Ten Stories Moving the Market

Ten Stories Moving the Market:

Japan’s households unexpectedly cut spending for the first time in six months; outlays by households adjusted for inflation fell 3% in October from a year earlier, compared to the expectation for a 1% gain, led by spending declines in transport and housing – Bloomberg. (Why you should care – slowing spending is likely to make BOJ rate hikes more difficult) 

Washington must move even faster to bolster critical minerals projects and offset Beijing's grip on the world's supply of the building blocks for electronics, weapons and a range of other goods, according to U.S. mining and refining executives – Reuters. (Why you should care – companies are calling for the U.S. to speed up the approval of loans to industrialize the industry)

China’s leaders are widely expected to stick with its manufacturing-led growth strategies in key policy meetings this month, even as calls grow at home and abroad for a more urgent shift toward consumption – Bloomberg. (Why you should care – the government in Beijing remains hesitant to implement widespread stimulus measures)

SoftBank CEO Masayoshi Son is hammering out details of a plan that could see him marshaling hundreds of billions of dollars to build industrial parks around the U.S.; the facilities would use funds pledged by the Japanese government as part of a recent trade deal and would produce components for artificial-intelligence infrastructure – WSJ. (Why you should care – the resources could start to be allocated as soon as early 2026, boosting the outlook for domestic growth and employment) 

National Economic Council Director Kevin Hassett said the Federal Reserve should cut interest rates at its meeting next week and predicted a reduction of 25 basis points as speculation grows that President Donald Trump is readying his nomination to lead the central bank – Bloomberg. (Why you should care – if Hassett is named as the next Fed chair, he would likely favor additional easing)

U.S. Trade Representative Jamieson Greer said the U.S. is prioritizing a stable trade dynamic with China despite a push from some allies to take coordinated action against Beijing – Bloomberg. (Why you should care – the statement builds upon recent signs that the U.S. and China are honoring their recent trade agreement)

Microsoft will increase prices for its Microsoft 365 productivity suites globally starting July 2026 for commercial and government clients; the company said the changes reflect more than 1,100 new features added across Microsoft 365, including AI-driven productivity tools and integrated security enhancements – Reuters. (Why you should care – this is the first enterprise market price increase in three years)

Hewlett Packard Enterprise gave an outlook for sales in the current quarter that fell short of high expectations for the AI server business; revenue will be $9 billion to $9.4 billion and profit, excluding some items, will be 57 cents to 61 cents in the period ending in January, compared to Wall Street’s expectation for sales of $9.88 billion and profit of 53 cents – Bloomberg. (Why you should care – the company said government clients in the U.S. and Europe were forced to push out spending due to the government shutdown and data center buildout delays)

Europe needs a more unified market and lighter-touch regulation to stay competitive in artificial intelligence as the U.S. and China accelerate investment and deployment, SAP CEO Christian Klein – Reuters. (Why you should care – Klein suggested a pan European approach would help it develop cutting edge AI solutions for the industries it already dominates)

Announced job cuts from U.S. employers moved further ahead of 1 million for the year in November as corporate restructuring, artificial intelligence and tariffs have helped pare job rolls, according to consulting firm Challenger, Gray & Christmas – CNBC. (Why you should care – the data should increase pressure on the Federal Reserve to offer more support for the labor market via rate cuts)

Economic Calendar:

Japan – Household Spending for October

Germany - Factory Orders for October (2 a.m.)

France - Industrial Production for October (2:45 a.m.)

France – Exports, Imports for October (2:45 a.m.)

Eurozone - GDP for 3Q (5 a.m.)

Canada - Employment Change for November (8:30 a.m.)

U.S. – Durable Goods, Factory Orders for September (10 a.m.)

U.S. – University of Michigan Consumer Sentiment (Preliminary) for December (10 a.m.)

U.S. – PCE for September (10 a.m.)

U.S. – Personal Income, Spending for September (10 a.m.)

ECB’s Lane (Chief Economist) Speaks (10:10 a.m.)

U.S. - Baker Hughes Rig Count (1 p.m.)

U.S. – Consumer Credit for October (3 p.m.)

U.S. - CFTC’s Commitment of Traders Report (3:30 p.m.)

Fed Releases Balance Sheet Updates on Commercial Banks (4:15 p.m.)