Bond And Bitcoin Selloff Leaves Stocks Unsteady

The White House on Monday defended a U.S. admiral's decision to conduct multiple strikes on an alleged Venezuelan drug-smuggling vessel in September, saying he had Defense Secretary Pete Hegseth's authorization, even as critics questioned the legality of a strike on survivors.

The Washington Post had reported that a second strike was ordered to kill two survivors from the initial strike and to comply with an order by Hegseth that everyone be killed.

President Donald Trump said on Sunday that he would not have wanted a second strike on the boat and said Hegseth denied giving such an order.

But White House spokeswoman Karoline Leavitt said on Monday that Hegseth had authorized Admiral Frank Bradley to conduct the strikes on September 2.

"Secretary Hegseth authorized Admiral Bradley to conduct these kinetic strikes. Admiral Bradley worked well within his authority and the law directing the engagement to ensure the boat was destroyed and the threat to the United States of America was eliminated," Leavitt said.

Leavitt said the strike was conducted in "self defense" to protect U.S. interests, took place in international waters and was in line with the law of armed conflict.

"This administration has designated these narco terrorists as foreign terrorist organizations," Leavitt said.

Starting in September, the U.S. military has carried out at least 19 strikes against suspected drug vessels in the Caribbean and off the Pacific coasts of Latin America, killing at least 76 people.

Critics have questioned the legality of the strikes, and both Republican and Democratic lawmakers have pledged to look into them.

International humanitarian law prohibits attacks on incapacitated combatants. The Defense Department's Law of War Manual states that shipwrecked persons cannot be knowingly attacked and must receive medical care unless they act with hostility or attempt escape.

George Washington University law professor Laura Dickinson said most legal experts do not believe the boat strikes qualify as armed conflict, so lethal force would only be allowed as a last resort.

"It would be murder outside of armed conflict," she said. Even in war, the killing of survivors "would likely be a war crime."

A group of former military lawyers, the JAGs Working Group, called the order "patently illegal," saying service members have a duty to disobey it and that anyone who complies should be prosecuted for war crimes.

On X, Hegseth defended Bradley, calling him "an American hero" and saying he has his "100% support." Hegseth said he stands by Bradley's combat decisions "on the September 2 mission and all others since."

Trump on Monday discussed with top advisers the

pressure campaign against Venezuela, among other topics, a senior U.S. official said.

US OPTIONS INCLUDE EFFORT TO OUST MADURO

Trump has flagged the possibility of U.S. military intervention in Venezuela. On Saturday, he said the airspace above and surrounding Venezuela should be considered "closed in its entirety," but gave no further details, stirring anxiety and confusion in Caracas.

Trump confirmed on Sunday that he had spoken to Venezuelan President Nicolas Maduro, whom the U.S. considers an illegitimate leader, but Trump declined to provide details of the conversation.

The Trump administration has been weighing options to combat what it has portrayed as Maduro's role in supplying illegal drugs that have killed Americans. Maduro has denied having any links to the illegal drug trade.

Reuters has reported the options under U.S. consideration include an attempt to overthrow Maduro, and that the U.S. military is poised for a new phase of operations after a massive military buildup in the Caribbean and nearly three months of strikes on suspected drug boats off Venezuela's coast. Trump also has authorized covert CIA operations in the country.

Source: Reuters

Trump Signals Break from Powell as Fed Leadership Transition Looms

A Highly Personal Decision Rooted in Longstanding Criticism

The Stakes: A Central Bank Under Political Influence?

Confirmation Likely, But Policy Direction Remains Uncertain

Trump’s Fed Pick to Cement Economic Legacy

Source: CNN

The U.S. dollar remained under pressure on Tuesday as weaker-than-expected manufacturing activity data from the world's biggest economy heaped pressure on the Federal Reserve to cut interest rates at its policy meeting later this month.

The U.S. dollar index, which measures the greenback's strength against a basket of six major peers, edged lower to 99.408 at the start of the Asian trading session after falling for a seventh consecutive session to hit a two-week low during U.S. trading hours on Monday as stocks and bonds pulled back.

Data released on Monday showed U.S. manufacturing contracted for the ninth straight month in November, as the Institute for Supply Management's manufacturing PMI dropped to 48.2 in November from 48.7 a month earlier.

Gauges of new orders and employment also deteriorated, while input prices rose as the drag from import tariffs persisted. "It all suggests to me that demand in the economy has decelerated," said Brian Martin, head of G3 economics at ANZ in London. "I really do think the Fed needs to cut interest rates, and not just cut rates in December, but follow through with further cuts next year," he said on a podcast, adding he forecasts an additional 50 basis points of cuts in 2026. Fed funds futures are pricing in an implied 88% probability of a 25-basis-point cut at the U.S. central bank's next meeting on December 10, compared to a 63% chance a month ago, according to the CME Group's FedWatch tool.

The yield on the U.S. 10-year Treasury bond was last up at 4.086% after a selloff in global bond markets on Monday. Against the yen, the dollar traded at 155.51 yen, unchanged from late U.S. levels, after Bank of Japan Governor Kazuo Ueda said on Monday that the central bank would consider the "pros and cons" of raising interest rates at its next policy meeting, sending Japanese two-year yields above 1% for the first time since 2008. The euro stood at $1.1610, holding steady so far in Asia, as talks to end the war in Ukraine continued, with European leaders rallying around Ukrainian President Volodymyr Zelenskiy after an earlier U.S.-backed peace proposal that favoured Russia, while the U.S. special envoy headed to Moscow for more talks with the Kremlin.

Sterling traded at $1.3216, near its highest levels in a month but little changed so far on the day. The head of Britain's fiscal watchdog resigned on Monday after the agency inadvertently released key details of the government's annual tax and spending budget last week before finance minister Rachel Reeves announced them in parliament. The Australian dollar fetched $0.6544, while the kiwi dollar traded at $0.5727, both little changed at the start of the Asian trading session.

Source: Investing

Australia on Tuesday unveiled a roadmap to ramp up the adoption of artificial intelligence across its economy but said it would rely on existing laws to manage emerging risks, stepping back from earlier plans for tougher rules on high-risk scenarios.

Australia currently has no specific AI laws though the centre-left Labor government last year signalled it would introduce voluntary guidelines amid concerns over privacy, safety and transparency.

In its National AI Plan released on Tuesday, Labor said it would focus on luring investment in advanced data centres, building AI skills to support and protect jobs, and ensuring public safety as AI becomes more integrated into daily life.

"The government's regulatory approach to AI will continue to build on Australia's robust existing legal and regulatory frameworks, ensuring that established laws remain the foundation for addressing and mitigating AI-related risks," it said in the plan.

Agencies and regulators will remain responsible for identifying and managing potential AI-related harms within their sectors, it said.

The roadmap comes after the government last month said it would set up an AI Safety Institute in 2026 to help authorities monitor emerging risks and respond to threats.

Global regulators have increasingly raised concerns about misinformation associated with generative AI tools such as Microsoft-backed OpenAI's ChatGPT and Google's Gemini, as their use becomes widespread.

Federal Industry Minister Tim Ayres said the AI roadmap aims to ensure Australians can benefit from new technology while maintaining a balance between innovation and risk management.

"As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe," Ayres said.

But Australian Catholic University Associate Professor Niusha Shafiabady said there were critical gaps in the government's updated AI roadmap.

"The plan is ambitious in unlocking data and boosting productivity, but it leaves critical gaps in accountability, sovereignty, sustainability, and democratic oversight," Shafiabady said.

"Without addressing these unexplored areas, Australia risks building an AI economy that is efficient but not equitable or trusted."

Source: Investing

French President Emmanuel Macron will travel to China this week for his fourth state visit, as Europe seeks to balance economic and security threats from Beijing with reliance on the world's second-largest economy during a time of global trade turmoil.

Macron in the past has sought to project a robust European front in dealing with China, while being careful not to antagonise Beijing, whose growing assertiveness is testing trade, security and diplomatic ties, analysts say.

"He must make clear to China's leadership that Europe will respond to growing economic and security threats from Beijing, while preventing an escalation of tensions that leads to a full-blown trade war and diplomatic breakdown," Noah Barkin, a China analyst with Rhodium Group, told Reuters.

"This is not an easy message to deliver," he said.

CHINESE EXPORTS HAMMERING EUROPEAN INDUSTRY

Macron, who will start his trip with a visit to Beijing's Forbidden City on Wednesday, will meet President Xi Jinping on Thursday in the capital and again on Friday during a trip to Chengdu, in southwestern Sichuan province.

His visit comes after a tense trip by European Commission President Ursula von der Leyen in July, when she said ties between the EU and China were at an "inflection point."

British Prime Minister Keir Starmer and German Chancellor Friedrich Merz will visit early next year.

Trade tensions between China and Europe have risen as cheap Chinese exports, in the steel sector in particular after being shut out of the U.S. market, are hammering swathes of European industry.

There is also anxiety in Europe at China's growing technological superiority in the electric vehicle (EV) sector and its dominance in rare earths processing, which could threaten supplies for critical European industries.

With Washington's tariffs squeezing global trade, Beijing is seizing the opportunity to present itself as a partner for business – hoping to mollify European concerns over China's backing for Russia and its state-subsidised industrial model.

Ahead of the trip, Macron's advisers said he would push for a rebalancing of trade dynamics so that China boosts domestic consumption and hoped the "gains from innovation could be shared", so that Europe gets access to Chinese technology.

To combat growing concern over China trade, the European Union is expected to unveil a new economic security doctrine that could see the bloc deploy its toolbox of trade instruments in a more aggressive way towards China.

France, whose carmakers have negligible sales in China but are under pressure to succeed in their transition to EVs at home, backed a European Commission push to raise tariffs on Chinese electric car imports.

It also got embroiled in a dispute with Beijing for more than a year over a Chinese investigation into brandy imports, a move widely seen as Chinese retaliation for French support of the EV tariffs, before being offered a respite.

Despite recently opening a new assembly line in China, Airbus is unlikely to clinch a long-anticipated order of up to 500 jets during Macron's visit, industry sources said. Such deals give Beijing leverage over Washington, which is pressing for fresh Boeing purchase commitments.

MACRON CANNOT AFFORD TO GO ROGUE

Macron will also be keen not to repeat the missteps of his last trip in 2023, when his remarks on Taiwan in an interview on his flight back home caused a backlash in the United States.

"Macron cannot allow himself to go rogue as in 2023," Barkin said, adding the comments, in which he seemed to refuse to pick sides between China and the U.S., had "painted a misleading picture about where French policy towards China really was."

French advisers said Macron would push for maintaining the status quo on Taiwan and urge China not to escalate, following recent Japanese comments on the island that triggered a diplomatic spat with Beijing.

"I expect him to be more disciplined this time," Barkin said. "There is much more at stake for France and for Europe."

Source: Reuters

Samsung Electronicsunveiled on Tuesday its first multi-folding smartphone, in a bid to strengthen its position in a sector of the phone market where competition is expected to intensify.

The launch of the Galaxy Z TriFold marks Samsung's bid to reinforce its footing in a segment where Chinese rivals have been gaining ground, even as analysts say the high price and production challenges mean foldable devices are likely to remain a niche category for now.

The Galaxy Z TriFold is priced at about 3.59 million won ($2,440.17) and unfolds into a 253.1 millimetre (10-inch) display, using three panels. It is nearly 25% larger than Samsung's latest foldable Galaxy Z Fold 7 model.

The new model, produced in South Korea, will go on sale domestically on December 12 and be rolled out in China, Singapore, Taiwan and the United Arab Emirates within this year. The U.S. launch is expected as early as the first quarter of next year.

The device features Samsung's largest battery in its flagship models and supports super-fast charging that powers the phone to 50% in 30 minutes.

Analysts said Samsung's first multi-folding device is more likely to be a showcase of the new technology rather than a volume-driving flagship, given the early stage of the multi-way fold form and challenges of scaling production.

"The trifold is a first-generation product, and it's the first time a trifold design is being commercialised, so it's hard to see Samsung pushing large volumes at this stage," said Ryu Young-ho, a senior analyst at NH Investment & Securities.

He noted that while Samsung's Galaxy Z Fold line has reached its seventh generation with product maturity and lower cost structures, "the trifold could still face issues around completeness or durability," making it important for the company to assess how the market responds first.

While competition in the foldable smartphone market is expected to heat up, with China's Huawei launching the industry's first three-way folding phone last September and Apple AAPL.O expected to release its first foldable next year, analysts said high prices and limits to mass production are likely to hold back the sector.

Foldables are expected to account for less than 2% of the total smartphone market this year and will make up under 3% by 2027, according to Counterpoint Research.

Counterpoint data showed Samsung's shipment share of the foldable market jumped to 64% in the third quarter, up from 9% in the previous quarter. The sharp swing reflected how small the market still is, with the share whipsawing each quarter depending on the timing of new product launches, it said.

The firm forecasts the foldable smartphone market will grow 14% this year, followed by annual growth in the 30% range in 2026 and 2027 as Apple looks set to enter the segment.

($1 = 1,467.0900 won)

Source: TradingView