16th December 2025

MACRO

Ford’s EV Retreat Signals Industry Shift

Ford is retreating from EVs and taking a $19.5 billion charge as Trump administration policies reshape the auto industry.

Shares of LG Energy Solution fell 6% on the news, highlighting the ripple effects through the EV supply chain.

The EU is set to scrap its effective ban on combustion engines after intense pressure from automakers who warned regulations were unrealistic.

(Reuters, Bloomberg)

Shadow Banking Crosses $250 Trillion

Global assets in the shadow banking sector have crossed $250 trillion for the first time, according to the Financial Stability Board.

The milestone is fueling fears of mounting systemic risks from less regulated corners of the financial sector.

(Bloomberg)

Oil Hits Lowest Since 2021

Oil extended its slide to the lowest level since 2021 as traders weighed the outlook for a Ukraine ceasefire, which could pave the way for fewer curbs on Russian crude flows into an already oversupplied market.

The Middle East’s Dubai oil benchmark is showing signs of worsening oversupply, adding to indicators pointing to a global glut.

Venezuelan crude stored on tankers at sea will provide a cushion for Chinese refiners should the US escalate hostilities against the OPEC producer.

(Bloomberg)

Gold Posts Best Year Since 1979

Gold has surged more than 60% this year and is on track for its best annual performance since 1979.

The rally has been underpinned by elevated central bank buying and a retreat by investors from sovereign bonds and currencies.

(Bloomberg)

Bank of Japan Set to Raise Rates to 30-Year High

The BOJ is set to raise interest rates to a 30-year high this week, with the yen outperforming all major currency peers as traders position for the hike.

Japan passed a $118 billion extra budget to fund its biggest post-COVID stimulus.

Big Japanese manufacturers’ business sentiment hit a four-year high in the Tankan survey, reinforcing rate hike expectations.

BOJ officials are also likely to start selling the central bank’s pile of exchange-traded funds as early as next month - a process expected to take decades to complete.

(Reuters, Bloomberg)

Chinese Stocks Heading for Correction

Chinese stocks tumbled toward key bearish technical levels as fading tech gains and renewed economic growth concerns fueled a sharp selloff.

Hong Kong-listed Chinese shares look set to keep lagging mainland counterparts as investors grow wary of lofty AI valuations and Beijing’s policy signals.

China Vanke shares are headed for their sharpest quarterly drop on record as worries over the developer’s financial health intensify.

(Bloomberg)

Thai Central Bank Taking Action on Baht

Thailand’s central bank ordered stricter checks on forex transactions involving dollar sales, especially those related to gold, to curb inflows after the baht’s rapid gains.

The currency hit a four-year high amid record gold prices and peak tourist season.

Thailand is also stepping up vessel inspections to prevent fuel and military supplies being diverted to Cambodia amid ongoing border tensions.

(Bloomberg, Reuters)

UK Jobs Market Continues to Slow

The UK jobs market is showing more signs of slowing as the Bank of England considers a rate cut.

However, wages rose more than expected in October, complicating the policy picture.

(Reuters, Bloomberg)

Other Central Bank and FX Developments

South Korea’s state-run pension fund is set to take a larger role in ensuring currency stability as the nation battles weakness in the won.

The Indian rupee’s slide to repeated record lows is starting to pinch the equity market, with analysts warning prolonged weakness could undermine the $5.2 trillion stock market’s recovery.

Hungary’s forint looks increasingly vulnerable heading into 2026 after being the standout emerging market currency this year.

Dutch pension funds - one of the biggest owners of European government bonds - could trigger a bout of volatility as a major shift gets underway just as many traders are away from desks.

(Bloomberg)

Nasdaq Seeks 23-Hour Trading

Nasdaq is seeking SEC approval to extend trading hours on its stock venues to 23 hours during the work week, as Wall Street gears up for round-the-clock markets.

(Bloomberg, Reuters)

GEOPOLITICAL

Australia Mourns 15 Killed in Bondi Beach Terror Attack

Two gunmen inspired by Islamic State opened fire on Jewish worshippers celebrating Hanukkah at Sydney’s Bondi Beach, killing 15 people in Australia’s worst mass shooting in nearly 30 years.

The attackers had travelled to the Philippines, and police are investigating terrorism links.

Prime Minister Albanese faces criticism for not doing enough to combat rising violence against the Jewish community.

(Reuters, Bloomberg)

Ukraine Could Gain NATO-Like Security Guarantees

The US is dangling security guarantees for Ukraine as part of a proposed peace deal, but there’s no agreement yet on “painful” territorial concessions.

Talks between Ukraine and US envoys continued in Berlin, with allied security guarantees for Kyiv a central focus.

Europe is set to launch an international commission for Ukraine war damages.

(Reuters)

China-Japan Tensions Simmer

China reiterated demands that Japan’s Prime Minister retract remarks about Taiwan.

US B-52 bombers flew with Japanese fighters in a show of support for Tokyo.

(Reuters)

Trump Sues BBC for Defamation

President Trump filed a lawsuit against the BBC seeking up to $10 billion in damages over the editing of his January 6 speech.

(Reuters)

US Suspends Technology Deal With Britain

The US has suspended a technology agreement with Britain, according to the Financial Times.

(Financial Times)

Other Geopolitical Developments

Hong Kong convicted pro-democracy tycoon Jimmy Lai in a landmark national security trial.

The Philippines denounced China’s “dangerous” and “inhumane” actions after Filipino fishermen were injured in the South China Sea.

(Reuters, Financial Times)

EQUITIES

Canada Approves $50 Billion Anglo-Teck Merger

The Canadian government approved Anglo American’s acquisition of Teck Resources, clearing the way for a $50 billion metals giant focused on copper mines in Chile and Peru.

(Bloomberg)

PayPal Files for Bank Charter

PayPal has filed for a bank charter in a push to expand its lending business, marking its biggest move yet into traditional banking.

(Reuters)

Hong Kong IPO Market Booming

Hong Kong’s IPO market has raised more than $34 billion this year and is in its busiest month for listings in at least four years as companies rush to go public.

Indian grocery delivery firm Zepto is preparing to file for a $500 million IPO in Mumbai as early as next week.

(Bloomberg)

Chip Shortage to Hit Smartphone Production

Global smartphone shipments may decline 2.1% next year as a shortage of memory chips drives up costs and squeezes production, according to Counterpoint Research.

(Bloomberg)

Korea Zinc to Build $7.4 Billion US Refinery

Korea Zinc is building a $7.4 billion minerals refinery in the US with Trump’s support, as the critical minerals race intensifies.

MBK and YoungPoong are seeking a court injunction to block Korea Zinc’s share sale plan.

(Reuters)

China Vanke Scrambles to Avoid Default

China Vanke shares are headed for their sharpest quarterly drop on record as worries over the developer’s financial health intensify.

The company is making a renewed effort to win bondholder backing for debt repayment delays to avoid default.

(Bloomberg, Reuters)

Chinese Automakers Get Level 3 Autonomous Driving Approval

BAIC Motor and Changan Auto rose after receiving China’s first permits for Level 3 advanced driver assistance, allowing conditional driverless operations in designated areas.

(Bloomberg)

Holcim Expands in Latin America

Holcim is buying a majority stake in Peru’s Cementos Pacasmayo for $750 million - its largest acquisition in Latin America.

(Bloomberg)

Nordea Announces €500 Million Buyback

Nordea Bank announced a share buyback worth up to €500 million as it seeks to increase payouts to investors.

(Bloomberg)

Intel Hires Trump Economic Adviser

Intel appointed a Trump economic adviser as head of government affairs as the struggling chipmaker seeks closer ties with the administration.

(Reuters)

Other Notable Moves

Anduril is bringing its billion-dollar drone playbook to the UK as Europe rearms.

Private equity firm Longreach is considering selling its majority stake in Wendy’s Japan.

Affinity Equity Partners is exploring selling its stake in airport hospitality firm Plaza Premium Group.

MUFG’s next CEO Junichi Hanzawa will take the reins as Japan’s largest bank rakes in record profits - his challenge will be sustaining growth beyond the windfall of rising rates.

Elham Credit Partners has partnered with a Daiwa-backed digital bank to explore private credit opportunities in Asia Pacific.

(Bloomberg, Reuters)

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