MONEY MASTER

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

The Federal Reserve's  core personal consumption expenditures (PCE)  price index, its favored measure of inflation, cooled in November, signaling progress in controlling price pressures. The monthly core PCE index rose  0.1% , the slowest since May, while the annual rate held at  2.8% , below expectations of 2.9%. Key Highlights Broad-Based Deceleration: Core services prices, excluding housing and energy, rose  0.2% , the slowest since August, while core goods prices fell for the first time in three months. Consumer Spending Resilience: Inflation-adjusted spending rose  0.3% , driven by strong goods purchases, including vehicles, though services spending showed the weakest growth since early 2024. Wage Growth: Wages and salaries increased  0.6% , the fastest since March, supporting consumer resilience during the holiday season. However, overall disposable income grew modestly at  0.3% . Market Reaction Treasury Yields and Dollar:  Fell after ...

Wells Fargo & Co. announced its departure from the  Net-Zero Banking Alliance (NZBA) , signaling growing divergence among Wall Street banks on climate commitments. The move follows  Goldman Sachs' exit earlier this month , as financial institutions face increasing scrutiny from  Republican lawmakers . Key Details No Explanation Given: Wells Fargo, headquartered in San Francisco, did not elaborate on its decision to leave the  NZBA , the world’s largest climate alliance for banks. Political Pressure: Financial firms, including Wells Fargo, are under scrutiny from  GOP-led investigations and lawsuits , alleging collusion and anti-competitive behavior in climate-related initiatives. "Climate Cartel" Allegations: The  House Judiciary Committee , chaired by Ohio Republican  Jim Jordan , accused environmental alliances like NZBA of forming a "climate cartel." Industry Trends: Other institutions, such as  BlackRock, Vanguard, and State Street , have ...

Starbucks baristas represented by the  Workers United union  began a five-day strike in  Los Angeles, Chicago, and Seattle  on Friday, citing unresolved disputes over wages, staffing, and schedules. The action involves over  10,000 workers  and comes amidst rising labor activism in the service industry. Key Issues and Background Labor Actions Surge: This strike follows a year of significant labor movements, with industries like automotive, aerospace, and rail seeing  notable concessions  won by workers. In 2023, there were  33 work stoppages , the highest since 2000. Negotiations Stalled: Talks between Starbucks and Workers United began in  April , but the union claims the company has yet to propose a  serious economic offer  with just two weeks left before the year-end contract deadline. Starbucks insists it has reached agreements on  over 30 topics  in nine bargaining sessions. Union Demands: The union is pushing fo...

US stock futures pared losses on Friday following softer-than-expected inflation data, while Treasury yields fell. However, concerns about the Federal Reserve's hawkish tone and a potential government shutdown continue to loom large over markets. Key Market Movements Stock Futures: S&P 500 futures: -0.5% Nasdaq 100 futures: -0.8% Dow Jones Industrial Average futures: -0.2% Treasuries: 10-year US Treasury yields fell six basis points to  4.50% . Commodities: West Texas Intermediate crude: -0.6% to  $68.96/barrel . Gold: +0.7% to  $2,611.66/ounce . Drivers of Market Sentiment Inflation Data: The Federal Reserve's preferred inflation measure, the  Personal Consumption Expenditures (PCE) index , rose by a muted  0.1% in November , suggesting a more benign inflation trajectory. Despite this, annual core PCE inflation remained steady at  2.8% , underscoring persistent price pressures. Fed’s Policy Outlook: The Fed scaled back its anticipated rate cuts for 202...

Switzerland and the European Union (EU) have reached a landmark agreement to secure Switzerland’s continued access to the EU's single market, marking the end of a prolonged negotiation period following the breakdown in relations in 2021. The agreement aims to solidify economic and political ties after years of uncertainty and lays the groundwork for smoother bilateral cooperation. Key Features of the Agreement Safeguard Clause on Immigration: A reworked safeguard clause allows Switzerland to address unexpected challenges stemming from free movement of people, addressing domestic concerns without breaching the EU’s foundational principles. Financial Contributions: Transition Period (up to 2030): Switzerland will contribute  130 million francs  annually. From 2030 to 2036: Contributions increase to  350 million francs ($391 million)  annually. Sectoral Cooperation: The accord includes agreements on science funding, rail transport, and electricity. Swiss businesses had ...

Bahvest Resources Bhd, soon to be known as  Aumas Resources Bhd , has announced plans to acquire RM22.82 million worth of mining equipment from  Chengdu Mining Maintenance Technology Co Ltd , a China-based firm. The equipment will support the construction of a new gold mining processing plant near its existing facility in  Bukit Mantri, Tawau, Sabah . Key Highlights Plant Capacity Expansion: The new facility will have a processing capacity of over  2,000 tonnes per day (tpd) , nearly doubling the throughput of the current plant, which operates at  1,200 tpd . Timeline: The plant's commissioning is expected within the next  12 months . Operational Benefits: Increased production to meet growing demand. Enhanced operational efficiency and resource utilisation. Improved profitability and cost-effectiveness amidst fluctuating industry conditions. Market Impact Competitiveness: The plant's enhanced capabilities aim to solidify Bahvest's position in the gold minin...

The union representing over  10,000 Starbucks baristas  announced strikes in  Los Angeles, Chicago, and Seattle starting Friday, citing unresolved issues around wages, staffing, and schedules. The five-day strike is the latest in a series of escalating labor actions across service industries. Key Points Strike Scale:  Workers United, the union representing Starbucks employees at  525 stores , plans to escalate walkouts, potentially involving  hundreds of stores  nationwide by Christmas Eve. Negotiation Deadlock: Talks began in April under a February framework, with  nine bargaining sessions  and agreements on  30+ topics  to date. The union rejected Starbucks' offer of no immediate wage hike and a 1.5% increase in future years, calling it insufficient. The union is demanding a  64% immediate wage increase  and  77% over a three-year contract , which Starbucks deems "unsustainable." Broader Labor Context Rising Labor A...

US consumer spending, a key driver of the economy, grew by  0.4% in November , following a revised  0.3% gain in October , reflecting the economy’s resilience. This solid spending trend supported the Federal Reserve’s decision to adjust its outlook, projecting only  two rate cuts in 2025 , down from four anticipated three months ago. Economic Highlights: Consumer spending, representing over two-thirds of US economic activity, continues to underpin the economy, which grew at an  annualized 3.1% rate in Q3 . The  Atlanta Federal Reserve  forecasts Q4 GDP growth at  3.2% , reflecting a slight deceleration from earlier quarters. Fed Chair Jerome Powell commended the economy’s performance, stating it has been “remarkable.” Inflation Trends: The  PCE price index , a key inflation measure, rose  0.1% in November , compared to  0.2% in October . On a yearly basis, the PCE index increased  2.4% , with core inflation holding steady at  2...

  Gapping Up: FedEx (FDX.US):  Stock surged  8.6%  after the company exceeded fiscal Q2 earnings expectations and announced plans to spin off its freight business. Eli Lilly and Co (LLY.US):  Shares climbed  5.5% , buoyed by increasing confidence in its  obesity treatments competing in a high-demand market. Gapping Down: Nike (NKE.US):  Shares dropped  7.4%  despite strong Q2 results, as the company highlighted  guidance concerns linked to "severe issues." Novo-Nordisk A/S (NVO.US):  Fell  18%  after its next-gen obesity drug  CagriSema  delivered  weight loss results below expectations in a late-stage trial. Tesla (TSLA.US):  Declined  5% , impacted by a  40.9% drop  in European Union registrations in November compared to last year. Trump Media & Technology (DJT.US):  Slipped  5.5%  after an SEC filing revealed Donald Trump transferred his stake in the company int...

Stock futures fell  in early Friday trading as investors awaited the release of the  Federal Reserve's preferred inflation gauge , the  Personal Consumption Expenditures (PCE) price index . Markets remain cautious following the Fed's  hawkish tone  earlier this week, signaling fewer-than-anticipated interest rate cuts in 2025. Key Market Moves S&P 500 Futures:  Down 0.3% Dow Jones Futures:  Off by 0.4% Nasdaq Futures:  Lower by 0.5% The declines follow a turbulent week marked by the Fed’s unexpected pivot toward  slower easing  of monetary policy next year, raising concerns about growth prospects. What’s Driving the Market? PCE Inflation Report: The  core PCE index , a measure closely watched by the Fed, will provide insights into the trajectory of inflation. Economists forecast a  0.2% monthly rise , which could influence the timing of future rate cuts. Rate Hikes vs. Growth Concerns: Investors are weighing the Fed’s cauti...

The US exchange-traded fund (ETF) industry, valued at  $10.4 trillion , witnessed an eventful 2024, marked by  record inflows and fund launches  alongside near-unprecedented closures. Here's an overview of the year's key trends: A Mixed Bag: Record Launches and Closures Closures:  Nearly  200 ETFs shut down  in 2024, approaching early-pandemic termination rates. Funds focused on  ESG themes ,  China , and  cannabis  saw significant closures. Launches:  Over  700 new ETFs debuted , marking a  record second-consecutive year  of launches. Successful launches included  Bitcoin and Ether spot ETFs  and  leveraged single-stock ETFs  targeting popular stocks. Saturated Market Challenges The US market now hosts  3,900 ETFs , making it increasingly difficult for new funds to achieve scale. Many ETFs fail to meet the asset and trading thresholds required by institutional investors and trading platforms....

Canadian retail sales showed no growth in November, halting a four-month streak of gains, according to an advanced estimate by Statistics Canada. This follows a  0.6% increase in October , slightly below the  0.7% forecast  by Bloomberg-polled economists. Key Highlights Consumption Weakens:  Retail sales stalling signals waning consumer momentum as the Bank of Canada continues to lower borrowing costs, albeit at a slower pace. Bank of Canada Rate Cuts:  Since June, the central bank has reduced rates by  175 basis points , with another  50 basis points  cut last week. Policymakers are expected to continue easing early next year. Subsector Performance: Automotive Sales Lead Gains:  Sales increased at both new and used car dealerships in October. Core Retail Sales:  Excluding gas stations and car dealers, core sales rose  0.2% , driven by furniture, electronics, and personal care. Gas Station Sales Decline:  Receipts dropped for t...

Bitcoin has seen a sharp decline, falling  7.3% in 24 hours  to  $94,976 , according to CoinDesk data, after briefly hitting record highs earlier this week. The drop comes as the Federal Reserve’s hawkish tone on future rate cuts spooked markets. Key Drivers Behind Bitcoin's Slide Fed’s Rate Signals:  The Federal Reserve announced fewer anticipated interest rate cuts for 2025, dampening market sentiment across equities and cryptocurrencies. Broader Market Pullback:  Bitcoin's decline follows the S&P 500's  2.95% drop  on Wednesday, its worst Fed decision-day performance in nearly 15 years. Upcoming PCE Inflation Data:  The Personal Consumption Expenditures (PCE) report, a key inflation measure, is expected to further shape expectations for rate cuts and could impact crypto prices. Market Sentiment Cyclical Nature:  Analysts view Bitcoin's pullback near the  $100K psychological level  as part of its natural cycles, where indecisi...

The  ringgit  is forecast to remain under pressure against the  US dollar  in the near term, driven by the  Federal Reserve’s less dovish monetary stance , according to  Kenanga Research . Key Projections Exchange Rate:  The ringgit is expected to stay above  4.50 against the US dollar  going into 2025. Recent Performance:  The ringgit, which had gained 15% against the dollar between January and September, has since retreated amid the strength of the US economy. It last traded at  4.5060 , up  1.88% year-to-date . Factors Influencing the Ringgit US Economic Strength:  Strong domestic demand and inflationary pressures are propping up the dollar. Fed’s Monetary Policy:  The Fed’s cautious approach to rate cuts bolsters the dollar’s appeal, with markets anticipating only one rate cut in 2025. Trump’s Policies:  Uncertainty around policies under the incoming US administration may lead the Fed to delay cuts further. O...

Following the Federal Reserve's hawkish tone earlier this week, Wall Street faces a new challenge on Friday: the largest  'Triple Witching Day'  in history, with  $6.5 trillion  worth of options tied to individual stocks, indexes, and ETFs set to expire. What is Triple Witching? The term refers to the simultaneous expiration of: Stock options Stock index options Stock index futures This quarterly event is known for  spiking trading volumes  and creating sudden price swings as traders roll over their positions or establish new ones. Historical Context and Market Impact December's Triple Witching:  Historically, this is the most favorable for U.S. stocks. The  S&P 500  has a  66% probability  of rising in the week after December’s Triple Witching, averaging a return of  0.64% . The "Santa Claus Rally":  This week marks the start of the rally, when investors traditionally go long, driving stock gains. Why This Year is Uni...

The Federal Reserve's preferred inflation measure, the  Personal Consumption Expenditures (PCE) index , rose a modest  0.1%  in November, defying economists' expectations of a  0.2%  increase. While this signals a slight easing in monthly inflation pressures, the annual inflation rate edged up to  2.4%  from  2.3% , moving further from the Fed’s  2% target . Core PCE Remains Elevated The  core PCE index , which excludes volatile food and energy prices, also climbed  0.1%  in November. Over the past 12 months, core PCE inflation remained steady at  2.8% , underscoring persistent inflationary pressures. Fed's Adjusted Outlook This inflation data comes shortly after the Fed’s final 2024 meeting, during which officials revised their forecasts: Inflation is now expected to settle at  2.5% by the end of 2025 , slightly higher than prior estimates. The central bank has tempered its plans for rate cuts, aiming for just  ...

As 2024 draws to a close, the financial world reflects on a year of unprecedented market activity and transformative global events. The U.S. stock market soared for a second consecutive bullish year, while Bitcoin and Nvidia dominated headlines with record-breaking performances. Meanwhile, shifts in macroeconomic policies and geopolitical tensions shaped asset class movements globally. Here are the defining moments of 2024: Trump and Musk’s Influence on Markets The U.S. election, heralding Donald Trump’s return to the presidency, was the  year’s most impactful financial event . Trump's victory fueled market volatility and unprecedented gains in Trump-affiliated stocks, including  Trump Media & Technology  and  Tesla , the latter skyrocketing over  75% post-election . With Elon Musk appointed to head the “Department of Government Efficiency,” his influence extended beyond technology, reshaping U.S. policies on energy and infrastructure. Bitcoin’s Meteoric Ris...

Bursa Malaysia wrapped up 2024 with  55 initial public offerings (IPOs) , marking a  72% increase  compared to the 32 IPOs in 2023. This milestone represents the  highest number of listings in 19 years , solidifying Bursa's position as a leader among Asean exchanges in terms of IPO numbers and funds raised. Key Highlights Strong IPO Momentum : 11 Main Market listings  (up from 7 in 2023) 40 ACE Market listings  (up from 24 in 2023) 4 LEAP Market listings  (up from 1 in 2023) Capital Raised : RM7.42 billion  in total proceeds, a  107% increase  from 2023. Market capitalisation of  RM31.37 billion , a  130% rise  compared to 2023. Top IPOs : The  five largest IPOs  contributed  RM20.32 billion  in market capitalisation, led by companies such as  99 Speed Mart Retail Holdings ,  Johor Plantations Group ,  Alpha IVF Group , and  Prolintas Infra Business Trust . Leadership Comments CEO Da...

The  Federal Reserve's preferred inflation gauge , the  Personal Consumption Expenditures (PCE) price index , showed prices increasing by  0.1% in November  and  2.4% over the past year , according to data from the  Commerce Department  released on Friday. Key Details Re-Acceleration in Annual Rate : The  12-month increase of 2.4%  in November marks a slight rise from October's  2.3%  gain, highlighting the Fed's ongoing challenge in bringing inflation back to its  2% target . Core Inflation Stable : Excluding  food and energy ,  core PCE inflation  rose  0.1% in November  and remained steady at  2.8% annually , matching October's figure. Below Forecasts : November's inflation numbers were softer than analysts’ expectations of a  0.2% monthly increase , offering a glimmer of relief for policymakers. Impact on Federal Reserve Policy Revised Inflation Outlook : The Fed now projects  core PC...

A landmark inquiry into  Credit Suisse's collapse  has criticized  Switzerland's financial regulator Finma  for granting inappropriate capital relief in 2017, which masked the bank's deteriorating condition and delayed corrective measures. The inquiry has prompted calls for stronger regulatory powers and reforms in Switzerland's financial system. Key Findings from the Parliamentary Report 1. Finma's Role and Failures Regulatory Filter Misstep : Finma allowed  Credit Suisse  to report stronger capital levels through a regulatory filter, which obscured the bank's precarious financial state. This concession was deemed legally sound but inappropriate and contributed to the bank's ultimate collapse. Ineffective Oversight : Finma failed to enforce corrective measures despite identifying multiple deficiencies at Credit Suisse over the years. 2. Broader Systemic Issues Government Delays : The Swiss government took too long to implement reforms from the 2008 financi...

A  hawkish shift by the Federal Reserve  has unsettled bullish sentiment in the stock market, with  Bank of America strategist Michael Hartnett  warning of shaky risk appetite as  US equities face their worst week in over three months . Key Highlights 1. Fed's Impact on Sentiment Fed Pivot : A renewed focus on  inflation concerns  and fewer expected rate cuts in 2025 have dampened investor confidence. Stock Allocation Surge : Record-high allocations  to US equities and  low cash holdings  triggered a  sell signal  for stocks earlier this week, according to  BofA's fund managers survey . 2. Market Breadth Concerns Narrow Leadership : The  S&P 500 Equal Weighted Index  has dropped  7%  since a November peak, while the main  S&P 500 declined less than  3% , indicating reliance on a few top-performing stocks. Banking Sector's Role : The  SPDR S&P Bank ETF  must hold near...

After a stellar year for  U.S. stocks , with the  S&P 500  up over  23% in 2024 , investors are cautiously optimistic about the  "Santa Claus Rally" —a seasonal boost traditionally seen in the final days of December and early January. However, rising  Treasury yields , a hawkish  Federal Reserve , and narrowing market breadth suggest Santa might disappoint this year. Key Highlights 1. Historical Context The  Santa Claus Rally  period, comprising the last five trading days of December and the first two of January, has historically yielded an average  1.3% S&P 500 gain , according to the  Stock Trader’s Almanac . Positive performance during this period is often seen as a harbinger of gains for the following year, with a 90% success rate when paired with other January indicators. 2. Market Challenges Biggest Drop Since August : The S&P 500 fell sharply on Wednesday after the  Federal Reserve  signaled fewer rate c...

Tesla Inc.  announced the recall of  694,304 vehicles  in the United States on Friday due to a  tire pressure monitoring system (TPMS) issue  that may fail to alert drivers to low tire pressure. Key Details 1. Recall Scope Affected Models : Model 3 ,  Model Y , and  Cybertruck  vehicles. Issue : The  TPMS warning light  may not stay illuminated between drive cycles, potentially causing drivers to unknowingly operate vehicles with  improperly inflated tires , increasing the risk of a crash. 2. Resolution Tesla will address the issue with an  over-the-air (OTA) software update , a hallmark of the company’s approach to recalls. Tesla Recall Trends 1. 2024 Recall Statistics Tesla vehicles accounted for  21% of all US recalls  in the first three quarters of the year, according to  BizzyCar . Most recalls were resolved through  OTA software updates , avoiding the need for physical repairs. 2. September Quarter Rec...

Donald Trump’s first presidency  saw remarkable gains for the  S&P 500 , which surged  67.82% over four years , fueled by policies favoring growth and deregulation. As Trump prepares to return to office in  January 2025 , market analysts are closely watching for his policy impact on equities. Key Highlights of Trump’s First Term Pre-Inauguration Gains : S&P 500  rose  6.56%  between Election Day (Nov 8, 2016) and Trump’s inauguration (Jan 20, 2017). Post-Inauguration Performance : 6 months in:  +9.27% . 1 year in:  +24.15% . By the end of his term:  +67.82% . Second Term: Initial Market Reactions and Key Developments 1. Post-Election Gains S&P 500  is up  6% since Election Day 2024 , maintaining an upward trend. 2. Federal Reserve’s Hawkish Stance The Fed cut rates by  25 basis points  this week but emphasized caution in future rate cuts. Impact : Dow Jones fell  1,100 points  (-2.95%). S&P 5...

 KUALA LUMPUR: Bursa Malaysia has slipped deeper into the red, in line with the downtrend seen among its regional peers. The FBM KLCI slid 8.68 points, or 0.54% to 1,591.41, its intraday low. The index hit an intraday high of 1,606.28. The FBM KLCI finished down 1.08% for the week. Losers trounced gainers by 552 to 462, while 522 counters traded unchanged. Trading volume was brisk at 3.4 billion shares valued at RM3.8bil. United Plantations, the top decliner on Bursa Malaysia, tumbled RM1.32, or 3.98% to RM31.82. PETRONAS Dagangan slid 84 sen to RM19.02, Malaysian Pacific Industries lost 80 sen to RM25.20 and Allianz declined 20 sen to RM20.28. Among the gainers, PPB Group rose 26 sen to RM12.14, Heineken added 18 sen to RM24.10, Sunway Construction gained 18 sen to RM4.72 and Malayan Cement climbed 17 sen to RM5.01. Meanwhile, the ringgit extended its decline for the 10th consecutive session. It was quoted at 4.5078, down 0.05% against the US dollar. US Wes...

Global markets slid on Friday  as concerns over a potential  US government shutdown  mounted and  Donald Trump’s trade threats  against Europe heightened tensions. Investors also focused on upcoming  US inflation data  that could influence Federal Reserve policy for 2025. Key Market Highlights 1. US Government Shutdown Risks A  spending bill  failed in the House of Representatives on Thursday, highlighting political volatility under  President-elect Donald Trump . Trump’s proposed tariffs and spending policies have increased uncertainty, with  credit default swaps (CDS)  on six-month US bills rising to a four-week high of  11 basis points . 2. Trump’s Trade Threats Trump warned the  European Union  to increase purchases of  US oil and gas  or face tariffs: “Otherwise, it is TARIFFS all the way!!!”  he stated on Truth Social. European stocks  fell 1%, marking a  3% weekly drop , as  U...

Gold is heading for a  weekly decline , with prices down  1.6%  as optimism over  2025 Federal Reserve rate cuts wanes. Despite trading above  US$2,605 per ounce , the precious metal faces pressure from  hawkish signals  and resilient US economic data. Key Highlights 1. Fed’s Rate-Cut Outlook The Fed  reduced rates  on Wednesday but hinted at a cautious approach to further cuts. Fed Chair  Jerome Powell  emphasized the need for “more progress on inflation” before additional easing. Lower rates typically benefit gold, as it doesn’t pay interest, but the current  monetary stance  has tempered expectations. 2. Economic Data Weighs on Gold US GDP Data : Thursday’s report showed  resilient economic growth  and  consumer spending revised up to 2.2% , reducing urgency for rate cuts. Traders now await the  November Personal Consumption Expenditures (PCE)  data, a critical inflation indicator, due Friday. 3...

Tencent Holdings Ltd.  and  Honor Device Co.  have announced a  long-term strategic collaboration  focusing on  cloud infrastructure  and  artificial intelligence (AI)  development. The partnership strengthens Tencent’s position in cloud services while bolstering Honor’s technological capabilities as it expands its corporate and public footprint. Key Highlights of the Partnership 1. Cloud and AI Development Tencent will provide  Tencent Cloud infrastructure  to support Honor’s online services. The collaboration includes  big data analytics ,  search tools , and the joint creation of a  coding assistant  to improve software development efficiency for Honor’s engineers. 2. Honor’s Growth Plans Corporate Partnerships : Honor, a  Huawei Technologies Co. spin-off , has recently sold stakes to  China Mobile Ltd.  and  China Telecom Corp.  as it moves closer to a  public listing . As one of...