Ten Stories Moving the Market

Ten Stories Moving the Market:

Advanced Micro Devices CEO Lisa Su said she expects the tangible addressable market for data center chips to grow to $1 trillion by 2030, compared to her previous expectation for $500 billion; she expects artificial intelligence will drive much of the growth to the trillion-dollar figure – Reuters. (Why you should care – AMD also said it expects annual data center chip revenue of $100 billion within the next five years, and its earnings to more than triple)

U.S. bank regulators have agreed on the terms for easing a set of capital requirements that lenders say limit their ability to hold more Treasuries; the eased requirements, which would mean the biggest banks have to hold less capital relative to total assets, are largely in line with a proposal unveiled in June – Bloomberg. (Why you should care – less capital being held by banks relative to assets would free up more funds to lend)

Members of the House of Representatives headed back to Washington for a vote that could bring the longest U.S. government shutdown in history to a close; the House is due to vote this afternoon on a compromise that would restore funding to government agencies after the Senate approved the deal earlier this week – Reuters. (Why you should care – the deal is expected to pass the House but Congress will have to pass similar legislation by January 30 to keep the government funded)

JD.com, one of China’s biggest e-commerce platforms, said it generated record sales during this year’s Singles’ Day, the country’s massive annual online shopping gala; it reported a 40% increase in customers and said orders surged nearly 60% – Bloomberg. (Why you should care – the company failed to disclose the value of the sales last year, increasing investor skepticism)

Vietnam expects to sign a "reciprocal trade agreement" with the United States soon, according to Deputy Prime Minister Bui Thanh Son, as a new round of negotiations gets underway in Washington, D.C. – Reuters. (Why you should care – a dela should weigh on the outlook for goods price inflation as Vietnam is the seventh largest import partner for the U.S.)

Banks in China are asking clients to take out loans and then immediately repay them, with the bank covering the interest, in a practice known as "quick-lend-and-recover"; the practice is spreading as banks come under pressure to hit government-set targets that can't be met by real demand, according to interviews with bankers – Bloomberg. (Why you should care – the practice points to continued slowing of economic growth)

Large companies that do the most holiday hiring have broken from their usual practice of advertising how many holiday workers they plan to hire; by the tally of job-placement firm Challenger, Gray and Christmas, through October this year large companies have announced plans to hire 372,520 seasonal workers, compared with 660,150 at the same point last year – WSJ. (Why you should care – this is another data point that is likely to tilt the Federal Reserve toward another rate cut at the December monetary policy meeting)

U.S. companies shed 11,250 jobs per week on average in the four weeks ended October 25, according to data released by ADP Research; the figures suggest the labor market slowed in the second half of October, compared with earlier in the month – Bloomberg. (Why you should care – the figures are in stark contrast to the previous forecast for a gain of 42,000 jobs in October, released just last week)

The path for interest-rate cuts has been clouded by an emerging split within the central bank; officials are fractured over which poses the greater threat—persistent inflation or a sluggish labor market—and even a resumption of official economic data may not bridge the differences – WSJ. (Why you should care – there was a similar debate heading into the October monetary policy meeting, but the Fed still lowered interest rates)

France’s economy will continue to expand in the fourth quarter despite heightened political and budget uncertainty continuing to weigh on businesses, according to the Bank of France – Bloomberg. (Why you should care – continued growth in Europe’s second-largest economy should boost the outlook for the region as a whole)

Economic Calendar:

Earnings: CSCO

Japan – Machine Tool Orders for October

OPEC Monthly Report (7:00 a.m.)

U.S. - MBA Mortgage Applications (7:00 a.m.)

OPEC Monthly Report (7:00 a.m.)

BOE’s Pill (Chief Economist) Speaks (7:05 a.m.)

Fed’s Williams (New York, Voter) Speaks (9:20 a.m.)

Fed’s Waller (Board Member, Voter) Speaks (10:20 a.m.)

U.S. - Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)

Fed’s Bostic (Atlanta, Non-voter) Speaks (12:15 p.m.)

Treasury Auctions $42 Billion in 10-Year Notes (1:00 p.m.)

BOC Summary of Deliberations (1:30 p.m.)