The Overnight News Roundup

Jan 10, 2025

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

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MACRO:

CGB yields and the Yuan saw a brief rise, which since faded, after the PBoC announced it is to temporarily suspend the purchase of government bonds in the market during January due to the short supply of treasury bonds. (Newswires)
A Chinese economist in the PBoC-backed Finance News warned against aggressive easing bets. Guan Tao said the over-interpretation of moderately loose monetary policy in China should be avoided. (Newsquawk)
China's Vice Finance Minister at a news conference said China will speed up fiscal spending to drive up investment. Said more proactive fiscal policy can be expected in 2025, in terms of its strength, efficiency and timing. (RTRS)
Sunac China shares and bonds plunged on Friday after a liquidation petition was filed against the property developer, adding to concerns over its business recovery and repayment ability despite an offshore debt restructuring in 2023. (RTRS)
Chinese President Xi Jinping will send a high-level envoy in his place to U.S. President-elect Donald Trump's Jan. 20th inauguration. An option that had been touted in December. (FT)
Economists forecast China's exports expanding at a faster pace in December, suggesting producers raced to move inventory to major markets ahead of Trump's return and fresh trade risks. Data is due Dec. 13th. (RTRS)
China’s strained pension system, already in danger of running out of money in a decade, faces a new threat from young workers who are showing preference to spending rather than saving. (BBG)
Japan's Nikkei share average sank for a third straight session on Friday, dragged down by a tumble for Uniqlo store chain operator, Fast Retailing (12% weight), following a disappointing earnings report. (RTRS)
JGB 10yr yield rose to the highest level in nearly 14 years on Friday, on rising odds for an interest rate increase at the BoJ's policy meeting this month. (RTRS)
Japanese household spending fell at a slower pace than expected in November, but the broader consumption trend remained soft, weighed by higher prices. (RTRS)
Japan's economy minister Akazawa reaffirmed that the government will closely coordinate policy with the central bank as the economy is at a critical stage in shifting to growth driven by higher wages and investment. (RTRS)
EU officials are analysing hundreds of executive orders and sanctions imposed by US President Joe Biden amid growing concern that Donald Trump will rescind them, potentially upending foreign relations and trade. Particular concern over the reversal of Biden's sanctions on Russia. (FT)
French factory production recovered a little toward the end of last year in a glimpse of optimism for the beleaguered sector. (WSJ)
UK Chancellor Reeves is planning to make a significant speech on growth this month and has asked ministers to come up with concrete measures to bolster economic activity. They have also been instructed to “cease anti-growth measures”.
Some 700,000 British households face a jump in mortgage costs when their fixed-rate deals end in 2025, as upheaval in the UK financial markets over recent weeks threatens to drive borrowing costs higher. (FT)
Britain’s power market is set to remain tight on Friday, capping a week that’s seen prices soar as temperatures plummet. Wind generation may plunge to half Thursday’s levels, while heating demand will stay at an 11-month high as Britain gets its coldest day since last January. (BBG)
SocGen strategists say that with the US 10yr Treasury yield approaching 5%, any further sell off presents a buying opportunity. SocGen suggests declining equity risk premiums and a tightening of financial conditions are likely catalysts. (WSJ)
The LA wildfires are set to be the costliest blaze in U.S. history, analysts say, as the first initial estimates of damage from the infernos soared close to USD 50bln. (WSJ)
LA Department of Water and Power had not implemented an increasingly used safety protocol intended to prevent its equipment from igniting blazes, a measure that every other big California power provider has in place. (WSJ)
People in the US are tipping less at restaurants than they have in at least six years, driven by fatigue over rising prices and growing prompts for tips at places where gratuities haven’t historically been expected. Base pay is rising, however. (WSJ)
ANZ has moved forward its RBA interest rate cut forecast from May to February following this week's inflation data. (Yahoo Finance)
Outgoing Canadian PM Trudeau's Liberal Party said late on Thursday it will choose a new leader on March 9th ahead of the 2025 elections for which polls show the party in a very weak position. (RTRS)

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GEOPOLITICAL:

The Supreme Court on Friday will hear oral arguments in the case involving the future of TikTok in the U.S., which could ban the popular app as soon as next week. (CNBC)
Trump expressed support for Venezuelan democracy activist Maria Corina Machado and President-elect Gonzalez, sayoing "The great Venezuelan American community in the US overwhelmingly support a free Venezuela, and strongly supported me." (Truth)
Saudi Arabia and other Arab states are jockeying for influence with Syria’s Islamist government, hoping to gain an advantage on rivals in the strategically positioned country despite misgivings about the jihadist past of its new leaders. (WSJ)
A Hungarian bid for a major energy provider in Romania is under review after suspicions arose about the motives behind the inflated offer, including fears of Russian influence. (FT)

EQUITIES:

TSMC reported fourth-quarter revenue that easily beat market forecasts and hit its own expectations as it reaped the benefit of AI demand. (RTRS)
Nvidia sell side analysts, after meeting CFO Colette Kress, note Nvidia downplayed potential for custom ASICs' (AVGO, MRVL) rapid share gains. Co. was confident compute demand for AI will continue to increase. The next big catalyst will be flagship GTC conference starting Mar 17th. (TTN)
Tesla launched a revamped version of its Model Y car in China, its best selling yet aging model, with a starting price of 263,500 yuan ($35,938). The revamped version includes a Model Y variant of with a longer driving range of 719 km (447 miles) per charge. (RTRS)
Elon Musk’s AI startup, xAI, launched its first stand-alone consumer app, its latest step as the company tries to catch up with more established players such as OpenAI and Google in the generative AI race. (WSJ)
BlackRock is pulling out of a UN-sponsored climate initiative, a remarkable U-turn for a company that was once a poster child of the ESG investing movement. (WSJ)
Wells Fargo has hired JPMorgan executive Ed Olebe to lead its credit-card business. The bank is trying to grow that business under CEO Charlie Scharf. (WSJ)
Nvidia and MediaTek are working together on more than just the GB10 announced at CES 2025, they are also jointly developing Nvidia's Tegra T239 for Nintendo’s upcoming Switch 2 console, where Samsung Foundry is manufacturing the chip. (DigiTimes)
Chinese automaker SAIC said it will deepen cooperation with EV battery giant CATL in areas including the battery after market for parts and components and overseas business cooperation. (RTRS)
Country Garden has proposed a deal to its offshore creditors that will cut its debt by $11.6 billion, paving the way for the property developer to seek more time from the high court in Hong Kong to implement a restructuring plan. (RTRS)
Apollo is considering investing as much as 1.5 trillion yen ($9.5 billion) in a management buyout of Japan's Seven & i Holdings. (BBG)
Samsung has decided to cut the input volume of NAND wafers at its largest NAND production facility, the Xi’an plant in China, by over 10% compared to current levels. (Chosun)
Hyundai Motor said it would introduce the cheapest compact electric car in Japan, to penetrate a market dominated by local giants with established petrol and hybrid vehicle technologies. (RTRS)