The Overnight News Roundup

Nov 08, 2024

PiQ and Zack Eiseman provide you a consolidated roundup of the overnight news that matters most to markets.

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MACRO:

China stocks and the Yuan are getting torched after China announced just a local government debt swap at its press conference, failing to (yet) provide any further stimulus, particularly around consumption.
China's yuan set for 6th weekly drop as markets await fiscal stimulus details. (RTRS)
A surge in China's debt issuance announced by the NPC on Friday may trigger bond market volatility, as greater supply might shock the market. That’s especially the case after non-bank liquidity tightened when investors rushed into stocks during a surge in late September. (BBG)
China's policy stimulus has invigorated the capital market and boosted investor confidence, as fund inflows have increased and mergers and acquisitions heat up. (Securities Times)
Several major Chinese banks are exploring proposals to increase their core tier 1 capital, following Beijing’s pledge to recapitalize its biggest lenders for the first time in over a decade. (Financial News)
China's new yuan loans are expected to fall sharply in October from September, a Reuters poll showed, signalling weak credit demand even as the central bank ramps up policy stimulus. (RTRS)
Japan’s finance minister Kato said “We are watching developments in the currency market, including speculative moves, with an extremely high sense of urgency", with the new use of the word “extremely” increasing the risk of intervention. (WSJ)
Japanese household spending fell in September for the second straight month, as higher prices choked consumers' appetite in a discouraging sign for the central bank's plans to hike rates further. (RTRS)
Japan opposition (DPP) head Tamaki said Trump's policies could potentially intensify inflation, increase US rates and further push down the yen versus the dollar, whilst he reiterated the BoJ should not use policy to stem the weakness of the yen. (RTRS)
Japan's Nikkei posts biggest weekly gains since September. (RTRS)
Trump announced that Susie Wiles, one of his two campaign managers, will be his White House chief of staff. (RTRS)
After an initial stampede into “Trump Trades,” investors in some asset classes are tapering their enthusiasm as they question whether Donald Trump will push through his ambitious tariff proposals as US president. (BBG)
Historically tight spreads and the prospect of a turbulent landing for the US economy have left the world’s second-largest asset manager, Vanguard Group Inc., leery of junk bonds. (BBG)
German opposition leader Friedrich Merz accused Chancellor Olaf Scholz of seeking to delay an early election until March purely for party political advantage and reiterated his demand for a January vote. (BBG)
France is hoping to persuade Poland into joining forces to block a trade deal between the EU and Latin America’s Mercosur bloc that’s been a quarter of a century in the making. (BBG)
South Korea said it will bolster its monitoring of financial markets and respond “actively” to ease any excessive volatility as policymakers brace for the implications of Donald Trump’s return to the White House. (BBG)

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GEOPOLITICAL:

Trump plans to drastically increase sanctions on Iran and throttle its oil sales as part of an aggressive strategy to undercut Tehran’s support of violent Mideast proxies and its nuclear program. (WSJ)
Iranian Supreme Leader says Iran should put an end to Israel and make a sound decision on responding to its attack. (Sky News Arabia)
China's ambassador to the US said there are no winners in tariff or trade wars, nor in wars over science and technology or industrials. (RTRS)

EQUITIES:

Airbnb narrowly beat estimates for third-quarter revenue on Thursday, although profit fell short as it spent heavily on marketing to boost its presence in international markets. (RTRS)
Rivian said it was on track to turn a gross profit in the fourth quarter helped by cost cuts and a sharp increase in sales of green car credits, despite a parts shortage disrupting production and weak EV demand. (RTRS)
Block reported third-quarter revenue below Wall Street expectations, signaling softer consumer spending and overshadowing a profit beat that was powered by disciplined expense management. (RTRS)
Carl Icahn says he is sensing opportunity in the stock market and wants to increase his stake in CVR Energy, but he is going to do that by cutting his investment firm’s dividend in half. (WSJ)
Pinterest's fourth-quarter revenue forecast failed to impress investors looking for a boost from the upcoming holiday shopping season, at a time when bigger online ad sellers largely outperformed. (RTRS)
Richemont said a decline in consumer spending in China hurt sales as a luxury downturn that is hurting most of the players in the industry rumbles on. (WSJ)
Banca Monte dei Paschi di Siena reported third-quarter net profit and revenue growth ahead of expectations, led by higher income from fees and commissions. (WSJ)
British Airways owner IAG reports bigger than expected profits. (FT)
TSMC reports Oct (NT$) Rev 314.2B, +29.2% y/y and an all time high (vs prior 251.9B M/M). YTD Rev (NT$) 2.34T +31.5% Y/Y (vs prior +31.9% Y/Y). (TTN)
TSMC has told multiple Chinese customers that it will suspend production of their AI and high-performance computing chips amid efforts to comply with U.S. export controls. The overall impact on TSMC's revenue will be minimal. (Nikkei)
US President Biden and President-elect Trump might both attend TSMC Arizona's fab opening ceremony in December, along with TSMC founder Morris Chang. (DigiTimes)
Baidu is set to unveil a pair of glasses with a built-in AI assistant. (BBG)
SMIC, China's largest chipmaker, warned that overcapacity in mature node chips will persist through 2025 and that it was turning cautious on building new capacity. (RTRS)
China’s largest state-owned banks are likely to see their record low profit margins decline even further as Beijing’s broader stimulus package comes into play, analysts say. (CNBC)
Shares of China's strategically key sectors, including information security, defence, chip-making and rare earth, jump on bets of stronger government support in the face of heightened tensions with the US on Trump's re-election. (RTRS)
Sony reported profit above forecasts whilst reaffirming its profit guide for the year, despite analysts expecting that to nudge higher. (BBG)
Nissan shares slump after unveiling plan to cut jobs, production. (RTRS)
Kioxia Aims to Go Public by June 2025 to Diversify Financing Methods. (Jiji)
ANZ, Australia's No. 4 lender by mortgages, said annual profit tumbled as fierce competition ate away margins while late loan repayments surged. (RTRS)