The Overnight News Roundup

Nov 15, 2024

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

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MACRO:

Trump said he would nominate North Dakota Gov. Doug Burgum as interior secretary. Burgman has previously held a position as VP on Microsoft's board and has advocated for the domestic oil and gas industry. (WSJ)
Senate Republicans warned that AG pick Matt Gaetz would struggle to win the support needed for confirmation and said the close ally of Trump would face intense scrutiny over sexual-misconduct allegations. (WSJ)
Buffett’s Berkshire Hathaway sold a net $127 billion of stocks in the first nine months of the year, according to its financial statements. In the third quarter, it sold $36 billion of stocks and purchased $1.5 billion. (WSJ)
Hedge funds piled into bets on financial stocks, Tesla shares and a prison operator in the third quarter, filings showed, ahead of a rally that followed Donald Trump’s victory in the U.S. presidential election. (RTRS)
Corporate borrowers are rushing to tap the US bond market, taking advantage of “eye-poppingly” buoyant conditions after Donald Trump’s election victory. (FT)
No major US trading partner manipulated its currency in the year to June 30th, according to the Biden administration's final semi-annual currency report before turning over policing of foreign exchange practices to Trump. (RTRS)
The US Treasury added South Korea to a “monitoring list” for foreign-exchange practices that continues to include Japan and Germany, and reiterated its criticism of China’s lack of transparency with regard to managing its currency. (BBG)
China's factory output growth slowed in October and it was still too early to call a turn in the crisis-hit property sector even though consumers perked up, keeping alive calls for Beijing to top-up its recent blitz of stimulus to revitalise the economy. (RTRS)
China's new home prices fell the most year-on-year in October since 2015, but a narrowing monthly rate of declines suggested the property sector was beginning to stabilise with a barrage of support from the government. (RTRS)
China's NBS spokesperson Linghui told a media briefing after the activity data that the recent policy measures appeared to be having a positive economic effect and that officials would continue to step up support. (RTRS)
Tepper and Burry Signal End of Buy ‘Everything’ Trade in China. Tepper trimmed his positions while Burry added downside protection via options, albeit also raising his position. (BBG)
Chinese steel output recovered in October, snapping four months of declines, as sentiment brightens following Beijing’s efforts to rekindle economic growth. (BBG)
China is expanding its support for urban village redevelopment to nearly 300 cities from the previous 35, as the government steps up aid for the country's battered real estate sector. (Xinhua)
China's yuan on course for seventh weekly drop, longest losing streak since 2021, despite a small rise off the lows on Friday. (RTRS)
PBoC made its biggest daily gross cash injection through bond reverse repurchase agreements in open market operations in nearly five years on Friday (CNY 981bn) to counteract factors such as even larger maturing medium-term lending facility (MLF) and tax payments. (RTRS)
Economists suggest China may have no choice but to adopt consumption stimulus in the event of a deepening trade war given limited other options to absorb the pressure. (WSJ)
Several Chinese insurance companies have increased their stakes in listed firms this month, as the government encourages stock purchase by long-term investors such as insurers. (Shanghai Securities News)
China’s central government-owned enterprises have been ramping up infrastructure investment in Q4 thanks to a series of supportive government policies. (CSJ)
BoJ Governor Ueda will deliver a speech and hold a news conference in Nagoya on Monday, the BOJ said, an event (which wasn't previously scheduled) that will be closely watched by markets for hints on whether it might raise interest rates next month. (RTRS)
Japan swaps market shows a 53% chance of a December hike as of Friday, up from around 44% a week ago. (BBG)
Both the survey and the swap market point to a likelihood of more than 80% that the central bank will move by its January meeting. An uptick in spending by households driven by rising wages is seen as an important factor backing the case for continued rate increases.
Japanese Finance Minister Kato said Friday that authorities would take appropriate action against excessive exchange-rate moves. (RTRS)
Japan's economy expanded by an annualised 0.9% over the July-September quarter, slowing from the previous three months due to tepid capital spending though an unexpected pickup in consumption added a bright spot. (RTRS)
Japanese Economy Minister Akazawa said he expects modest economic recovery to continue in Japan, driven by improving employment and wage environment. Reiterated that monetary policy is up to the BoJ to decide. (RTRS)
JGB yields rose on Friday, with the 10yr at the highest level since July and the 5yr at the highest since 2009 amid the weak yen raising bets for a rate hike and spillover from the hawkish turn by Powell. (RTRS)
Japan's core consumer inflation likely cooled for the second straight month in October on slower growth in energy prices, a Reuters poll. (RTRS)
Britain's economy grew by a slower than expected 0.1% in the third quarter of 2024. (RTRS)
UK Chancellor Reeves vowed Thursday not to take the UK's status as a global financial centre for granted and pledged a raft of growth-focused reforms. (RTRS)
New Zealand’s manufacturing industry contracted for a record 20th consecutive month, reinforcing signs the economy will need further stimulus to get back up to speed. (BBG)
IMF official believes Asian economies have largely won the battle vs inflation and now the focus should go back to consolidating fiscal policy. (WSJ)
Thailand is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment and lower the near-record household debt. (BBG)
Mexico's outlook was moved to negative from stable by Moody's Ratings on Thursday, as the major credit rating agency pointed to institutional and policy weakening that risks undermining the economy as well as government accounts. (RTRS)
Sales of Chinese cars in Russia have hit fresh records after the country became the largest export destination for the Asian nation’s automakers when sanctions forced western brands to cut ties with Moscow. (FT)
Soaring demand for copper will require $250 billion of investment over the next decade, helping to drive further mergers in the industry, BHP Group CEO Mike Henry said. (BBG)
Trump victory tipped to break logjam of exotic US crypto ETF filings. (FT)

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GEOPOLITICAL:

The U.S. needs to be prepared to expand its nuclear force to deter the growing threats from China, Russia and North Korea, say senior Biden administration officials. Decisions on whether to deploy more nuclear weapons are being left to the incoming Trump administration. (WSJ)
Trump said his administration will avoid what happened before with the US' military forces in Afghanistan, and that they will deal with the situation in Ukraine better and work to reach a solution to the crisis. (RTRS)
Israel is expanding its ground operation in southern Lebanon, sending troops into villages farther from its border, in what some former senior security officials worry could turn into a war of attrition. (WSJ)

EQUITIES:

Applied Materials logged higher revenue and profit in the fiscal fourth quarter, but shares fell on a lower-than-expected sales outlook for the first quarter on weaker demand trends in China. (WSJ)
Berkshire Hathaway established new positions in consumer companies Domino’s Pizza and Pool Corp. while mostly selling stocks in the third quarter. (WSJ)
Eli Lilly said it sued the federal Health Resources and Services Administration (HRSA) over allegedly blocking the company's plan to change the way it offers drug discounts to hospitals. (RTRS)
Bloom Energy announced a supply agreement with AEP for up to 1 gigawatt (GW) of its fuel cell products, the largest commercial procurement of fuel cells in the world to date. AEP has placed an order for 100 MW of fuel cells with further expansion orders expected in 2025. (Newswires)
Lenovo Group’s earnings grew faster than expected, as the world’s largest PC maker began to reap benefits from its bets on AI, which could drive the next wave of demand for PCs and beyond. (WSJ)
The founder of Grubhub said he twice attempted to buy back the food delivery business from Just Eat Takeaway for more than $1bn, making the revelation days after the Dutch group announced a deal to sell its US subsidiary at a huge loss for just $650mn. (FT)
Generali reported better-than-expected profit for the first nine months of the year on higher gross written premiums and net inflows from its life insurance division. (WSJ)
Hyundai appoints US citizen José Muñoz as co-chief to face Trump challenges. (FT)
Nissan Motors is the target of Effissimo Capital Management, one of the most prolific activist investors in Japanese companies, setting up a corporate standoff that investors hope will translate into a higher stock price. (WSJ)
Samsung Electronics shares are having their best day since January 2021, as perceptions grow that the South Korean tech company is starting to look like a bargain after a multi-month slump. (BBG)
China Mobile Hong Kong is in talks to buy commercial property in Hong Kong once owned by struggling tycoon Chen Hongtian. (BBG)
Bilibili's Hong Kong shares hit 7-week low on missing Q3 estimates. (RTRS)
Chinese data center firm Zdata Technologies Co. is considering a potential initial public offering in Hong Kong. (BBG)
China’s beleaguered solar industry, wracked by a glut and fierce price war, is already on the road to recovery, according to one of the country’s largest panel manufacturers. (BBG)