The Overnight News Roundup

Nov 27, 2024

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

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MACRO:

Trump has picked Jamieson Greer to be USTR. Greer is a former Air Force lawyer turned trade litigator and is a protegé of Robert Lighthizer, who was Trump’s trade representative in his first administration and is expected to influence trade policy in Trump’s second term. (Politico)
US consumers face “significant consequences” from President-elect Donald Trump’s proposed tariffs on Canada, according to Goldman Sachs Group Inc., with the bank casting doubt over its implementation. (BBG)
A bearish tone is taking hold in the market for interest-rate options, suggesting that bond traders are bracing for Treasury yields to surge anew in the coming weeks. (BBG)
The Kiwi appreciated after RBNZ delivered on a consecutive 50bps rate cut as was widely expected, although there were some outside bets for a greater 75bps move. Governor Orr said there were no discussions for a 75bps cut and bank projections were consistent with a 50bp cut in February. (Newsquawk)
New Zealand’s economy grew significantly more than previously reported in the year through March 2024, according to revised data drawn from the national accounts. (BBG)
China's state media warned U.S. President-elect Donald Trump his pledge to slap additional tariffs on Chinese goods over fentanyl flows could drag the world's top two economies into a mutually destructive tariff war. (RTRS)
Chinese and Hong Kong stocks saw a strong recovery on Wednesday in the absence of major newsflow, with some pointing to the slower pace of decline in the latest industrial profits data, although a bounce has been due after weeks of underperformance.
China's industrial profits fell again in October but less sharply than the previous month as deflation pressures dragged while demand remained soft in the crisis-hit $19 trillion economy. (RTRS)
A former senior Chinese financial regulator has said top Beijing leaders set “psychological” targets for the nation’s stock markets and currency exchange rate that are not based on fundamentals. (FT)
China Defence Minister Dong Jun has been placed under investigation as part of a wide-ranging anti-corruption probe that has roiled the top ranks of the People's Liberation Army. (FT)
Chinese steelmakers narrowed losses in October, after the government’s efforts to stimulate the economy encouraged more production and helped raise prices. (BBG)
Chinese companies’ foreign-currency debt load has shrunk significantly, reducing a key source of vulnerability as the yuan faces growing uncertainties under Donald Trump’s second presidency. (BBG)
AUD was flat after Australia's CPI rate stayed at a three-year low in October as government rebates drove electricity and rent prices down, though core inflation picked up in a sign of lingering cost pressure elsewhere. (RTRS)
Japan's Nikkei 225 stock average will brave near-term global uncertainties to reach a record high by end-2025, according to a Reuters poll. (RTRS)
BoE's Lombardelli said Trump’s proposed trade tariffs would pose a risk to economic growth in countries including the UK, hitting growth in the short term and productivity in the long term, while she voiced concerns about persistent domestic service inflation. (FT)
South Korea's pension fund has been selling dollars in the onshore foreign exchange market in recent weeks, capping losses in the won currency as the dollar surges. (RTRS)
Vietnam plans to buy more aircraft, liquefied natural gas and other products from the US as government officials brace for a new era of tariffs from the incoming Trump administration. (BBG)
Goldman is making a contrarian case for a steep slowdown in South Africa inflation next year, setting itself apart from other observers and the country’s central bank. (BBG)
Russian oil-product exports rebounded in November to the highest in eight months as local refineries ramp up production with the end of autumn maintenance. (BBG)
Europe is set for the coldest winter since Russia’s invasion of Ukraine, pushing up energy costs as the continent dips into its gas reserves at a faster-than-usual rate. (BBG)
Goldman warns Asia prices of LNG could jump to above $20 per million BTU if European gas supply tightens this winter. (RTRS)

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GEOPOLITICAL:

China is likely to launch military drills in the coming days near Taiwan, using President Lai Ching-te's upcoming trip to the Pacific and scheduled U.S. transit as a pretext, according to assessments by Taiwan and regional security officials. (RTRS)
Hamas says it is ready for truce in Gaza after the ceasefire deal between Israel and Hezbollah. (Newsquawk)
Russia is continuing work to put its Sarmat intercontinental ballistic missile - part of its strategic nuclear arsenal - on combat duty. (TASS)
Turkey has reduced its planned $23 billion acquisition of an F-16 fighter jet package from the United States, scrapping the purchase of 79 modernisation kits for its existing fleet. (RTRS)

EQUITIES:

CrowdStrike swung to a loss in the third quarter, dragged down by expected headwinds following one of the worst computer outages ever, though the company raised its fiscal-year outlook and posted higher revenue as adoption accelerated. (WSJ)
Dell forecast Q4 revenue below expectations, weighed down by weaker demand for its traditional PCs and competition from rival server makers, sending its shares down more than 10% in extended trading. (RTRS)
Microsoft, HP and, Dell are pushing China suppliers to speed production of electronic components before January, when President-elect Trumps takes office and enacts tariffs. (Nikkei)
OpenAI is allowing employees to sell roughly $1.5bln worth of shares in a new tender offer to SoftBank. The new financing will allow the Softbank to get an even larger slice of the AI startup, and it will allow current and former OpenAI employees to cash out. (CNBC)
Investors in Elon Musk’s takeover of Twitter are set to make a huge windfall from a surge in the valuation of his AI company, with xAI set to raise $5bn at a valuation of $50bn, double what it was just six months ago. (FT)
The FAA said it will not require any immediate action after convening a review board to consider concerns about Boeing 737 MAX engines after two bird strike incidents on Southwest Airlines planes in 2023. (RTRS)
HP posted a mixed fiscal fourth quarter and guided for a downbeat fiscal 2025, sending its stock tumbling in after-hours trading. (WSJ)
Workday shares slipped in extended trading after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections. (CNBC)
Nordstrom beat quarterly sales expectations, but gave only a slightly rosier FY sales forecast. (CNBC)
Nvidia and Intel suppliers reassess Mexico plans amid Trump tariff threat. (Nikkei)
Volkswagen will exit its controversial plant in China's Xinjiang region after it and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer. (RTRS)
Just Eat Takeaway to delist from London Stock Exchange. (FT)
Air France-KLM is in talks to buy a stake of as much as 20% in Air Europa after the Spanish carrier’s planned takeover by IAG SA was scuppered by regulatory opposition. (El Economista)
Norsk Hydro ASA will halt funding for its battery and green hydrogen businesses and phase them out over time due to challenging market conditions. (BBG)
Qatar has reached out to TSMC via chip design partner, Global Unichip, to invite the chip giant to invest in the nation. (UDN)
TSMC has accelerated 2nm fab work in Kaohsiung due to strong global demand for advanced semiconductors. (CNA)
Foxconn said it expects any impact of new tariffs from U.S. President-elect Donald Trump to hit it less than its rivals, citing its global manufacturing footprint. (RTRS)
Laying out its 2025 outlook for the European auto sector, JPMorgan says globalisation will continue, with emerging global players such as Tesla, BYD, and SAIC taking market share across regions. (RTRS)
Samsung Electronics sought to inject impetus into its memory and foundry chip units by appointing new leaders on Wednesday, as it scrambles to catch SK Hynix and Taiwan's TSMC in the booming AI chip market. (RTRS)
Japan's top chip distributor Macnica eyes acquisitions in China and India. (BBG)
Chinese tech firms are offering to triple engineers’ pay as they try to catch Silicon Valley and other hubs in a battle for tech supremacy. (WSJ)
Chinese solar exporters pledged to stop undercutting each other’s prices in overseas markets and engage instead in “healthy competition”, as the sector languishes on a supply glut and price war. (BBG)
China's Hesai Group, the world's largest maker of lidar sensors for autonomous driving, said it plans to slash the price of its key product by half next year which should lead to far wider adoption of the technology in electric cars. (RTRS)
Hundreds of Chinese investors who lost savings in the collapse of China Evergrande launched a coordinated campaign this month to press authorities for an update on the failed property developer. (RTRS)