The job market continues to sputter even as cost and price pressures persist, last week’s Federal Reserve beige book report found, underscoring the competing risks central bank officials will have to weigh at its policy meeting this month. In Europe, German inflation climbed in November, despite French inflation holding steady and Spanish and Italian inflation inching lower, a mixed picture that nevertheless keeps the European Central Bank on course to hold its key rate this month. And in Japan, hopes that the central bank could soon raise interest rates got a lift on Friday from data showing broad strength in the economy.

U.S. employers showed little appetite for hiring, which fell in half of the Fed’s 12 regional districts, while the recently ended federal government shutdown and artificial intelligence also weighed on job seekers’ prospects, according to the beige book. At the same time, tariffs and health insurance added to business costs, potentially fueling inflation concerns, the report found.

• Jobless Claims Show Low-Hire, Low-Fire Environment Continues

The coming interest-rate decision by the Federal Reserve could be an unusually close call as Fed Chair Jerome Powell faces a divided body. Here’s a breakdown of the stance of the 12 policymakers who will vote on Dec. 10.

Traders on prediction markets dialed up their wagers on Kevin Hassett being appointed the next chair of the Federal Reserve after President Trump told reporters that he had settled on his next Fed pick—but didn’t reveal the name. Hassett’s chances were recently about 76% on Kalshi, up from 55% before Trump made the comments on Air Force One on Sunday afternoon.

• Rate Hikes Wouldn’t Put Brakes on Japan’s Economy, BOJ’s Ueda Says
• Japan Plans Extra Bond Issuance That May Fuel Fiscal Fears
• Bitcoin Falls as Prospect of Rate Rise in Japan Spooks Investors

When President Trump announced his “Liberation Day” tariffs in April, economists predicted a global shock: The U.S. would buy less from the world, cutting exports and jobs. Now some of those economists are revising their global growth predictions upward. One big reason: What the U.S. government took away with its tariffs, the U.S. tech industry gave back with its artificial-intelligence spending spree.

Business activity in the Chicago area recorded a marked fall in November, driven by declines in orders, production and employment, a monthly survey showed Wednesday. The Chicago Business Barometer, compiled by MNI Indicators, tumbled to 36.3 in the month, from 43.8 in October. Economists polled by The Wall Street Journal had expected a rise to 45.5.

Moody’s and S&P Global recently gave Scotland the same investment-grade rating as the U.K. John Swinney, the Scottish leader, described it as a proud moment. The Scottish National Party he leads views a bond issue as an important waymarker on the path to Scotland leaving the U.K. and regaining its independence. The problem is both Moody’s and S&P have made it clear that Scotland’s ratings are contingent on it remaining in the U.K.

Politics and debt don’t mix well. Americans would be wise to look across the Atlantic to see how tough things can get, writes The Wall Street Journal’s James Mackintosh. The U.K. government demonstrated the problem with its annual budget, where it is stuck in a trilemma, unable to please lenders and voters while also doing the right thing for the economy. Something had to give, so on Wednesday the government ignored its promises to go for growth, and focused on the bond market and its political base. The U.S. is facing some of the same strains—along with a lack of political will to do anything to prevent the problem from festering. For now, all that stands between the U.S. and a debt-market freakout is the dollar. Having the world’s reserve currency, however, isn’t the unbreakable shield many assume.

Lloyd’s of London, the world’s biggest insurance marketplace, is no longer a bastion of white, male privilege. Or so the white men running it say. A reputational crisis is putting the iconic British institution under pressure to prove it has changed.

9:45 a.m.: U.S. Manufacturing PMI
10 a.m.: U.S. ISM Report on Business Manufacturing PMI
8 p.m.: Fed Chair Jerome Powell speaks at event on George Shultz and his economic policy contributions in Stanford, Calif.

2 a.m.: Bank of England Financial Stability Report
5 a.m.: Flash estimate euro area inflation
5 a.m.: EU unemployment
8:55 a.m.: Johnson Redbook Retail Sales Index
10 a.m.: Fed Vice Chair for Supervision Michelle Bowman speaks at hearing on oversight of financial regulators before U.S. House Financial Services Committee

• U.S. durable-goods demand rose for a second consecutive month in September, according to shutdown-delayed data from the Census Bureau.
• Over the past two decades, developers in New York have converted nearly 30 million square feet of office space into residential living, with the pace of transformation picking up in recent years.
• Big tech companies are streaming into debt markets to fund gigantic investments in data centers, chips and other AI-related infrastructure. Other kinds of companies that borrow a lot, such as utilities, are also having to invest to feed the chips’ various energy needs.
• China’s official factory gauge edged up on stronger production and demand in November, but remained in contraction for an eighth straight month. But a private gauge of China’s manufacturing sector showed Chinese factories cut back on activity in November.
• South Korea’s exports rose at a stronger-than-expected pace in November, backed by brisk demand for semiconductors and a trade deal between Seoul and Washington.
• Asian manufacturers have turned somewhat more upbeat about the outlook for the year ahead despite continued demand uncertainty and rising price pressures.
• The Bank of Mexico lowered its expectation for economic growth this year after a third-quarter contraction that it said showed greater weakness in activity than previously expected.
• Venezuela has become a major launchpad for huge volumes of cocaine shipped to West Africa, where jihadists are helping traffic it to Europe in record quantities.

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by Michael Maloney in New York and Nihad Ahmed in Barcelona.