MONEY MASTER

Summary Markets and diplomats were bracing for escalation — then came the reversal. Within hours of arriving in Davos, US President  Donald Trump  abruptly softened his stance on Greenland, shelving tariff threats against Europe and ruling out the use of force. The pivot eased market stress but underscored how  policy volatility has become a central risk factor for investors . What Changed — And Why Trump’s about-face followed  intense back-channel talks  with European leaders and NATO officials, including  Mark Rutte  and German Chancellor  Friedrich Merz . Europe presented a united front, pairing  security concessions  with  warnings about damage to NATO unity  if tensions spiraled. After meeting Rutte, Trump announced he had formed a  “framework of a future deal”  on Greenland and  called off planned tariffs  on European nations that had been set to begin next month. What the Emerging Framework Looks Like...

Global markets steadied on Thursday after US President  Donald Trump  walked back tariff threats and ruled out using force to seize Greenland, easing fears that had rattled risk assets earlier this week. Equities: Relief Rally Takes Hold Wall Street jumped after Trump’s comments, sparking a rebound across global equities. S&P 500 :   +1.16% , biggest daily gain in two months European futures:   +1.3%  in Asian trade Australia & Japan:  benchmarks up ~ 1% South Korea:   KOSPI  crossed  5,000  for the first time Investors trimmed worst-case geopolitical scenarios, but remained cautious about fully unwinding defensive positions. Gold & Dollar: Haven Trades Unwind — Partially As risk appetite improved, traditional safe havens eased. Gold:  slipped about  US$100/oz  to  ~US$4,790 , from a record  US$4,887 US dollar:  strengthened, pushing the  euro  back below  US$1.17 Despite the pullb...

 Malaysia’s benchmark  FTSE Bursa Malaysia KLCI (FBM KLCI)  closed higher on Monday, supported by optimism surrounding the  ASEAN Summit  and improved regional sentiment. The index gained  5.11 points (+0.32%)  to finish at  1,618.38 , with trading volume rising to  3.44 billion units worth RM2.91 billion . Market breadth was balanced, with  543 gainers and 543 losers . Positive sentiment came as investors digested encouraging developments from the ongoing  ASEAN Summit , which reinforced confidence in Malaysia’s leadership role in the region. Top Gainer:  SDG (5285.MY) — RM5.40 (+2.86%) Top Loser:  99SMART (5326.MY) — RM3.11 (–2.81%) USD/MYR:  4.21 (–0.31%) Wall Street Recap Major US indices hit fresh record highs on Monday amid  renewed optimism over US-China trade talks . Presidents  Donald Trump  and  Xi Jinping  are expected to meet during a South Korean economic summit this week, raising...

US President  Donald Trump  said Indian Prime Minister  Narendra Modi  has pledged to stop buying oil from Russia, marking a potential shift that could reshape global crude trade and intensify pressure on  Moscow’s energy revenues . India and China are currently the  two largest buyers of Russian seaborne crude , taking advantage of steep discounts since Western sanctions on Russia began in 2022 following its invasion of Ukraine. “I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia,” Trump told reporters. “That’s a big step. Now we’re going to get China to do the same thing.” India Under Pressure to Pivot India’s Russian oil imports averaged  1.62 million barrels per day in September , about  one-third of its total oil imports . For months, New Delhi defended the purchases as essential for  energy security , but the latest development suggests a policy turnaround. Trump recent...

A federal judge in California has  halted US President Donald Trump’s plan to lay off thousands of federal workers during the ongoing partial government shutdown, intensifying tensions between the White House and unions representing public employees. Court Blocks Layoffs During Shutdown US District Judge  Susan Illston  granted an injunction requested by two major unions,  blocking layoffs at over 30 federal agencies . The move temporarily shields thousands of government employees from job losses, as the court reviews claims that the administration’s actions  violate federal labor laws . Illston cited statements from President Trump and budget officials suggesting layoffs were politically motivated—targeting “Democrat agencies.” “You can’t do that in a nation of laws,” she said during the San Francisco hearing. The ruling requires the White House to  submit a full report by Friday , detailing any layoffs already made and steps taken to comply with the order...

Expanding White House Control President  Donald Trump  has been taking unprecedented steps to exert direct control over private companies — an approach more commonly seen in economic crises. His administration has negotiated ownership stakes, revenue-sharing deals, and veto power over corporate actions. So far,  investors have mostly benefited , though the long-term outlook remains uncertain. Government-Backed Companies and Market Reactions Intel (INTC) The U.S. government took a  10% stake  in Intel after Trump pressured its CEO to resign. Since the deal in August, Intel’s shares have  risen 24% , far outpacing the  S&P 500’s 1.8% gain  in the same period. MP Materials (MP) The Department of Defense bought  15%  of the rare earths miner. Shares have  doubled  since the news of government involvement, making rare earths one of the biggest winners. Lithium Americas Currently in talks with the government for a deal similar to...

 National Security Justification President  Donald Trump  is set to sign an executive order on Thursday aimed at advancing a deal to split  TikTok  into separate U.S. and international versions. The order will provide legal grounds that the arrangement satisfies U.S. national security requirements under a 2024 law mandating  ByteDance  to divest its U.S. operations or face an app-store ban. Structure of the U.S. TikTok According to White House officials, the U.S. version of TikTok will be held by a  joint venture  in which ByteDance will own less than 20%. Control will rest with a  majority U.S.-owned board , ensuring American oversight. The U.S. entity will retain access to ByteDance’s  recommendation algorithm , though specific terms remain unsettled. Key Investors and Cloud Partner The deal includes  Oracle  and private-equity firm  Silverlake  as U.S. investors, with Oracle continuing to provide cloud hosting...

Eight months into Donald Trump’s presidency, global markets have been hit with one shock after another — steep tariff threats, an attempted shakeup of the Federal Reserve, and even moves toward US-style state capitalism. Yet instead of tumbling, stocks are at fresh highs, bonds are steady, and growth has kept chugging along. For retail investors, the big question:  Is this resilience real, or just the calm before the storm? Why Markets Are Holding Up Economists at BNP Paribas point to a few key cushions: Easy financial conditions  – Rates are still low, liquidity remains strong. Healthy balance sheets  – Households and corporates aren’t overleveraged. AI-driven productivity  – Optimism around tech investment is offsetting risks. Lower energy costs  – Keeping inflation fears in check. On trade, the nightmare scenario of a global tariff war hasn’t materialized. Instead, the US struck  limited deals  with Europe and Asia. Tariffs are higher, but the costs...

 Key Takeaways President Donald Trump begins his second UK state visit, marked by royal ceremony and high-level meetings. US tech giants commit  £31B ($42B)  in UK investments, led by  Microsoft ($30B)  and  Google ($6B) . Focus areas include  AI, quantum computing, semiconductors, and clean energy . UK-US tech partnership aims to deepen collaboration in critical technologies, with Nvidia and OpenAI CEOs present. Political theater aside, the deal signals stronger transatlantic ties in next-generation tech. Tech Investment Spotlight Microsoft pledged  £22B ($30B)  for AI and quantum infrastructure, while Google’s parent Alphabet will invest  £5B ($6B) , underscoring confidence in the UK’s role as a digital hub. The funds target data centers, research, and advanced computing projects. The agreement aligns with the broader  US-UK technology pact  signed last week, covering semiconductors, telecoms, and AI safety standards. Market ...

  Key Takeaway: The U.S. Supreme Court will hear a landmark case on whether President Donald Trump overstepped his authority in imposing sweeping global tariffs under emergency powers. The decision, due after oral arguments in November, could have  multi-trillion-dollar implications  for trade, corporate earnings, and global market stability. Case Overview The  Justice Department  appealed an August ruling by the Federal Circuit Court, which found Trump exceeded his authority by invoking the  International Emergency Economic Powers Act (IEEPA)  to impose broad tariffs. The Supreme Court placed the case on a  fast track , with oral arguments scheduled for the first week of November, shortly after the Court’s new term begins. The tariffs remain in effect during the appeal. Legal and Political Stakes IEEPA History:  The 1977 law was originally designed to allow presidents to address national security threats by sanctioning foreign adversaries or...

Tensions in the Middle East are boiling over — again. But this time, it’s not just a regional issue. The U.S. could be pulled directly into the conflict. Here’s what you need to know: President Trump is  raising the pressure on Iran , fueling fears that Washington may soon  join Israel’s ongoing strikes  on Tehran. This conflict has already rattled oil markets — and it could be just the beginning. "Not a Ceasefire. An End." Trump didn’t mince words. After leaving the G7 meeting early, he told reporters: “An end. A real end. Not a ceasefire.” That comment sparked immediate speculation — was the U.S. about to join Israel’s military campaign? Meanwhile, Israel’s Defense Minister declared that " very significant targets " in Tehran would be hit. The airstrikes have already stretched into their  fifth straight day , targeting Iranian nuclear and military infrastructure. Satellite images show that  Israel struck Iran’s Natanz uranium enrichment facility , one of the c...

  Despite one of the worst market selloffs since the pandemic, President Trump signaled openness to reducing tariffs — but only in exchange for what he deems “phenomenal” concessions from trading partners. Key Highlights Trump on Tariff Leverage: Speaking aboard Air Force One, Trump defended the sweeping new tariffs as a powerful negotiation tool, claiming “every country has called us” for talks. Conditional Flexibility: While not ruling out tariff reductions, Trump stated he would only consider rolling back duties if the offer on the table was “phenomenal.” More Tariffs Coming: Trump flagged  new levies on semiconductors and pharmaceuticals  are under review. Announcements on these sectors are expected soon. “The chips are starting very soon. The pharma is going to start coming in... at a level that we haven’t really seen before.” — President Donald Trump Market Response Asset Class Reaction After Remarks US Equities ~$2.5T wiped from S&P 500 on Thursday Russell 2000...

Key Takeaways for Investors: ✅   Monitor policy shifts —Tariff announcements and regulatory changes can significantly impact market sectors. ✅   Diversify regionally —Opportunities exist beyond U.S. markets, particularly in  European fixed income and Asian equities . ✅   Stay flexible with asset allocation —Balance risk between equities, fixed income, and alternative investments. ✅   Follow interest rate trends —With U.S. rate cuts slowing, look for  higher-value opportunities in sovereign bonds outside the U.S.   The investment landscape in 2025 is shaped by significant macroeconomic forces, as President Donald Trump’s renewed ‘America First’ policies introduce new complexities for financial markets. Investors must navigate the implications of trade tariffs, deregulation, and shifting monetary policies while balancing exposure to large-cap stocks that continue to trade at premium valuations.   A recent  Seeking Alpha Sentiment Survey  f...