12th December 2025

MACRO

Trump Signs Executive Order to Override State AI Laws

President Trump signed an executive order to override state AI laws, aiming for a unified federal standard.

The Justice Department will form a legal task force to examine state AI laws and could withhold federal funding from noncompliant states.

Trump said he will withhold federal broadband funding from states whose AI laws are judged to be holding back American dominance in the technology.

A US lawmaker has also proposed phasing out Chinese-made sensors in self-driving cars and critical infrastructure amid warnings they could be hacked and disabled from space during a conflict.

(Wall Street Journal, Reuters)

Fed Reappoints Regional Bank Presidents Amid Trump Pressure

The Federal Reserve said 11 of its regional bank presidents had been reappointed with unanimous agreement from the Board of Governors, wrapping up an ordinarily routine process that had come under heightened scrutiny amid pressure from Trump and his administration.

US regulators gave the green light for a new service that takes a critical step toward moving some stocks, bonds and Treasuries onto blockchain technology.

(Reuters, Bloomberg)

Trump Expected to Loosen Marijuana Restrictions

President Trump is expected to push the government to dramatically loosen federal restrictions on marijuana, reducing oversight of the plant and its derivatives to the same level as some common prescription painkillers.

(Washington Post)

Bank of Japan Set to Raise Rates Next Week

The BOJ will raise its policy interest rate next week, according to a Bloomberg survey, with almost two-thirds of analysts expecting hikes every six months starting this month. The median forecast for the terminal rate is 1.25%.

The BOJ will likely maintain a pledge to keep raising rates but stress the pace will depend on how the economy reacts.

Japan’s core inflation likely held well above the 2% target in November, though moderating food price hikes have taken some pressure off consumers.

(Bloomberg, Reuters)

UK Economy Contracts for Second Straight Month

The UK economy contracted for a second straight month in October, cementing expectations that the Bank of England will lower its key rate next week. Both services and manufacturing came in beneath expectations.

(Wall Street Journal)

China Iron Ore and Gas Developments

China’s state-backed iron ore buyer is proposing measures to curb hoarding at ports, a move that could dent the pricing power of foreign miners and traders.

China’s natural gas consumption will likely expand 5% next year, with industrial and city-gas sectors set to grow, according to forecasts from CNPC’s research arm.

(Bloomberg, Reuters)

ECB Expected to Hold, Then Hike

Economists predict the next shift in ECB interest rates will be up, aligning with views of investors and Executive Board member Isabel Schnabel as inflation settles around 2%.

(Bloomberg)

Dollar Forecast to Slide Next Year

Deutsche Bank, Goldman Sachs and other Wall Street banks are forecasting the US dollar will resume its slide next year as the Federal Reserve keeps nudging down interest rates.

(Bloomberg)

Other Global Developments

Australia’s gig economy footprint has shrunk to its smallest in at least a decade, suggesting labour market rebalancing.

South African inflation expectations fell in Q4, edging closer to the central bank’s new 3% target.

Indonesia expects to conclude a trade agreement with the US by year-end.

Thailand is witnessing growing capital flight as domestic investors move funds overseas, adding pressure on Asia’s worst-performing equity market. Peru held borrowing costs at a three-year low.

(Bloomberg)

GEOPOLITICAL

Trump Says Ukraine Is Losing - Front Line Officers Disagree

Trump says Ukraine is losing the war, but officers on the front line disagree.

Kyiv’s military faces major challenges against Moscow’s massive army, but analysts say a Russian breakthrough is highly unlikely.

(Wall Street Journal)

India Speeds Visas for Chinese Professionals

India has cut red tape to speed business visas for Chinese professionals, a major step to boost ties between the Asian giants and end chronic delays that cost output worth billions of dollars due to scarce technicians.

(Reuters)

EQUITIES

Broadcom AI Demand Surges But Shares Fall

Broadcom reported rapid revenue growth as demand continues to rise for chips powering AI data centres.

But shares fell in after-market trading as analysts raised questions about sales forecasts, contracts backlog and anticipated future margins.

(Wall Street Journal)

Oracle Plunge Wipes $25 Billion From Ellison’s Fortune

A historic slide in Oracle shares sent Larry Ellison’s net worth plunging by $24.9 billion after the company reported earnings that included a surge in capital expenditures for AI data centres.

(Bloomberg)

Lululemon CEO Exits, Shares Jump 10%

Lululemon said CEO Calvin McDonald was leaving without a replacement and raised its annual profit forecast, sending shares up about 10% in extended trading.

(Reuters)

Costco Profits Beat Expectations

Costco’s quarterly profits rose more than expected, a sign that price-sensitive US shoppers continue to search for value.

(Bloomberg)

Coinbase to Launch Prediction Markets and Tokenized Equities

Coinbase plans to announce next week that it will launch prediction markets and tokenized equities, two of the hottest products in financial markets.

(Bloomberg)

Uber Targets 10+ Robotaxi Markets by End of 2026

Uber expects to offer robotaxi services in more than 10 markets by the end of next year, seeking to become a dominant force in an industry it estimates will eventually be worth at least $1 trillion.

(Bloomberg)

SoftBank Studying Switch Acquisition

SoftBank is studying potential acquisitions including data centre operator Switch, underscoring Masayoshi Son’s growing ambitions to ride an AI-fueled boom in digital infrastructure.

Son has also reduced SoftBank shares pledged to lenders by $2.1 billion in recent months, lowering his collateral after AI bets propelled his latest comeback.

(Bloomberg)

Intel Tests Tools From China-Linked Toolmaker

Intel has tested chipmaking tools this year from a toolmaker with deep roots in China and two overseas units that were targeted by US sanctions.

(Reuters)

PepsiCo’s Special Walmart Deal Unsealed

PepsiCo offers Walmart special product promotions and discounts it doesn’t offer to any other retailers, according to a Biden-era antitrust complaint that was unsealed by a court.

(Bloomberg)

China Vanke Seeks Another Bond Extension

China Vanke is seeking to extend repayment for a second onshore bond by one year as the cash-strapped developer struggles amid a prolonged property slump.

(Reuters)

TSMC, MediaTek, and Chip Developments

TSMC paused work on its second Kumamoto wafer fab amid a potential shift to AI chip production.

MediaTek sees automotive becoming its next $1 billion business over the next 2-3 years due to a platform co-developed with Nvidia, with revenue expected to start in Q4 2026.

Moore Threads Technology slipped more than 10% after warning of trading risks, saying its upcoming developer conference is not expected to have material impact on results.

Baidu is seeing bullish analyst calls on a possible listing of its chip unit Kunlunxin, with average price targets jumping around 60% since late August.

(DigiTimes, Reuters, Bloomberg)

Other Notable Moves

The Fed approved PNC’s purchase of Colorado-based FirstBank.

JD.com pledged 22 billion yuan ($3.12 billion) in housing support for its couriers as instant retail competition intensifies.

Nippon Steel expects global crude steel capacity to rise to 100 million metric tons per year by 2030.

Ineos is mulling a “full or partial exit” from a project with Sinopec to build an ethylene cracker plant in Tianjin.

BNP Paribas has begun exclusive talks to potentially sell its stake in Moroccan subsidiary BMCI.

Australian governments will work with Rio Tinto’s Tomago Aluminium to keep the country’s largest aluminum smelter open after its current electricity contract ends in 2028.

(Bloomberg, Reuters, Wall Street Journal)

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