Trump considers suing Powell; Meta acquires AI firm Manus; six Hong Kong companies go public.

Trump Considers Lawsuit Against Powell for "Gross Incompetence"

Potential Fed Chair Announcement in January

On Monday, U.S. President Donald Trump hinted that he has a preferred candidate for the next Federal Reserve Chair but is in no rush to announce it. He also mentioned the possibility of firing current Fed Chair Jerome Powell and is contemplating a lawsuit against him for "gross incompetence" related to a Fed renovation project. Trump stated he would announce his choice at the appropriate time, likely in January.

U.S. Home Sales Surge in November

Strong Performance in Home Sales Index

In November, the U.S. pending home sales index rose by 3.3%, surpassing expectations of a 1% increase. The year-on-year growth was 2.6%, marking the highest level since February 2023. NAR Chief Economist Lawrence Yun noted that buyer momentum is building, driven by improved housing affordability due to lower mortgage rates and rising wages.

Upcoming CES Showcases AI Hardware

Major Tech Companies to Prove AI Market Viability

The annual Consumer Electronics Show (CES) will take place next week in Las Vegas, where tech giants like NVIDIA, Samsung, and Lenovo will face the challenge of demonstrating that AI hardware can attract consumers. The event will serve as a critical test for AI products' market demand.

Nomura Predicts Extended Memory Supercycle

Strong Demand for AI Drives Memory Market

Nomura forecasts that the global memory industry's "supercycle" will last longer than expected, driven by unexpected strong demand for DRAM from AI servers and a surge in enterprise SSD demand. The firm has raised profit expectations for Samsung and SK Hynix, predicting significant DRAM price increases due to supply-demand gaps.

China Adjusts Tariffs on Goods

New Tariff Plan Effective January 2026

China's State Tariff Commission announced a new tariff adjustment plan effective January 1, 2026, which will implement lower temporary import tariffs on 935 items to enhance market synergy and expand quality goods supply.

Lululemon Faces Unusual Power Struggle

Founder Seeks to Oust Current Board

Lululemon Athletica is embroiled in a rare power struggle as founder Chip Wilson attempts to remove the current board, citing the need for visionary leadership to ensure the company's sustainable growth.

Market Reactions to Commodity Volatility

U.S. Indices Decline Amid Market Tension

U.S. stock indices fell collectively due to heightened tensions from commodity price volatility. The S&P 500 dropped 0.35%, the Nasdaq fell 0.5%, and the Dow Jones decreased by 0.51%.

Tesla's Cybertruck Delays Impact Supply Chain

Significant Cuts to Battery Material Orders

Tesla's ongoing delays with the Cybertruck have led to a drastic reduction in supply orders from South Korean battery material supplier L&F, with contract values slashed by 99%.

Meta Acquires AI Company Manus

Third Largest Acquisition in Meta's History

Meta Platforms announced the acquisition of AI company Manus to accelerate AI innovation, marking its third-largest acquisition since its inception.

Amazon's Underperformance Among Tech Giants

Wall Street Remains Optimistic for 2024

Despite a lackluster performance in 2023, Amazon's stock is expected to rebound significantly in 2024, as analysts remain optimistic about its future growth potential.

SoftBank to Acquire DigitalBridge for $4 Billion

Strategic Move into Digital Infrastructure

SoftBank has agreed to acquire DigitalBridge Group for $4 billion, as part of its strategy to invest in digital infrastructure and capitalize on the AI boom.

Novo Nordisk Lowers Prices for Semaglutide in China

Price Adjustments Ahead of Patent Expiry

Novo Nordisk has reduced prices for its weight-loss drug semaglutide in China, with local companies preparing to launch cheaper generic alternatives as the patent nears expiration.

Key Economic Data to Watch

Chicago PMI Data Release

Investors should pay attention to the upcoming Chicago PMI data for December, which could provide insights into economic trends.