The Overnight News Roundup
PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.
MACRO:
The US government plans to issue a new rule before the end of this month aimed at curbing Chinese companies’ sourcing of advanced AI chips from unrestricted third-party countries. (SCMP)
Trump has invited Chinese President Xi Jinping to attend his inauguration next month, but it was not clear whether Xi has accepted the invitation. (CBS)
China is open to engaging and communicating with the economic and trade team of the Trump administration, the commerce ministry said. (RTRS)
Chinese shares related to consumption surged Thursday amid expectations for more concrete measures from a key economic policy meeting to boost domestic demand. (BBG)
Chinese media report that major cities including Shanghai and Beijing are launching a new round of voucher programmes to encourage local consumption before the holidays. (BBG)
China said it would expand a private pension scheme nationwide from December 15, following a pilot effort, as it moves to plug a pension gap in plans to help a rapidly ageing population. (RTRS)
Chinese long-term yields fell on Thursday, expanding the yield disadvantage of 10-year treasuries against U.S. counterparts to the widest level in over 22 years. (RTRS)
Yen saw renewed weakness on the latest Reuters sources that the BoJ is leaning toward keeping interest rates steady next week as policymakers prefer to spend more time scrutinising overseas risks and clues on next year's wage outlook. (RTRS)
Nearly three-quarters of Japanese companies expect Trump's next term as U.S. president to have a negative impact on their business environment, citing planned tariff hikes and U.S.-China trade tensions as causes of concern, a Reuters survey showed. (RTRS)
A new risk for the yen is emerging, with currency strategists in Tokyo warning that there’s a chance the Bank of Japan may stand pat on interest rates until March or later. (BBG)
AUD strengthened and AGBs were offered after Australia’s job market continued to defy a weak economy, with unemployment dropping sharply in November on the back of another solid month of employment growth. (WSJ)
After just two months into fiscal 2025, the US has already raked in a $624BN budget deficit. This is the worst start to a year on record. Exacerbated by calendar adjustments for benefit payments. (@zerohedge/RTRS)
The U.S. House of Representatives passed a defense policy bill on Wednesday governing a record $895 billion in annual military spending, despite the inclusion of a controversial policy targeting gender-affirming care for transgender children. (RTRS)
The MOVE index, a closely watched measure of expected volatility in Treasuries, fell to levels last seen in February 2022 as easing inflation reinforced bets for a Fed rate cut next week. (BBG)
The ECB is all but certain to cut interest rates again on Thursday and signal further easing in 2025 as inflation in the euro zone is nearly back at its target and the economy is faltering. (RTRS)
The UK housing market strengthened further in November although uncertainty over the economic outlook could curtail activity in the months ahead, according to an RICS survey. (RTRS)
UK tenant demand fell for the first time last month since the early pandemic period with estate agents forecasting the slowest pace of rent rises in almost four years, in a sign that pressures on squeezed households could be peaking. (FT)
The UK has outlined details of an overhaul to its planning system to help boost growth and hit a target of 1.5 million new homes in the next five years, including ordering local authorities to build more houses. (RTRS)
UK ministers are drawing up plans for the country’s biggest ever renewable energy subsidy auction as they attempt to hit their challenging clean power target, according to government figures. (FT)
Some Canadian premiers are urging Ottawa to respond robustly to the threat of tariffs from incoming U.S. President Donald Trump and have highlighted critical minerals and metals as products that the U.S. relies on, Canada's Finance Minister said. (RTRS)
New Zealand’s government is planning changes to its so-called “golden visa” program to attract more wealthy immigrants who invest in the country. (BBG)
Brazil’s central bank hiked by one percentage point and surprised investors by promising two more hikes of the same size, its strongest move yet to recover investor confidence and tame inflation expectations that have been propelled by public spending and a hot economy. (BBG)
South Korean president vows to ‘fight to the end’ while the leader of Yoon Suk Yeol’s party signals it is preparing to back impeachment vote on Saturday. (FT)
Thai PM Shinawatra pledged to end monopoly in some businesses as she unveiled her administration’s priorities for next year including plans for more cash handouts. (BBG)
Taiwanese investors have emerged as the biggest buyer of bond exchange-traded funds in Asia, with the bulk of their money pouring into US debt. (BBG)
Pinebridge Investments LLC and T. Rowe Price Group Inc. fund managers cite the Turkish lira as a top emerging-market currency bet for 2025, as the central bank is seen charting a steady course. (BBG)
Turkey’s current account remained in the black despite the end of the peak summer tourist season, suggesting the battered economy is stabilizing. (WSJ)
JPMorgan's index of EM currencies has fallen more than 5% over the past two-and-a-half months, putting it on course for its biggest quarterly decline since September 2022 amid the Dollar's surge and a "confluence of bad news". (FT)
Russia's Rosneft has agreed to supply nearly 500k bpd of crude to Indian private refiner Reliance in the biggest ever energy deal between the two countries. (RTRS)
A rapid increase in liquefied natural gas prices has prompted China — the world’s biggest buyer — to cut back purchases and even resell some supply, providing relief to rival importers. (BBG)
France’s nuclear generation rose to its highest level in almost five years as EDF's fleet of reactors helped offset a slump in European wind power output. (BBG)
GEOPOLITICAL:
Hamas has yielded to two of Israel’s key demands for a cease-fire deal in Gaza, Arab mediators said, raising hopes of an agreement that could release some hostages within days despite the repeated collapse of previous negotiations. (WSJ)
Two senior members of Taiwan's government are in the US to meet people connected to President-elect Donald Trump's transition team in an effort by Taiwan to establish ties with the incoming administration. (RTRS)
Mike Waltz, Trump’s pick for national security adviser, vowed a return to the maximum pressure campaign that defined Iran policy in the president-elect’s first term, even as leaders in Tehran signal they want to reduce tension. (BBG)
Trump is now considering tapping Richard Grenell, his former intelligence chief, to be a special envoy for Iran. (RTRS)
Russia has the potential to significantly improve its position in global AI ratings by 2030 despite Western sanctions due to a focus on generative AI and supportive regulation, the CEO of Russia's Sberbank said. (RTRS)
The Philippines is working to build a new arbitration case against China over alleged breaches of international law in the South China Sea. (FT)
EQUITIES:
Adobe forecast fiscal 2025 revenue below estimates, suggesting the company's investments to weave AI into its software applications were taking longer than expected to bear fruit. (RTRS)
Microsoft will record an $800 million impairment charge tied to its minority investment in General Motors’ now-scrapped Cruise robotaxi program. (WSJ)
Nvidia China has taken down all products, including from its Tmall store, after China's antitrust probe. However, GPUs are still available on third party stores. (MktNews)
Nvidia has added about 200 people in China this year to enhance its research capabilities and focus on new autonomous driving technologies. (BBG)
Meta has donated $1mn to Donald Trump’s inaugural fund, in the latest overture by the social media platform to mend relations with the president-elect. (FT)
Australia plans to implement a new charge on the owners of global tech platforms, attempting to shore up local media outlets months after Facebook cut ties with traditional news providers. (WSJ)
OpenAI said in an early Thursday X post that its popular ChatGPT assistant, Sora video generator and programming interface for software developers were working again after hours of downtime. (CNBC)
Exxon Mobil want to "participate" in Hess Corp.'s sale of its Guyana oil production assets, and extract value from the work it has put into developing the country's offshore fields. (RTRS)
The head of Lucid Group Inc. said the EV company is in talks with multiple automakers about potential partnerships as it tries to broaden its reach in the market for plug-in cars. (BBG)
Chinese solar stocks largely shrugged off new U.S. tariffs on imports of China-made solar wafers and polysilicon, key materials used in manufacturing solar cells. (WSJ)
Nippon Life Insurance Co. said it will invest an additional $550 million in US asset management firm TCW Group Inc., as it embarks on a buying spree to accelerate global expansion. (BBG)
Samsung Electronics’ negotiations over subsidies for its Taylor, Texas investment appear stalled due to Samsung slowing the pace of the investment. (Business Korea)
Korean Air Lines has acquired a controlling stake in Asiana Airlines for about $1 billion, concluding a four-year merger process involving South Korea’s top two airlines. (WSJ)
Momentum in South Africa’s equity market sparked by a landmark election earlier this year is maintaining its pace, with the stock exchange’s own shares one of the targets for investors chasing returns. (BBG)
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This Week’s Major Economic Data
That's all for today's digest. Happy trading, and keep it tight!
Team PiQ