China State-owned Banks Soak Up Dollars to Slow Yuan Gains, Sources Say

Source: CNBC

BlackRock, under CEO Larry Fink's leadership, announced on October 2023 that the rising $12 trillion U.S. national debt will drive increased crypto adoption, highlighting Bitcoin's potential as a financial safe haven.

This announcement underscores crypto's viability amid fiscal uncertainties, with BlackRock's significant Bitcoin ETF allocations reflecting institutions' strategic shifts toward digital assets due to escalating national debt risks.

BlackRock has announced a massive allocation of $100 billion towards Bitcoin ETFs. This decision comes in the wake of mounting concerns about the rapid increase in the U.S. national debt, as highlighted by BlackRock's CEO, Larry Fink.

CEO Larry Fink, known for steering BlackRock's investment strategies, expressed concerns in his 2025 Chairman's Letter. He emphasized that escalating U.S. deficits could shift financial power towards digital assets like Bitcoin, encouraging greater crypto adoption.

The investment in Bitcoin ETFs by BlackRock is anticipated to bolster institutional demand for cryptocurrency assets. This move aligns with broader market trends where crypto is seen as a safer alternative in light of increasing national debt.

Institutional flows into Bitcoin are expected to strengthen digital finance infrastructure. The pivot illustrates a significant shift in how institutions approach financial stability amid a looming economic uncertainty driven by national debt. As Larry Fink, CEO of BlackRock, aptly put it, "BlackRock has allocated approximately $100 billion toward Bitcoin ETFs, demonstrating substantial institutional financial commitment to crypto as a hedge against mounting U.S. debt."

The rising U.S. debt levels are prompting institutional investors to reassess their asset allocations. Bitcoin, often dubbed as digital gold, stands to gain traction from these dynamics, serving as a hedge against fiscal instability.

Over time, growing institutional interest, supported by regulatory clarity and market conditions, may solidify Bitcoin's position as a viable asset class. BlackRock's strategic actions, highlighting the economic value of diverse asset holdings, could inspire similar corporate investments.

Source: CryptoSlate

IndiGo's flights have been plagued with massive delays and cancellations [FILE: Nov 29, 2025]

Thousands of Indianairline IndiGo passengers suffered flight cancellations and delays for the third day on Thursday, as the airline grapples with new government regulations that affect its staff's working hours.

At least 175 IndiGo flights were canceled as of early Thursday, the Reuters news agency reported, with 150 more flights canceled on Wednesday. Passengers were left stranded at major Indian airports including New Delhi, Hyderabad, Pune and Bengaluru.

The airline accounts for 60% of domestic flights in India.

What do we know about the new flying regulations?

The Indian government announced last year new regulations for flying and staff that came into effect in early November.

They include:

It is unclear why the new regulations only started to affect IndiGo this week. Other Indian airlines, including Air India and Spicejet, have not had to cancel flights.

What did IndiGo say about the flight disruptions?

The airline, which has long prided itself on its punctuality, acknowledged the delays in a statement shared by multiple Indian news websites.

"A multitude of unforeseen operational challenges, including minor technology glitches, schedule changes linked to the winter season, adverse weather conditions, increased congestion in the aviation system, and the implementation of updated crew rostering rules (Flight Duty Time Limitations), had a negative compounding impact on our operations in a way that was not feasible to be anticipated," IndiGo said.

It said it has introduced "calibrated adjustments" to address the delays, suggesting the issue might last another 48 hours.

India's aviation watchdog, the Director General of Civil Aviation (DGCA), has scheduled a meeting with IndiGo officials on Thursday to further inspect the matter.

The two-decade old airline operates over 2,000 flights daily, utilizing a fleet of over 400 planes.

IndiGo staff often proudly announce "IndiGo Standard Time" when boarding has been completed ahead of schedule, a play on "Indian Standard Time."

The two-decade old airline operates over 2,000 flights daily, utilizing a fleet of over 400 planesImage: Pius Koller/imageBROKER/picture alliance

Source: DW

British construction activity contracted last month at the fastest pace since May 2020, with steep falls in civil engineering, residential, and commercial building, partly due to uncertainty ahead of the government's budget, a survey showed on Thursday.

S&P Global's monthly purchasing managers' index for the construction industry fell to 39.4 in November from 44.1 in October, extending its longest downturn since the global financial crisis and remaining well below the 50 mark that divides growth from contraction.

Residential construction activity was at its weakest since May 2020, when lockdowns during the COVID pandemic halted building work.

Activity in the commercial sector in November dropped at the sharpest pace in five-and-a-half years, with its subindex at 43.8. Civil engineering and new orders were also their weakest since May 2020.

"November data revealed a sharp retrenchment across the UK construction sector as weak client confidence and a shortfall of new project starts again weighed on activity," said Tim Moore, economics director at S&P Global Market Intelligence.

"Total industry activity decreased to the greatest extent for five-and-a-half years, led by steep falls in infrastructure and residential building work. Commercial construction also faced severe headwinds during November as business uncertainty in the run-up to the budget pushed clients to defer investment decisions.

Other recent business surveys have also shown similar concerns about investment, hiring and demand in the lead-up to finance minister Rachel Reeves' annual budget on November 26, which included 26 billion pounds ($35 billion) in tax rises.

S&P Global said the pace of job-shedding accelerated last month, with the employment index at its lowest since August 2020, with firms citing elevated wage costs and less work.

The survey's gauge of optimism struck a nearly three-year low, and cost pressure rose slightly.

The all-sector PMI, which combines the services, manufacturing and construction sectors, stood at 50.1 in November compared to October's 51.4.

($1 = 0.7525 pounds)

Source: TradingView

Plans to spend £28bn to upgrade Great Britain's electricity grid have been signed off, in a move that should improve the energy networks, speed the transition to new forms of energy…and increase household bills.

Energy regulator Ofgem has just announced that energy companies have been given approval to "strengthen the stability, security and resilience of our energy networks". by upgrading the energy grid.

The majority of the spending – £17.8bn - announced today is to maintain Britain's gas networks.

There's also £10.3bn to improve the nation's high-voltage electricity network – the biggest expansion of the grid since the 1960s.

In total, it's around £4bn more than was provisionally signed off in the summer.

Ofgem says the investment is the most cost-effective way to harness clean power, support economic growth and protect the country from a repeat of the 2022 gas price shock.

Customers will see the impact on their bills, which will rise to cover the cost of the investment. The regulator says £108 will be added to bills per year by 2031; £48 for gas and £60 for electricity.

But it claims, the investing will actually save customers £80 each compared to a word where the grid is not expanded.

So overall, the net increase in bills to cover all costs by 2031 works out at £30.

Jonathan Brearley, Ofgem CEO, insists the regulator isn't allowing "investment at any price", adding:

Every pound must deliver value for consumers.

Ofgem will hold network companies accountable for delivering on time and on budget, and we make no apologies for the efficiency challenge we're setting as the industry scales up investment.

We've built strong consumer protections into these contracts, meaning funds will only be released when needed and clawed back if not used. Households and businesses must get value for money, and we will ensure they do."

Source: GUARDIAN

In focus today

In the US, the Challenger report of November layoff and hiring announcements is due for release in the afternoon. While not usually a tier-1 market mover, it is one of the few timely data points on labour markets that will be available for the Fed before next week's meeting due to the delays caused by the government shutdown.

In Sweden, the preliminary inflation figures for November are released today. Our forecast is CPIF excluding energy at 2.8%, CPIF at 2.8%, and CPI at 0.8%. The monthly change in core inflation from October to November is estimated at -0.19, primarily attributed to Black Friday sales. Higher prices for electricity and petrol are expected to result in a monthly increase in CPIF of 0.25%.

Economic and market news

What happened overnight

In Japan, Bank of Japan Governor Kazuo Ueda flagged uncertainty about how far rates can be raised due to the difficulty of estimating the country's neutral interest rate, which is currently projected between 1% and 2.5%. Ueda also hinted at a potential rate hike to 0.75% later this month as the central bank evaluates the "pros and cons" of tightening monetary policy.

In China, government advisers expect Beijing to stick to its 5% GDP growth target for 2026 as policymakers seek to counter deflationary pressures, a property slump, and weak consumer demand. Fiscal and monetary stimulus, including bond issuance and subsidies, are likely to continue, while leaders aim to gradually shift towards a consumption-led economic model over the next five years.

What happened yesterday

In the US, private sector employment decreased by 32k in November, according to the ADP report (cons: +10k). The decline was driven by manufacturing job losses, while services employment remained more resilient, aligning with weaker forward-looking signals from PMI and ISM data. This supports expectations for a Fed rate cut next week, with EUR/USD ticking higher. Meanwhile, ISM services PMI rose to 52.6 in November (cons: 52.1, prev: 52.4). Positively for the Fed, the price index declined sharply, suggesting easing inflation pressures, though the PMI index sent a conflicting signal. Looking across the two surveys, it seems that service sector activity continues to grow at a decent pace.

US Secretary of Treasury Scott Bessent advocated that Federal Reserve regional bank presidents must have lived in their districts for at least three years. This is an interesting headline because it suggests the administration is preparing to get involved with the (re-)nominations of Regional Fed presidents, due in February. Regional Feds elect their own presidents, but the picks are subject to the approval of Fed governors, who are nominated by US president.

In the euro area, the final composite PMI for November was revised up to 52.8 (flash: 52.4), driven by an upward revision in services PMI to 53.6 (flash: 53.1), while manufacturing PMI was slightly lowered to 49.6 (flash: 49.7). According to the PMIs, the services sector is now growing at its fastest pace in two and a half years, highlighting resilience in the domestic economy and supporting expectations for unchanged policy rates from the ECB.

In the UK, PMIs fell to 51.2 (prior 52.2) but came in stronger than consensus expectations at 50.5. It reflected the seventh consecutive month of expansion in the UK's private sector activity, with the upside surprise sparking a strengthening of the GBP.

In Switzerland, November inflation came in lower than expected. Headline inflation dropped to 0.0% (cons: 0.1%, prior: 0.1%) and core inflation edged lower as well to 0.4% (cons: 0.5%, prior: 0.5%). The SNB is still expected to remain firmly on hold at the next meeting in December, keeping the policy rate at 0%. SNB members have reiterated that inflation below 0% would be tolerable for a short period of time. We expect the first course of action to be FX intervention before resorting to a cut into negative territory.

In Sweden, services PMI rose strongly to 59.1 in November (prev: 55.9), signalling robust growth in the sector. Business volumes saw a significant jump to 65.2 (prev: 55.3), while the employment index edged higher to 49.9 (prev: 47.8). Overall, the data adds to the recent positive signals from the Swedish economy.

In Poland, the central bank cut its main interest rate by 25bp to 4.00%, marking the sixth rate cut this year, following a sharper-than-expected drop in November inflation to 2.4% y/y (cons: 2.6%). The Monetary Policy Council highlighted risks from fiscal policy, wage dynamics, and global inflation but indicated future rate decisions would depend on incoming data.

The European Commission unveiled an "economic security doctrine" aimed at cutting over-reliance on Chinese metals and other single-source suppliers. The REsourceEU Action Plan seeks to diversify supply chains, accelerate trade measures, and prioritise support for businesses reducing foreign dependencies in critical sectors.

Equities: Equities pushed higher again yesterday, led by the US but notably not driven by mega-cap tech. Instead, gains were broad-based, with the VIX edging lower and min vol stocks underperforming. Small caps materially outperformed, marking another classic shift towards a slightly more constructive investor risk-optic. In our view, somewhat interesting given that macro data was generally solid, particularly in Europe, while the US delivered a disappointing ADP print, which remains our primary concern. In US yesterday, Dow +0.9%, S&P 500 +0.3%, Nasdaq +0.2%, Russell 2000 +1.9%. Asian equities trade higher this morning, predominantly supported by Japan on renewed expectations of a fiscal "bazooka" and a persistently accommodative global monetary backdrop ex-Japan. European equity futures are modestly firmer, whereas US futures are essentially flat.

FI and FX: GBP was the top performer during yesterday's session as final November PMIs came in a lot stronger than expected. CHF was largely unfazed by lower-than-expected November CPI. EUR/USD rose to the 1.1670 mark supported by weaker US data while EUR/SEK and EUR/NOK tracked lower during yesterday's session. US yields moved lower during yesterday's session, both in swap and Treasury space, dropping 2-3bp across the curve. In euro space, the moves were very limited with yields largely trading flat across curves and tenors.

Source: Danske Bank