch. Here’s what you get for $300 billion.

The big reversal: Morgan Stanley and Bank of America Corp. have joined JPMorgan Chase & Co. in building a bullish consensus for Chinese shares on Wall Street, driven by optimism around President Xi Jinping’s policy pivots and November’s epic stock rebound. And while the collapse of Sam Bankman-Fried’s FTX continues to reverberate,  futures exchanges aren’t giving up on crypto, either.

 

The big data: Tuesday brings the latest Economic Outlook report from the Organisation for Economic Co-operation and Development, which warned in September of looming recessions and worsening prospects because of the war in Ukraine. The following day, the Fed releases the minutes of its November meeting, giving clues as to just how hawkish the committee is about its next rate hike. In Japan, Tokyo’s core inflation may slow for the first time since January, a welcome sign for a nation that’s bucking the interest rate trend. Thai economic growth probably picked up as tourists return. 

The big dilemma: Central banks in Sri Lanka and Pakistan are likely to keep their key rates unchanged, balancing concerns about uncomfortably high inflation with worries about damaging economies that are already struggling. Meanwhile, the Reserve Bank of New Zealand and the Bank of Korea are both expected to raise rates again. 

The big take: What do you do if most of your population lives on the coast, with many crammed into a capital that’s below sea level, but you just discovered a humungous amount of oil just offshore? Here is the Big Take on how one country decided to mitigate the cost of rising sea levels by embracing fossil fuels. 

And finally, what’s soft, warm and green? According to one neuroscience dropout, it’s the wool from the critters in the picture above. This is the story of his epiphany on the road to Cuzco and how you can do your bit for the winter fuel crisis by buying a nice new sweater.

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