MONEY MASTER

 The United States recorded a US$284 billion federal budget deficit in October, a figure distorted by the recent government shutdown and the shifting of benefit payments from November into last month’s accounts, the Treasury Department said on Tuesday. The release — delayed due to a 43-day shutdown that idled multiple federal agencies — marked the first monthly report of the 2026 fiscal year. Treasury officials said the interruption caused delays in salary payments and other obligations, contributing to anomalies in the data. The October shortfall was US$27 billion, or 10% higher than the US$257 billion deficit a year earlier. The increase was largely driven by the early booking of roughly US$105 billion in benefit outlays for certain military and healthcare programmes. Once adjusted for these timing shifts, the underlying deficit would have been closer to US$180 billion, representing a 29% decline from October 2024’s US$252 billion figure. Outlays and Shutdown Effects Total Octobe...

 US equities climbed for a third straight session on Tuesday as traders increased their conviction that the Federal Reserve will cut interest rates in December. Alphabet’s gains also sharpened attention on the shifting competitive landscape within the artificial intelligence sector, adding pressure on Nvidia. The S&P 500 rose 0.9%, while the Nasdaq 100 gained 0.6%, recovering from an intraday drop of as much as 1.3%. Market volatility remained contained, with the VIX hovering near 19. Breadth improved across the board. The equal-weighted S&P 500 advanced 1.5%, reflecting broad-based buying, while the small-cap Russell 2000 outperformed with a 2.1% jump. Weaker US Data Fuels Policy Bets After a delay caused by the federal government shutdown, September economic data finally began to roll out. Retail sales posted only modest growth, hinting that consumers are pulling back after months of strong spending. Wholesale inflation picked up on higher energy and food prices, while co...

Asian equities advanced for a third straight session on Wednesday, mirroring gains on Wall Street as deteriorating U.S. consumer data strengthened expectations for a Federal Reserve rate cut next month. Benchmarks in Japan, South Korea and Australia all opened higher after the S&P 500 climbed 0.9% and the Nasdaq 100 added 0.6%. Chinese equities will be closely watched after Alibaba Group’s U.S.-listed shares declined following its earnings release. Treasuries eased after sharp gains in the prior session, which were driven by reports placing White House National Economic Council director Kevin Hassett as the leading candidate to become the next Fed chair. The dollar slipped to a one-week low, according to a Bloomberg measure. Cooling U.S. Data Reinforces Rate-Cut Narrative Equities regained momentum as U.S. consumer confidence posted its sharpest drop since April, while September retail sales picked up only modestly. The delayed batch of economic data, caused by a government shutdow...

  Key Takeaways Singapore market opens higher  with strong breadth. U.S. stocks climb  as traders price in a December Fed rate cut. AI stocks diverge:  Alphabet rallies; Nvidia faces selling pressure. Singapore inflation expected at 1.5% in 2026  due to domestic cost adjustments. Stocks to Watch:  Singtel, Nio, ThaiBev, Seatrium, ComfortDelGro, Coliwoo, NoonTalk. Singapore Market Opens on a Firm Note The Straits Times Index started Wednesday in positive territory, rising  0.47% to 4506.52 . Market breadth was healthy, with  91 advancers vs. 34 decliners , and total turnover reached  S$142.76 million  in early trade. Wall Street: Fed Cut Hopes Lift Sentiment, AI Plays Split U.S. equities finished higher on Tuesday as markets leaned into expectations that the Federal Reserve may lower rates in December. Futures traders now assign a  ~90% probability  of a 25bp cut. Alphabet  extended its AI-driven rally, reportedly boosted b...

KUALA LUMPUR, Nov 25 (Bernama) -- Bursa Malaysia closed lower in consolidation mode as investors continued to seek value on small-cap stocks amid cautious sentiment, despite mostly upbeat regional market performance, a dealer said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.04 points, or 0.43 per cent, to 1,611.74 from Monday’s close of 1,618.78. The benchmark index, which opened 0.76 of-a-point higher at 1,619.54, rose to a high of 1,620.99 during the early morning session before slipping to a low of 1,611.25 in late trading. The broader market was negative with decliners beating gainers 588 to 556, while 569 counters were unchanged, 1,096 untraded, and 40 suspended. Turnover slid to 4.39 billion units worth RM2.82 billion against 5.81 billion units worth RM5.24 billion on Monday.

US President Donald Trump and Chinese President Xi Jinping held their first conversation since last month’s tariff truce, covering a wide slate of geopolitical and economic issues — from trade and Taiwan to Russia’s war in Ukraine — while Trump confirmed plans to visit Beijing in April. Trump described the call as “very good,” saying both sides discussed agricultural purchases, including soybeans, and stepped-up cooperation to curb illegal fentanyl shipments. He added that he invited Xi for a state visit to the US next year. But Trump’s public readout avoided the topic that Beijing highlighted most: Taiwan. According to China’s Foreign Ministry, Xi stressed that the island’s “return” is central to the post-World War II order and urged the US to maintain the positive momentum gained after their October meeting in South Korea. Beijing Pushes Taiwan Issue; US Stays Silent Xi’s remarks came as tensions rise between China and Japan, a key US ally, following comments by Japan’s new Prime Min...

The Federal Reserve will finally receive one of the most critical inflation readings it has been missing for weeks, as the Labor Department releases the  September Producer Price Index (PPI)  on Tuesday—data that has been stuck in limbo during the 43-day US government shutdown. The wholesale inflation report, due at 8:30 a.m. Eastern, will offer policymakers a long-delayed look at price pressures building inside the supply chain. The fresh data is also a key input into the  September PCE inflation report , the Fed’s preferred gauge, which is now scheduled for Dec. 5—just days before the central bank’s rate-setting meeting on  Dec. 9–10 . Why This Matters For nearly six weeks, the Fed has been flying partially blind, unable to access core inflation statistics that inform its assessment of how sticky price pressures truly are. The arrival of both  PPI  and  PCE  before the December meeting is seen as a meaningful shift for markets, which have been r...

Singapore’s core inflation rose more than expected in October, reversing September’s sharp cooldown and signalling that underlying price pressures may not be easing as quickly as thought. Core prices—watched closely by the Monetary Authority of Singapore (MAS)—climbed  1.2% year-on-year , up from  0.4% in September , driven by firmer increases in services, food, and retail goods. On a month-on-month basis, core inflation rose  0.5% , the fastest pace in several months. Headline CPI-All Items also picked up to  1.2% YoY , from 0.7% previously, pushed higher by rising private transport costs and the rebound in core inflation. What’s Driving the Rebound •  Services inflation strengthened  — primarily due to higher health insurance premiums, healthcare costs, and travel-related expenses. •  Food inflation edged higher , lifted by non-cooked food. •  Retail & other goods  prices rose, with increases in clothing, footwear, and personal accessor...

Global companies are scaling back or shelving price increases as new US trade deals ease tariff uncertainty and consumer spending weakens, according to a Reuters review of third-quarter earnings calls and disclosures. The shift marks a sharp reversal from earlier in the year, when firms in consumer goods, retail, and industrials cited escalating tariff costs and signalled aggressive price adjustments. Now, with clearer rules of engagement on US trade policy and mounting risks of losing price-sensitive customers, corporate pricing power is fading. Retail giants including Walmart, Target, Home Depot and Lowe’s capped a pivotal Q3 earnings season by outlining divergent strategies to manage softer demand—ranging from widespread discounting to tighter cost control—after the protracted US government shutdown delayed federal benefits and froze economic data flows. Price-Hike Mentions Have Collapsed Reuters tracked  28 companies  explicitly flagging tariff-driven price hikes since Oct...

Alphabet and Broadcom extended gains in overnight US trading after reports that Meta Platforms is weighing a multi-billion-dollar investment in Google’s TPU chips — a move that could reshape spending patterns across the AI-hardware landscape. Nvidia, in contrast, slipped as investors reassessed competitive risks. Alphabet jumped nearly 3%, while Broadcom advanced close to 2%, following a report by  The Information  that Meta may deploy Google’s tensor processing units (TPUs) across future data-center expansions. The development signals growing interest in alternative AI accelerators as large-scale platforms diversify away from single-supplier GPU dependence. Nvidia fell almost 2%, with traders eyeing potential pressure on GPU demand should Meta allocate more capex toward Google’s custom silicon ecosystem. Separately, SanDisk climbed nearly 8% after being added to the S&P 500, extending its recent momentum as passive inflows and index-tracking funds adjust holdings. Key Tak...

Global equities kicked off the week on a strong note, powered by a renewed wave of optimism that the Federal Reserve will cut rates in December. The  S&P 500 jumped 1.5% , its strongest session in six weeks, while the  Nasdaq 100 rallied more than 2% , marking its biggest gain since May. Bitcoin also reversed earlier losses , while the US 10-year Treasury yield slipped to  4.03% , underscoring a broader risk-on shift. Rate-Cut Momentum Drives Market Mood Bullish sentiment accelerated after a series of Fed officials—including Christopher Waller, John Williams and Mary Daly—signalled they are open to a  December rate cut , even as markets navigate an economic data blackout caused by the government shutdown. With policymakers divided and data clarity muddied, traders say the Fed is operating with less visibility than usual. BNP Paribas chief US economist James Egelhof noted the current situation is “a more disorderly process than what we are accustomed to,” but stil...

  Key takeaways San Francisco Fed President Mary Daly says she supports a  December  rate cut , arguing the labour market is now more fragile than inflation is dangerous. She sees the risk of a  “nonlinear” jump in unemployment  as higher and harder to manage than another inflation flare-up. Daly downplays tariff-driven inflation pressures and stresses the Fed should not delay cuts today just because it  might  need to hike again next year. Her stance aligns with New York Fed President John Williams’ recent comments and  has pushed market odds of a December cut back above 50% . The Fed remains  visibly split : doves worry about job losses; hawks warn inflation is still too high, especially in services. San Francisco Fed President  Mary Daly  has come out clearly in favour of  cutting rates at the Fed’s Dec 9–10 meeting , saying the bigger danger now is a sudden break in the labour market rather than an inflation surprise. Daly ...

Singapore equities opened firmer on Tuesday as global risk sentiment improved, tracking Wall Street’s rebound driven by renewed confidence in a Federal Reserve rate cut next month. Gains across large-cap tech helped lift US benchmarks sharply, while Singapore’s latest inflation print surprised to the upside, signalling that domestic cost pressures may be re-emerging. Wall Street: Tech-Led Rally as Rate-Cut Odds Jump US stocks surged overnight, with the S&P 500 reclaiming the 6,700 level and tech outperforming after traders boosted expectations for a December rate cut. CME FedWatch now places the probability of a 25-basis-point reduction at nearly 77%. AI-linked names powered the rebound. •  Alphabet  jumped 6.3% to a record high after upbeat reaction to its Gemini 3 AI update. •  Broadcom, Micron and AMD  gained between 5% and 11%. •  Tesla  climbed 6.8% after Elon Musk unveiled the company’s completed in-house chip designs for autos and data centres. F...

Gold rose on Monday as traders grew increasingly confident that the Federal Reserve will deliver another interest-rate cut in December, even as policymakers remain split and economic data remains distorted by the prolonged US government shutdown. Fed governor Christopher Waller bolstered expectations after signalling support for a reduction next month, echoing comments from New York Fed president John Williams that a near-term cut remains on the table. With official labour-market data still missing, investors have turned to second-tier indicators to gauge the health of the economy. Swap markets now imply nearly an 80% probability of a cut at the Fed’s December 9–10 meeting — building on earlier moves in September and October. Lower interest rates generally boost the appeal of gold, which offers no yield and tends to outperform during periods of monetary easing. Investors this week will parse a backlog of delayed economic data, including September retail sales and producer-price figures...

Asian equities advanced for a second straight session on Tuesday, mirroring Wall Street’s tech-led rebound as expectations mounted for a US Federal Reserve rate cut next month. MSCI’s Asia Pacific equity benchmark rose as much as 0.8%, with gains across Hong Kong, China and Japan following the first Trump–Xi talks since last month’s tariff truce. The regional move echoed a strong recovery in US tech shares on Monday, which helped lift broader sentiment after a volatile few weeks. Alphabet climbed in late trading while Nvidia dipped after reports that Meta Platforms is in talks to spend billions on Google’s AI-focused processors. The rally gained further support after Fed governor Christopher Waller signalled openness to a December rate cut, reinforcing similar comments from San Francisco Fed president Mary Daly and New York’s John Williams. Money markets now assign roughly a 90% probability to a December reduction. Treasuries held Monday’s gains, with the 10-year yield hovering near 4....

PETRONAS Chemicals Group Bhd sank to its lowest level since April after reporting another quarterly loss, with analysts cautioning that the petrochemical giant faces a longer and more painful downturn ahead. The latest quarter’s core net loss — excluding exceptional items — was the company’s largest since its 2010 listing, prompting consensus forecasts to now price in a full-year loss for PChem. Hong Leong Investment Bank (HLIB) said the sector remains under heavy pressure due to China’s aggressive capacity expansion and sluggish downstream demand, a combination that continues to depress pricing across key product chains. PChem plunged as much as 13% intraday to RM2.83 before closing 10% lower at RM2.92 on Monday, with over 34 million shares traded. The counter has shed nearly 40% year-to-date, cutting its market value to about RM23 billion. Broker sentiment remains overwhelmingly bearish: 12 sells, four holds, and just three buys, Bloomberg data show. HLIB is the most bearish among 21...

DBS Group Holdings has revised its ambitions in Malaysia, trimming its proposed acquisition of Alliance Bank Malaysia Bhd to a 30% stake after regulators signalled they would not support a larger deal, according to people familiar with the matter. Southeast Asia’s largest bank had initially sought approval to negotiate for as much as 49% of Alliance Bank, a size that would require Bank Negara Malaysia (BNM) to grant a rare ownership waiver. The central bank declined to entertain that request, prompting DBS to withdraw and refile a proposal aligned with Malaysia’s 30% ownership limit. The smaller proposal is expected to have a smoother path, the people said, and would allow DBS to formally engage Alliance’s major shareholder, Vertical Theme Sdn Bhd — a Malaysian holding company partly owned by Singapore’s Temasek Holdings. Temasek indirectly owns 49% of Vertical Theme through Duxton Investment & Development and also holds 28.3% of DBS. Representatives from DBS and Vertical Theme dec...

KUALA LUMPUR, Nov 24 (Bernama) -- Bursa Malaysia's benchmark index reversed earlier losses to close marginally higher on Monday, tracking positive movement on most regional markets amid renewed optimism on potential United States (US) interest rate cut. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.21 points, or 0.07 per cent, to 1,618.78 from Friday’s close of 1,617.57. The benchmark index opened 2.57 points higher at 1,620.14 and peaked at 1,621.26 during the early morning session but slipped to 1,609.88 in the afternoon session before regaining ground towards closing.   However, the broader market was negative with decliners beating gainers 611 to 533, while 530 counters were unchanged, 1,113 untraded, and 28 suspended. Turnover expanded to 5.81 billion units worth RM5.24 billion against 4.39 billion units worth RM2.96 billion last Friday.   IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said Asian indices ope...

KUALA LUMPUR, Nov 21 (Bernama) -- Bursa Malaysia ended the week lower, mirroring the weak performance of regional bourses, as an overnight sell-off on Wall Street dampened investor sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.39 points, or 0.15 per cent, to 1,617.57 from Thursday’s close of 1,619.96. The benchmark index opened 2.24 points lower at 1,617.72 and fluctuated between 1,614.60 and 1,618.86 throughout the trading session. On the broader market, decliners trounced gainers 821 to 392, while 496 counters were unchanged, 1,078 untraded, and 20 suspended. Turnover was slightly lower at 4.39 billion units worth RM2.96 billion versus Thursday’s 4.70 billion units worth RM2.94 billion. 

Key Takeaways Credit-card dependence is rising again More Americans plan to finance holiday shopping with credit, signaling pressure on disposable incomes. Inflation is still the dominant economic fear Even with a cooling trend in recent months, it continues to shape consumer behavior. Spending is increasingly polarized Higher-income households are driving discretionary spending, while lower-income groups are relying on credit to cope with necessities. Delinquencies remain stable—for now Low joblessness is helping keep credit risk contained, but rising card usage may test borrowers’ resilience in 2026. US consumers are preparing to rely more heavily on credit cards for the upcoming Thanksgiving-to-Cyber-Monday shopping season, according to new data that underscores the pressure inflation continues to exert on household finances. A TransUnion survey of 3,000 consumers found that  42% plan to use credit cards for holiday purchases , up from 38% last year. The shift highlights how eve...

Investor Takeaways 1. Grocery inflation may ease , particularly for coffee, beef, and juice, though price relief will depend on how quickly shipments resume. 2. The move marks a subtle recalibration of Trump’s tariff agenda , acknowledging that sweeping trade penalties have fueled consumer price pressures. 3. Brazil–US relations enter a more constructive phase , reducing uncertainty for commodities traders and consumer goods importers. 4. For markets: Soft commodities  (coffee, beef, OJ futures) may see pricing pressure as US demand normalizes. Consumer staples  stocks with high exposure to these inputs may benefit from margin relief. Broader trade policy remains volatile , especially as Trump balances geopolitical goals with voter sensitivity to inflation. US President Donald Trump has expanded tariff exemptions on a wide range of Brazilian food imports, escalating efforts to ease household cost pressures ahead of 2026 as voter dissatisfaction over the cost of living intensif...

Crypto’s latest pullback is being driven primarily by retail investors cashing out of spot bitcoin and ether ETFs, according to JPMorgan analysts, who say the weakness is not linked to a wider shift away from risk assets. In a note released Wednesday, the team led by Nikolaos Panigirtzoglou said retail investors have withdrawn roughly  US$4 billion  from spot Bitcoin and Ether ETFs so far in November. At the same time, they are  pouring money into stock ETFs , which have seen  US$96 billion  in inflows month-to-date and may reach  US$160 billion  if the pace continues through month-end. The divergence indicates the crypto downdraft is  not part of a broad selloff , but rather a rotation driven by retail traders who view equities and crypto as separate exposures. Bitcoin has now fallen below JPMorgan’s estimated  production-cost support level of US$94,000 , the analysts said. Unlike October’s sharp correction—triggered by crypto-native traders...

Key Takeaways CBO cuts tariff-savings estimate by US$1 trillion , highlighting fiscal strain. Tariffs now expected to reduce deficits by  US$3 trillion  over 2025–2035 —  less than the US$3.4 trillion cost  of Trump’s tax cuts. Revision reflects  lower tariff rates , data updates, and bilateral trade deals. US deficit remains entrenched at  ~US$1.8 trillion , debt on track to break historic records. Tariff revenue assumptions may change if Trump proceeds with  US$2,000 dividend checks . A Supreme Court ruling against tariff hikes could further weaken revenue outlook. The US Congressional Budget Office (CBO) has sharply downgraded its estimate of federal budget savings from President Donald Trump’s sweeping tariff hikes, cutting the projected benefit by  US$1 trillion  and raising fresh questions about America’s long-term borrowing trajectory. In a Thursday update, the nonpartisan agency said higher customs duties are now expected to reduce cu...