The Overnight News Roundup
PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.
MACRO:
Markets are trading risk on with China and commodities leading the charge after the readout from the latest Chinese Politburo meeting vowed more proactive fiscal policy whilst adjusting its stance on monetary policy for the first time in 14 years to "moderately loose". Also vowed to stabilise property and stock markets.
Trump will not try to replace Fed Chair Powell upon taking office in January, he said in an interview that aired on Sunday on NBC News. (NBC)
Trump vowed on NBC to extend tax cuts, launch a mass deportation effort, impose tariffs, and pardon many convicted in the Jan. 6th attack. (NBC)
Analysts generally agree that Trump’s pro-growth policies will be a boon for stocks, but some question how much farther they can run, where a backdrop of high rates, geopolitical turmoil, and potential trade wars could dent the market’s gains. (WSJ)
Trump’s transition team is drafting several versions of his long-promised executive order to curtail automatic citizenship for anyone born in the U.S., while his aides prepare for an expanded legal fight. (WSJ)
China’s consumer price growth slowed in November, while factory-gate prices improved but stayed in decline, suggesting persistent weak domestic demand despite Beijing’s push to revive spending. (WSJ)
China's central bank resumed buying gold for its reserves in November after a six-month pause, official data by the PBoC showed on Saturday. (RTRS)
China’s regulators will try to bolster the property market with improved policies on land usage, tax and other financial measures, according to the Xinhua News Agency on Sunday. (BBG)
China's exports likely grew in November, slower than last month's bumper data but continuing an upbeat trend as Chinese exporters likely frontloaded shipments amid growing tariff risks, according to a Reuters survey. (RTRS)
UBS says China may call for a higher headline fiscal deficit at the behind-closed-doors CEWC event this week, and it could allow for more issuance of special government bonds to support its consumer trade-in programmes, local debt swaps, and property inventory destocking. (RTRS)
The Japanese economy grew more quickly than initially estimated in the July-September quarter, rising 1.2% annualised vs the prelim 0.9% figure. (WSJ)
Japan's bankruptcy filings this year are set to surpass 10,000 and hit the highest since 2013, private-sector data by Tokyo Shoko Research showed on Monday. (RTRS)
UK labour demand collapsed last month after the new Labour government's first budget, an REC survey published on Monday showed, adding to other signs of the impact of the tax increases on employers. (RTRS)
UK Chancellor Reeves plans to end the UK's "fractious" post-Brexit accord with the EU by promising closer ties in the first speech by a UK chancellor to eurozone finance ministers since 2020. (Guardian)
The Australian dollar stayed close to one-year lows on Monday and remained vulnerable to further losses as some investors bet the country's central bank would take a dovish turn at a policy meeting this week. (RTRS)
South Korean President Yoon survived an impeachment motion in the opposition-led parliament on Saturday after members of his party boycotted the vote. South Korea's opposition party to propose new impeachment bill on December 11th for vote on December 14th. (RTRS/Yonhap/Newsquawk)
BRICS countries have no interest in weakening the U.S. dollar at all, India's foreign minister said. (RTRS)
Polish pipeline operator Pern said has restored proper operation of the first branch of the Western Druzhba pipeline after the incident on December 1st. (RTRS)
Options traders are the most bearish in months on Brent crude after OPEC+ nations agreed to again delay the return of oil output halted since 2022. (BBG)
GEOPOLITICAL:
Syrian rebels seized the capital Damascus and President Bashar al-Assad fled to Russia. Assad's fall wiped out a bastion from which Iran and Russia exercised influence across the Arab world. (RTRS)
Officials in the American administration fear that the fall of Assad will increase the pressure on Iran to give the green light to the production of a nuclear bomb. (Kan News)
Trump called for an immediate ceasefire and negotiations between Ukraine and Russia to end "the madness", prompting Ukraine and Russia to list their conditions. (RTRS)
Trump said that he would “absolutely” consider withdrawing the US from NATO if the European allies did not “pay their bills.” (NBC)
Israeli sources say an agreement with Hamas is very close regarding a swap deal in Gaza. (Asharq News)
China currently has nearly 90 navy and coast guard ships in waters near Taiwan, the southern Japanese islands and the East and South China Seas, a Taiwan security source told Reuters on Monday. (RTRS)
US lawmakers are set to vote this week on an annual defense bill that includes just over $3 billion for U.S. telecom companies to remove equipment made by Chinese telecoms firms Huawei and ZTE from American wireless networks to address security risks. (RTRS)
President-elect Trump's Middle East envoy met Israel and Qatar PMs to broker a ceasefire. (FT)
EQUITIES:
Apple plans three-year modem chip rollout in bid to outdo Qualcomm, according to Bloomberg; to continue using Broadcom and Skyworks parts in its devices. (Bloomberg/Newsquawk)
Trump's transition team has invited five major tech companies, including Google, Microsoft, and Meta, to a meeting in mid-December about dealing with online drug sales. (The Information)
The U.S. government has approved the export of advanced AI chips to a Microsoft-operated facility in the UAE as part of the company's highly-scrutinized partnership with Emirati AI firm G42. (Axios)
Meta rolls out internal AI tool as it pushes into business market. (FT)
Omnicom Group is in advanced talks to acquire Interpublic Group, a $13-14bn deal that would create the world’s largest advertising company. (WSJ)
BP is seeking buyers for up to a 49% stake in its US natural gas pipeline network, potentially raising $3bn. (RTRS)
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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