11th November 2025

MACRO

China Designs Rare Earth “Whitelist” System

China plans to ease the flow of rare earths and other restricted materials to the US by designing a system that will exclude companies with ties to the US military while fast-tracking export approvals for other firms. If strictly implemented, the system could make importing certain Chinese materials more difficult for automotive and aerospace companies that have both civilian and defense clients. This represents a nuanced approach to implementing the trade deal’s rare earth provisions. (Wall Street Journal)

Senate Passes Shutdown-Ending Bill

The Republican-led Senate late Monday passed a spending package to end the record-long government shutdown, with Democrats providing enough votes to move the measure across the finish line. The package now moves to the GOP-controlled House for a final vote as soon as Wednesday and then to President Trump’s desk. However, the decision by eight Senate Democrats to side with Republicans drew heated condemnations from other party members and reopened longstanding divisions on how best to fight back against Trump. (Wall Street Journal)

Trump Backs 50-Year Mortgages

US President Trump downplayed criticism of the potential creation of a 50-year mortgage product, saying it would help more Americans afford monthly payments on homes. Two US senators proposed a bipartisan bill to shift cryptocurrency oversight from the SEC to the CFTC—a move long favored by the industry. Investors in the riskiest slice of bonds backed by corporate loans (CLOs) are now getting their lowest payouts in five years, while some get none at all. (Fox News, Bloomberg)

Japan’s Fiscal Concerns Resurface

Japan’s 30-year bonds dropped after a debt auction drew the lowest demand since June, pointing to renewed concerns about PM Takaichi’s fiscal policy. Japan’s economic revitalization minister Kiuchi said a weak yen could push up consumer prices through higher import costs, while also noting import prices in yen terms have been declining for eight consecutive months. Reuters notes soaring rice prices despite an emergency stock release and supply reassurances, testing the new prime minister. Japan’s industry ministry is seeking changes to the law so that public money can be used for investment in the nuclear power sector and electricity grids. (Bloomberg, Reuters, Nikkei)

China Tightens SOE Borrowing

China will continue to promote market access expansion, particularly in services, which will bring new investment opportunities to US companies, senior trade negotiator Li Chenggang said. Chinese President Xi indicated that the relatively lackluster expansion of Guangdong, China’s richest province, is acceptable—the latest sign senior leaders are tolerating slower growth. China is making it harder for some state-owned companies to borrow overseas, expanding a campaign to rein in local government debt risks. (Reuters, Bloomberg)

UK Labor Market Cools Sharply

Britain’s labor market cooled noticeably in Q3 as wage growth slowed and the unemployment rate jumped, bolstering expectations for a Bank of England interest rate cut next month. Spending from British consumers cooled last month as they waited to see how Black Friday deals and the government’s budget later this month, widely expected to contain tax hikes, would pan out. (Reuters)

Global Central Bank Signals

Australia’s consumer sentiment turned optimistic in November for the first time in almost four years thanks to a much better outlook for family finances and the economy, even as the central bank held rates steady. New Zealand’s inflation expectations remained subdued in Q4, with most respondents expecting a cut in the official cash rate when the bank meets end of this month. Goldman Sachs expects an improvement in South Africa’s public finances to pave the way for a sovereign credit-rating upgrade Friday. (Reuters, Bloomberg)

GEOPOLITICAL

US Pressures NATO on Russian Energy

The US urged NATO allies to stop buying Russian energy in order to help end the war in Ukraine, adding pressure on member countries such as Turkey even as they cut back purchases. The European Commission has begun setting up a new intelligence body under president von der Leyen, seeking to hire officials from national spy agencies to bolster the bloc’s collective intelligence assets. (Bloomberg, Financial Times)

EQUITIES

CoreWeave Stumbles, SoftBank Exits Nvidia

CoreWeave, despite beating estimates on the recent quarter, lowered its annual revenue forecast after suffering a delay fulfilling a customer contract—a setback for a company racing to keep up with the AI boom. SoftBank Group sold its entire stake in Nvidia, pocketing $5.8 billion ahead of a rash of planned investments by founder Masayoshi Son to build his own sphere of influence supporting AI. Meanwhile, SoftBank’s quarterly net profit more than doubled thanks to billions of dollars of gains from its investment in OpenAI. (Bloomberg, Wall Street Journal)

Tesla China Sales Hit Three-Year Low

Tesla’s sales in China dropped to 26,006 vehicles in October, their lowest in three years, as the US electric vehicle maker struggles with tepid demand in the hyper-competitive market. However, Xpeng shares surged to their highest level in three years amid growing optimism over the Chinese electric carmaker’s progress in technologies including humanoid robots. (Reuters, Bloomberg)

AI Talent War Intensifies

Intel’s top AI executive has defected to OpenAI after six months on the job, marking the latest in a series of senior departures from the chipmaker as it struggles to make a mark in the AI sector. A Wall Street Journal article notes financial documents from both companies show Anthropic is on track to turn a profit much faster than OpenAI, highlighting the different approaches they are taking to the AI boom. (Financial Times, Wall Street Journal)

TSMC Accelerates Arizona 2nm Plans

TSMC Arizona is speeding up its 2nm roadmap and the land it plans to acquire nearby its current location is for 2nm production. Apple has already reserved more than half of TSMC’s 2nm capacity for 2026. China’s top NAND flash memory chip maker, Yangtze Memory Technologies (YMTC), has started building its third plant as the US-blacklisted company taps surging domestic demand driven by localization efforts and the AI boom. (UDN, Nikkei)

Memory Chip Sector Updates

Samsung Electronics is understood to have set a management goal of turning its semiconductor contract manufacturing (foundry) business profitable in 2027. SK Hynix is expected to face higher cost pressure as it applies a leading-edge foundry process to the base die of its next-generation high-bandwidth memory (HBM). (ET News, EBN)

Luxury Sees China Green Shoots

LVMH is set to open major stores in China in December and is considering further expansion there, as high-end brands see early signs of a sales rebound in the world’s second-largest economy. Elliott Investment Management has been building a significant stake in Toyota Industries and has told the Toyota group company that its proposed privatization price is too low. (Bloomberg)

Mixed Corporate Earnings

Sony Group raised its full-year earnings forecasts thanks to the strength of its music and image-sensor businesses, and projected a smaller tariff hit as Q2 net profit strengthened. Paramount reported growth from its streaming division in its first quarterly earnings since its merger with Skydance Media. Beyond Meat’s loss widened and sales fell in Q3 as demand from US customers and restaurants fell. (Wall Street Journal, Bloomberg)

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