SCMP : Taiwan’s plan to acquire drone ‘takeover’ technology sparks security deba

Taiwan’s plan to acquire drone ‘takeover’ technology sparks security debate
Network would protect key infrastructure from incursions by small commercial drones but there are concerns over use of takeover function

Taiwan’s plan to acquire Israeli “takeover” technology as part of a counter-drone network has set off a debate over its use and the island’s security strategy as it tries to keep pace with rapidly evolving unmanned threats.
At a briefing for suppliers on the procurement requirements earlier this month, Taiwan’s homeland security office outlined specifications for a new system to protect the island’s airports, power plants and other critical infrastructure from incursions by small commercial drones.
The system – separate from the military’s programme – would require equipment capable of electromagnetic jamming and spoofing as well as a takeover function that could seize control of an intruding drone and land it using hacking techniques.

Slides presented by the government-controlled National Chung-Shan Institute of Science and Technology (NCSIST), Taiwan’s top weapons developer, at the November 14 briefing said equipment “must possess decoding functions” for OcuSync versions 2, 3, 4 and 4+ – the drone transmission system used by DJI.

Mainland Chinese company DJI accounts for an estimated 70 to 75 per cent of the global civilian drone market, including Taiwan.

The requirement prompted concern that the government was tailoring specifications around a single commercial brand, and questions over whether decoding DJI’s encrypted links was technologically feasible.

Local media later reported that the DJI-specific requirement could be removed from the tender documents, citing unnamed security officials.

The defence ministry also distanced itself from the requirement, stressing that the NCSIST’s briefing was for civilian critical infrastructure protection, not military procurement.

Taiwan’s military also plans to adopt drone takeover technology, alongside soft- and hard-kill functions.

In a separate government procurement notice on November 3, the defence ministry said it planned to buy 635 counter-drone systems worth NT$9.66 billion (US$307.2 million).

It said the systems would need a jamming range of at least 2km (1.24 miles) in all weather conditions, and that they would also need takeover and spoofing functions. They must also be mountable on light tactical vehicles or civilian platforms and be compatible with naval vessels.

Ma Wen-chun, a Kuomintang lawmaker who sits on the Foreign Affairs and National Defence Committee, said the use of drone takeover technology raised concerns over issues like privacy, property rights, freedom of communication, and the boundaries of criminal investigation.

She said if it was to be introduced for the island’s security then it would need to be clearly set out in legislation when the technology could be used.

“Civilian airspace and ordinary photography activities must not be arbitrarily taken over [by the counter-drone technology],” Ma said.

The KMT lawmaker also questioned the emphasis on OcuSync, saying security planning must be based on big-picture thinking, not brands.

“On the battlefield, Taiwan will face black- and grey-market DIY, modified, protocol-evading and non-DJI [first-person view] drones – not just the commercially available models shown in government slides,” she said.

Po Hung-hui, Taiwan’s defence vice-minister, responded that many drone-related issues still required cross-ministry coordination.

“Any use of takeover functions must be handled prudently,” he said, adding that legislation on drone incursions into protected facilities was being drafted.

In a statement on Monday, the NCSIST said the November 14 briefing was intended only to help critical-infrastructure operators understand requirements. It said the specifications would be submitted to cabinet for approval before they became common procurement standards and stressed that the briefing session was not related to military procurement.

William Wu, chairman of the Taiwan Drone Association, told reporters on Monday that the focus on DJI was understandable given its market dominance, though it was politically sensitive given the tensions across the Taiwan Strait.

He also noted that drone takeover technology would not always work.

“It only works if the target drone’s communications protocol is unencrypted or weak, and most drones have safety features that force them to hover, land or return home when the control link is jammed,” Wu said.

Su Tzu-yun, a senior analyst at the Institute for National Defence and Security Research in Taipei, said the requirement for OcuSync detection should be viewed as “inclusive but not exclusive”.

He said systems that could scan broader spectrums across multiple brands would be more valuable and performance indicators would “not be limited to DJI”.

The drone takeover technology was also the subject of a commentary in Taipei newspaper United Daily News that argued it was labour-intensive and required one operator per target, and manual retrieval after landing.

It said that in wartime, swarming attacks, low-altitude incursions or explosive-laden drones would still require hard-kill methods. It also warned that guiding a drone carrying explosives into a friendly facility using takeover technology would be tantamount to “leading the wolf into the house”.

The debate comes as Taiwan prepares for its largest-ever drone procurement. The defence ministry is set to buy 48,750 drones in the next two years as part of a broader effort to boost the island’s asymmetric capabilities.

The Armaments Bureau will brief suppliers on the tender on November 27. All of the drones must be produced or assembled in Taiwan, with no components from mainland China allowed, while companies with capital from mainland China, Hong Kong or Macau are prohibited from taking part.

Five types of drones are included in the plan: immersive first-person view drones, bomb-dropping multirotor drones, medium-range loitering munitions, small loitering munitions, and littoral reconnaissance drones.

Beijing sees Taiwan as part of China, to be reunited by force if necessary. Most countries, including its main international partner the United States, do not recognise self-governed Taiwan as an independent state. However, Washington is opposed to any attempt to take the island by force and is legally bound to supply it with weapons to defend itself.

TechCrunch : Black Friday sets online spending record of $11.8B, Adobe says

Black Friday sets online spending record of $11.8B, Adobe says

American consumers spent $11.8 billion online on Black Friday, according to data from Adobe Analytics, which says it tracks more than 1 trillion visits to U.S. retail websites.

That’s a new record, and up from $10.8 billion spent on Black Friday last year, Adobe says. Between 10am and 2pm, online shoppers were supposedly spending $12.5 million every minute. Forbes reports that Adobe said in a statement that the numbers show Black Friday has become “a major e-commerce moment, as more shoppers opt to stay home and take advantage of deals.”

The company projects that Cyber Monday (coming in two days, on December 1) will be even bigger, with $14.2 billion spent online, according to Reuters.

Black Friday data from companies like Adobe and Salesforce can provide an early indicator of broader holiday shopping trends. Adobe is projecting a total of $253.4 billion in holiday spending this year, compared to $241.1 billion in 2024.

Salesforce said it tracked $79 billion in global spending on Black Friday, with $18 billion of that in the United States, year-over-year increases of 6% and 3%, respectively. But this growth may have less to do with increased consumer demand and instead reflecting higher prices — Salesforce data also shows that prices were up an average of 7%, while order volumes were down 1%.

And both Adobe and Salesforce claim to see a growing influence of AI on holiday shopping. For example, Salesforce said that between Thanksgiving and Black Friday, AI and AI agents influenced $22 billion in global sales, though it’s not clear how broadly that’s defined.

The data is less clear about how online trends compare to in-person shopping at brick-and-mortar stores, with RetailNext telling Forbes that in-store traffic appears to be down 3.4% nationwide, while Pass_by said foot traffic is up 1.17% overall, and up an even more impressive 7.9% in department stores.

WSJ : China Manufacturing Gauge Shows Slightly Firmer Growth Momentum

China Manufacturing Gauge Shows Slightly Firmer Growth Momentum

China’s official factory gauge edged up on stronger production and demand in November, but remained in contraction for an eighth straight month.

The official manufacturing purchasing managers index rose to 49.2 in November, compared with 49.0 in October, said the National Bureau of Statistics on Sunday.

The result undershot the forecast of 49.3 made by economists in a Wall Street Journal survey.

It also marked the eighth consecutive month below the threshold of 50, which signals a contraction in activity, while a reading above 50 indicates expansion.

The production subindex rose to 50.0 in November from 49.7 in October. The subindex for total new orders increased to 49.2, compared with October’s 48.8, while new export orders rose to 47.6 in November from 45.9 in October.

Meanwhile, China’s nonmanufacturing PMI, which covers both service and construction activity, fell to 49.5 in November from 50.1 in October, the statistics bureau said.

The subindex tracking service activity fell to 49.5 in November, compared with 50.2 in October, as holiday effects faded, the statistics bureau said. The construction subindex rose to 49.6 from 49.1, but still in contraction territory amid the country’s prolonged property slump.

FT : Gold rally dents sales at China’s jewellery retanate Hong Kong equity deals

Gold rally dents sales at China’s jewellery retailers
High prices and a new tax regime have deterred buyers and led to hundreds of store closures

China’s jewellery retailers are reeling from gold’s blistering rally and the reduction of a tax rebate as high prices have deterred buyers and led to hundreds of store closures in one of the world’s largest consumer markets for the metal.

Large retail chains have reduced their footprint in mainland China this year, while a number of small sellers told the Financial Times that rising prices and a growing tax burden had torpedoed sales.

The price of gold has jumped by half this year to more than $4,000 a troy ounce as investors pile into the asset as a hedge against geopolitical uncertainty, growing levels of global government debt and concerns over a falling dollar.

In China, where gold jewellery is traditionally purchased as a wedding gift or as a store of value, high prices for the commodity have run up against weak consumer sentiment amid slowing economic growth.

Retailers are also adapting to new rules introduced this month that increase taxes on gold jewellery purchases by cutting a long-standing rebate. The higher tax burden has pushed sellers to raise prices further, they said.

“This industry is quite difficult at the moment, especially after the tax increase,” said Fifi Zheng, who helps run Aiyisheng, her family’s business based in Shenzhen’s gold trading district Shuibei. “Lots of Chinese consumers aren’t buying, so it’s quite hard to accept [the tax], even though it only adds a couple dozen renminbi per gramme.”

While gold purchases for weddings were holding up, everyday purchases had “fallen maybe 40 to 50 per cent” since the new rules were introduced, she added.

Chow Tai Fook, China’s biggest jewellery retailer by sales, has closed about 1,000 mainland stores this year, a reduction of 15 per cent. The company on Tuesday reported net profit of HK$2.5bn (US$320mn) in the half-year to the end of September, unchanged from a year earlier, on HK$39bn of revenue, its lowest in five years.


Chow Tai Fook managing director Kent Wong said in an earnings presentation that the company had closed underperforming stores as part of a shift away from lower-tier to more affluent cities, which were experiencing a “better recovery in consumer demand”.

Over the past year, rival operator Lukfook has closed more than 200 mainland stores, reducing its total store count since the start of the year by 7 per cent. The company on Thursday said half-year revenue to the end of September increased 26 per cent to HK$6.8bn compared with the same period last year, while net profit rose by 42.5 per cent to HK$619mn.

Lukfook said: “Despite the high gold prices, the retailing business in the mainland market showed continued improvement.” It added that it was still evaluating implications of the tax policy change.

Carlton Lai, an analyst at Daiwa Capital Markets, said the store closures followed a period of overexpansion during Covid-19 when spending was more robust.

“As consumption slowed, the productivity of these stores declined significantly,” he said, adding that the issue was compounded by growing competition from newer brands and surging gold prices.

In Shuibei — where thousands of shops crammed into multistorey malls handle transactions equal to 70 per cent of the Shanghai Gold Exchange’s annual deliveries of the metal, according to state media — sellers were dour. Many complained the new tax had come at the wrong time.

“Our prices were already high and now they’re higher after the tax,” said Chen, a Shuibei seller who declined to give her full name. “If [customers] want to get married, there’s no other choice: they just buy less.”

Daiwa’s Lai said the tax change aimed to curb speculative purchases of gold jewellery and could push low-quality retailers out of the market.

They could also reduce unregulated over-the-counter transactions in favour of trading through the Shanghai Gold Exchange and close tax refund loopholes, he said.

While jewellery sellers are struggling, demand for gold investment products has risen as retail traders search for ways to gain exposure to the metal. The new tax rules do not apply to investment products.

Holdings of domestic gold exchange traded funds increased 164 per cent to 194 tonnes in the first three quarters of this year, according to the China Gold Association.

“The panic caused for people in the industry by this tax policy hasn’t yet subsided,” said Li Zhaofeng, a Shuibei retailer and wholesaler. “This is because gold has been tax free for the past 20 years . . . the future direction remains unclear

FT : Morgan Stanley and Goldman dominate Hong Kong equity deals

Morgan Stanley and Goldman dominate Hong Kong equity deals
A wave of Chinese companies raising money has revived dealmaking in Asia’s financial hub

Western banks have been the biggest beneficiaries of Hong Kong equity sales this year, shrugging off US-China tensions as dealmaking booms in Asia’s financial hub.

Morgan Stanley helped raise $11.6bn in equity offerings in the year to the end of November, according to data compiled by Bloomberg. Goldman Sachs was in second position after raising $7.4bn, followed by Chinese banks Citic and CICC and Switzerland’s UBS.

The data includes both initial public offerings and follow-on share sales by companies already listed in the territory, including a $4.6bn share sale by the world’s largest battery maker CATL and the IPO of mining company Zijin Gold.

Hong Kong’s capital markets have been revived by a wave of Chinese companies raising billions of dollars in the city, which is on track for a four-year high in IPO fundraising. Foreign investors are showing renewed interest in Chinese equities after years of shunning the market.

“For huge deals you still need these global brands,” said Alicia García Herrero, chief Asia-Pacific economist at Natixis. “The reason why they still need Goldman or Morgan Stanley is they want to attract foreign investment, especially into the big deals like BYD,” she said, referring to the Chinese electric vehicle and battery maker that had a $5.6bn share sale in March. 


Hong Kong-listed ECM activity hit $73.1bn so far this year, up 232 per cent on the same period in 2024, according to data from LSEG.

“We’ve seen quite a strong turnaround with respect to equity issuance from Chinese companies in Hong Kong,” said Saurabh Dinakar, head of Asia Pacific global capital markets at Morgan Stanley.

Rising US-China tensions have put the banks’ operations in Hong Kong under more scrutiny. This month, a US congressional committee wrote to Morgan Stanley’s chief executive Ted Pick to request more information on the bank’s underwriting of Zijin Gold, the offshore arm of China’s Zijin Mining.

The committee alleged that Zijin Mining is associated with human rights abuses in the Xinjiang region of China and has “deep ties” to the communist party.

Morgan Stanley declined to comment on this matter.

Federico Bazzoni, executive chair of Eight Capital Partners, said Chinese companies “need these [western] banks to reach out to international investors”. He added: “Of course, you’ve got the trade war and political tension but I think the markets are opportunistic.”

Chinese banks have expanded in Hong Kong, with the goal of taking a larger share of advisory fees in the territory, where deals often have bigger fees compared with mainland China.

CICC, a prominent mainland investment bank, recently announced a plan to acquire two smaller brokerages.

“We are seeing Chinese securities firms expanding aggressively in Hong Kong,” said Rowena Chang, a director at rating agency Fitch. “Typically they want a US investment bank and a local investment bank as joint sponsors.”

Chinese banks CICC, Citic Securities and Huatai Securities top this year’s Hong Kong deal volume for IPOs alone.

They have established relationships with Chinese companies that are already listed on a mainland bourse, said Jean Thio, a partner in the capital markets group at law firm Clifford Chance, which has advised on 18 IPOs in Hong Kong this year.  

Chinese banks are important partners for mainland companies seeking to list in Hong Kong because of their close channels of communication with regulators in Beijing such as the China Securities Regulatory Commission, which must give mainland companies approval before they list offshore.

“Communication with the CSRC is important and that’s where the PRC banks have strengths,” Thio added. 

FT : Could the ‘JFK model’ keep down the cost of Heathrow’s third runway?

Could the ‘JFK model’ keep down the cost of Heathrow’s third runway?
Civil Aviation Authority is studying airports round the world for inspiration for a new regulatory system

Heathrow airport must overhaul the way it operates before proceeding to build a third runway as part of its £49bn investment programme, the UK’s Civil Aviation Authority has said.

The regulator, which has spent the past six months studying the airport’s business model, published its early assessment earlier this week after the UK government backed Heathrow’s proposals for expansion.

“The scale and complexity associated with the forthcoming expansion at Heathrow airport means it is a particularly important time to consider whether the current regulatory model is effective in protecting the interests of consumers,” the CAA said in a 91-page report.

Its team looked at airports around the world — from New York and Paris to Saudi Arabia and Singapore — as well as other major infrastructure projects, to get inspiration for what a new regulatory model could look like. 

What is wrong with Heathrow’s current system? 
For now, Heathrow has to sign off its five-year budget under the “regulated asset base” or RAB model. This allows it to recoup money invested from airlines, its principal customers, through landing fees. Significant projects, such as the third runway proposal, require additional sign-off. 

If costs overrun, Heathrow is liable for 25 per cent of the overspend — but airlines say this is not enough to incentivise the airport’s owners to remain disciplined. The proposal for a third runway, which involves moving the M25 motorway, has raised concerns from airlines.

Heathrow is already one of the most expensive airports in the world for carriers, which it blames in part on local energy and construction costs.

Airlines warn that if fees becomes too expensive, it will hamper Heathrow’s competitiveness and passengers will opt to fly via Amsterdam, Paris or Frankfurt. 

The CAA conceded that “it is not straightforward” to compare costs, but said that fees at Heathrow did “appear high compared to other airports that are subject to a greater degree of competition”.

It found “There is sufficient evidence to warrant revisiting the current regulatory model to determine whether it can be improved or whether an alternative model can better serve the interests of consumers.” 



What are the alternatives? 
In total, the CAA drew up nine alternatives, ranging from minor tweaks to a radical overhaul. 

Options could include giving airlines a veto over projects, rather than their current advisory role. Increasing the amount Heathrow has to repay if it overspends was another possibility — although the CAA warned this might disincentivise risk and make it harder for the airport to raise money in the future. 

Another suggestion was extending the time over which it can claw back spending through charges to airlines — a proposal being considered at Charles de Gaulle airport in Paris.

“There are benefits from providing comfort to investors that the regulatory framework will not be inappropriately amended once capital has been committed,” the CAA said. 

Airports such as Istanbul in Turkey, Newark in New Jersey and Changi in Singapore require the airport owners to tender to third parties for some design and construction work. 


Heathrow could also be forced to contract out the running of its operations, as is the case with both London’s Elizabeth Line, and a system used by UK water regulator Ofwat to commission new infrastructure projects. 

“Consumers would benefit from competition from third parties putting forward bids reflecting their lowest possible costs and/or highest possible service quality terms,” the CAA said.

However, a more radical example is the JFK model used by New York’s central airport. 

What is the ‘JFK model’? 
JFK, which is owned by the Port Authority of New York and New Jersey, has one of the world’s most competitive airport regulation models.

Though the airport was publicly owned, each terminal building was run by rival companies that awarded leases based on the quality of their bids, the CAA said.

“Operators compete to attract airlines and passengers”, it added, which kept prices lower

At Heathrow, Terminal 5 is run by British Airways. Arora group, which had its rival runway proposal rejected this week by ministers, is keen to build its own independent terminal at Heathrow.

The UK government has indicated it is open to such competition. 

However, there is a problem. “Service quality at JFK has historically been criticised when compared to global peers,” the CAA found.

This was a result of “passenger congestion and a lack of cohesion between terminals when being run by different operators”.

What happens next? 
Heathrow Reimagined, a campaign group supported by British Airways owner IAG and Virgin Atlantic, welcomed the CAA’s review.

“Fundamental reform will deliver better value for money for passengers and UK plc,” it said. “Better approaches exist at other airports globally.”

A consultation on its findings will run until January 20.

The CAA noted that modest changes to Heathrow’s regulatory model “will be more straightforward to implement” as radical options could require new legislation — although people with knowledge of the process say this can be sped through the system by government if required. 

There is political pressure to hasten the project: Rachel Reeves has made clear she wants “spades in the ground” by 2029, the expected date of the next election. 

The CAA concluded that examples from other airports “demonstrate that challenges with competitive models are surmountable but require parties, including [Heathrow], to work together to achieve the intended outcomes”. 

What does Heathrow think about all of this? 
The airport has chafed at the CAA’s process, warning it risks further delaying the goal of having a third runway operational by 2035. 

“It’s been 10 months since the Chancellor said Heathrow must be expanded to drive growth for the economy and lower airfares for consumers and the CAA is only just now launching a six-month sequence of consultations on complex regulatory models for Heathrow expansion,” Heathrow told the FT.

“This will be another six months of delay to private investment in the UK economy and the realisation of UK-wide benefits.”

FT : Switzerland votes on 50% inheritance tax for the super-rich

Switzerland votes on 50% inheritance tax for the super-rich
Governments wrestle with whether to extract more tax from the wealthy or lure them from other countries

Switzerland votes on Sunday on whether to impose a 50 per cent inheritance levy on the super-rich, as governments around the world wrestle with how to tax the wealthy.

The referendum, one of the most divisive in recent Swiss political memory, comes amid a global split between countries competing to lure wealthy families with fiscal incentives and those seeking to tax what they see as excessive fortunes.

The proposal from the far-left Young Socialists party would introduce a federal inheritance and gift tax of 50 per cent on estates and transfers above SFr50mn (£47mn), marking a dramatic break from Switzerland’s tradition of decentralised, low-burden taxation. Revenue would be earmarked for climate-related spending. 

The federal government opposes the initiative, warning it would damage Switzerland’s appeal as a stable home for internationally mobile wealth. The proposal was originally drafted to be retroactive — a clause that provoked a fierce backlash from business groups and tax lawyers and was later softened.

There has been deep anxiety among Swiss family offices and wealthy residents, some of whom are reviewing relocation options, the Financial Times reported in June. Economists and lawyers have warned the measure could affect succession planning for family-owned companies whose wealth is tied up in illiquid assets.

Peter Spuhler, owner of stock giant Stadler Rail and one of Switzerland’s richest people, has publicly slammed the proposal as “a disaster for Switzerland”.

The public is expected to vote the proposal down in the referendum but opponents of the measure fear that if it is only narrowly defeated on Sunday that would invite another similar initiative in a few years.

The Swiss vote lands at a moment when governments’ approaches to high-net-worth individuals have diverged sharply.

In some financial centres the race to attract wealthy families is accelerating. Dubai, Abu Dhabi, Hong Kong and Singapore are offering tax concessions and light-touch regulation to draw single-family offices — the private investment vehicles of the global super-rich. Hong Kong, which hosted an estimated 2,700 family offices in 2023, aims to attract 200 more by the end of 2025.

Elsewhere, countries are tightening rules or increasing levies. Italy has drawn a surge of arrivals under its flat-tax regime for foreign income, centred on Milan, but the government announced in October it plans to increase the levy by a further 50 per cent to €300,000 from next year.

In her first Budget last year, UK chancellor Rachel Reeves hit the super-rich by confirming the abolition of “non-dom” status, which allowed UK residents who declared their permanent home as being overseas to avoid paying UK tax on foreign income and gains.

Swiss lawyers said the referendum proposal had undermined Switzerland’s chances of attracting tax exiles from the UK following the non-dom change, with many opting for Italy rather than Switzerland.

Meanwhile, in late October the French parliament voted to reject a Socialist proposal for a tax of 2 per cent on wealth of more than €100mn. Another proposal for a 3 per cent tax on wealth over €10mn was also rejected.

Switzerland has long relied on a competitive tax environment, predictable rules and political stability to attract wealthy residents and their businesses. The proposed federal levy would be layered on top of cantonal inheritance taxes, prompting concerns about potentially punitive overall rates and what advisers describe as “extreme structural uncertainty”.

>>> Barron's Weekend Summary

Cover:
-In September, the innovative game Steal a Brainrot achieved a remarkable milestone by hosting 25M concurrent players on Roblox, surpassing the previous record set by Grow a Garden. Released in May, Steal a Brainrot has accumulated over 42B plays. Roblox, which allows users to create and distribute games for free, is likened to a YouTube for gaming, fostering an industry shift similar to that of YouTube’s impact on video content creation. Manuel Bronstein, a Roblox advisor, noted that this platform enables creators to produce games without the enormous budgets typical of major game studios, where titles like Grand Theft Auto can take over a decade and billions to develop. In contrast, games like Grow a Garden can be developed in just days by independent creators. Roblox has generated numerous viral successes including 99 Nights in the Forest and the ongoing popularity of Fish It!, building on the foundation laid by Brookhaven, a role-playing game that has been played 75B times since its release. Daily, over 150M users, predominantly under 17 years old, engage with the platform, which boasts millions of games thanks to its accessible programming tools.
Interview:
-No update
Tech Trader:
-Google has become a major player in the artificial intelligence sector, particularly following the release of its Gemini 3 AI model, trained on its proprietary Tensor Processing Units (TPUs). The interest intensified when it was reported that Meta Platforms was in negotiations to purchase these TPUs for its AI data center, typically dominated by Nvidia's graphics processing units (GPUs). Since the launch of Gemini 3 on November 18, Alphabet's stock has increased by 12%, while Nvidia's has declined by 3.4%, positioning Alphabet with a market value of $3.86T, ranking it as the third-largest company globally after Nvidia and Apple. Google’s advancements in AI have also positively impacted its partner Broadcom, which specializes in TPU design, resulting in a 16% rise in its stock value since the Gemini launch. Established in 2015 to address hardware limitations facing other Nvidia customers, Google's TPUs have been instrumental in powering various Google applications like Maps, Photos, and Translate. By 2025, Google is on its seventh generation of TPUs and has expanded its client base to include Apple and AI start-up Anthropic, highlighting the growing reliance on TPUs for AI training and processing solutions in the industry.
The Trader:
-In the lead-up to the holiday season, the stock market is witnessing a resurgence, with significant gains in major indices following a rough November for the S&P 500. The S&P 500 had its worst November since 2008 due to skepticism surrounding the artificial intelligence sector, amid discussions of a bubble as mixed earnings and increasing budgets dominate discourse. However, there is a general investor caution about technology stocks, although a broader rally is evident. The Dow Jones Industrial Average has seen a 2.6% increase, the S&P 500 has risen 3.2%, and the NASDAQ Composite has experienced a gain of 4.2%, all marking the best Thanksgiving week performance in several years. Mizuho Securities' Jordan Klein notes that investor resilience is illustrated by the market's stability even after significant drops in stocks like Nvidia. This trend suggests a shift in investor interest, favoring diversified sectors over just technology. Retail optimism around upcoming holiday sales and positive 2026 projections from various firms bolster this sentiment, with J.P. Morgan's Dubravko Lakos-Bujas predicting the S&P 500 could achieve a target of 7500 by 2026, indicating a confidence in continued market growth driven partly by AI innovations.
-After a decade of restructuring, DuPont de Nemours aims to join the ranks of companies like Berkshire Hathaway and Danaher as “compounders,” defined by consistent above-market growth in sales and earnings due to effective management and strategic acquisitions. Deutsche Bank analyst David Begleiter reaffirmed his buy rating following DuPont's spinoff of Qnity Electronics on November 1, which he marks as the conclusion of a complex ten-year transformation initiated by the 2015 merger announcement with Dow Chemical. Despite the spinoff leading to the creation of entities like Chemours and Corteva, substantial wealth generation has been limited; the collective market value of the companies emerging from the original DowDuPont stands at approximately $94 billion, a decline from the $150 billion market value recorded in 2019 pre-split. However, investor sentiment seems optimistic, as evidenced by a 21% stock increase for DuPont this year, even amid mixed performances from major indices like the S&P 500 and Dow Jones Industrial Average.
Features:
-Utility provider Dominion Energy is positioned to benefit from several long-term initiatives in the Carolinas and Virginia despite its stock being down 23% over the past five years, significantly underperforming the Utilities Select Sector SPDR. The company is advancing two major investment projects, notably constructing more plants for data centers linked to artificial intelligence and progressing its Coastal Virginia Offshore Wind (CVOW) project, which is currently 66% completed and set to provide clean energy to many homes. Despite challenges from the Trump administration threatening offshore wind projects, the CVOW project appears secure as no clear rationale for termination has been provided. A recent court ruling also supports the continuation of offshore wind projects, which could bolster Dominion's future prospects.
-AI chatbots are set to significantly impact the upcoming holiday commerce, potentially generating $263B globally in online sales, with $51B expected from U.S. sales, making up 18% of total e-commerce revenue. A Salesforce survey indicates 57% of AI users will utilize it for gift inspiration. The previous year's holiday season saw a dramatic increase in traffic from generative AI sources, which boosted shopping activity by 1,300%. Adobe forecasts another substantial rise in AI-powered shopping this year, as consumers become more comfortable with AI recommendations, with referral traffic to retail websites from such sources growing 1,200% in October. This marks a pivotal shift away from traditional search engines, allowing agile companies in marketing to flourish while others may face difficulties. Early indications suggest AI referrals can enhance purchase rates and alter e-commerce market dynamics.
Europe:
-The UK government aimed to present a zero-drama budget but faced a significant setback due to an embarrassing leak by the Office for Budget Responsibility (OBR), which prematurely published key policies an hour before the budget was officially announced by finance minister Rachel Reeves. Reeves described the leak as “deeply disappointing” and a “serious error,” while Kemi Badenoch, the opposition Conservative leader, labeled it a “complete shambles” and called for a government investigation. The OBR later issued an apology and initiated an investigation. Despite the chaos in Parliament, the financial markets reacted positively, with the British pound rising 0.2% to $1.32 and the yield on the 10-year U.K. gilt dropping by 5 basis points to 4.45%. This incident was noted as a fitting end to what was characterized as the most leaked fiscal event in living memory.
Emerging Markets:
-No update
Commodities:
-President Donald Trump announced that significant progress has been made in US-Ukraine peace talks with Russia, although he also advised skepticism regarding the outcome. His comments affected defense stock prices negatively on Monday, despite a notable year-to-date gain in the sector attributed to rising defense spending expectations. Noteworthy declines were observed in shares of Thales, Rheinmetall, and BAE Systems, which fell by 1.5%, 5%, and 3.6% respectively, although stocks averaged a substantial gain of 87% prior to this week. Contrarily, shares of drone manufacturer AeroVironment rose by 1.6%, unaffected by the peace discussions. Oil prices remained relatively stable despite the potential for increased Russian crude supply post-peace deal, with Brent crude priced at $62.12 per barrel. The White House described the ongoing talks in Geneva as constructive, modifying Trump’s peace framework aimed at resolving the Russia-Ukraine conflict.
Streetwise:
-Amazon is aggressively expanding its Christmas market dominance, notably through its shopping bot, Rufus, which is rapidly gaining users and boosting sales. Named after a male Corgi from 1996, Rufus assists shoppers by offering personalized gift suggestions based on interests, personality traits, and budget. For example, it suggested skin cream, candles, and heated shiatsu massage pillows for one user's wife, with fast delivery options available. Amazon has enhanced its logistics recently, reducing its fastest delivery time in some cities to just three hours and increasing the area for same-day and next-day deliveries by 60% in rural locations. Additionally, an analysis by J.P. Morgan indicates that Amazon's range significantly outstrips that of competitors Walmart and Target, which are also priced higher. Another survey from Profitero demonstrates that Amazon typically offers products at a 14% lower cost than other online retailers, solidifying its competitive edge in the holiday shopping season.

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FINANCIAL TIMES
-Ukrainian President Volodymyr Zelensky announced the resignation of his chief of staff, Andriy Yermak, following anti-corruption raids on his properties. In his address, Zelenskyy expressed gratitude for Yermak's assistance in negotiations but acknowledged that his departure could weaken his position during a critical time for Ukraine's efforts to combat corruption and secure military support from the West. Zelenskyy emphasized the need for national unity and stated he would "reboot" his office's operations. Yermak's resignation comes just as he was poised to lead peace talks with the US and Russia, highlighting a significant shift in leadership as Zelensky appointed Rustem Umerov, the National Security and Defence Council secretary, to take over diplomatic discussions. Yermak‘s tenure saw increased scrutiny due to his attempt to limit the independence of Ukraine's anti-corruption institutions, leading to heightened calls for his resignation.
-The American political scene is captivated by 34-year-old Zohran Mamdani, who, on a platform of democratic socialism, has won the New York mayoral race, becoming the youngest mayor in over a century and positioning himself as a challenger to Donald Trump. In the aftermath of Trump's surprising success in the 2024 election, the Democratic Party is struggling for direction, confronted by a growing shift toward hard-right ideologies and decreasing public support for democratic institutions. Trust in governmental bodies is at historic lows, leading many Americans to feel disconnected from their representatives. Following the Democrats' defeat, a rift has emerged between centrist and progressive factions within the party. Centrists attribute the loss to an overemphasis on cultural issues and left-leaning policies, while progressives celebrate Mamdani's victory as a signal for a more radical approach to both economic and cultural concerns. Progressives view his strategy as a potential blueprint for revitalizing the party's stance against Trump and his successors.
-Airbus has issued a warning regarding a "significant" number of its A320 family aircraft that require an immediate software update due to potential issues from solar radiation. Approximately 6,000 aircraft, about half of the worldwide fleet in operation, could be impacted. While most can receive a straightforward software update before their next flight, around 900 jets will need a more involved hardware update, necessitating grounding for a longer period. This was prompted by an analysis of a recent incident indicating that intense solar radiation could corrupt data vital for flight control functions. Airbus acknowledged that this could lead to operational disruptions for airlines and passengers. The A320, widely used by carriers such as EasyJet, Lufthansa, Wizz Air, American Airlines, and United Airlines, is particularly critical given the approaching busy travel weekend in the US post-Thanksgiving.
-Donald Trump announced on his Truth Social platform that he intends to grant a full pardon to former Honduran president Juan Orlando Hernández, who is currently serving a 45-year prison sentence in the US for facilitating cocaine trafficking. This statement comes as Honduras approaches a pivotal presidential election, with Trump endorsing conservative candidate Nasry “Tito” Asfura. Hernández, who governed from 2014 to 2022, was arrested shortly after leaving office and convicted in 2024 for his role in trafficking over 400 tonnes of cocaine into the US. Trump's decision raises questions about his commitment to combating drug trafficking, a goal he has pursued through military measures against Venezuela, including significant naval deployments and missile strikes. He suggests that if Rixi Moncada, the candidate from the ruling Libre party, wins the election, it could lead to further influence from Nicolás Maduro and “Narcoterrorists” in the region.
-The US has suspended all asylum decisions in response to President Donald Trump's intensified immigration measures following a shooting incident involving two National Guard members in Washington. USCIS Director Joseph Edlow announced this halt to ensure thorough vetting of all individuals applying for asylum. This decision was prompted by the shooting, allegedly perpetrated by an Afghan national resettled in the US in 2021, resulting in the death of one guard, Sarah Beckstrom, and critical injuries to another, Andrew Wolfe. In light of the incident, Trump has called for stricter immigration policies, including a "permanent pause" on migration from all Third World countries, and has criticized a Muslim congresswoman and Somali immigrants in Minnesota. Edlow stated that he has been directed by Trump to conduct a comprehensive re-examination of Green Cards for all aliens from countries deemed concerning.
-Venezuelan President Nicolás Maduro faces increasing pressure from U.S. President Donald Trump. Trump has labeled Maduro as an illegitimate leader and a "narco-terrorist," escalating tensions by offering a $50M reward for his capture and deploying significant naval forces near Venezuela. Despite this, Trump has not articulated a clear end goal, simply stating, "we just have to take care of Venezuela." In response, Maduro has initiated back-channel negotiations and hinted at potential governmental changes. Analysts note his strategic acumen and survival instincts, which he has developed over more than a decade in power, allowing him to endure in the face of formidable opposition. Recently, he celebrated his 63rd birthday with a government-produced film showcasing his legacy.
-Over the past year, the Lebanese militant group Hezbollah has endured numerous Israeli air strikes that targeted its operatives and infrastructure, creating a climate of intimidation among its supporters. The recent assassination of Haytham Ali Tabatabai, Hezbollah’s top military commander, marks a significant escalation in this ongoing conflict, raising concerns among supporters about the group's ability to sustain its position. This incident catalyzes a pressing dilemma for Hezbollah: to either continue its attempts at rebuilding quietly or to retaliate against Israel, potentially reigniting a full-scale war that could endanger Lebanon itself. Historically considered the leading military and political power in Lebanon and a key component in Iran's regional proxy strategy, Hezbollah’s power is perceived to have diminished since its involvement in the conflict heightened following Hamas's attack on October 7, 2023, an action many regard as a strategic miscalculation that has left the group vulnerable to both domestic and international challenges.
-H&M's CEO Daniel Ervér has called on European lawmakers to establish a fair competitive environment for fashion retailers, particularly regarding tax policies, chemical regulations, purchasing practices, and workers' rights. This appeal is in response to the growing competition from Chinese brands like Shein and Temu. Ervér noted that H&M is on a lengthy path to boosting profitability, having lost its position as the largest fashion chain to Zara's parent company, amid a rapidly evolving industry. He emphasized that the lack of compliance with taxes and regulations undermines responsible business practices and could weaken the competitive position of European companies in the market.
-British banks anticipate a reduction in capital requirements from an upcoming Bank of England review. This follows increasing pressure from government and financial executives for a pro-growth strategy to enhance lending, aligned with recent US regulatory easing. Chancellor Rachel Reeves has urged the BoE to enhance the financial sector's capacity to support economic growth. The Financial Policy Committee will assess the capital framework, noting its stringency compared to the US and EU, in a review coupled with annual stress test results. A UK bank executive indicated heightened interest in the review over this week's Budget, which did not raise the sector levy.
-Germany's Friedrich Merz plans to request the EU to lift the combustion engine car ban and permit hybrid vehicles beyond the 2035 deadline, aiming to support the automotive industry. Following coalition talks, Merz emphasized the SPD's concession and stated that balanced regulation is crucial for innovation and competitiveness. This initiative arises as German automakers face competition from Chinese manufacturers and a decline in their market presence in the US and China. BMW praised the government's new position, asserting that the existing ban threatened jobs and ignored market conditions.
NEW YORK TIMES
-President Trump announced a full pardon for former Honduran president Juan Orlando Hernández, who was convicted by a U.S. jury for drug-related offenses. This decision surprised both Hondurans and U.S. authorities who built the case against him. Hernández was accused of accepting bribes from drug lord Joaquín "El Chapo" Guzmán and was described by the presiding judge as a corrupt politician who pretended to combat drug trafficking while colluding with traffickers. Prosecutors advocated for a severe sentence due to his extensive abuse of power and the damage caused by drug trade activities.
-Northwestern University has agreed to pay $75M to the federal government, concluding investigations into campus antisemitism and restoring substantial research funding. This agreement marks the second-highest payment in a series of deals between the Trump administration and elite universities aimed at aligning academia with its policy goals. Attorney General Pam Bondi praised the agreement, while Northwestern's interim president characterized it as a resolution to a troubling chapter in the university's history.
-President Trump recently spoke on the phone with Venezuelan leader Nicolás Maduro to discuss a potential meeting, though no arrangements have been made. This conversation occurred amid escalating military pressure from the U.S. against Venezuela, compounded by new designations labeling Maduro's regime as a terrorist organization. The US aims to deter drug smuggling and seeks Maduro's removal, even as Maduro previously proposed access to Venezuelan oil fields to ease tensions. The implications of this call for U.S. policy towards Maduro are yet unclear, given Trump's history of simultaneous negotiations and threats with adversaries.
-The U.S. State Department announced an increase in its capacity to process business visas for South Koreans at the embassy in Seoul, in response to backlash from a significant immigration raid on a South Korean-led factory in Georgia. The raid, which occurred in September, was the largest workplace enforcement action in U.S. history and faced criticism from South Korean officials for violating workers' rights and potentially hindering investment in the U.S. Some of the 317 detained South Korean workers have been offered the opportunity to return to their jobs, with visas reissued. The State Department is now urging former visa waiver program participants to apply for B-1 short-term business visas and has released updated guidance regarding permissible activities under these visas.
-The recent images on social media depicted Chinese fire engines at the Hong Kong border, prepared to assist with a devastating fire eight miles away that lasted over a day and claimed at least 128 lives. However, the trucks did not enter the city, raising questions on Chinese social media about Hong Kong's rejection of firefighting support while its own resources struggled. This situation highlights the political challenge for Hong Kong's chief executive, John Lee, who must prove that his government can handle the crisis independently without appearing to relinquish autonomy to Beijing.
-The United States has suspended all asylum decisions and visa issuances for individuals from Afghanistan as part of a review of its immigration system initiated by President Trump following the shooting of two National Guard members. Joseph Edlow, director of US Citizenship and Immigration Services, stated that all asylum decisions are halted until thorough vetting can be ensured. The decision affects individuals already in the US fearing persecution if returned to Afghanistan. Additionally, the State Department confirmed the cessation of visas for Afghans, including those who assisted the US during the war.
-When an unemployed father of three was offered a yearlong bodyguard training program in Russia by someone claiming to be the daughter of Jacob Zuma, he eagerly accepted. He was promised a security job for Zuma's political party upon completion. However, six weeks later, he found himself misled as he was sent to the front lines of the Ukraine war, equipped with military gear instead of undergoing training, leading him to realize, "We had been lied to." He remains trapped in Russia, fearing for his safety.
-On Saturday, Russia conducted a nearly 10-hour air assault on Ukraine, resulting in at least two fatalities in Kyiv and numerous injuries. The attack, involving multiple missiles and drones, commenced just before midnight, with an all-clear declared around 9:30 a.m. Kiev's mayor reported two deaths and 29 injuries, while President Zelensky later increased the death toll to three, highlighting that the assault targeted energy and civilian infrastructure. This escalation coincided with pending diplomatic meetings between U.S. officials and representatives from Ukraine and Russia.
NEW YORK POST
-The former top adviser to Ukrainian President Volodymyr Zelensky, Andriy Yermak, announced he is heading to the frontlines hours after resigning following a raid on his home by the national anti-corruption bureau. In a message, he expressed his readiness for any reprisals, stated his commitment to Ukraine, and referenced his presence in Kyiv since the onset of the war with Russia on February 24, 2022. Yermak indicated he did not want to create issues for Zelensky and did not elaborate on his plans for joining the frontlines or the Armed Forces of Ukraine.
-The Trump administration is taking steps to restrict illegal migrants' access to federal tax benefits and money transfer services, as announced by Treasury Secretary Scott Bessent. The Treasury Department will propose regulations that clarify that certain tax benefits, including the Earned Income Tax Credit and the Additional Child Tax Credit, will not be available to illegal aliens. This move aligns with President Trump's immigration agenda and aims to uphold provisions established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which prohibits most taxpayer-funded benefits for illegal immigrants. Trump has previously cited that succeeding administrations have undermined these established principles.