11th December 2025

MACRO

Fed Rate Cut Sparks Brief Rally Before Oracle Crash

A market party after the Federal Reserve’s policy decision came to an abrupt halt within hours as Oracle’s share plunge reawakened concerns over tech-stock valuations.

A WSJ Timiraos article notes Trump wants lower rates and a new Fed chair, but Wednesday’s fractured vote suggests one won’t guarantee the other.

The Fed’s move to expand its balance sheet by buying Treasury bills is expected to ease money-market strains and calm investor worries about liquidity. (Bloomberg, Wall Street Journal, Reuters)

US Defense Bill Passes With Record $901 Billion

The US House passed a massive defense policy bill authorizing a record $901 billion in annual military spending, $8 billion more than Trump’s request, paving the way for the must-pass measure to become law for a 65th straight year. (Reuters)

GOP Breaks Ranks on Obamacare Subsidies

A growing number of Republicans in both the House and Senate are breaking with party leaders, saying the GOP should extend expiring Affordable Care Act subsidies to avert big cost increases for millions of households and buy time for a bigger overhaul. (Wall Street Journal)

Australia Jobs Market Cools

Australian employment fell in November by the most in nine months, while annual jobs growth slowed sharply, signaling the labour market is cooling and could ease pressure for a near-term rate hike. (Reuters)

Mexico Senate Approves Massive China Tariffs

Mexico’s Senate approved tariff hikes of up to 50% next year on imports from China and several other Asian countries, aiming to bolster local industry despite opposition from business groups and the governments of targeted countries.

China’s Commerce Ministry urged Mexico to rectify “unilateral, protectionist practices” as soon as possible. (Reuters, Wall Street Journal)

BOJ Set for December Rate Hike

The Bank of Japan will proceed with a 25-basis-point rate hike to 0.75% at its December meeting and raise borrowing costs to at least 1% by end-September next year, a strong majority of economists said in a Reuters poll.

Japanese government bonds rose on Thursday after a 20-year bond auction drew the strongest demand in more than five years. Japan’s government plans to introduce additional tax breaks to spur corporate investment despite debate on how to cut government spending. (Reuters, Nikkei)

Japan Companies Worry About China Relations and US Trade

Japanese companies said strained diplomatic relations with China are their primary concern heading into 2026, followed closely by US trade policies, a Reuters survey showed.

The yen struck a record low against the offshore yuan this week, raising concerns about imported inflation in Japan where the central bank’s policy normalization remains gradual. (Reuters, Bloomberg)

US Investors Pour Money Into Chinese AI Companies

A WSJ article notes US investors are plowing money into Chinese companies involved in artificial intelligence despite growing competition between Washington and Beijing over the technology, citing fund data and conversations with fund managers. (Wall Street Journal)

China Silver Fund Warns of Significant Losses

The manager of China’s only pure-play silver fund has issued a rare series of warnings to investors about the risk of “significant losses” should the metal’s record-breaking rally come to an end.

China’s benchmark bond yields may fall to their lowest-ever level next year as Beijing is likely to cut interest rates more than expected, according to Societe Generale. (Bloomberg)

Hong Kong Cuts Base Rate But Banks Don’t Follow

Hong Kong’s de-facto central bank lowered its base interest rate by 25 basis points to 4.0%, in line with the Fed cut, but major lenders declined to pass on the reduction to customers. (Reuters)

UK Housing Market Remains Subdued

The UK residential market remains subdued following the government’s autumn budget last month, with no near-term improvement seen. Both buyer demand and sales volumes are in negative territory, with a pickup not expected until the Spring selling season.

Britain will strengthen its trade defences by handing its business secretary the power to direct rapid investigations into unfair practices under new rules designed to deal with rising global protectionism. (Wall Street Journal, Reuters)

Philippines Delivers Fifth Straight Rate Cut

The Philippine central bank delivered a fifth straight rate cut at its final meeting of the year, a widely expected move as soft inflation gives policymakers room to support an economy facing mounting risks. (Bloomberg)

Vietnam Bans Raw Rare Earth Exports

Vietnam’s parliament moved to ban exports of raw rare earth resources as part of an overhaul of the nation’s geology and minerals law, which tightens controls over deposits and sets out new rules for the industry. (Bloomberg)

Investors Shun Saudi Stocks on Oil Price Concerns

A Bloomberg article notes investors see little reason to buy Saudi stocks, with oil prices likely to keep falling next year. The Saudi stock market remains closely tied to oil prices and doesn’t get a boost from a weakening dollar. (Bloomberg)

GEOPOLITICAL

US B-52s Fly With Japanese Fighters in Show of Support

Two US B-52 bombers flew in formation with Japanese fighters over the Sea of Japan, a conspicuous display of US support for Tokyo as it battles Chinese anger over remarks Prime Minister Sanae Takaichi made about Taiwan. (Wall Street Journal)

Trump Administration Approves $686 Million Pakistan F-16 Sale

The Trump administration has approved sales valued at $686 million of technology and equipment for Pakistan’s F-16 fighter jets to modernize its fleet. (Bloomberg)

EQUITIES

Oracle Plunge Triggers Tech Selloff

Oracle shares fell more than 10% in extended trading after the company reported a jump in spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want.

SoftBank Group shares lost as much as 8.4%, their steepest drop since November 25, amid heightened caution over AI spending after Oracle’s disappointing results. (Bloomberg)

Adobe Forecast Fails to Excite Investors

Adobe delivered an upbeat annual forecast but still drew a lukewarm reaction from investors, who have been seeking clearer signs that the software maker can thrive in an era of artificial intelligence. (Bloomberg)

Synopsys Beats on Ansys Strength

Synopsys shares rose in postmarket trading after the chip-design software maker gave a first quarter revenue forecast that beat estimates. Analysts attributed the outperformance to its Ansys acquisition which carries higher margins and lower interest expense. (Bloomberg)

Vail Resorts Sells Fewer Season Passes

Vail Resorts sold fewer passes heading into the peak ski season, but its CEO said elements of its turnaround strategy to draw skiers back were beginning to deliver results. (Wall Street Journal)

Volkswagen Considers Range Extender EVs

Volkswagen is considering offering electric vehicles with range extender technology in Europe and the US as governments walk back EV support and consumers continue to worry about patchy charging networks. (Bloomberg)

Sanofi Expands in China

Sanofi said two bleeding disorder treatments for both chronic and acute conditions have been approved in China, expanding its hematology offerings in the country. (Wall Street Journal)

Schneider Electric Announces €3.5 Billion Buyback

Schneider Electric announced a share buyback program of as much as €3.5 billion through 2030 as it targets growing profitability over the next five years, driven by artificial intelligence and electrification. (Bloomberg)

Diageo Opens Delayed Guinness Attraction

Diageo finally opened the doors to its new Guinness attraction in London on Thursday, two years later than planned but just in time for incoming CEO Dave Lewis. (Bloomberg)

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