Category: 3. Business

(Bloomberg) — Stocks in Asia edged higher on Monday as traders prepared to navigate a heavy slate of central bank decisions this week, including one where the Federal Reserve is widely expected to cut interest rates.

MSCI Inc.’s gauge of Asian equities rose 0.2%, with technology being the biggest contributor to gains. US stock index futures were up slightly while a gauge of the dollar edged lower. Japan’s economy shrank in the three months through September, the government confirmed in a revised report on Monday, while signs emerged over the weekend that the nation’s relations with China were deteriorating.

With traders already having priced in a 25-basis point rate cut by the Federal Reserve this week, a lack of fresh catalysts has seen markets move in tight ranges in recent days. A gauge of global equities has continued to hover near an all-time high reached in October as investor caution over the durability of this year’s AI-driven rally persists.

“The FOMC meeting will be the headline risk event,” Chris Weston, head of research at Pepperstone Group, wrote in a note. “A 25 basis-point cut is fully priced and viewed as a done deal, but the real debate centers on what a ‘hawkish cut’ looks like and whether the statement and Powell’s press conference aligns to that well-subscribed outcome.”

Japan’s gross domestic product fell at an annualized pace of 2.3% in the third quarter, as revised figures showed business spending and housing investment came in weaker than preliminary figures. The contraction was deeper than the initial reading of a 1.8% fall, and was the first in six quarters.

The data added an element of complexity to the Bank of Japan’s upcoming policy decision next week, but likely won’t derail it from its gradual hiking path.

Meanwhile, central banks spanning Australia to Brazil and the Philippines to Turkey will be announcing rate decisions this week, just as renewed inflation pressures prompt a reassessment of 2026’s monetary outlook.

What Bloomberg’s Strategists Say…

“Global bonds are set to extend their retreat as revived cost pressures push central banks to become more hawkish. JGBs face another pair of nervy auctions with the BOJ priced to hike rates next week. Even the Fed’s expected rate cut is likely to be offset by a hawkish statement.”

—Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Defense Stocks

Beijing and Tokyo traded complaints against each other as their simmering diplomatic spat intensified over the weekend after Chinese fighter aircraft trained their fire-control radar systems on Japanese military jets for the first time.

Defense stocks in Japan and China rose on Monday.

China’s CSI 300 Index extended its gain to more than 1% after exports for November rose 5.9% in dollar terms, exceeding estimates and giving investors an insight into the health of the economy and the impact from modest US tariff relief.

Meanwhile, French President Emmanuel Macron warned that the European Union may be forced to take “strong measures” against China, including potential tariffs, if Beijing fails to address its widening trade imbalance with the bloc.

In commodities, silver wavered near a record and gold rose as China’s central bank added to its bullion reserves for a 13th straight month in November. Oil steadied as traders monitored India’s buying of Russian crude and Ukrainian attacks on its neighbor’s energy infrastructure.

‘Ripping Through’

On Friday, the S&P 500 Index rose 0.2% to inch closer to a record high as a dated reading of the Fed’s preferred inflation gauge met expectations. Treasuries declined, pushing the 10-year yield up four basis points to 4.14% and closing out their worst week since April, after conflicting economic data cast fresh uncertainty on the scale of potential Fed rate cuts next year.

Treasury yields may extend their rise, possibly toward 4.5%, on the back of an impending fiscal boost from President Donald Trump’s earlier spending bills, strong growth and “the broader reflationary momentum now ripping through global long-end bond yields,” Tony Sycamore, an analyst at IG Markets in Sydney, wrote in a note. “While we think this is likely more of a story for 2026, a rise of this magnitude could impact equities if it unfolds rapidly.”

Read: Bond Traders Defy Fed and Spark Heated Debate on Wall Street

This week’s auctions of three-, 10- and 30-year government debt are slated to begin Monday, a day earlier than usual to avoid coinciding with the Dec. 10 Fed announcements. Australia is set to reopen a bond line maturing in 2054 just as the 10-year yield hits the highest since Nov. 2023.

The US continues to clear the data backlog with the delayed JOLTS reports scheduled for release. Weekly jobless claims and the employment cost index are also due. Besides the Fed rate decision, economists expect the Bank of Canada, Swiss National Bank and Reserve Bank of Australia will leave their respective policy rates on hold this week.

While the Fed is likely to cut on Wednesday, “the rate path for 2026 is more uncertain as members balance lingering price pressures from tariffs, a cooling labor market, the likely pick-up in economic activity in the coming months,” Barclays strategists including Andrea Kiguel wrote in a note to clients. “We think 2026 is likely to be a year of prolonged holds, though markets could try to add hike premiums if inflation momentum persists.”

Meanwhile, Wall Street research veteran Ed Yardeni is recommending going underweight the Magnificent Seven megacap technology stocks versus the rest of the S&P 500, expecting a shift in earnings growth ahead.

Corporate News

US President Donald Trump raised potential antitrust concerns around Netflix Inc.’s planned $72 billion acquisition of Warner Bros. Discovery Inc., noting that the market share of the combined entity may pose problems. US lawmakers released annual defense authorization legislation that backs almost $901 billion in discretionary spending for national security programs and seeks to restrict American investments in sensitive Chinese industries. Brookfield Asset Management Ltd. and Singapore’s GIC Pte agreed to a binding deal with National Storage REIT to buy the Sydney-listed firm for around A$4 billion ($2.7 billion). Qatar Airways Group named Hamad Ali Al‑Khater as its new group chief executive officer in a surprise shakeup, succeeding Badr Mohammed Al-Meer after just two years in the post. An outage that took down markets operated by CME Group Inc. for more than 10 hours at the end of last week was caused by human error at a data center owned by CyrusOne. Indian regulators held IndiGo’s chief executive accountable for the severe disruptions that have roiled the country’s biggest airline in recent days, faulting the company for “significant lapses in planning, oversight, and resource management.” Eli Lilly & Co., Pfizer Inc. and Johnson & Johnson secured spots on China’s first innovative drug catalog, opening a new market channel and boosting sales prospects for costly, cutting-edge treatments. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 12:20 p.m. Tokyo time Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 fell 0.2% Hong Kong’s Hang Seng fell 0.8% The Shanghai Composite rose 0.7% Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1654 The Japanese yen rose 0.2% to 155.01 per dollar The offshore yuan was little changed at 7.0670 per dollar The Australian dollar was little changed at $0.6646 Cryptocurrencies

Bitcoin rose 1.2% to $91,303.81 Ether rose 0.8% to $3,112.06 Bonds

The yield on 10-year Treasuries was little changed at 4.13% Japan’s 10-year yield was unchanged at 1.950% Australia’s 10-year yield advanced two basis points to 4.71% Commodities

West Texas Intermediate crude rose 0.2% to $60.19 a barrel Spot gold rose 0.3% to $4,211.67 an ounce This story was produced with the assistance of Bloomberg Automation.

©2025 Bloomberg L.P.

US stocks climb as inflation data strengthens rate cut outlook

United States (US) stock markets ended the week on a positive note, supported by soft inflation data that reinforced expectations of a rate cut at this week’s Federal Open Market Committee (FOMC) meeting. For the week, the Nasdaq 100 finished 1% higher, the S&P 500 rose by 0.31%, and the Dow Jones gained 238 points (+0.50%).

Ahead of Thursday’s FOMC meeting, the core Personal Consumption Expenditures (PCE) price index – the Federal Reserve’s (Fed) preferred gauge of underlying inflation – rose a tame 0.2% month-on-month (MoM) in September and 2.8% year-on-year (YoY), in line with forecasts. Yet despite the benign print, US Treasury yields rose 4 basis points (bp) across the curve, taking their lead from Canadian bond yields, which gained after a hotter-than-expected jobs report.

US 10-year yields show strongest weekly rise since April

This resulted in US 10-year yields finishing the week 12 bp higher, marking their strongest weekly increase since April, to be eyeing the neckline of a potential inverted head-and-shoulders pattern at 4.17 – 4.19%. A clear breakout above this level would open the way for US 10-year yields to rise towards 4.50%.

While this is likely more of a story for 2026, a rise of this magnitude could impact equities if it unfolds rapidly. Potential catalysts for rising US bond yields include: 

• The impending fiscal boost from the ‘One Big Beautiful Bill’
• The Fed cutting rates into resilient growth
• The broader reflationary momentum now rippling through global long-end bond yields.

Key data release before Thursday’s decision

Looking ahead, the only notable data release before Thursday’s FOMC decision is Wednesday morning’s October Job Openings and Labor Turnover Survey (JOLTS) report, useful context, but already somewhat stale.

FOMC interest rate decision

Date: Thursday, 11 December at 6.00am AEDT

At the last FOMC meeting in October, the Fed cut rates by 25 bp into a target range of 3.75% – 4.00%.

It was the central bank’s second consecutive rate reduction and was approved by a 10 – 2 vote. Fed Governor Stephen Miran voted against the decision in favour of lowering rates by 50 bp, while Kansas City Fed President Jeff Schmid dissented in favour of holding rates steady.

Fed Chair Jerome Powell told reporters at the post-meeting news conference that a December cut was not a ‘foregone conclusion’. The minutes of the meeting released on 19 November showed disagreement about the path forward, with the Board divided over whether a stalling labour market or stubborn inflation were bigger economic threats.

The hawkish minutes resulted in the odds of a 25 bp rate cut at this week’s meeting falling to about 30%. However, since then, dovish Fed commentary and soft tier-two labour market data now sees the interest rates market pricing in an 87% chance of a 25 bp rate cut to 3.50% – 3.75% at this week’s meeting.

The commentary will likely have a hawkish element, with Fed Chair Powell noting that the bar for further cuts is higher, and he will likely point out the views of participants who opposed a cut.

Looking ahead, the rates market is pricing in another two full 25 bp rate cuts in 2026, with a 50% probability of a third 25 bp rate cut in 2026.

Federal funds rate chart

A chemotherapy-free combination treatment outperformed a combination of targeted therapy and chemotherapy among patients with Ph+ acute lymphoblastic leukemia (ALL) in a new study. The phase III trial, which included adult patients with no upper age limit, is the first formal comparison of the efficacy and safety of these two approaches in newly diagnosed patients with Ph+ ALL.

Researchers say the findings offer reassurance that chemotherapy can be omitted without detrimental effects and suggest that a chemo-free targeted agent and immunotherapy combination could become the new standard of care for this patient group.

The chemo-free approach significantly reduced the rate of death in addition to increasing the rate of complete remission. The significance was very impressive, a more than 20% difference in terms of molecular response achievement [a sensitive test for residual cancer cells following treatment], so this approach truly is better.”

Sabina Chiaretti, MD, lead study author, associate professor, Sapienza University, Rome, Italy

ALL is a fast-growing type of leukemia affecting white blood cells, while Ph+ ALL is a genetic subtype characterized by the causal genetic abnormality in the Philadelphia chromosome. Patients with Ph+ ALL have historically faced a poor prognosis and increased resistance to chemotherapy, pointing to a need for improved treatments. In recent years, targeted tyrosine kinase inhibitors (TKIs) and immunotherapies have brought promising results, with good efficacy and fewer side effects than chemotherapy. Researchers have sought to identify the optimal combination of therapies among TKIs, immunotherapies, and chemotherapy. 

For the trial, researchers enrolled 236 adult patients with Ph+ ALL, ranging in age from 19 to 84 years. Two-thirds of participants were randomly assigned to the experimental arm and received a TKI plus immunotherapy; one-third were assigned to the control arm and received a TKI plus chemotherapy. Patients in the experimental group received an initial course of steroids, a 70-day induction with the TKI ponatinib, and two to five cycles of the immunotherapy blinatumomab. Patients in the control group received the TKI imatinib along with either four or six cycles of chemotherapy for patients older or younger than age 65, respectively.

Patients in the chemo-free experimental arm had a significantly higher rate of event-free survival and a better response to treatment. At a median follow-up of 23 months, event-free survival was 87% in the experimental arm and 71% in the control arm, while the rate of death was 3.5% in the experimental arm and 10% in the control arm. The relapse rate was similar among arms (6% in the experimental group and 8% in the control group), although about half of the relapses in the experimental group occurred in patients who had discontinued their treatment.

Complete remission was achieved in 94% of those in the experimental arm and 79% of those in the control group. The chemo-free treatment regimen also resulted in a higher rate of negative measurable residual disease (MRD) status, an indicator that all or nearly all cancer cells have been eradicated. While only 49% of those in the control group achieved MRD-negative status, 71% of those in the experimental group achieved MRD-negative status after two cycles of blinatumomab, and 80% reached this status after five cycles. 

“The more cycles with blinatumomab, the more the molecular remission rate increased,” said Dr. Chiaretti. “This suggests that patients really should receive the planned five cycles. This is important because we have been working with blinatumomab for years, but we did not yet know how many cycles should be recommended.”

Participants randomized to the control group were offered the option to cross over to the experimental arm if their disease was MRD-positive. About 37% of patients in the control arm eventually received the experimental treatment regimen, and 62% of these patients subsequently achieved MRD-negative status.

Most of the deaths occurred in older patients, and infections were a primary cause of death among those that occurred in the experimental arm. The safety profiles were consistent with those expected for each therapy involved in the study, and researchers said that most adverse events were successfully addressed by reducing dosage.

While the study was conducted exclusively in Italy, Dr. Chiaretti noted that the results should be applicable in any country. She added that a chemo-free treatment approach can bring economic benefits by reducing the need for hospitalization and allowing patients to continue working while undergoing cancer treatment.

A separate study is now underway to determine whether patients with sustained MRD-negative status can discontinue TKI treatment without raising the risk of a relapse.

Sabina Chiaretti, MD, of Sapienza University of Rome, will present this study on Sunday, December 7, 2025, at 9:30 a.m. Eastern time in W224A-F of the Orange County Convention Center.

Stock Futures Little Changed. Markets Await Fed’s Decision.

On Wednesday, the Fed will announce its interest rate decision and release the latest Summary of Economic Projections, followed by remarks from Fed Chair Jerome Powell.

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Five Reasons Investors Are Feeling Good About Stocks Again

Recent gains reflect more than just optimism about artificial intelligence.

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Japan’s Economy Shrinks at Faster Pace Than Initially Estimated

Real gross domestic product shrank 2.3% on an annualized basis in the third quarter, compared with preliminary estimates of a 1.8% fall.

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The Fed’s biggest decision this week could have nothing to do with interest rates

Any hints of Fed plans for asset purchases could aid the rally in stocks and other risk assets more than a rate cut

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Trump Tasks Top Advisers With Finding Way to Lower Soaring Beef Prices

The Trump administration is prodding ranchers and meatpackers to do something about soaring beef prices, while looking at increasing imports from Mexico and South America.

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Stock Funds Up 12.6% as Year Nears an End

Late-November rally put markets back on their feet. Plus: A Financial Flashback to 60 years ago, when LBJ clashed with the Fed.

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China’s Growth Is Coming at the Rest of the World’s Expense

China is swallowing up a growing share of the world’s market for manufactured goods, revealing an uncomfortable truth: Beijing is pursuing a “beggar thy neighbor” growth model at everyone else’s expense.

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The Score: Warner, Boeing, Dollar General, American Eagle and More Stocks That Defined the Week

Here are some of the major companies whose stocks moved on the week’s news.

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Week Ahead for FX, Bonds: Fed Expected to Cut Interest Rates

The Federal Reserve’s decision will take center stage in the coming week, with the central bank widely expected to cut interest rates after recent weak U.S. jobs data.

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Fed’s Favored Inflation Gauge Shows Moderate September Trend

The Federal Reserve’s preferred measure of inflation held below 3% in September, and indicated a moderate month-over-month increase in prices unlikely to block consideration of an interest-rate cut at the central bank’s meeting next week.

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Consumer Sentiment Improves Slightly in December

Monthly index of consumer sentiment from the University of Michigan rose slightly versus November, but remained much lower than where it began the year.

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Canada’s Carney Says Trump, Sheinbaum Pledge to Work on USMCA

Canadian Prime Minister Mark Carney held constructive talks with President Trump and Mexican President Claudia Sheinbaum on the margins of Friday’s World Cup draw in Washington, his spokeswoman said.

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Regulators Relax Rules on High-Risk Lending for Banks

Banking regulators end an Obama-era limit on risk-taking in corporate lending by banks, which spurred the private credit boom.

  (END) Dow Jones Newswires

  December 07, 2025 21:15 ET (02:15 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.

Ad Spend to Grow More Than Expected in 2025 as Tariffs Sting Less and AI Gives a Leg Up

A new report from WPP Media says global ad revenue will reach $1.14 trillion this year.

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Trump Says Netflix-Warner Deal ‘Could be a Problem’

The president adds, “I’ll be involved in the decision” on the $72 billion agreement.

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Sephora Is the Biggest Name in Beauty. Can It Hold the Crown?

In the $450 billion global beauty market, there is no business with as much cultural impact as the LVMH-owned retailer. Executives have a plan to make sure it stays on top.

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Trump Administration Waives Biden-Era Fine Against Southwest Airlines

The carrier won’t have to pay $11 million related to its 2022 meltdown during the holiday season.

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Brookfield, GIC Agree $4.5 Billion Deal for Australia’s National Storage

The consortium entered into a takeover agreement for the largest self-storage provider in Australia and New Zealand after almost two weeks of exclusive due diligence.

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Why Nvidia and Other AI Stocks Have Lost Their ‘Quality’ Status

A popular ETF dropped Big Tech stocks, which gets at an important issue: Is the bet on artificial intelligence a vast potential profit pool, or a money pit?

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The Surprising Strategies Small Businesses Are Employing to Juice Holiday Shopping

Local retailers say early results have been surprisingly good with more lower-priced gifts, fewer holiday items and an emphasis on joy.

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Arc’teryx Won Over China With a $1,000 Jacket. Now It’s Popping Up Everywhere.

The upscale outdoor brand is using its experience to power global expansion-and keep finance bros everywhere warm

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Why Netflix Shareholders Aren’t Thrilled to Acquire Warner Bros.

Taking over Hollywood’s biggest studio would transform the streaming giant’s business model, at a steep price.

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Should Walmart Really Be Trading Like a Tech Company?

America’s biggest retailer is growing quickly in e-commerce, and it might advance more as it moves to Nasdaq.

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SpaceX in Talks for $800 Billion Valuation Ahead of Potential 2026 IPO

The company’s CFO told investors about the transaction in recent days, say people familiar with the matter.

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Carvana, CRH, and Comfort Systems USA to Join S&P 500

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Meta Platforms Buys AI Device Maker Limitless

The acquisition means Limitless, a maker of wearable artificial-intelligence devices, would stop selling many of its existing products. The deal comes as Meta has shown increased interest in AI investment.

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Magnum Ice Cream CEO Backs RFK Jr.’s ‘Healthy America’ Push

New chief executive Peter ter Kulve said he is aligned with the Make America Healthy Again movement, endorsing the push for higher-quality foods despite selling high-calorie products.

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Tesla Launches Low-Cost Model 3 in Europe. Investors Care About This More.

Lower-cost models are designed to help Tesla arrest recent sales declines. Investors are far more focused on Tesla’s AI opportunities these days.

  (END) Dow Jones Newswires

  December 07, 2025 21:15 ET (02:15 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.