US government shutdown resolution boosts risk appetite; tech stocks surge; Fed's mixed signals.

Federal Reserve Officials Discuss Interest Rate Cuts

Stephen Milan Advocates for Rate Cuts

On Monday, Federal Reserve Governor Stephen Milan stated that to prevent further economic slowdown, the Fed should continue to cut interest rates in December, suggesting a reduction of "at least 25 basis points, but 50 basis points would be more appropriate." He emphasized that the pace of rate cuts should be faster than the traditional 25 basis points. Milan noted that while nothing is certain, he believes a 50 basis point cut is the right choice unless significant new data emerges.

Alberto Musalem Cautions on Rate Cuts

St. Louis Fed President Alberto Musalem expressed that the U.S. economy is expected to rebound strongly in early next year but urged caution regarding further rate cuts. He highlighted factors such as the end of the government shutdown and fiscal support that could boost the economy. Musalem reiterated that the current Fed policy is close to not exerting downward pressure on inflation and warned that further rate cuts could lead to overly loose monetary policy.

Mary Daly on Tariffs and Inflation

San Francisco Fed President Mary Daly remarked that the U.S. economy might be experiencing a decline in demand, with inflation from tariffs currently under control. She encouraged policymakers to remain open to further rate cuts.

U.S. Government Shutdown Update

The U.S. government shutdown may continue for several more days, with the Senate resuming discussions on Monday. Senate Republican leader Thune emphasized the need for bipartisan cooperation to expedite the process. House Speaker Mike Johnson indicated that the House would vote once the Senate passes the bill.

AI and Electricity Prices

Senator Bernie Sanders and other Democratic senators have written to the White House, seeking explanations for rising electricity prices, attributing part of the increase to the construction of data centers driven by the AI boom. They warned that expedited approvals from the Trump administration are forcing ordinary Americans to compete with tech giants for electricity.

Trade Agreements and Tariffs

Switzerland and the U.S. Near Tariff Agreement

Reports suggest that Switzerland is close to reaching a 15% tariff agreement with the U.S., potentially ending a three-month period of punitive tariffs.

Trump Optimistic About India Trade Deal

President Trump announced that the U.S. is nearing a trade agreement with India aimed at enhancing economic and security relations, increasing U.S. energy exports, and promoting investment in key industries.

Market Reactions

On Monday, major U.S. indices closed higher as the Senate took steps to end the government shutdown. Nvidia surged over 5%, leading gains among AI stocks. The Dow Jones rose by 381.53 points, while the Nasdaq increased by 522.64 points.

Corporate Updates

Apple Delays iPhone Air Release

Apple is reportedly delaying the release of its next-generation iPhone Air due to disappointing sales of its first product.

Warren Buffett's Philanthropic Moves

Berkshire Hathaway announced that Warren Buffett has donated $1.3 billion worth of stock to various charitable foundations.

Coinbase's New Token Sale Platform

Coinbase plans to launch a new token sale platform aimed at giving retail investors early access to tokens, preventing large buyers from monopolizing assets.

Hong Kong Market Movements

On November 10, southbound funds net bought HK stocks worth 6.654 billion HKD, with significant purchases in China National Offshore Oil Corporation and Pop Mart.

Conclusion

The financial landscape is currently influenced by discussions on interest rate cuts, trade agreements, and corporate developments, with significant movements in both U.S. and Hong Kong markets.