Spending Slowdown Hits Apple App Store In Major Markets

Apple App Store spending cooled in November, dragged down by weakening demand across several of Apple's largest global markets, which together account for more than half of all App Store revenue.

Goldman analysts led by Michael Ng published a note Tuesday citing Sensor Tower data showing Apple App Store spending last month rose just 6% YoY, down from 9% in October and half the growth rate seen in July.

Sensor Tower data showed that Games, the App Store's largest category (44% of revenue), drove most of the slowdown, falling 2% YoY after growing 3% the previous month.

"Weakening consumer demand for products and services. Apple's products and services are typically sold to consumers, and any weakness in the macroeconomic environment could reduce demand for Apple products and services," Ng said.

There was no definitive explanation beyond the softer "macroeconomic environment" for the App Store slowdown.

By geography, four of Apple's top five markets - the US, Japan, the UK, and Canada - experienced a broad-based slowdown in App Store spending. This raises near-term downside risk and could weigh on App Store revenue.

However, despite slowing App Store spending growth rates, Ng still expects Apple's F1Q26 Services revenue to meet guidance (14% YoY) because other Service lines - including iCloud+, AppleCare+, Apple Music, Apple Pay, and broader subscriptions - continue to perform well.

Here are the key takeaways from the App Store spending slowdown:

• November 2025 App Store net revenue grew +6% YoY, decelerating from +9% in October. November marks the slowest month of 2025 and sits below the 2022–2024 average November growth rate of +10% YoY.

• By category, the slowdown was primarily driven by Games (-2% YoY vs. +3% YoY in October), which represent ~44% of total revenue. Among the next largest categories: Entertainment (15% of total) accelerated to +5% YoY (from +4%), while Photo & Video (8% of total) decelerated slightly to +16% YoY (from +17%).

• By geography, spending slowed across Apple's largest markets: the US (36% of total) cooled to +3% YoY (from +8%), Japan (10%) fell to -2% (from +4%), while China (20%) improved slightly to -1% (from -2%).

Notice that the App Store spending slowdown has persisted for much of the year.

Whoops.

Not good.

The question of why consumers are cutting back on gaming apps is a big one. It's happening across Apple's major markets, which could point to more financially pressured consumers, smartphone fatigue, or competitive app stores soaking up market share. Whatever the cause, the drop in demand signals Tim Cook will have to take corrective measures heading into 2026.

Tyler Durden Wed, 12/03/2025 - 13:45

"Deckchairs" On The Titanic?

By Michael Every of Rabobank

The conclusion to yesterday’s Global Daily was that we are still in a systemic metacrisis. True, many market metrics don’t show it - but how many deckchairs told the Titanic’s passengers they were heading for the iceberg? Markets have a vital role, as do chairs, but expecting them to reflect the potential enormity of what’s going on could end up with you being in very cold water.

Here are two recent headlines to send a shiver down spines: ‘Fear and loathing come for Bitcoin as big investors ponder selling’ (Australian Financial Review); and, ‘It’s time to sound the alarm on growing fiscal and financial risk’ (Financial Times) as “Rising public debt is one concern - another is how it is being financed.” Of course, things look healthier in other areas.

Let’s continue with central banking. The RBA Governor said rates might have to go back up if inflation does. Who knew? Not the RBA or the markets reassured by its projections. Trump says he’ll nominate the next Fed Chair in early 2026’: it seems Hassett is frontrunner. That opens the door to new Fed purpose as well as personnel. Markets are slow to grasp the full implications.

Russia said talks with the US about a Ukraine peace plan were “constructive”, but “no compromise” had been reached on territorial issues. However, we see serious concerns this ends up in an ugly --and expensive-- deal which weakens Europe. Pressure is also increasing for NATO to spend more, faster: but with whose money? The European Commission is making a late offer to win Belgian backing for its Russian asset loan scheme, which the ECB is refusing to back - critics argue it’s a de facto asset confiscation that could damage Europe’s reputation as well as ensuring there’s no peace deal. It is, in effect, ‘victor’s terms’ when Europe has won nothing.

Worse, in response to Europe’s hardline political rhetoric and slimline actions, Putin warned that he doesn’t want war, but if Europe does, Russia is ready - and will defeat it. That’s as Ukrainian drones attacked their third Russian shadow fleet ship this week and Putin stated he will retaliate against Ukrainian shipping and those countries helping it, i.e., Europeans. There’s little middle ground between those two outcomes, but markets are assuming a geopolitical median.

Meanwhile, Europe bewails it “would have given almost anything for peace, but Beijing had a different calculus” - including siding with China vs. the US (where The Economist says ‘Trumpworld thinks Europe has betrayed the West’ – watch Macron in China for more on that ahead); and India, which the EU wants to build deeper ties with as a counterbalance, just ratified a strategic defence partnership with Russia.

The Honduran election currently has the centrist candidate whom Trump didn’t want to win ahead, promising fireworks(?) We are all waiting to see what happens in Venezuela. US lawmakers say they will force a vote on the War Powers Act if Trump attacks it, but the current -anti-terror designation may be workaround – and Trump just said any country trafficking drugs into US could be attacked. That includes a few famous names.

Trump signed a bill to deepen US-Taiwan ties, as the island’s opposition party blocked government plans to increase defence spending. That’s as tensions between Japan and China over PM Takaichi’s recent comments continue to remain high. Even the 1951 San Francisco Peace Treaty between the US and Japan is being drawn in --China publicly rejecting it-- with potentially worrying parallels to the historical legalese heard around the Russia-Ukraine issue before February 2022. If peace treaties are no longer valid, borders can only be set by threat of or actual force.

That’s as a new Chinese naval flotilla, including an assault ship, is in the Philippines Sea and may be heading for Australia, the latter armed with dangerously high house prices. If you think markets are pricing for these kind of grey rhino risks --how?!-- ask your trader or broker what their view of the 1951 San Francisco Peace Treaty is. I’m sure it will be enlightening.

In the Middle East, a new Israel – Hezbollah confrontation appears worryingly close. Whether that spreads to Iran remains to be seen: ‘optimists’ suggest it’s a story for 2026. Markets are better at pricing those kind of oil risks and seem relaxed so far.

In geoeconomics, floods in Thailand have paralyzed IT goods trade flows globally; US Treasury Secretary Bessent praised Bank Santander for pulling its credit lines from oil trader Gunvor following US claims that the firm, now with new leadership, was a ‘Kremlin Puppet’; Costco is suing the Trump admin for “full refund” on its tariffs, upping the ante; Macron wants to rebalance trade with China as it floods Europe with imports --how?-- as German firms are doubling down on their investments in China; China’s state media boasted its “dirt cheap” hypersonic missiles could upend global defence markets; and Russia said it’s ready to address India's concerns over their massive bilateral trade deficit – see how trade deals and defense pacts go together?

In the (political!) economy, Michael Dell donated $6.3bn for ‘Trump Accounts’ for children – patriotism, or akin to EM billionaires whose governments ‘encouraged’ them to ‘share the load’? The Trump admin also took a $150M stake in chip startup, a once shocking headline already becoming normalized. Yet overlooked by markets, because it isn’t a number on a Bloomberg screen, China's local government debt has reportedly risen to $18.9tn, implying total public debt to GDP is far above 200% and rising, vs. the US’ ≈100% and rising, with China’s private sector debt also around 200%, as in the US. That underlines *China’s structural* necessity to maintain capital controls and a vast, neo-mercantilist trade surplus. The FT touched on that recently; then it moved on to play with the next shiny bauble rather than nailing down the ensuing logical conclusions as principles for its flow of policy recommendations. But their deckchair has a wonderful rear view.

In (economic!) politics, two former EU political heavyweights, Mogherini and Sannino, are in custody over a fraud probe. The UK is mulling a ban on crypto cash in politics, which will put Reform UK’s Farage in the firing line; the UK’s now-headless Office of Budget Responsibility said it had warned the Treasury over budget ‘misconceptions’ (like a deficit being a surplus); and UK jury trials are to be scrapped for crimes with sentences of less than three years, reversing ancient precedent, to make the trial process 20% faster. In France. ‘Macron denies 'Ministry of Truth' plan in standoff with far right’ (Euractiv). In the US, a new immigration crackdown and perhaps a global travel ban loom. India’s government is demanding the installation of state apps on all smartphones; and ‘China looks to AI and big data to guard against Western values’ (SCMP), as Xi “tells Politburo that new technology should be applied to promote socialist ideology.” How do markets price for all the above – or do none matter(?)

To conclude, even if some deckchairs are collapsing, we can continue to sit comfortably on most of them for now. However, that doesn’t mean we shouldn’t be thinking about the direction of travel and what may lie ahead of us. It isn’t an iceberg per se, and there will be both upsides and downsides. Just don’t assume it will be plain sailing.

Tyler Durden Wed, 12/03/2025 - 13:25

Fed Regime-Change: Groupthink May Be Ending

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

Starting in the aftermath of the 2008 financial crisis, a profound change to the Fed’s liquidity-providing role in the capital markets was underway.  We can sum up the Fed regime change with a popular quip: The Fed has shifted from lender of last resort to the lender of only resort!

In our articles QE Is Coming and its follow-up, How The Fed Deals Liquidity, we discuss why the Fed has become the primary provider of liquidity since 2008 and the tools it uses to maintain ample liquidity in the markets. While that Fed regime change has been incredibly impactful on the financial markets, there is a growing possibility of another meaningful regime change that could prove equally impactful.

This article, like the two linked above, is dry. Still, investors today must understand that monetary policy has become a primary driver of liquidity, which in turn significantly influences asset prices. Without a clear understanding of what the Fed is doing and how it functions, your investment ideas, no matter how solid, can be flawed.

Groupthink Has Been The Fed Norm

The Fed’s monetary policy-setting group, the Federal Open Market Committee (FOMC), meets every six weeks to discuss the economy, financial markets, liquidity, and a host of other factors that help the Fed set monetary policy to meet its inflation and employment objectives.

After two days of data analysis, conversation, and debate, the FOMC’s voting members vote on whether to adjust monetary policy. Most often, the policy changes involve the Fed Funds Rate and or the monthly pace of QE or QT.

The committee is comprised as follows:

• Seven members of the Board of Governors- including the Chairman

• Four rotating regional Fed Presidents

• The President of the New York Fed

While there are debates and many divergent views expressed at the FOMC meetings, the published results always give the impression of agreement. This is evident in the meeting statement, which lists the members who voted for the monetary policy actions and those who dissented. The example below from the October 29, 2025, meeting shows that two of the twelve members dissented or voted against the prescribed policy actions.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting, and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting.

Historical Dissents

As we shared above, there were two dissenting votes at the last meeting. On average, since 1936, 5% of members have cast dissenting votes per meeting. Since 2000, the most dissenting votes at a single meeting were three. On average, over the last 25 years, the odds are 50/50 that one member will dissent at each meeting.

The bottom line is that dissents occur with some regularity, but the votes for or against policy action are always a strong consensus. More simply, the Fed has been in a groupthink regime fro the last 100 years!

Consensus At The Fed

In the FOMC minutes, released three weeks after the meeting, we gain a better understanding of the debates that took place. It’s clear from these minutes that there are many divergent opinions. This should not be surprising, as the members come from different regions across the country and have diverse economic views. This has been the case since 1936, when the Fed began sharing the minutes.

While there may be many views on the economy and the right course for monetary policy, the graph above clearly shows that almost all Fed members coalesce around a single policy action. 

Quite often, the Fed Chair steers the FOMC toward presenting a consensus view.

Politics At The Fed

We argue that, despite its supposed independence from the executive branch, the Fed has always been political to some degree. Furthermore, we must assume that every Presidential nomination of a Fed member is primarily based on the nominee’s alignment with the President’s views.

Thus, it’s not shocking that Stephen Miran, Trump’s latest appointee, is arguing for aggressive rate cuts. Furthermore, Trump’s possible appointee to replace Lisa Cook and Chairman Powell when his term ends in May will most likely also hold dovish views.

While there is an infusion of dovish voters to join existing dovish members, there also remains a camp of hawkish voters. It appears that most of the dovish-hawkish standoff is a function of whether members are more concerned about keeping a lid on inflation (hawkish) or about preventing a worsening of the labor market (dovish).

However, we offer that the debate may be becoming political as well. Is the Fed morphing into entities like the Supreme Court or Congress that are politically motivated?

In other words, are some dovish members not as concerned about the labor markets as they appear, and instead pushing for a more accommodative policy to help Trump achieve his economic goals? Conversely, might some hold hawkish opinions, not because they fear inflation, but because they disagree with the President’s policies?

Is Consensus Dead?

If, as we postulate, the Fed is becoming more politically divided, might the Fed Chairman be losing the ability to present a group consensus? Interestingly, the odds of a rate cut at the next Fed meeting have been floating between 25% and 85%. Those odds have been shifting as various Fed members have weighed in on whether they may cut rates at the next meeting. Currently, there is a split between those wanting to cut rates and those dissenting from another cut in December. A few members also appear undecided. If the Chairman is unable to get the members to reach a consensus, it’s quite possible there could be four, five, or even six dissenters at the next meeting.

Our Take On Dissents

Historically, as we noted earlier, the Chairman gets the FOMC to form a strong publicly facing consensus. Doing so gives investors, consumers, and business leaders a false sense of confidence that the Fed is fully aware of what is happening in the economy and that it has the right policy prescription. 

We welcome dissent at the Fed. We welcome change. Groupthink, as managed by one person, the Chair, has led to significant policy errors. While the Fed will still make errors in the future, investors, business leaders, and consumers will at least be better versed in other policy opinions. For instance, a vote with multiple dissenting votes signals that the Fed is not confident in its views or policies. While that may make some uneasy, it’s better to recognize their stance than to believe something that isn’t true. Conversely, in an era of multiple dissenting votes, a complete consensus should lead investors to think the Fed has strong confidence in its views and policies.

Summary

As we said earlier, we welcome a regime change at the Fed. We want 12 autonomous FOMC members deliberating and voting on Fed policy. We don’t like the opinion of one person, the Chairman, dictating the views and policies of the Fed.

A new Fed regime consisting of 12 voting Fed members, voicing their own opinions and casting votes on what they think, not what the Chairman wants, would be a welcome change, albeit it might introduce short-term volatility in the financial markets.

Tyler Durden Wed, 12/03/2025 - 12:45

Europe Accuses Putin Of Faking Peace Talks With Trump Envoys

After the American delegation sent by President Trump met some 5 hours with President Putin and his team in Moscow Tuesday night, but with no significant progress made (and with some observers declaring it a 'failure'), some European officials are trying to have an 'I told you so' moment.

Ukrainian and European officials on Wednesday have alleged Putin is faking a desire to achieve peace, and is intentionally wasting Washington's time while prolonging the war and intensifying strikes on the battlefield.

For example, Ukraine's Foreign Minister Andrii Sybiha declared immediately after the Moscow discussions that Putin should "stop wasting the world's time." The Zelensky government, it should be noted, has also been quietly frustrated with the White House for largely sidelining its long-running objection to territorial concessions. But the US plan is truly "new" in that it offers Russia de facto control of land in the Donbass and Crimea.

Getty Images

UK Foreign Secretary Yvette Cooper voiced similar criticism, saying Putin "should end the bluster and the bloodshed and be ready to come to the table and to support a just and lasting peace."

Baltic and northern European states have continued in their rhetoric challenging the Kremlin, with Estonian Foreign Minister Margus Tsahkna responding, "What we see is that Putin has not changed any course. He's pushing more aggressively on the battlefield." The top diplomat said, "It's pretty obvious that he doesn't want to have any kind of peace."

And Finland's Foreign Minister Elina Valtonen said similarly, "So far we haven't seen any concessions from the side of the aggressor, which is Russia, and I think the best confidence-building measure would be to start with a full ceasefire."

While the Kremlin has called the Tuesday Moscow talks "constructive" - it conceded that little actual progress was made toward a deal, given Russia is demanding nothing less than full legal and international recognition of the territories under its control. 

NATO Secretary-General Mark Rutte meanwhile is calling on allies to ensure Ukraine is in its strongest possible position as negotiations proceed. Of course this involves flooding Kiev with more money and weapons. "The peace talks are ongoing. That's good," Rutte said.

"But at the same time, we have to make sure that whilst they take place and we are not sure when they will end, that Ukraine is in the strongest possible position to keep the fight going, to fight back against the Russians. But also in the strongest possible position when peace talks really get to a point where they sit at the table," he added.

More allegations of feigning interest in a peace process out of Western pundits:

Putin Meets With Witkoff and Kushner for Nearly Five Hours and the two sides did not reach any specific compromises, an aide to President Vladimir V. Putin said, as the United States pushes a plan to end the war in Ukraine.

Let me translate for you what this means. There was… https://t.co/0z7KAlRF5t

— Sir William Browder KCMG (@Billbrowder) December 3, 2025

Meanwhile mutual strikes on energy infrastructure continues to escalate. President Putin has also warned his military is readying to expand strikes on Ukrainian ports, in retaliation for a spate of drone attacks on tankers transporting Russian oil to global markets.

Tyler Durden Wed, 12/03/2025 - 12:25

DOJ Charges Afghan National Over Online Threats To Build Bomb, Kill Americans

Authored by Arjun Singh via The Epoch Times,

The Department of Justice has indicted an Afghan national residing in Fort Worth, Texas, for allegedly making online threats to construct an explosive and kill U.S. citizens using it.

Mohammad Dawood Alokozay, 30, was arrested by the FBI’s Joint Terrorism Task Force and the Texas Department of Public Safety on Nov. 30. A statement from the Department of Justice indicated that he was charged with “transmitting a threatening communication in interstate commerce,” which violates 18 U.S. Code, Section 875(c), for making threats on social media platforms, specifically TikTok, Facebook, and X.

“We have zero tolerance for violence and threats of violence to kill American citizens and others like those allegedly made by this individual,” said Ryan Raybould, the U.S. Attorney for the Northern District of Texas, whose office is prosecuting the case.

Alokozay on Nov. 23, while speaking in the Dari language, allegedly told two other men during a video stream on social media that he would build a bomb in his vehicle. He also allegedly described in detail bomb making techniques used by the Taliban in Afghanistan, who he described as “dear” to him. During his remarks, Alokozay allegedly stated that he intended to conduct a suicide attack on Americans, and that he was “not afraid of deportation or getting killed.”

The Epoch Times was unable to obtain a copy of Alokozay’s indictment, which is currently under seal in the U.S. District Court for the Northern District of Texas. If convicted, Alokozay faces a maximum of five years in prison for the crime.

Alokozay’s immigration status in the United States, and whether the federal government will place him in removal proceedings, has not been publicly disclosed. Currently, Afghanistan is ruled by the Taliban, a designated foreign terrorist organization, to which the United States has not conducted any publicized removal operations.

Normally, in cases where the country of origin of a deportee may present a risk to the deportee’s life, that person may apply for “withholding of removal” under Section 241(b)(3) of the Immigration and Nationality Act, and protections under the Convention Against Torture. These statuses, if granted by an immigration judge, prevent a person from being removed to their home country, though they may be removed to a willing third country.

Since Nov. 26, when one National Guard service member was shot and killed and another critically wounded in Washington, allegedly by Afghan national Rahmanullah Lakanwal, the U.S. government has increased scrutiny of existing Afghan nationals and other citizens of “high-risk” nations who reside within the country.

Tyler Durden Wed, 12/03/2025 - 12:05

James Boasberg Snubs Senate Hearing On 'Rogue Judges'

Authored by Luis Cornelio via Headline USA,

Two of the federal judges facing impeachment threats refused to attend a Wednesday Senate Judiciary subcommittee hearing on “rogue judges.” 

James Boasberg and Deborah Boardman, district judges in Washington and Maryland, respectively, told the Senate Judiciary Subcommittee on Courts that they would not appear over concerns about the separation of powers and judicial ethics. 

Their refusal was delivered through a Nov. 12 letter sent by U.S. Judge Robert Conrad, the director of the Administrative Office of the U.S. Courts, to Sen. Ted Cruz, who chairs the subcommittee. 

Conrad claimed that allowing the judges to testify could violate ethics rules and “encroach upon the separation of powers,” according to the Daily Caller. 

He cited judicial rule Canon 3A(6), which forbids judges from testifying about matters they have decided or that may be pending before them. 

“The commentary to this provision explains that the ‘admonition against public comment about the merits of a pending or impending matter continues until the appellate process is complete,’” Conrad added. 

Director of the Administrative Office of the U.S. Courts Judge Robert Conrad cited part of the code of conduct stating a judge "should not make public comment on the merits of a matter pending or impending in any court."

— Katelynn Richardson (@katesrichardson) December 2, 2025

Cruz scheduled the hearing to examine possible impeachment proceedings against federal judges accused of overstepping their authority.

Boasberg is one of those judges, Republicans argue. He is facing impeachment threats from Rep. Brandon Gill, R-Texas,  

Gill filed the articles of impeachment accusing Boasberg of abusing his “judicial authority” for approving Biden-era search warrants targeting Republican lawmakers and other conservative organizations part of the Jan. 6 investigation. 

“Judge Boasberg was an accomplice in the egregious Arctic Frost scandal where he equipped the Biden DOJ to spy on Republican senators,” Gill wrote in a statement. 

“His lack of integrity makes him clearly unfit for the gavel.” 

Boardman is also facing impeachment efforts, this time from Rep. Chip Roy, R-Texas, over her lenient eight-year sentence for the convicted would-be assassin of Supreme Court Justice Brett Kavanaugh.  

Boardman cited the attacker’s declared transgender identity to justify sparing him from a harsher penalty. 

“Boardman unequivocally based this weak sentence on the attempted assassin’s ‘gender identity,’ as the attempted assassin expressed that he views himself as a woman,” Roy wrote in a separate statement. “Instead of doing what the Judiciary calls for and sentencing this man to the base 30-year sentence recommended by the Department of Justice, Judge Boardman purposefully allowed this man off easy.”

Tyler Durden Wed, 12/03/2025 - 11:25

WTI Holds Gains As Cushing 'Tank Bottoms' Loom; US Crude Production At Record High

Oil prices are higher this morning after API's report showed crude inventories fell last week, while negotiations to end Russia's war on Ukraine failed to reach an agreement.

Prices have stuck in a narrow range in recent weeks as geopolitical concerns have countered rising supply as OPEC+ returned 2.6-million barrels of production cuts to market amid increasing production outside of the cartel.

But, a lack of progress in U.S.-led negotiations to reach a peace deal between Ukraine and Russia and the Trump Administration's military build up off Venezuela continue to command a risk premium for the commodity.

"Traders weighed prospects for an end to the war in Ukraine while watching for Trump's next moves on Venezuela. Ahead of today's EIA report, the API said US crude stockpiles rose by 2.5 million barrels last week. Overall, Brent and WTI remain confined to tight ranges as ample global supply continues to offset geopolitical risk," Saxo Bank noted.

Will the official data confirm API's draw?

API

• Crude -2.48mm

• Cushing -89k

• Gasoline +3.1mm

• Distillates +2.88mm

DOE

• Crude +574k

• Cushing -457k

• Gasoline +4.518mm - biggest build since May

• Distillates +2.059mm

The official report was delayed but once it hit, it showed a small crude build (as opposed to API's reported draw). Products saw big builds (Gasoline largest weekly add since May) and Cushing stocks fell for the 4th straight week...

Source: Bloomberg

Cushing's ongoing draws leave stocks near 'tank bottoms' once again...

Source: Bloomberg

US Crude production hovers near record highs despite the rapid decline in rig counts...

Source: Bloomberg

WTI is holding gains after the delayed data...

Source: Bloomberg

Geopolitical tensions are keeping the market jittery and adding a risk premium to prices, partly countering concerns about a surplus. That includes US rhetoric against Venezuela, with President Donald Trump suggesting the Pentagon will soon start targeting drug cartels with strikes on land.

Senate hawks calling for a complete Venezuelan overthrow further fuel oil’s upside risk. Eschewing the term “regime change”, Rick Scott (R–Fla.) told ZeroHedge that he’d like to Venezuelan President Maduro in handcuffs.

”I’d like [Maduro] to be arrested for selling drugs into this country,” Scott said today. “That’s not ‘regime change’. He is not the president of Venezuela… there was an election. He lost the election.”

On the Russian front, Goldman sees little change in markets following the peace talks.

“The Brent crude price remained roughly unchanged in the low $60s over the last week as Russia-Ukraine peace talks continue,” Goldman Sachs Group Inc. analysts including Yulia Grigsby said.

“Oil markets and prediction markets do not appear to price a large probability of a near-term peace agreement and removal of the sanctions on Russia oil.”

Grigsby also noted that overall levels of Russian oil exports have remained robust, even after US penalties on Lukoil and Rosneft, as sales rapidly pivoted to non-sanctioned producers.

On the bright side, the broadly weaker trend on crude oil prices has dragged gas (pump) prices down to their lowest since May 2021...

Source: Bloomberg

While it's not exactly 'drill, baby, drill', it's certainly what Trump wanted (the question is, will the lower price push shale producers to cut production... and round and round we go).

Tyler Durden Wed, 12/03/2025 - 11:18

Trump Confirms Biden's Autopen Documents, Orders, & Pardons Are Void

Authored by Jill McLaughlin via The Epoch Times,

President Donald Trump said on Tuesday that he has nullified all documents, proclamations, executive orders, memorandums, and contracts signed by autopen during President Joe Biden’s term.

“Any and all Documents, Proclamations, Executive Orders, Memorandums, or Contracts, signed by Order of the now infamous and unauthorized ‘AUTOPEN,’ within the Administration of Joseph R. Biden Jr., are hereby null, void, and of no further force or effect,” Trump wrote in a social media post.

“Anyone receiving ‘Pardons,’ ‘Commutations,’ or any other Legal Document so signed, please be advised that said Document has been fully and completely terminated, and is of no Legal effect. Thank you for your attention to this matter!”

The declaration follows Trump’s Nov. 28 announcement that he was revoking all executive orders signed by autopen during the Biden administration.

“The Autopen is not allowed to be used if approval is not specifically given by the President of the United States,” Trump wrote on Truth Social.

Trump alleged the documents were signed illegally.

“The Radical Left Lunatics circling Biden around the beautiful Resolute Desk in the Oval Office took the Presidency away from him,” Trump posted. “Joe Biden was not involved in the Autopen process and, if he says he was, he will be brought up on charges of perjury.”

The autopen, which uses a real pen and ink to mechanically replicate a president’s signature, can be used to sign official documents, but the president must direct the signing of each document or bill, according to the Office of Legal Counsel.

According to some legal scholars, U.S. presidents may revoke previously issued executive orders. However, revoking pardons may be unconstitutional and could face roadblocks, experts told the Epoch Times.

The U.S. House Committee on Oversight, led by Rep. James Comer (R-Ky.) published a report in October detailing an investigation into the Biden administration’s use of autopen signatures.

The federal probe found senior White House officials “abused the autopen and a lax chain-of-command policy to effect executive actions” and failed to provide documentation to prove the documents were authorized.

The committee stated it found evidence that Biden’s White House staff concealed his diminishing mental and physical condition intentionally.

“The Committee has found that there was, in fact, a cover-up of the president’s cognitive decline and that there is no record demonstrating President Biden himself made all of the executive decisions that were attributed to him,” the committee wrote in the report. “The authority to grant pardons is not provided to the president’s inner circle.”

Several senior advisors and staff refused to provide testimony during the investigation for fear of incriminating themselves.

A photo of former President Biden's autopen signature (C) on the new White House Presidential Wall of Fame on Sept. 26, 2025. Madalina Kilroy/The Epoch Times

In a Truth Social post, Trump claimed 92 percent of documents signed during Biden’s presidency were signed by autopen.

During his presidency, Biden issued 4,245 acts of clemency—more than any other president—and 162 executive orders.

Biden’s acts of clemency consisted of 80 pardons and 4,165 commutations. While the commutation total topped all other presidents since McKinley, who left office in 1901, the 80 pardons were topped by several other presidents including Trump in his first term (144), President Barack Obama (212), and President George W. Bush (189).

Tyler Durden Wed, 12/03/2025 - 10:15

'Sustained Resilience': US Services Surveys Mixed In November

Following the disappointment on the Manufacturing PMI side (both S&P Global and ISM seeing their surveys decline in November), US Services surveys were more mixed in the face of 'strong' hard data (that has been largely absent due to the shutdown).

• S&P Global US Services PMI dropped from 54.8 to 54.1 in November (lowest since June and notably worse than the flash print of 55.0)

• ISM US Services PMI rose from 52.4 to 52.6, solidly better than the 52.0 expected.

Source: Bloomberg

Under the hood was also mixed (completely opposite) news with ISM seeing Prices Paid dropping bigly (S&P Global seeing it rise), ISM seeing new orders decline (S&P Global seeing improvement) and ISM seeing employment still contracting (S&P Global sees 'solid increase' in employment)...

The S&P Global US Composite PMI posted 54.2 in November. That was little changed overall on October’s 54.6 and consistent with trend growth of the US private sector economy.

Similar rates of expansion were recorded across the manufacturing and service sectors. Latest data showed the strongest growth in new work for three months, which helped support a solid increase in employment. Meanwhile, input price inflation accelerated to a four-month high whilst output charges also rose at a stronger pace.

“The US service sector has reported another strong expansion in November, with demand for services rising at the fastest rate seen so far this year," according to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

"Together with a robust increase in output reported by the manufacturing sector, the survey indicates that the economy is so far expanding at a 2.5% annualized GDP growth rate in the fourth quarter."

Supportive financial conditions, including lower interest rates and the equity market gains seen this year, are helping drive the sustained resilience of the economy, with Williamson noting a further surge in financial services activity reported in November.

Tariff fears remain top of mind...

“Consumer and business services are also continuing to expand, but report pressure on customer demand from affordability issues in particular. Worryingly, prices charged for services rose at an increased rate in November as firms sought to pass on higher costs, in turn often linked to tariffs.

“The concern is that rising prices could deter further rate cuts, in turn dampening the financial services expansion which has been doing much of the heavy lifting in terms of the sustained economic expansion in recent months.

But there is some optimism...

“More encouragingly, November saw an upturn in business expectations of growth over the year ahead compared to October, though this in part merely reflected some relief at the ending of the government shutdown, and some of this improved sentiment appears to have already faded towards the end of November.”

Overall, it's choose your own adventure...

...with something for both the doves (weakening survey headline data) and the hawks (economy still expanding and tariff-driven inflation fears high).

Tyler Durden Wed, 12/03/2025 - 10:07

Maduro Could Be Exiled To Qatar As Trump Warns Land Strikes On Venezuela Coming "Very Soon"

President Trump reportedly issued Venezuelan strongman Nicolas Maduro a deadline of last Friday to of his own volition step down as president and accomplish a peaceful transition of power, or else face possible direct military action.

The New York Post is freshly reporting that the White House has offered that Maduro could be exiled to Qatar, where he would live out his days in luxury in one of the world's wealthiest countries.

"A senior Trump administration source said Secretary of State Marco Rubio has floated allowing Maduro, 63, to relocate to Qatar as the gas-rich emirate helps mediate the conflict," NY Post writes Wednesday. "Three current and two former administration officials described the scenario as plausible."

Qatar, image via Remote Lands

A source close to the administration described that "Qatar, Saudi Arabia and the UAE love to do stuff like this. It helps build chits with the US." The person further said, "All three compete against each other — in the region and for the ultimate affection of the US."

So far Maduro has resisted Trump's call to immediately step down, and the last Friday deadline came and went. If it were to suddenly happen - and by looks of it Maduro doesn't seem prepared to go anywhere - this scenario would quickly lead to lower oil prices as Washington's crude embargo would be dropped and US firms move to pump oil out of the Latin American country, which has the world's largest proven oil reserves.

As for the supposed exile to Qatar plan, there's been no immediately forthcoming confirmation from the White House that this is accurate, but Maduro would have to go somewhere after all.

The large military presence in the southern Caribbean has persisted for months at this point, and the clock is ticking, especially given President Trump's Tuesday remarks of land attacks possibly beginning "very soon". He said as follows:

President Trump said Tuesday his administration could attack accused drug traffickers who traverse Latin America by land "very soon," which would mark an escalation in the U.S. military's campaign of lethal strikes on alleged drug boats. 

"We're going to start doing those strikes on land, too," Mr. Trump told reporters during a Cabinet meeting when asked about the administration's strikes at sea. "You know, the land is much easier ... And we know the routes they take. We know everything about them. We know where they live. We know where the bad ones live. And we're going to start that very soon, too."

It's unknown whether such strikes would just be limited to known cartel and trafficking locations and routes, or whether government buildings or military bases could be hit.

What’s quite surprising for me is the silence of Brazil, Qatar, and Turkey, the countries said to have brokered the Trump–Maduro call. They usually love to publicize their peace efforts. But when it comes to Venezuela, they’re barely saying a word. Why are they so silent? pic.twitter.com/hv32yIDXT2

— Imdat Oner (@imdat_oner) December 2, 2025

The administration has already effectively labeled the whole government a 'narco-terror' organization, with its dubious and sweeping "Cartel of the Suns" recent terror designation. "Based in Venezuela, the Cartel de los Soles is headed by Nicolás Maduro and other high-ranking individuals of the illegitimate Maduro regime who have corrupted Venezuela’s military, intelligence, legislature, and judiciary," the mid-November official designation indicated. "Neither Maduro nor his cronies represent Venezuela’s legitimate government."

Could American military action soon commence in Venezuela? Will Maduro find himself in a luxury high-rise in Qatar by month's end?

Tyler Durden Wed, 12/03/2025 - 09:35

US Industrial Production Sees Biggest Annual Gain In 3 Years Despite Slowing Capacity Utilization

First things first, this is data for September. But we would given this morning's Industrial Production and Manufacturing Output data a 'meh' ranking.

Industrial Production rose just 0.1% MoM (as expected) up from the downwardly revised 0.3% MoM decline in August. On a YoY basis, production rose 1.62% - its best since Nov 2022...

US Manufacturing output was unchanged in September (slowing from the 0.1% MoM rise in August), but, like IP, that supported a 1.5% YoY rise in output, its highest level since April 2022...

But the big headline of this (admittedly lagged) report is the weakness in Capacity Utilization at just 75.9% in September (well below the 77.4% print for August, which was revised down to 75.9%, and a big miss versus the 77.2% exp)

Source: Bloomberg

Just as we have seen with the employment data, it appears the US Manufacturing economy has flatlined for much of Q3. Certainly supportive of a cut next week and trend toward more cuts (which are not priced in for now).

Tyler Durden Wed, 12/03/2025 - 09:27

Zelensky's Meeting With US Envoy Cancelled After No Real Progress In 5-Hour Moscow Talks

The Russian-US negotiations on the Ukraine conflict concluded in the Kremlin after some five hours of intense negotiations, which had reportedly gone late into the night. Russian presidential aide Yury Ushakov indicated the US side of Steve Witkoff and Jared Kushner presented four more documents concerning the peace settlement during the Kremlin talks; however, a sticking point remains territory.

"Some American proposals are acceptable to Russia, while others are not," the aide stated bluntly. Crucially he at one point responded to a question of whether peace had become closer or further following these talks, to which Ushakov responded, "Definitely not further."

"Territorial issues were discussed specifically, without which we do not see a resolution of the crisis," Ushakov told reporters immediately after the meeting. "Of course, the enormous prospects for future economic co-operation between the two countries were also discussed."

Via Sputnik/NYT

This latter point of cooperation between the US and Russia has "vast potential" - Ushakov said, suggesting the Kremlin doesn't see the peace deal as where it wants it to be in terms of territorial settlement. The US-backed draft peace plan offers that Crimea, Luhansk and Donetsk would be recognized "as de facto Russian, including by the United States." However, Ukraine and other countries would not need to recognize Russian control by law, but Moscow legally sees them as part of the Russian Federation after the wartime 'popular referendums' held in the fall of 2022.

The draft also calls to freeze the front lines of fighting where they are in the southern oblasts of Kherson and Zaporizhzia, with Russia having relinquish other areas such as the Kharkiv and Sumy regions in the northeast, as well the Mykolaiv region in the south. Overall the lengthy session was deemed by the Russian side as "productive" - with Ushakov also saying "We discussed the substance, not specific wording and solutions. The parties see enormous potential for cooperation."

"As for a possible meeting at the presidential level, that will depend on the progress we’re able to make through the persistent work carried out by our aides and representatives," Ushakov said. And more on US-Russia relations: "But this time, we emphasized that if we genuinely want to work together — and there are enormous opportunities — then it’s time to show some real commitment," the Kremlin official said.

While the negotiations were happening or about to proceed, President Trump in Washington had admitted it's not "an easy situation" to settle, but that "Our people are over in Russia right now to see if we can get it settled. Not an easy situation, let me tell you. What a mess." He reiterated in a cabinet meeting: "It’s a war that never would have happened if I were President."

As for the initially announced firm deadline of Thanksgiving Day for Ukrainian President Volodymyr Zelensky to accept the US 28-point peace plan, President Trump appears to have backed down from that, given all of this back-and-forth is still proceeding.

I think we might take a minute to ask why the American government has sent a real estate developer and the president's son in law to negotiate directly with Vladimir Putin, rather than - say - the secretary of state, or a professional diplomat, or indeed anyone with training. https://t.co/6GoRkeMNUR

— Shashank Joshi (@shashj) December 2, 2025

One interesting development is Axios reported that Witkoff was slated to meet with Zelensky and brief him on the talks with Putin. Zelensky has demanded this much, also given Kiev feels largely cut out of the US plan and negotiations. Trump also last week made clear he's not ready to meet with either Zelensky or Putin until a peace deal is in the final stages.

The expected Witkoff meeting with Zelensky has been canceled, and the US delegation is en route back home to Washington instead, in perhaps another slap in the face to Zelensky which further sidelines him once again. According to the UK Times:

A meeting between President Zelensky and a US delegation planned for Wednesday has been cancelled after talks in Russia on the war in Ukraine concluded without a breakthrough.

Steve Witkoff, President Trump’s special envoy, and his son-in-law, Jared Kushner, spoke to President Putin and other Russian officials in Moscow for five hours on Tuesday but failed to make any headway on a peace deal.

The US negotiators were due to debrief Zelensky in Brussels after the talks. However, Witkoff and Kushner left Moscow on Tuesday night for Washington, the Kremlin said.

Meanwhile the Kremlin on Wednesday has followed up with further explanation of its stance. "We proceed from the fact that in this case it is better for these negotiations to be conducted in silence," Putin spokesman Dmitry Peskov has been quoted in state media as saying. He added that Russia is "not a supporter of megaphone diplomacy."

Some aspects of the US plan are likely welcomed by Moscow...

Peskov explained that "it would be wrong" to say Putin had turned down the American proposals after the talks in Moscow. He described the first direct exchange on the plan as being that "some things were accepted, some were marked as unacceptable," and that this is part of a "normal negotiation process” and “a search for compromise." 

Having just announced it's taken military control of Pokrovsk, amid a string of steady advances in the east, Moscow knows it is firmly in the driver's seat - yet the proxy war continues its dangerous path of escalation.

Tyler Durden Wed, 12/03/2025 - 08:45

Futures Rise As Bitcoin Extends Rally For 2nd Day, Copper Hits Record

US equity futures are higher again, led by small cap stocks. As of 8:20am ET, S&P futures are up 0.2% (they dropped following a very ugly ADP print at 8:15am), the same as Nasdaq 100 futs, with Mag 7 stocks mostly higher premarket led by NVDA (+0.4%) and AMZN (+0.3%); MRVL is up +10% post-earnings given the robust long-term guidance. Europe's Stoxx 600 is also higher led by tech and energy sectors.  Bond yields are lower, the move accelerating after the ADP print; the USD is also lower. Commodities are mixed: Oil higher, while copper hit a fresh record high above $11,350/ton following the largest surge in orders since 2013. Bitcoin extended a tentative rebound on Wednesday, rising as high as $94,000, though sentiment remains fragile. On the news front, increment updates were relatively muted overnight except for MRVL’s positive earnings that trigger the rebound in global tech. The US economic calendar includes November ADP employment change (8:15am), September import/export price index (8:30am), September industrial production (9:15am), November final S&P Global US services PMI (9:45am) and November ISM services (10am).

In premarket trading, Mag 7 stocks are mostly higher (Nvidia +0.8%, Amazon +0.4%, Alphabet +0.3%, Tesla +0.1%, Microsoft -0.1%, Apple +0.04%, Meta +0.06%)

• Acadia Health (ACHC) slumps 29% after the psychiatric-hospital chain cut its adjusted earnings per share guidance for the full year.
• American Eagle (AEO) surges 12% after the apparel retailer raised its comparable sales guidance for the full year and reported net revenue for the third quarter that topped the average analyst estimate.
• Astera Labs (ALAB) rises 7% as analysts note that Amazon’s AWS Trainium artificial intelligence chip is a positive for the semiconductor manufacturing company. Amazon’s cloud unit raced to get the latest version of its AI chip Trainium3 to market and unveiled Trainium4.
• GitLab (GTLB) falls 8% after the software company’s results and forecast were seen as underwhelming. Bloomberg Intelligence wrote that the report reinforces concerns about AI.
• Marvell Technology (MRVL) rises 9% after the chipmaker’s CEO assuaged investor concerns with positive trends at its custom chip-design unit. The company also announced plans to acquire startup Celestial AI for about $3.25 billion.
• Microchip (MCHP) is up 2% after the semiconductor device company forecast adjusted earnings per share for the third quarter that beat the average analyst estimate.
• Oracle (ORCL) gains 1.6% as Wells Fargo starts coverage of the tech giant with a recommendation of overweight, describing the firm as an “emerging leader in the AI super-cycle.”
• Okta (OKTA) is down 4% after the software company’s results and forecast were seen as underwhelming.
• Pharvaris (PHVS) jumps 18% after the drug developer said a late-stage trial of its investigative therapy for hereditary angioedema (HAE) — a rare genetic condition that causes severe swelling — met its main goal
• Pure Storage (PSTG) declines 14% after the computer hardware and storage company reported higher operational expenditure in the third quarter.

Stocks rose for a second day, but eased back after ADP reported that US companies shed payrolls in November by the most since early 2023, adding to concerns about a more pronounced weakening in the labor market. Private-sector payrolls decreased by 32,000, according to ADP Research data released Wednesday. Payrolls have now fallen four times in the last six months. The median estimate in a Bloomberg survey of economists called for a 10,000 gain.

The data may add some support for the December rate-cut case, although markets are already treating a cut as a sure thing. Trump said he plans to announce his selection to lead the Fed in early 2026 and teased chief economic adviser Kevin Hassett as his possible choice. Traders are piling into bets that a new chair will support Trump’s calls for lower rates.

As Fed policymakers gather next week, the debate among officials will largely center on the job market and whether rates should be reduced for a third straight time. While the latest government report showed a larger-than-expected rise in payrolls, the gain was concentrated in just a few industries. The unemployment rate ticked up to an almost four-year high, and there’s been a steady drumbeat of layoff news from companies.

“Right now, the data argues for additional Fed funds rate cuts. US labor demand is weak, consumer spending is showing early signs of cracking, and upside risks to inflation are fading,” said Elias Haddad at Brown Brothers Harriman.

Also due today are ISM services data for November, as well as delayed import price index and industrial production numbers for September.

Elsewhere, traders continue to weigh conflicting signals in the AI story. The AI story and how much further it can power the market, continues to be top of mind. Marvell shares are soaring after its prediction for data center revenue to grow 25%, with further fuel to bulls coming from AI-power darling Vistra, which was raised to investment grade by S&P.

At the same time, Oracle credit default swaps closed at the highest level since the financial crisis. And Sam Altman seems to be worried about competition — he was said to declare a ‘code red’ to speed up improvements to OpenAI’s ChatGPT. 

The SEC is said to have issued a flurry of warning letters to nine providers of highly-leveraged ETF plans, effectively blocking the introduction of such products. CME is working to improve client communications after Friday’s outage that disrupted multiple financial markets. Crypto giant Binance appointed co-founder Yi He as co-CEO. 

European stocks are broadly firmer with the Stoxx 600 index up 0.2%. The FTSE 100 is lagging, trading lower by 0.2% alongside a firmer pound and losses in index-heavyweight HSBC. Here are some of the biggest movers on Wednesday:

• Stellantis gains as much as 8.4% after UBS analyst Patrick Hummel raised his recommendation on the carmaker to buy from neutral and following a report that the White House will announce new fuel efficiency standards for automobiles.
• European semiconductor stocks with data‑center and 5G exposure advance after US peer Marvell Technology reassured investors that its custom chip-design unit is winning repeat orders, signaling continued growth as the company benefits from runaway spending on AI computing.
• European defense stocks rise on Wednesday morning. The Kremlin said President Vladimir Putin held “very useful” talks with US envoys Steve Witkoff and Jared Kushner, though the sides failed to reach agreement on a plan to end Russia’s war in Ukraine.
• Inditex rises as much as 8.9% after releasing third-quarter results that beat consensus estimates.
• Cosmo Pharmaceuticals shares soar as much as 24% after the company said two late-stage studies of its experimental treatment for male hair loss reached statistically significant endpoints.
• Tomra shares advance as much as 6.3% as Pareto Securities flagged that the Norwegian recycling equipment company’s upcoming fourth-quarter earnings due on Feb. 13 “could be the inflection point,” with current consensus overlooking margin effects from recent changes.
• Bloomsbury Publishing shares rise as much as 5.2% after the firm struck a new strategic collaboration with Google on AI-powered learning and core publishing infrastructure. Berenberg said this is another example of the benefits AI is having on the publisher.
• Hugo Boss slumps as much as 11% after the luxury branded-clothes retailer announced its strategy plan through 2028.
• Eutelsat shares slump as much as 9.6% after Softbank, the satellite firm’s fifth biggest shareholder, offered rights at a discount as it opts not to take up more shares in the French company.
• Spire Healthcare shares drop as much as 15% after the private UK hospital operator gave a forecast for 2026 adjusted Ebitda that RBC called a “substantial” profit warning.
• Trainline falls as much as 12% as the online train ticketing platform receives its only sell-equivalent rating following a JPMorgan downgrade to underweight from neutral.

Earlier in the session, Asian stocks traded in a narrow range as investors awaited key data that will provide clues on the global economic outlook. The MSCI Asia Pacific Index edged down 0.1%, weighed by Alibaba and Tencent. TSMC and some Japanese tech firms were among the biggest boosts for the gauge. Stocks advanced in South Korea and Taiwan, while benchmarks in Hong Kong and India declined. The MSCI Asia gauge has been trading sideways over the past week, though it is still on track to cap its best year since 2017. The outlook for the artificial intelligence trade that has contributed much to the region’s gains in 2025 got a fresh tailwind from Marvell’s upbeat projections. Tech investors also digested details of Amazon.com’s new chip and continued to be enthusiastic over Apple’s AI advances.

In FX, the pound sits near the top of the pile with an upward revision to final UK PMIs giving the currency an additional boost. The Bloomberg Dollar Spot Index is down 0.3%.

In rates, 10Y Treasuries are a touch firmer extending Tuesday’s advance and outperforming European bond markets with no real bias on the US curve. Yields are richer by 2bp-3bp, keeping curve spreads within a basis point of Tuesday’s closing levels. 10-year is near 4.06%, about 2bp richer on the day and outperforming bunds by 1.5bp. Gilts are marginally outperforming US and German peers.  IG dollar bond issuance slate empty so far and expected to slow following a strong start to the week. Eight firms sold a combined $5.65 billion Tuesday — the second-straight session with that many borrowers — taking the weekly haul past dealers’ forecasts of around $20 billion. Focal points of US session include November ADP employment and services PMI gauges, along with anticipation of US government labor-market data releases that were held up by the shutdown and US President Trump’s announcement of Fed Chair Powell’s successor. In commodities,

In commodities, copper has hit a fresh record high above $11,350/ton following the largest surge in orders since 2013. Spot gold trades flat around $4,200/oz. WTI crude oil futures are up 1.4% as traders weigh continued talks between the US and Russia that have so far failed to end the war in Ukraine. Bitcoin extended a tentative rebound on Wednesday, rising as high as $94,000. 

Today's US economic calendar includes November ADP employment change (8:15am), September import/export price index (8:30am), September industrial production (9:15am), November final S&P Global US services PMI (9:45am) and November ISM services (10am).

Market Snapshot

• S&P 500 mini +0.2%
• Nasdaq 100 mini +0.1%
• Russell 2000 mini +0.3%
• Stoxx Europe 600 +0.3%
• DAX +0.3%
• CAC 40 +0.3%
• 10-year Treasury yield -1 basis point at 4.08%
• VIX -0.1 points at 16.51
• Bloomberg Dollar Index -0.3% at 1214.12
• euro +0.3% at $1.1657
• WTI crude +1.5% at $59.54/barrel

Top Overnight News

• Trump posted that "Any and all Documents, Proclamations, Executive Orders, Memorandums, or Contracts, signed by Order of the now infamous and unauthorized “AUTOPEN,” within the Administration of Joseph R. Biden Jr., are hereby null, void, and of no further force or effect. Anyone receiving “Pardons,” “Commutations,” or any other Legal Document so signed, please be advised that said Document has been fully and completely terminated."
• Marathon Russia-U.S. Meeting Yields No Ukraine Peace Deal: WSJ
• Kremlin says Putin accepted some US proposals on Ukraine and is ready to continue talking: RTRS
• Republican Wins Closely Watched House Special Election in Tennessee: WSJ
• US paused all immigration applications filed by immigrants from 19 countries it restricted from travel to the US earlier this year: NYT.
• Trump’s Aides Cancel Fed Chair Interviews as President Homes In on Pick: WSJ
• Trump Says He Doesn’t Want Somali Immigrants in U.S. as ICE Plans Operation: WSJ
• US judge blocked the Trump admin from enforcing a law depriving Planned Parenthood of Medicaid funding in 22 states.
• Airbus Sees Setbacks and Boeing Rebounds as Script Quickly Flips: BBG
• The AI frenzy is driving a new global supply chain crisis: RTRS
• A Newly Confident China Is Jockeying for More Global Clout as Trump Pulls Back: WSJ
• HSBC Names Chairman After Yearlong Search: WSJ
• Harvard’s Big Wager on Bitcoin Came Right Before the Bust: WSJ
• Nvidia’s Fat Margins Are Google and AMD’s Opportunity: WSJ
• BofA Total Card Spending (w/e Nov 29th) +0.2% (prev. +2.4% avg. in October); highlights that the slowdown was broad based and higher core goods inflation meant real spending was ever weaker.

Trade/Tariffs

• US President Trump said they will give refunds out of the tariffs and believes they won't have income tax to pay in the near future.
• US President Trump thanked Chinese President Xi for soybean purchases. It was separately reported that at least six shipments of US soybeans for China are to load at Gulf Coast terminals through mid-December, while the first US sorghum cargo to China since March is also loading at the Gulf Coast terminal, and a second cargo is due next week.
• US President Trump posted that he had a very productive call with Brazilian President Lula and "Among the things discussed were Trade, how our Countries could work together to stop Organized Crime, Sanctions imposed on various Brazilian dignitaries, Tariffs, and various other items." Trump added he believes "it set the stage for very good dialogue and agreement long into the future... Much good will come out of this newly formed partnership!"
• EU is said to be pushing for 70% of critical goods to be made in Europe, according to FT.
• Annual negotiations between Chinese copper smelters and Antofagasta (ANTO LN) have not progressed, as Chinese smelters remain determined to avoid negative fees, via Bloomberg citing sources

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mixed, with the region only partially sustaining the positive momentum from Wall St, where tech and crypto rebounded. ASX 200 traded marginally higher but with gains limited as participants also reflected on disappointing Australian GDP data. Nikkei 225 rallied to back above the 50k level as it benefitted from tech-related momentum. Hang Seng and Shanghai Comp declined after the Chinese tech giants failed to join in the spoils seen in global peers and after the PBoC continued to drain liquidity through its daily open market operations, while participants also digested the latest Chinese RatingDog Services and Composite PMI data, which continued to show an expansion in activity, albeit at a slower-than-previous pace.

Top Asian News

• China was reported to unveil a plan to boost tourism and aviation sectors and will strengthen inbound tourism air routes, while it will continue to ease entry and travel for foreign tourists and will boost tourism through coordinated consumption policies.
• DigiTimes reports that memory spot prices surged in November, despite Samsung Electronics' (005930 KS) RDIMM release marginally easing shortages, as suppliers hiked contract prices significantly. "Some industry insiders reveal that after Samsung halted pricing quotes in October, it resumed DRAM chip quotations mid-November with average contract price increases of 30-40%." "Sources indicate US-based NAND giants raised prices repeatedly, with November quotes 100-150% above October." "Expectations point to even steeper hikes in the first quarter of 2026."
• "Samsung Electronics' (005930 KS) final HBM4 samples are scheduled to undergo 2.5D packaging and finished product testing starting this month," via zdnet citing sources
• China is reportedly likely to maintain the annual growth target of around 5% in 2026, via Reuters citing sources; some advisors cited proposed a 4.5-5.0% target
• India's Chief Economic Adviser says he's not losing sleep over the INR weakening

European bourses (STOXX 600 +0.4%) opened with modest gains, following on from a positive session on Wall St. in Tuesday's session. Price action this morning has been mixed, with a few indices trading rangebound whilst others have gradually edged higher. European sectors are split down the middle. Retail leads the pile (buoyed by Inditex +8.50% post-earnings), whilst Energy and Tech complete the top three. Sentiment for the latter has been boosted after positive results from Marvell, which gains in pre-market trade. To the downside resides Insurance, and Optimised Personal Care.

Top European News

• French Parliamentary debate on the increases to the General Social Contribution on capital income, part of the Social Security Financing Bill (PLFSS), will be discussed later this week after the revenue component, Politico reports.
• ECB's Lane says they have a clear orientation for monetary policy conduct. On inflation "...a sufficiently large and persistent deviation from the target requires a monetary policy response, regardless of its origin". "In summary, this discussion has emphasised that the appropriate monetary policy response to an inflation deviation from the target is context specific and requires a careful analysis of a broad set of considerations. Of course, the capacity to consider “looking through” some types of inflation deviations depends on a strong institutional commitment to delivering the symmetric inflation target over the medium term, underpinning firmly-anchored medium-term inflation expectations".

FX

• DXY is softer today and trades towards the lower end of a 98.99 to 99.30 range. G10s are mostly stronger vs the Dollar, albeit to varying degrees. For the USD specifically, all focus has been on Fed developments, and in particular, President Trump hinting that White House NEC Director Hassett as the “potential” next Fed Chair. Moreover, it was reported in the WSJ that Trump aides have cancelled a number of Fed Chair interviews, after the POTUS said he had made up his mind. JD Vance was reportedly scheduled to meet with more candidates today, though those were cancelled, with the WSJ sources suggesting that it was currently unclear if they would be rescheduled. Odds of a Hassett chair nomination currently reside around 86% vs 75% earlier this week, on Kalshi. Ahead focus turns to US ADP National Employment and then ISM Services.
• EUR firmer and trades at the upper end of a 1.1622 to 1.1663 range. Benefiting from the weaker Dollar and softer energy prices. The single currency was little moved on EZ Final PMI metrics, which were revised slightly higher; the internal report said that the ECB will likely continue to communicate holding steady on rates. Most recently the EUR has notched fresh peaks, but without a clear catalyst; potentially a factor of a slight bounce in EUR/GBP, which gave the EUR/USD a bid.
• Elsewhere, GBP was initially gaining modestly vs the USD, before catching a recent bid, taking Cable to a fresh 1.3279 peak where it currently resides, lifting GBP/JPY closer to the key 207.20 mark and weighing on EUR/GBP. No catalyst for that upside. Thereafter, the GBP took another leg higher on the upwardly revised PMI metrics.
• Uneventful trade for USD/JPY this morning, and ultimately moving at the whim of the Dollar. Currently trading at the lower end of a relatively narrow 155.52 to 155.90 range, awaiting key US data later.
• Earlier, CHF was pressured after a cooler-than-expected inflation report which saw Y/Y printed below expected at 0.0% whilst the M/M printed in-line. In an immediate reaction, EUR/CHF lifted from 0.9332 to 0.9339; the upside was ultimately fairly muted given there were a number of analysts also expecting a 0.0% Y/Y print (which would be in-line). Moreover, traders will look towards the SNB meeting next week; policymakers have significantly raised the bar for a sub-0% policy rate, and while today’s outturn factors on the dovish side, it is unlikely to warrant a return to NIRP, focus instead on inflation forecast adjustments and FX language. Though, a move back to NIRP cannot be ruled out.

Fixed Income

• For the most part, a session of modest gains for fixed benchmarks, ranges limited, awaiting newsflow later in the session. More recently, benchmarks have reverted back to lows and are threatening a move into the red, potentially amid yield upside on continued Crude gains.
• USTs got to a 113-01+ peak, firmer by just under five ticks at best. Yields lower across the curve at first, but the long end moving higher as the morning continues and the steepening bias extends. The main driver being the WSJ reporting that the final Fed Chair interviews have been cancelled and Trump announcing that he will make an announcement early-2026, steepening began as Trump referred to Hassett as the "potential" next Fed Chair.
• Bunds off best in a 128.25-41 band. The benchmark has been firmer for the entire morning, saw some fleeting pressure on upwardly-revised Final PMIs, but for the most part has been choppy and directionless in the mentioned band, before succumbing to what appears to be energy-induced pressure in recent trade.
• A similar story for Gilts. No move to the region's own PMIs, revised higher. Internal commentary was downbeat, though we wait to see how this shakes out in the post-Budget metrics. Commentary also pointed to wage pressure, a point that factors against BoE easing in December, though a cut appears increasingly likely barring a shock in the November CPI print due just before the December announcement. Off highs but firmer by around 10 ticks in a 91.22-50 band.
• UK sells GBP 4.75bln 4.00% 2029 Gilt: b/c 3.10x (prev. 3.06x), avg. yield 3.855% (prev. 3.845%), tail 0.4bps (prev. 0.4bps)

Commodities

• WTI and Brent dipped to a low of USD 58.38/bbl and USD 62.19/bbl, respectively, in the early hours of the APAC session. They have gradually trended higher throughout the European session thus far, as traders react to the lack of significant progress from the Putin-Witkoff meeting in Moscow. Benchmarks have steadily bid c. USD 1.00/bbl from its session lows and are currently trading back above USD 59/bbl and USD 63/bbl. Brent Feb'26 currently trading at the upper end of a USD 62.18-63.37/bbl range.
• Dutch TTF has failed to bid higher following the reports that the EU have reached a deal on phasing out Russian gas imports by 2027. The deal is caveated with a possible extension to the ban implementation in case of difficulty filling gas storage. After opening the session at EUR 28.15/MWh, Dutch TTF has fallen lower and is currently trading near session lows at EUR 27.74/MWh.
• Spot XAU has traded on both sides of the unchanged mark, as the yellow metal struggled to find direction at the start of the European session. XAU followed on from the bid higher in Tuesday's US session and peaked at USD 4229/oz in the early hours of APAC trade. As the European session got underway, the yellow metal dipped back below USD 4200/oz as the market continues to digest the possibility of Kevin Hassett as the new Fed Chair.
• 3M LME Copper has started the European session on the frontfoot and is currently trading at USD 11.41k/t, extending to fresh ATHs. This comes as demand for the red metal continues to grow, shown by the spike in requests to withdraw inventories from LME warehouses. Supply disruptions and front-running of possible import tariffs into the US have been the theme in 2025 that has driven Copper to record highs.
• Ukraine has hit Russia's Druzhba oil pipeline in the Tambov region, according to Reuters sources.

Geopolitics: Middle East

• Israel's COGAT says the Rafah crossing will open in the coming days for Palestinians to exit from Gaza to Egypt.
• Russia's Kremlin says it would be wrong to say that President Putin rejected the US' peace plan, adds that Russia highly values US President Trump's political will and are trying to find a resolution.

Geopolitics: Ukraine

• Russian President Putin's envoy Dmitriev described talks with the US in Moscow as productive after Russian President Putin's meeting with US Special Envoy Witkoff and Jared Kushner lasted for five hours.
• Russian Kremlin aide Ushakov said the conversation between Russian President Putin and US Special Envoy Witkoff was useful, constructive and meaningful and that they discussed several options for Ukraine's settlement plan, although he stated that they are no closer to resolving the crisis in Ukraine, and there is much work to be done. Ushakov said Putin asked to convey a number of important political signals to Trump and they agreed with their American colleagues not to disclose the substance of the negotiations that took place with the discussion confidential. Furthermore, he said American representatives will return to the US, present their findings to President Trump and contact the Russian side, while they also discussed prospects for economic cooperation between Russia and the US.
• European Commission is to make a legal proposal this week to use Russia's frozen assets for a Ukraine loan, according to sources cited by Reuters.
• German Foreign Minister Wadephul says they are to procure an additional USD 200mln worth of military equipment for Ukraine across two packages
• EU Ambassadors meeting has been moved forward to 13:30GMT (prev. 17:45GMT), regarding the use of frozen Russian assets for a Ukraine reparation loan, via Politico. Diplomats cited say that Commission President von der Leyen intends to use Article 122, "solidarity in economic emergencies"; elaborating that this means the clause could be deployed to extend the sanctions renewal period from six months to three years, potentially bypassing the unanimity requirement.
• Belgium Foreign Minister says, re. the use of frozen Russian assets, "the texts the Commission will table today do not address our concerns in a satisfactory manner. It is not acceptable to use the money and leave us alone facing the risks".

Geopolitics: Other

• US President Trump signed into law a measure forcing the State Department to review guidelines for the country’s engagement with Taiwan, according to the White House.
• South Korean President Lee said communication is completely cut off between South Korea and North Korea, while he added that North Korea keeps refusing our efforts to talk. Lee also commented that South Korea can look into the issue of joint exercises with the US to help create grounds for dialogue between the US and North Korea, as well as stated that they will not veer off the road towards denuclearisation of the Korean peninsula.

US Event Calendar

• 7:00 am: Nov 28 MBA Mortgage Applications, prior 0.2%
• 8:15 am: Nov ADP Employment Change, est. 10k, prior 42k
• 8:30 am: Sep Import Price Index MoM, est. 0.1%, prior 0.3%
• 8:30 am: Sep Import Price Index YoY, est. 0.45%, prior 0%
• 9:15 am: Sep Industrial Production MoM, est. 0.05%, prior 0.1%, revised -0.08%
• 9:15 am: Sep Capacity Utilization, est. 77.2%, prior 77.4%, revised 75.84%
• 9:45 am: Nov F S&P Global U.S. Services PMI, est. 55, prior 55
• 9:45 am: Nov F S&P Global U.S. Composite PMI, prior 54.8
• 10:00 am: Nov ISM Services Index, est. 52, prior 52.4

DB's Jim Reid concludes the overnight wrap

Markets showed signs of stabilising yesterday, with the S&P 500 (+0.25%) posting a modest increase after its selloff at the start of the week. US futures are up around the same amount again this morning as we type. Europe’s STOXX 600 (+0.07%) also edged higher, whilst the 2yr Treasury yield (-2.1bps) inched lower as expectations that Kevin Hassett would be nominated for the Fed Chair role continued to solidify. To be honest though, signs of caution still abound, particularly given the backlog of US data. So there is some element of consolidation ahead of next week’s FOMC meeting with the equity market already having run up on the back of pricing moving from a 24.5% probability of a cut just under two weeks ago, to now well over 90%. One asset class that did see ongoing volatility was crypto, with Bitcoin (+5.97%) posting its best day since May as it recovered from Monday’s slump. It's up another couple of percent this morning.  

However, the broader lack of volatility could soon change, as we’ve got a few private US surveys that are attracting more attention than usual. That includes the ADP’s report of private payrolls today, which markets have been more reactive to since the shutdown began, not least because we won’t get the usual jobs report this Friday. Our US economists expect that to come in at +50k in November, which would imply a further 11bps deterioration in the year-on-year growth rate of private employment to 0.62%. So in their view, that would reinforce most Fed officials’ view that the labour market is still gradually cooling. Then shortly after that, we’ll get the ISM services print, where the prices paid component will be in focus given it’s been strongly correlated to US inflation with a lag. That prices paid component hit a 3-year high of 70.0 last month, so it’ll be in focus given we don’t have the official inflation data for October or November yet, and markets are proving much more sensitive to anything else that can provide a steer on what’s happening.  

Ahead of those releases, there was little for markets to react to yesterday. So the S&P 500 (+0.25%) only made a modest gain, with the Magnificent 7 (+0.52%) posting a slight outperformance. To be fair, there were some big individual movers, and Boeing (+10.15%) was the top-performer in the S&P after their CFO said they expected to generate positive free cash flow in the low-single digits next year. But more broadly, there was little to provide much positive traction, with most of the S&P constituents lower on the day and defensive sectors struggling in particular, including energy (-1.28%) and utilities (-0.72%).  

In the meantime, we did hear some news on the search for a new Fed Chair. The initial headline was the lack of news, as President Trump said they‘d be announcing the new Chair “probably early next year”, a bit later than many had anticipated as Treasury Secretary Bessent previously said that there was “a very good chance” we’d get an announcement by Christmas. However, Trump later referred to NEC Director Kevin Hassett as a “potential” Fed Chair and then last night the Wall Street Journal reported that the Trump administration had cancelled interviews with a group of finalists for the role that were set to start this week. So the Polymarket probability of Hassett getting the job moved higher after an initial drop, reaching 87%. Yesterday I published an AI generated CoTD that showed that only 2 out of 15 Fed Chairs have stayed on as Governor after their term as Chair ended. I highlighted that the most recent one to do so, Marriner Eccles, stayed on in 1948 for over 3 years as he was worried about Fed independence in a period the Fed were pegging interest rates to finance WWII debts. Once the Fed Treasury accord was signed, he resigned in the knowledge he had completed his mission. Is there a parallel this time around? If someone is appointed Chair that is perceived to threaten Fed independence could Powell stay on? See the CoTD here for more. Also see DB's Peter Hooper's take on the same topic here for additional insight.  

Back to yesterday, as expectations for Fed rate cuts inched higher, 2yr US Treasury yields were down -2.1bps to 3.51%, whilst the 10yr yield was unchanged at 4.09%. They are both another basis point lower this morning.  
Over in Europe, bonds put in a slightly stronger performance, despite the Euro Area flash CPI print for November coming in above expectations. It showed headline inflation at +2.2% in November (vs. +2.1% expected), whilst core inflation was steady at +2.4% as expected. However, there was more dovish news on the labour market, as the Euro Area unemployment rate came in at 6.4% in October (vs. 6.3% expected). So by the close, yields on 10yr bunds (-0.1bps) just about managed to inch lower, whilst yields on 10yr OATs (+0.6bps) and BTPs (-0.4bps) also saw little movement.  

That underperformance for French OATs comes as the National Assembly have now begun debating the social security bill, with the leader of “Horizons” stating that his members couldn’t approve the Social Security budget. They’re officially in the government coalition, so their lack of approval makes a difference in terms of the final outcome. As a reminder, a vote in the National Assembly is scheduled for December 9, but the previous issue remains in that the Assembly is fragmented between different political groups where no one has a majority. So investors are still keeping a close eye, with the Franco-German 10yr spread (+0.7bps) moving back up to 74bps. France’s CAC 40 (-0.28%) also lost ground yesterday, in contrast to Germany’s DAX (+0.51%) and the Europe-wide STOXX 600 (+0.07%). For more details, our economist has more on the budget process and hurdles ahead in his report on the social security bill.

In geopolitical news, yesterday saw Trump’s envoy Steve Witkoff meet Russia’s President Putin in Moscow to discuss US proposals to end the war in Ukraine. Putin’s chief foreign policy advisor Ushakov said the talks were “constructive and very informative” but that “a compromise hasn’t been reached yet” on territorial questions and that joint talks would continue. Earlier, NBC News reported that there were three points on which the Kremlin was unwilling to compromise, specifically control of all of the Donbass region, a limit on Ukraine’s armed forces and recognition of Russian-controlled territories by the US and Europe.

In Asia the Nikkei (+1.63%) is leading regional gains, driven by technology and real estate stocks, while the KOSPI (+1.18%) is also seeing a notable increase. The S&P/ASX 200 (+0.18%) is registering slight gains after the Australian economy expanded less than anticipated in the September quarter (details below), but with much stronger details below the surface which has increased expectations of rate hikes. Elsewhere the Shanghai Composite (-0.23%) is lower but with the Hang Seng (-1.10%) trading notably lower.  

Turning back to Australia, GDP increased by +0.4% quarter-on-quarter for the three months ending September 30, falling short of the +0.7% growth expectations and slowing from the revised +0.7% rise observed in the previous quarter, as weak net trade and a significant reduction in inventories counterbalanced robust domestic demand. On a year-on-year basis, GDP grew by +2.1% in Q3, compared to expectations of 2.2% and growth of 2.0% in the preceding quarter. Markets have seen it as a hawkish release due to the big inventory miss and one of the strongest final demand prints in the last 10-15 years.

Indeed, yields on the policy-sensitive 2-year government bonds have risen by +5.7bps, settling at 3.91%, while 10-year yields have increased by +3.1bps, trading at 4.64% as we prepare to publish. Elsewhere, 10 and 30yr JGBs are up by +2.8bps and 4.3bps respectively ahead of a 30yr auction tomorrow.  

Separately, in China, a private survey indicated that growth in the services sector has slowed to a five-month low in November, with the services PMI declining to 52.1 from 52.6. This slowdown is attributed to weaker new orders and ongoing job contractions, despite a modest improvement in export activity.

To the day ahead now, and US data release include the ISM services index for November, the ADP’s report of private payrolls for November, and industrial production or September. Otherwise, we’ll get the final services and composite PMIs for November from the US and Europe. Finally, from central banks, we’ll hear from ECB President Lagarde, the ECB’s Lane, and the BoE’s Mann

Tyler Durden Wed, 12/03/2025 - 08:37

Europe's Energy Transition Destroyed its Economy

You can have cheap, dependable electricity to encourage economic growth and prosperity, or you can have a grid supported by wind and solar energy. Europe chose the latter.

So far, the promise of “abundant solar and wind energy” has only succeeded at one thing: slashing carbon emissions by 30% from 2005 levels. Thankfully, food for European families is paid for by reducing greenhouse gases, right? Unfortunately, the emission reduction is the only benefit to be had by Europe’s current plan of destroying dependable coal and nuclear plants in favor of building unpredictable and unreliable wind and solar energy infrastructure. Here is the WSJ with the damning facts: 

“Germany now has the highest domestic electricity prices in the developed world, while the U.K. has the highest industrial electricity rates, according to a basket of 28 major economies analyzed by the International Energy Agency. Italy isn’t far behind. Average electricity prices for heavy industries in the European Union remain roughly twice those in the U.S. and 50% above China.”

Maybe burning all bridges - and blowing up subsea pipelines - to cheap Russian conventional energy was not the best idea.

In any case, absent huge changes, Europe has permanently excluded itself from the entire data center and AI industry boom. Why are all the data centers in the western world being built mostly in the US? Just look at the chart above. A massive cost to data center operators is the extremely electrical demand of their server racks and their cooling systems. They can pay over 25 c/kWh in some European countries, or they can come over here and pay as low as 8 c/kWh. The difference is an immediate deal breaker.

In some cases, it’s not even the prices turning off the data centers: European infrastructure industry just can’t handle it. “Jerome Evans, the CEO of a German data-center operator, sought to expand his two data centers in Frankfurt, Germany’s internet crossroads. The local power provider told him he would have to wait a decade, until 2035, for the energy to power them.”

The examples showcasing the results of Europe’s energy infrastructure choices are endless:

“‘We are hemorrhaging industry,’ said Dieter Helm, an economic professor at Oxford University who has advised U.K. governments on energy policy. British chemical company Ineos said in October it would close two plants in western Germany because of high energy costs. In recent days, Exxon-Mobil said it would close its chemical plant in Scotland and threatened to exit Europe’s chemicals industry, saying green policies made it uncompetitive.”

Meanwhile, the unpredictability of solar and wind is hurting everything everywhere. The costs of construction and operation are obscured by carbon taxes and government subsidies, and power finds its way to the grid on cloudy or windless days anyways, so what’s the issue? Those powerless days where panels and mills are sitting idle require power to be purchased, at a premium, from nearby countries. When this occurs for weeks at a time, prices can skyrocket for everyone.

As highlighted earlier, the problems are also only just starting, and the question of what to do with the impending wave of “renewable waste” will demand an answer.

Europe pursued the grand energy transition using the “or” strategy, in contrast to the “and” strategy used by the US. Europe has decided to shutdown all of its coal, gas, and nuclear plants while trying to at the same time build as much wind and solar as possible to replace the destroyed capacity. Compare this to countries like the US that instead decided to build more of everything at the same time, and the results become alarmingly clear.

The US took its buildout of nuclear energy a step further with the announcement of nearly a billion dollars for deploying new advanced reactor technology. $400 million will be provided to the Tennessee Valley Authority for developing the BWRX-309 reactor, a joint venture reactor design between GE Vernova and Hitachi. Their reactor is already under construction in Canada at the Darlington site, while the permit to start construction of the second iteration is under review by the NRC.

Another $400 million will go to Holtec to deploy two of their SMR-300 reactors at the Palisades site in Michigan. Both designs receiving Department of Energy funding are smaller reactors with target outputs of about 300 MW electric, compared to the much larger AP1000 reactors built in Georgia that are rated to about 1,100 MW electric. This class of small-but-still-pretty-big reactors focus on minimizing land use and supporting electric grids on a small scale. There’s also a place for them powering larger-scale data centers.

Both reactor projects in Tennessee and Michigan look to be grid connected in the 2030s.

Tyler Durden Wed, 12/03/2025 - 06:55

A Third Of Glasgow Schoolchildren Don't Speak English

Authored by Steve Watson via Modernity.news,

Nearly one in three children in Glasgow’s primary schools do not speak English as their first language, according to new council data, highlighting a dramatic shift driven by record migration levels that are overwhelming local resources and raising urgent questions about integration and public services.

The figures, revealed in a Telegraph report, show 31% of pupils in the city’s primaries requiring English as an additional language support, up from 25% five years ago, amid Scotland’s net migration hitting 50,000 annually.

As classrooms grapple with translation demands and parents voice fears over cultural silos, the crisis underscores a broader UK strain where rapid demographic changes are testing the limits of cohesion without adequate planning.

'This is a symptom of an immigration system that is way too overrun…'

Political Commentator @DobbsandPolicy reacts to news that almost 30% of students in Glasgow do not speak English as their first language. pic.twitter.com/ttfceYjm6k

— GB News (@GBNEWS) December 2, 2025

Glasgow City Council’s latest census data indicates 31% of primary school pupils—over 7,000 children—now need English language support, a 24% jump since 2020, per the Telegraph.

The most common languages are Arabic, Polish, Urdu, and Punjabi, reflecting waves of refugees from Syria, Ukraine, and Afghanistan alongside EU migration.

Council education chief Councillor Christina Cannon admitted, “We have seen an explosion in the number of children who need English as an additional language support.”

? Almost one in three pupils in Glasgow does not speak English as their main language, analysis shows

Take a look at our data-led study below ?https://t.co/6SWq10xVgh

— The Telegraph (@Telegraph) December 1, 2025

She added, “This is putting huge pressure on our schools and teachers, who are doing an incredible job but are stretched thin.”

The report notes over 100 schools now have dedicated EAL coordinators, but funding lags behind demand, with one headteacher quoted anonymously, “We’re using Google Translate for parent meetings—it’s not sustainable, and kids are falling behind in core subjects.”

Glasgow’s transformation stems from Scotland’s “unprecedented” migration surge, with net inflows topping 50,000 yearly since 2022, driven by asylum seekers, refugees, and post-Brexit EU arrivals, per National Records of Scotland.

The city, Scotland’s largest, absorbed 10,000 asylum seekers in 2024 alone under SNP policies, overwhelming housing and education. As the Telegraph details, this has led to “language silos” in neighborhoods like Pollokshields, where Arabic dominates, and parents report “parallel societies” forming.

Over time would take generations not 2 years

— darran (@gynoshwad) December 2, 2025

SNP education secretary Jenny Gilruth stated “Migration is a good thing for Scotland’s economy, but we need better funding for integration programs.” Critics like Tory MSP Murdo Fraser counter, “The SNP’s open-door policy is creating ghettos—schools can’t cope without massive investment.”

Residents in Glasgow’s ‘diverse’ east end express growing concern over cultural divides. One mother, speaking to the Telegraph, said, “My son’s class has 15 different languages—it’s wonderful in theory, but he’s struggling because the teacher spends half the day translating.”

A local teacher added, “We’re seeing cliques based on language, not ability—it’s dividing kids before they start.”

When 3 in 10 pupils can’t speak English as a first language, that’s not “diversity” — it’s the result of an immigration system totally out of control.
Schools can’t teach properly, standards drop, and integration becomes impossible.
This isn’t sustainable, and everyone knows it.

— Ben Crichton (@Bencrichton_3) December 2, 2025

Fraser further warns that “Without urgent action, we’ll see more ‘parallel societies’ like in parts of London, where integration fails and tensions rise.”

The report ties this to national trends, with 20% of England’s pupils needing EAL support, but Glasgow’s 31% rate is among the highest, straining a system already short 1,000 teachers.

The data isn’t just numbers—it’s a wake-up call for a city transformed by migration without the infrastructure to match. As Cannon urges, “We need ring-fenced funding now, or our schools will break.” With SNP ministers promising reviews but no immediate cash, Glasgow’s classrooms teeter on the brink, a microcosm of a much wider migration crisis.

If they don't have English as a first or main language, what are they learning and IMPORTANTLY, are allowances made for their lack of English, thus downgrading their qualifications?

— Matthew Harper No DMs – We're in big trouble (@MattHarperUK) December 2, 2025

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Wed, 12/03/2025 - 06:30

"Power Up America" Needs 500,000 Highly Skilled Workers

We've already pointed out that money isn't the problem in America's unprecedented data center construction buildout. Big Tech's AI capex splurge is effectively endless thanks to "circle-jerk" vendor-financing schemes, and land is plentiful.

The real bottleneck? First, it was power - or rather, the lack of it - as the grid struggles to hook up hyperscalers sprinting toward ever larger and more power-hungry AI server racks.

True.

That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.

— Elon Musk (@elonmusk) October 14, 2025

Beyond a power grid already stretched thin due to limited capacity, the Trump administration is now scrambling to fix this with an accelerated nuclear push before the 2030s. We've identified another problem that central bankers can't print their way out of: skilled labor. And no, we're not talking about the need for cheap, unskilled migrant labor. We're talking about a highly skilled workforce required to build, run, and maintain data centers, as well as expand the power grid and operate nuclear power plants. 

Wow:

"In 2025-28, we project ~57 gigawatts (GW) of US data center power demand, and we quantify available power capacity to serve this demand as: near-term grid access of ~12-15 GW, plus ~6 GW of data centers under construction, resulting in a ~36 GW shortfall of US power… pic.twitter.com/4PArdYY9qO

— zerohedge (@zerohedge) December 16, 2024

In early October, Goldman noted that data center buildouts will require an additional 300,000 workers across manufacturing, construction, and operations to meet power demand by the end of the decade.

And then there is the issue of where the US gets 300,000 engineers to build all this missing power supply by 2030 https://t.co/a18crhqZ4v pic.twitter.com/tinW8SHDwM

— zerohedge (@zerohedge) October 14, 2025

Now, Goldman analysts led by Carly Davenport are telling clients that the power industry will need over 500,000 new workers by 2030 to meet the surging electricity demand from data centers and the broader economy-wide electrification push.

Davenport explained:

"The US power industry is poised to require >500,000 new workers by 2030 or a significant acceleration in labor productivity. This growth enters a labor force already facing strain from aging and a limited pipeline of skilled labor. Labor-demand challenges to meet levels of US power-demand growth not seen since the 1990s are rising amid the Demographic Dilemma — a shrinking productive labor pool tasked to support an aging population — which raises the risk of G7 labor-force strains. This is elevating investor/corporate debates on industry execution and whether/when rising power, equipment, and labor costs could constrain growth."

Generational growth to achieve 2.6% CAGR in electricity demand through 2030 could require ~510,000 US power and grid jobs (a 28% increase versus the 2023 US energy workforce).

"We estimate the need for ~300,000 incremental jobs across manufacturing, construction, and operations/maintenance (Exhibit 10)…

…plus an additional 207,000 across US transmission and distribution (Exhibit 11)."

What's critical to understand is that the trillions in investment flooding into the economy through the 2030s will require far more than steel, concrete, silicon chips, and copper wire. They will demand a massive expansion of highly skilled workers.

Right now, there is a terrible oversupply of college-educated workers and a deepening shortage of talent for non-degree, hands-on jobs - a widening gap highlighted in a recent Goldman note by analyst Evan Tylenda.

Our advice for young people struggling to find a real job: ditch the useless gender-studies degree and learn a trade that's becoming increasingly valuable to "Powering America." For college students who haven't been brainwashed by Marxism and wokism, aim for fields that will actually matter, such as engineering, energy systems, and nuclear science - all of which will be in red-hot demand in the 2030s.

The labor market is shifting fast. It's time to move with it and choose a career that won't be automated into oblivion anytime soon.

Tyler Durden Tue, 12/02/2025 - 21:20

Why Healthcare Is In A Death Spiral: Follow The Money

Authored by Charles Hugh Smith via OfTwoMinds blog,

If each of these is not a part of any 'reform,' than all that is being done is pouring money into a monopolizing cartel, just in a slightly different way.

Unbeknownst to those of us with little inside knowledge of the complex financial plumbing of the US healthcare system, healthcare is in a death spiral that will surprise everyone but insiders who grasp the system's unsustainability.

To help us outsiders understand the death spiral, I asked a senior MD to guide us through "follow the money."

Trump Blasts "Big, Fat, Rich Insurance Companies" As Lawmakers Propose Ways To 'Fix' Obamacare.

Since this is the issue of the day and it falls within my expertise, here are some thoughts.

Executive Summary

Multiple conditions are aligning for a broad re-alignment of medical care delivery in the US, resulting in the development of a two-tiered delivery model: high-quality, efficient, innovating cash-pay for those who can pay and low-quality, wait-rationed care delivery for those who can't.

If you can't afford it, don't get sick.

Health systems make their money through inflated commercial real estate (CRE), sale of patient health information (PHI), consolidation of supply chains, and kickbacks in exchange for redirecting federal dollars. Absent a tiny sliver of procedures, the delivery of healthcare itself is a loss leader. It is a requirement for entry, not a source of value. As such, care delivery managed to prevent loss, not promote innovation.

Most health system CEOs are financial engineers, not care delivery specialists, and compare the size of their real estate management infrastructure with their care delivery management infrastructure; the former is always much more robust than the latter.

Insurers have become utilities, administering government payment programs. Their ability to bear risk as a business model was discarded with the ACA; they no longer have the infrastructure or talent to do so. You might as well ask them to make shoes.

This monoculture, the corruption of monopoly and finally the response to the pandemic has crippled both.

Health systems faced a profound interruption in throughput which they dealt with by tapping reserves, inflating CRE further, pushing the boundaries of PHI sales, increasing their kickback programs, and, most importantly, becoming fully dependent on the now ending government bailouts.

Further consolidation and partnering with private money is their only path forward. Recent experience teaches that the private money will cut the delivery of healthcare to the bare minimum needed to maximize the other sources of value. A whole lot of administrators and c-suiters are also going to lose their jobs.

After the ACA, the Insurer's only cash cow was the immensely overfunded and fraud-filled Value-Based Care (VBC) Medicare and Medicaid programs such as Medicare Advantage. The fraud is now being criminally prosecuted, the overpayments are gone, and the cost of care delayed during the pandemic and which the insurers now bear are being realized manifold.

Insurers simply have no path forward other than as payment administrators. Look for massive consolidation, starting with the individual Blues. The government has been resistant, but now it's a choice of merger or bankruptcy. In 2028 probably only Coventry, United, and Centene will be left standing, no more blues.

The ACA itself is in a death spiral. Envisioned as a universal mandatory risk pool, so many exceptions have been made that only the sickest and those who have no choice get their care there, the former being subsidized by the latter, the government, and ever dwindling coverage. The pandemic subsidies masked it and without them the coverage is non-sensical. Non-participation will be its end.

In addition, government medical care programs have long been subsidized by suppressing payment for the resources used to obtain care delivery; clinicians, labor, administration, and even bedpans. Real wages for even the highest paying doctors working within the system haven't increased since 2010, nursing wages have gone up only because so many have become free-lancing agency workers. I got offered a locums position for $145/hour, the same as I was offered 8 years ago.

All those resources are now worth more outside the system than inside. Thus, those resources are migrating to the cash-pay market. Used to be the huge government market and dependable payments was enough to overcome the difference in value between the two markets, cash vs third party. No longer.

The legacy costs, management/leadership expertise and business models of current Fee For Service (FFS) health systems preclude all but the most highly branded health systems from competing in the cash-pay model.

Access to the cash-pay market will vary based on jurisdiction: it's illegal in some states, hamstrung by others, free in still more.

Look for policy to evolve into a high-dollar, deductible, roll-over Health Savings Account (HSA) with income-based subsidies paired with a government subsidized catastrophic care program. At least until the young and disaffected elect a socialist.

A $2,000 direct payment to beneficiaries such as being currently contemplated is completely ineffectual, especially since it has to be borrowed and will just increase inflation that much further.

True reform must include:

1.Invalidation of state and federal laws which restrict cash-pay.

2. Prohibition of not-for-profit (NFP) / Religious organizations from third-party payment programs. The competitive advantage of the tax-free business model and the inherent corruption it has engendered render their participation not in the public interest.

3. Removal of restrictions on clinician ownership in healthcare delivery.

4. Renewed criminal anti-trust enforcement in medical care delivery.

Others can be added, but if each of these is not a part of any 'reform,' than all that is being done is pouring money into a monopolizing cartel, just in a slightly different way.

No improvement will occur.

It's not payments which need reform, it's delivery.

And a lot of folks' paychecks depend on obfuscating that fact.

Thank you, senior MD for the guided tour of healthcare's financial death spiral. I have long stated that healthcare in its current extractive-cartel form will bankrupt the nation all by itself:

Why America's Healthcare (Sickcare) System Is Broken and Unfixable (July 16, 2014)

Sickcare Will Bankrupt the Nation (March 21, 2011)

My questions:

1. Is any of this financial plumbing actually private insurance, or is it all just sluicing government funding through a profitable skimming operation?

2. How can a 'healthcare' system that refuses to connect digital derangement, ultra-processed diet and poor fitness to 'health' possibly generate 'health' as an output?

These questions are taboo because the answers would implode the entire system.

Medicare costs: parabolic:

Medicaid costs: parabolic:

*  *  *

My new book Investing In Revolution is available at a 10% discount ($18 for the paperback, $24 for the hardcover and $8.95 for the ebook edition). Introduction (free)

Tyler Durden Tue, 12/02/2025 - 20:55

U.S. Navy's "Doomsday" Aircraft Vanishes Over Atlantic On Mysterious Mission

A Boeing E-6B Mercury operated by the U.S. Navy, one of the service’s airborne nuclear command posts commonly known as the “Doomsday plane,” disappeared from civilian flight-tracking platforms Friday morning while operating over the Atlantic Ocean, according to tracking data, the Daily Mail reports.

One of just 16 specialized 'Doomsday planes,' Mercury serves as a command-and-control hub for US Strategic Command, the Secretary of War and the President

The aircraft, using callsign AFD FE2, was last observed on ADS-B Exchange and similar services around 8:30 a.m. EST approximately 60 miles east of Virginia Beach, Virginia. The plane had departed Naval Air Station Patuxent River, Maryland, on a standard southeast track over Chesapeake Bay before its transponder was deactivated.

During TACAMO (Take Charge and Move Out) missions, the E-6B typically enters restricted warning areas, deploys a miles-long trailing-wire antenna, and flies extended racetrack patterns to relay secure communications to U.S. ballistic-missile submarines and other strategic assets, Key Aero reports.

The E-6B fleet also performs the Airborne National Command Post “Looking Glass” mission, equipped with the Airborne Launch Control System (ALCS) capable of transmitting launch orders to silo-based intercontinental ballistic missiles if ground command centers are destroyed. An E-6B conducted an ALCS simulated ICBM launch exercise as recently as April.

The Navy and U.S. Strategic Command have not commented on Friday’s flight.

In August, another E-6B was recently forward-deployed to Pituffik Space Base in northern Greenland for what the service claimed was routine operations, including exercises with nuclear submarines in both the Atlantic and Pacific. However, aviation analysts, including Hans Kristensen, director of the Nuclear Information Project at the Federation of American Scientists, described the E-6B aircraft's flight near Greenland as unusual. Historical E-6B forward operating locations have included Guam, Norway, Germany, Spain, and the U.K., according to Newsweek.

“Naval Strategic Forces conduct global operations in coordination with combatant commands, services, and allies and partner nations, even in the High North,” Commander Jason Fischer, a spokesman for U.S. Submarine Forces, told Newsweek.

Tyler Durden Tue, 12/02/2025 - 20:30

National Teachers Union Training Members To Promote LGBT Ideology, Parents Group Says

Authored by Aaron Gifford via The Epoch Times (emphasis ours),

The nation’s largest teachers union is planning a workshop on “Advancing LGBTQ+ Justice,” prompting criticism from a conservative national parent group that obtained the training handouts and released them to the public ahead of the session.

Third grade literacy instructor Katelyn Battinelli speaks with students at Stark Elementary School in Stamford, Conn., on March 10, 2021. John Moore/Getty Images

The National Education Association’s (NEA’s) next Focus Academy session is planned for Dec. 2 to Dec. 4. Participants will “develop a toolset of tactics for dismantling systems of privilege and oppression as it relates to LGBTQ+ educators and students,” the union’s website states.

The union’s national headquarters are in Washington, but the registration page does not disclose an address for the training. Upcoming Focus Academy sessions on advancing “racial justice” and winning school board elections are scheduled for early 2026.

Defending Education, a parent and research organization that opposes progressive curricula and policies such as transgender ideology, critical race theory, and diversity, equity, and inclusion in public schools, obtained and released the handout in November.

“The NEA is the largest teachers’ union in the country, and they have decided to vilify half the country in an upcoming training,” Erika Sanzi, Defending Education’s senior communications director, said in an email sent to The Epoch Times. “As far as they are concerned, the only reasons anyone could oppose their preferred ideologies are racism and transphobia, and they name Republicans as villains, in writing!”

The first section of the materials is a pronoun guide with “tips for using gender-neutral pronouns.”

The next section contains Cornell University’s “Transgender Guide to Transitioning and Gender Affirmation in the Workplace.”

A guide from the National LGBTQ Task Force lists “levels of expression and oppression.” This document is not limited to gender ideology and alleges discrimination against black and Hispanic public school children, immigrants, and women in the workplace.

The NEA’s policy on LGBT employee rights is included in the handout. It includes guidance on a recent Supreme Court ruling determining that parents are allowed to opt their children out of LGBT-related instruction for religious reasons.

“The decision only requires schools to provide opt-outs on the basis of sincerely held religious beliefs and practices,” the guidance states. “It does not require schools to grant opt-outs based on parent/guardian personal, political or ideological beliefs or preferences.”

The last section of the handout, “Transgender Youth and the Freedom to Be Ourselves: Building a Choir With a Race Class Narrative,” was commissioned by the Transgender Law Center. It accuses conservatives of exploiting people who identify as transgender.

“Over the last ten years, Republicans in state legislatures have increasingly turned to anti-transgender rhetoric and legislation as a powerful complement to their arsenal of racist dog whistles used to whip up fear and consolidate power,” the document states.

Defending Education’s position on the NEA materials is that the union wants teachers to train students to become social justice advocates instead of teaching them facts and skills.

“Their federal charter was granted because they promised to elevate the character and advance the interests of the professions of teaching; and to promote the cause of education in the United States,” Sanzi said in an email.

“Seeing as their leadership—and by extension, the organization itself—has morphed into a far-left insane asylum that is actively destroying the cause of education, that charter is no longer defensible.”

The NEA did not respond to a request for comment.

Tyler Durden Tue, 12/02/2025 - 20:05

Alabama Zoning Commission Rejects Proposal For Muslim School After Town Erupts In Fury

A Hoover, Alabama zoning commission unanimously rejected a rezoning request Monday that would have allowed a Muslim K-12 academy to relocate to an office building in the Birmingham suburb, capping a contentious public hearing that packed roughly 170 residents into the room and erupted with heated testimony over concerns of growing Islamification of the area, 1819 News reports.

Image: Via 1819

The Islamic Academy of Alabama, which has operated in neighboring Homewood since 1995 serving approximately 260 students, sought to move to a larger facility in Hoover's commercial corridor. The proposal was voted down 7-0 to sustained applause from the crowd of concerned residents.

The town's commissioners pointed to vehicular congestion in an already-strained commercial corridor and lingering questions about the property's long-term compatibility as grounds for denial.

John Padgett, whose residential property sits closest to the proposed location, challenged the traffic study's conclusion that the school would have zero impact on current conditions.

"I see the traffic backed up every morning already," Padgett reportedly told commissioners. "When they start, if you add a few hundred cars to that, it's gonna be backed up past the stop sign."

Padgett recounted a recent incident at an Airbnb next door to his home, carefully prefacing his remarks.

"I want to be very sensitive and careful in the way I say this," he began, noting that he didn't want to seem as though he was attacking a particular religion. "They weren't supposed to have any kind of big parties, but they had an Islamic wedding there."

Padgett described returning from a trip to find videos from neighbors showing dozens of cars—30 or 40, he estimated—parked throughout the neighborhood, including in his own driveway without permission, blocking his vehicles.

"They drove through my yard. Waving Islamic flags, out the window, and screaming things in Arabic," he said.

Several attendees brandished signs reading "Give an inch — Dearborn Michigan" and "Stop the 100 year plan"—pointed references to demographic shifts in Dearborn, Michigan, which is home to the largest Muslim population in the United States.

"You're going to have real problems with this community, I'm just telling you now," resident Bruce Davis warned commissioners. "There's going to be an influx of other people that are going to create a problem for this community and we might as well just face it."

The final public commenter drew applause as the unidentified woman recounted travels through the United Kingdom and issued stark warnings about parallel risks facing the United States. The female speaker described witnessing "the land that gave us the King James Bible, supposedly a Christian nation, overwhelmingly being taken over," according to 1819 News.

"The Muslims did not assimilate," she continued. "In fact, the Brits bent backwards to accommodate their demands over and over again, to the level of feeling the second-class citizens in their own country."

"The citizens could not even voice their grief because it was immediately associated with that type of phobia," she added. "They gave in an inch and were soon taken for rides, miles away, with no hope of landing back to familiarity."

Hoover Commission Chairman Mike Wood cut her off, steering the discussion back to zoning criteria. "We are here to look at whether this school was appropriately placed," he interjected. "We're not here for that. I'm sorry. We're not going to listen to that." The interruption sparked objections from the audience.

Lucas Gambino, who presented the case for the school, pushed back against the city's objections.

"We're not here to mislead anybody or trick anybody," Gambino said, addressing questions about the evolving scope of what was variously described as a community center, prayer center, or auxiliary facility.

Gambino argued against forcing the developer to wait indefinitely for an idealized tenant.

"The idea that holding these 200,000 square feet buildings hostage for a tech buyer to come in and occupy those buildings, when you have a developer that owns those buildings, that's paying significant carrying costs, on a monthly basis, for those buildings," Gambino explained. "It's gonna be asked to sit back and wait for a tech buyer to come in and occupy those buildings."

Initially, a motion to send the request to the city council without a recommendation was made, but it failed to receive a second. A motion to move the proposal forward with a recommendation to deny it then passed unanimously. The decision now moves to the Hoover City Council, which will likely take up the matter at its first January meeting.

Tyler Durden Tue, 12/02/2025 - 19:40