8th December 2025

MACRO

USTR Says China Complying With Trade Commitments

The Chinese government so far appears to be complying with its commitments as part of ongoing efforts to implement a trade agreement with the Trump administration, US Trade Representative Jamieson Greer said on Sunday. He said, “It’s never perfect, but it’s all going in the right direction.” (Fox News)

Trump Administration Targets Beef Prices

Trump administration advisers want to tackle rising beef prices, which have reached record highs due to reduced cattle herds. Administration officials have discussed reopening the US southern border to Mexican cattle and increasing beef imports to boost supply. (Wall Street Journal)

US Farm Aid Package Coming Monday

The US is set to unveil a long-awaited farm aid package on Monday, offering assistance of $12 billion to farmers hit by low crop prices and tariff policies. (Bloomberg)

Japan Real Wages Shrink for 10th Month

Japan’s real wages shrank for the 10th consecutive month in October, with an uptick in nominal pay falling short of taming relentless consumer inflation, government data showed on Monday. (Reuters)

Japan GDP Contraction Worse Than Initial Estimate

Japan’s economy contracted by 2.3% on an annualized basis in the third quarter, a faster pace than the initial 1.8% estimate. The weakness is largely attributed to a temporary decline in residential investment due to regulatory changes. Capital expenditure fell 0.2% from the previous quarter, a revision from an initial estimate of a 1.0% rise. (Wall Street Journal)

Japanese Companies Face Chinese Rare Earth Import Delays

Japanese companies are facing delays in getting Chinese clearance to import minerals, including rare earths, the Yomiuri newspaper reported Sunday, citing several unidentified government officials. Japan’s government is watching to see how China responds. (Yomiuri)

China Stocks Rally on Brokerage Leverage Reports

China’s domestic stocks rallied following weekend reports that China’s authorities are working on increasing leverage limit for brokerages, along with other measures that may spur inflows into onshore equities. Note that the Hang Seng saw notable divergence, with broad weakness seen. (Newswires)

China Exports Beat Expectations Despite US Decline

China’s exports rose more than expected last month, bouncing back even as shipments to the US continued to fall, with analysts pointing to trade rerouting as a factor. Meanwhile, the pace of imports in November stepped up from October, but less than forecast, leading to China’s trade surplus coming in above estimates. (Wall Street Journal)

China Commodity Imports Surge

China’s crude oil imports rose 4.88% in November from a year earlier, with daily import volumes reaching the highest level since August 2023. China’s soybean imports reached their highest November level since 2021, with full-year arrivals set for a record amid strong purchases from South America and a US trade truce. (Reuters)

China Politburo Pledges Proactive 2026 Policies

China will keep expanding domestic demand and support the broader economy with more proactive policies in 2026, the Politburo, a top decision-making body of the ruling Communist Party, was cited as saying on Monday by state media Xinhua. China will step up imports and make importing more convenient as the nation pushes to further open up, according to an article in People’s Daily. Several local governments have recently accelerated their issuance of special bonds to support long-term investment projects, with November issuance rising 71% month-on-month. (Reuters, People’s Daily, China Securities Journal)

China Property Concerns Weigh on Junk Bonds

China’s junk dollar bond prices have slid to their lowest level in more than a year and a half, as renewed worries about the country’s property sector rippled through the offshore debt market. (Bloomberg)

Hong Kong Election Sees Near-Record Low Turnout

Hong Kong’s election on Sunday saw a near-record-low turnout after the city’s worst fire in nearly 80 years prompted anger against its China-backed authorities, but voter participation edged higher than in the previous vote four years ago. (Reuters)

ECB’s Schnabel Open to Presidency

European Central Bank Executive Board member Isabel Schnabel said she’d be willing to take over as president when Christine Lagarde’s term ends in less than two years. ECB’s Schnabel is comfortable with investor bets that the European Central Bank’s next interest-rate move will be an increase. (Bloomberg)

German Industrial Production Surges

German industrial production rose much more than anticipated, supporting assumptions that the economy will return to growth in the final quarter of 2025. (Bloomberg)

Ford CEO Warns on Europe Auto Industry

Ford’s CEO in an FT OpEd notes Europe is risking the future of its auto industry. Article notes setting unrealistic EV regulations only to adjust them when consumers do not show up is a recipe for turmoil. (Financial Times)

EU Revamps Energy Grid Approach

The EU will take a new top-down approach to building its cross-border energy grid, as the bloc’s energy chief warned of billions lost from bottlenecks and a failure to match supply with demand. (Financial Times)

Japanese Investors Snap Up UK Gilts

Japanese investors bought the largest amount of UK sovereign bonds in over four years in October as they expected a potential Bank of England interest-rate cut to boost the debt. (Bloomberg)

UK Salaries Accelerate

UK salaries are picking up after months of near-stagnation, according to an REC and KPMG survey that’s closely watched by the Bank of England policymakers. The survey said starting pay for permanent staff rose at the fastest pace in five months in November, as firms stepped up efforts to attract talent in areas facing skill shortages. (Bloomberg)

UK Tax and Defense Concerns

UK investment sites have warned that HM Revenue & Customs could seek to impose a 20% charge on cash held in stocks-and-shares ISAs. UK Defence Secretary John Healey’s plans to transform and grow the UK military are being doubted due to concerns over funding and Britain’s ability to move fast enough. The UK’s power-grid operator slashed the queue for connections to the network, allowing the most advanced generation projects to move to the front of the line. (Financial Times, Bloomberg)

Australia Ends Electricity Rebates

Australia will not extend cost-of-living relief to households in the form of electricity rebates, Treasurer Jim Chalmers said, as the government looks to rein in spending in the face of large, structural budget deficits. (Bloomberg)

India Opens Nuclear Sector to Investment

India’s planned overhaul of its energy laws will effectively open its atomic power sector for new investment, according to a government minister, joining a global nuclear renaissance with a buildout worth as much as 19.3 trillion rupees ($214 billion). (Bloomberg)

Russian LNG Reaches China Despite Sanctions

A Russian liquefied natural gas export facility delivered its first shipment to China since being sanctioned by the US in January, the latest sign of increased energy cooperation between Beijing and Moscow. (Bloomberg)

Soybean Futures Fall on China Demand Concerns

Chicago soybean futures on Monday fell below $11 for the first time since October amid speculation that China will not buy enough US beans to sustain higher prices and after the US government forecast an increase in US soy planting. (Reuters)

GEOPOLITICAL

China Launches Intense Air Operations Near Japan

A Chinese carrier strike group launched intense air operations near Japan over the weekend as the East Asian neighbours traded diplomatic barbs in an escalating dispute, further straining ties. (Reuters)

China-Russia Hold Joint Anti-Missile Drills

China and Russia held their third round of joint anti-missile drills on Russian territory in early December, China’s defence ministry said late on Saturday. (Reuters)

Trump Disappointed in Zelenskiy

US President Trump said he’s disappointed in Ukrainian President Volodymyr Zelenskiy’s handling of a US proposal to end the war that began with Russia’s full-scale invasion. (Bloomberg)

France Shields Banks from Russian Asset Use

French commercial banks hold the second-largest amount of frozen Russian central bank assets in Europe, around €18 billion, but Paris has shielded its banks from plans to use the assets to fund a loan for Ukraine. (Financial Times)

Thailand Strikes Cambodia Military Targets

Thailand’s military said that its aircraft had begun striking military targets in Cambodia after a Thai soldier was killed and several injured in renewed clashes along the countries’ disputed border. (Wall Street Journal)

Nigeria Intervenes in Benin Coup Attempt

Nigeria’s military sent fighter jets and ground forces into neighboring Benin to support President Patrice Talon, after a group of soldiers attempted to seize control of the tiny West African nation. (Bloomberg)

EQUITIES

Trump Signals Concern Over Netflix-Warner Bros Deal

President Trump said Netflix’s $72 billion deal to acquire Warner Bros. “could be a problem” because it would result in a large market share for the streaming giant, signaling possible government resistance in his first public comments about the sale. (Wall Street Journal)

IBM in Advanced Talks to Acquire Confluent

IBM is in advanced talks to acquire data-infrastructure company Confluent for around $11 billion. (Wall Street Journal)

Eli Lilly’s Mounjaro Added to China Insurance

Eli Lilly’s popular drug Mounjaro will be added to China’s state-run health insurance scheme from January 1 for patients with type 2 diabetes, a move which analysts say could put pressure on competitors. (Reuters)

Meta Buys AI Wearables Maker Limitless

Meta has bought Limitless, a maker of artificial intelligence-powered pendants, moving into the emerging but contentious market for all-hearing devices as chief executive Mark Zuckerberg doubles down on his bet on such wearables. (Financial Times)

Ad Spending to Grow More Than Expected

Advertising spending will grow more than predicted in 2025 because tariffs didn’t take as big a bite as expected and AI provided a boost, according to a new forecast from media investment group WPP Media. (Wall Street Journal)

Binance Wins Three Abu Dhabi Licenses

Binance has won three separate licenses from Abu Dhabi’s financial regulator, giving the crypto exchange giant one of its most comprehensive regulatory footholds yet. (Bloomberg)

China Property Developers Face Debt Pressures

Some China Vanke investors voiced concerns about its plan to delay bond payments at a meeting with local regulators on Sunday, adding pressure on the embattled developer just days ahead of a scheduled vote on the proposal. Dalian Wanda Group’s commercial real estate unit is seeking a two-year extension on a $400 million bond, the latest developer to seek a debt payment delay as China’s property crisis weighs on liquidity. (Bloomberg)

Chinese Insurance and Tech Stocks Rise

Shares of Chinese insurance companies rise as JPMorgan says it is positive on the sector following regulatory easing that is expected to lead to lower equity capital charges and improved solvency ratios. Shares of Chinese co-packaged optics-related companies advance amid growing optimism in surging AI compute demand. (Bloomberg)

Brookfield-GIC Buy National Storage

Brookfield Asset Management and Singaporean sovereign-wealth fund GIC agreed to buy National Storage in a deal valuing the Australian self-storage operator at almost $4.5 billion. (Wall Street Journal)

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