Here’s Why A Divided Fed Is Still Likely To Cut Rates In December

Overseas investors are gradually increasing their use of a new bond repurchase facility for their purchases of Chinese bonds after the nation gave them greater access to the onshore repo market in September.

Offshore investors conducted 13.1 billion yuan ($1.84 billion) of bond repurchases via the Bond Connect channel from Hong Kong in October, up from 810 million yuan the previous month, according to data from China Central Depository & Clearing Co.

Trading using the channel began Sept. 26, when China broadened overseas investors' access to the onshore market by allowing bond repurchase transactions via the Bond Connect channel from Hong Kong. The initiative was part of Beijing's effort to enhance foreign investors' interest in yuan-denominated assets by enabling them to use a key liquidity function for bond trading.

The policy has so far had little impact in stemming foreign outflows from Chinese bonds. Overseas holdings of the nation's debt in the interbank market fell to 3.73 trillion yuan in October, the lowest level since December 2023, central bank data show. One reason is the fact that Chinese bond yields remain well below those on US Treasuries.

The low yield appeal of Chinese bonds could deter demand for using repurchases to leverage up positions, said Stephen Chiu, head of Asia foreign exchange and rates at Bloomberg Intelligence in Hong Kong.

Foreign use of the repo trade channel under the Hong Kong Connect program still represents only a small fraction of overall trading levels of domestic and overseas investors. CCDC data show it settled a total of 103.8 trillion yuan of bond repurchases last month.

Source: Bloomberg Europe

The Australian government plans to start requiring power companies to provide at least three hours of free daytime electricity to customers in a bid to narrow the mismatch between renewable energy supply and demand.

The Solar Sharer program is to go into effect in July and will begin in the states of New South Wales, South Australia and Queensland before being expanded. The government is soliciting public feedback regarding the proposed rule, according to a notice released Nov. 4.

All households equipped with wireless smart meters will be eligible to receive free electricity. This will include homes without solar panels installed. People who rent their home are also eligible.

Renewable energy is a growing source of electricity in Australia, accounting for 36% of the total last year.

Rooftop solar panels are driving this growth. Over 4 million households out of a population of roughly 27 million people have solar panels installed.

Solar panels now account for 12% of Australia's electricity generation, and the proportion is expected to rise further.

Solar power is generated during the day, but household electricity demand jumps in the evening, when many people return home. Electricity supply exceeds demand during the day.

If power supply is out of step with demand, outages may occur. To maintain the correct balance, renewable energy need to be shut down.

There is also "negative" pricing, where electricity producers essentially pay consumers or power retailers to take the surplus off their hands.

Imbalances between supply and demand have become a widespread concern in Australia. Between 9 a.m. and 2 p.m., over 30% of wholesale electricity is traded for less than zero Australian dollars.

Other countries have faced similar mismatches. French electricity prices went negative on the market for a total of 205 hours during the first half of the year. That exceeded the 128 hours logged in 2023.

During the first half, Germany's had 224 negative pricing hours, triple as many as a year earlier. Spain recorded its first negative pricing hour in April.

In the U.S., California accounted for a quarter of the negative price hours. In Japan, power producers have been curtailing excess output.

Several companies in Australia have already started to offer free electricity voluntarily. In July, AGL rolled out a plan in South Australia, a renewable energy rich state, to provide power free of charge from 10 a.m. to 1 p.m.

In 2020, Red Energy began offering electric vehicle owners two hours of free electricity on weekends.

"On average, these customers used almost double the electricity during the free period compared to the average customer," said a Red Energy spokesperson.

But such plans often charge higher rates outside of free hours. The Australian government says it is working with regulators to develop measures to prevent power companies from raising rates during non-free periods of the day.

If companies are directed not to meaningfully increase prices during non-peak hours, it "will depress retailer profits," said Bruce Mountain, professor at Australia's Victoria University.

The Australian Energy Council, an industry group, has been critical of the free electricity plan.

Granting consumers universal access to free power "places material risks on retailers that in some instances might only be mitigated by them exiting a market," Louisa Kinnear, the Australian Energy Council's CEO, said in a statement.

Source: Asia_Nikkei

U.S. businesses averaged approximately 2,500 weekly layoffs for the four weeks ending November 1, 2025, reported by the ADP Research Institute, reflecting ongoing labor market adjustments.

While this layoff trend shows moderation compared to prior months, its impact on risk sentiment across financial and cryptocurrency markets remains under review.

According to the ADP Research Institute, U.S. businesses averaged 2,500 weekly layoffs for October's final week. This marked a stabilization in the labor market, contrasting previously higher figures and indicating an easing in labor market challenges. ADP Research Institute noted, "For the four weeks ending November 1, 2025, U.S. businesses averaged approximately 2,500 weekly layoffs." ADP Research

Dr. Nela Richardson, ADP's Chief Economist, explained job growth resumed modestly in October, marking the first increase since July. Despite the modest gains, pay growth remained flat, underscoring balanced shifts in supply and demand. Dr. Richardson reflected, "Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year. Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced." ADP Research

This labor market trend impacts sectors differently, with gains in education and healthcare, while professional services see declines. Layoffs persist in certain industries, signaling ongoing adjustments in the market landscape.

Financial implications suggest no direct funding shifts linked to labor trends. However, these indicators may influence risk sentiment among investors broadly, with indirect effects on market confidence reported.

Broader macroeconomic conditions continue to shape employment patterns, with technology and demographic factors playing pivotal roles. ADP's data reflect ongoing adjustments without direct ties to cryptocurrency markets.

Historical patterns reveal a recent downturn in August-September, followed by recovery. These fluctuations underscore how technological advancements and demographic changes impact labor trends, guiding future predictions.

Source: CryptoSlate

Energy – The diesel rally persists

ICE Brent settled a little more than 1% higher yesterday, with the market moving closer to the $65/bbl level. Market participants appear more concerned about supply risks than the odds of a surplus going forward.

These concerns are clearly reflected in the middle distillate market, where the ICE gasoil crack continued to rally. It's now above US$38/bbl, up from around $23/bbl in mid-October. Meanwhile, the prompt ICE gasoil timspread surged to a backwardation of more than $43/t. Worries over Russian diesel supply amid sanctions and Ukrainian attacks on Russian refineries are driving the market's strength.

The strength in the middle distillate market should prompt refiners to maximise yields on middle-of-the-barrel products. Meanwhile, broader strength in refinery margins should support refinery runs. The strength in refinery margins certainly makes a more bearish view of the crude oil market less likely.

ICE Futures Europe said that the delivery of diesel under the ICE gasoil contract, which is produced from Russian oil in third countries, will be banned from January. This move by the exchange aligns with the EU ban on refined products derived from Russian oil, which also comes into effect in January.

Numbers overnight from the American Petroleum Institute show that US crude oil inventories increased by 4.4m barrels over the last week. Refined products also saw stock builds, with gasoline and distillate stocks increasing by 1.5m barrels and 600k barrels, respectively. Overall, the report was relatively bearish. However, the market will be more focused on the release of the widely followed US Energy Information Administration (EIA) inventory numbers later today.

Metals – Freeport targets 2026 restart at Grasberg

Freeport said it plans to restore copper production at its Grasberg operations in Indonesia drove a rally in copper prices. A September mudslide led the miner to declare force majeure. It restarted production from two parts of the copper mine in late October (the Deep Mill Level Zone and Big Gossan) and plans to ramp up at the Grasberg Block Cave underground mine in the second quarter of 2026. Freeport expects Grasberg to produce about one billion pounds of copper and nearly one million ounces of gold in 2026. That's roughly 10% lower than what the company estimated in September following the incident.

The partial restart at Grasberg will help to ease supply challenges for smelters facing feedstock shortages. Grasberg is the world's second-largest copper mine, contributing around 4% of global production.

Copper supply has been hit by a wave of disruptions this year. The disruption at Grasberg has added to the already high number of supply problems this year, including flooding at the Kamoa-Kakula mine in the Democratic Republic of the Congo (DRC) in May and an accident at the El Teniente mine in Chile in July.

Data from China's National Bureau of Statistics (NBS) show that refined copper output rose 8.9% year on year to 1.204mt in October, primarily driven by stronger ore purchases. In other metals, zinc output rose 15.7% YoY to record highs of 665kt, as smelters benefited from higher fees and improved ore supply, whereas lead production decreased 2.4% YoY to 645kt for the period.

Agriculture– China buys more US soybeans

The USDA announced further export sales of US soybeans to China for the 2025/26 marketing year. China has bought a further 792k tonnes of US soybeans, according to the USDA, which takes total purchases since October to a little over 1m tonnes. However, the pace will need to pick up if China is to buy 12m tonnes of soybeans before the end of the year. The number was mentioned by the US following talks between President Trump and President Xi. However, US soybeans are more expensive than the Brazilian supply. With estimates for yet another record harvest from Brazil next season, competition from Brazil will likely remain fierce.

Source: ING

Understanding what is xrp doesn’t have to be complicated. XRP is a digital asset built for fast, low-cost cross-border transactions—designed to solve the slow and expensive system banks rely on today. This guide explains XRP in plain English, covering how it works, what it’s used for, and key points beginners should know in 2025.

XRP in 30 Seconds (What You Need to Know First)

For readers who want a fast answer, XRP is a digital asset designed for quick, low-cost international transfers. Instead of relying on slow banking rails, XRP settles transactions in seconds and works on a decentralized ledger. The table below highlights key facts for anyone asking what is xrp or xrp what is it in 2025.

What Exactly Is XRP? (Detailed Explanation)

XRP as Digital Currency

XRP is a digital currency that runs on the XRP Ledger, a decentralized settlement network created to move value globally in seconds. Unlike traditional systems or bank wires, the ledger processes thousands of transactions without relying on mining. Many beginners searching what is xrp crypto or what is ripple xrp are simply trying to understand why this asset exists and how it works in practice.

XRP vs. Ripple vs. XRP Ledger

Many new users confuse XRP with Ripple, the private company that develops payment solutions, and the XRP Ledger, the underlying open-source network. A simple way to understand the difference is: Ripple builds payment software, the XRP Ledger processes transactions, and XRP is the asset moved across that ledger. This clarification helps readers who ask what is xrp coin or what is xrp used for.

Why Was XRP Created?

XRP was created to solve a real financial problem: slow and expensive cross-border payments. Instead of money passing through multiple banks, XRP allows value to move almost instantly. People who look up what is xrp stock or the future of xrp often want to understand its real purpose before considering its long-term potential.

The SWIFT Problem and XRP's Solution

Traditional SWIFT transfers rely on correspondent banks, locked liquidity, and manual reconciliation. This system can take several days and cost significant fees. XRP acts as a bridge asset, letting institutions source liquidity on demand and remove the need for prefunded accounts. This is one of the strongest answers to what is xrp used for and why it matters.

XRP vs. Bitcoin: What's the Difference?

Bitcoin functions as a store of value, while XRP focuses on efficient payments. Bitcoin settles in minutes and depends on mining, whereas the XRP Ledger confirms transactions in seconds using a unique consensus model. For readers comparing digital assets and asking what is xrp crypto or how it differs from bitcoin, the key point is that each serves a different role in the market.

How Does XRP Work?

The Transaction Process (Step-by-Step)

XRP was designed to move value across borders within seconds. Instead of relying on multiple correspondent banks, the XRP Ledger processes transactions in a simple, streamlined flow. This helps beginners who search xrp what is it or what is ripple xrp understand how the asset functions in practice.

• Step 1: A user sends value using XRP or a currency converted into XRP.
• Step 2: The transaction is broadcast to the XRP Ledger.
• Step 3: Validators review and confirm the transaction within 3–5 seconds.
• Step 4: The recipient receives the funds almost instantly with minimal fees.

This simple structure is why XRP is often mentioned when people ask what is xrp used for or why it performs differently from traditional payment rails.

The Consensus Mechanism (Without the Jargon)

The XRP Ledger does not rely on mining or staking. Instead, it uses a consensus model where independent validators agree on transaction order and legitimacy. This design keeps the network fast and energy efficient. For readers comparing what is xrp crypto to Bitcoin or other networks, this mechanism is a major difference.

• No miners or expensive hardware
• Validators vote on transaction validity
• Ledgers close every few seconds
• Extremely low energy consumption

The result is a network optimized for payments, which helps explain what is the future of xrp in industries needing speed and reliability.

How to Use XRP

For Individual Users

Everyday users can use XRP in several practical ways. It offers faster transfers than traditional banking and lower fees than many digital assets. These points often come up when people search what is xrp coin or what is xrp crypto.

• Send money across borders in seconds
• Move funds between exchanges quickly
• Use XRP for payments where merchants accept digital assets
• Trade or hold XRP as part of a diversified crypto portfolio

While XRP is not designed as a daily spending currency, it remains useful for fast value transfer and remittances.

For Banks and Financial Institutions

Banks primarily use XRP as a bridge asset to source liquidity on demand. This removes the need for prefunded Nostro accounts and helps reduce cross-border settlement time. Understanding this institutional usage is important for readers exploring what is ripple xrp or what is xrp used for in global finance.

• Bridge currency for cross-border settlement
• Liquidity on demand through Ripple's On-Demand Liquidity (ODL)
• Lower operational costs compared to traditional SWIFT systems
• Instant settlement with transparent tracking

Real-World Examples of XRP Adoption

Several companies and financial platforms use or test XRP and the XRP Ledger for payments. These examples help clarify what is xrp in real economic activity, beyond trading or speculation.

These cases demonstrate how XRP moves from theory to real-world usage, a key point for readers assessing what is xrp or what is the future of xrp.

Is XRP Safe? Should You Invest in XRP?

The SEC Lawsuit and Regulatory Status

The regulatory history of XRP plays a major role in evaluating its safety. In 2020, the U.S. SEC argued that Ripple sold XRP as an unregistered security. The case caused uncertainty, especially for beginners searching what is xrp crypto or trying to understand how regulation affects digital assets.

• Retail sales were ruled not to be securities
• Institutional sales were labeled securities offerings
• XRP resumed trading on major U.S. exchanges after the ruling
• Further regulatory updates may still influence price and adoption

By 2025, the market views XRP as operating with clearer classification than in previous years, though full regulatory certainty is still developing. This context is important for anyone asking what is xrp used for or what is the future of xrp in the U.S. market.

Pros and Cons of XRP

Evaluating the strengths and weaknesses of XRP helps investors make informed decisions. These factors matter whether someone is exploring what is xrp stock, what is ripple xrp, or how XRP compares to other digital currencies.

Factors to Consider Before Investing

Before buying XRP, investors should evaluate several practical factors, including utility, long-term demand, and adoption trends. These details help people searching xrp what is it or what is xrp coin understand the asset’s strengths and limitations.

• Liquidity across exchanges and remittance corridors
• Role of XRP in Ripple’s On-Demand Liquidity ecosystem
• Historical price patterns and overall crypto market cycles
• Ripple’s scheduled releases from escrow and supply dynamics
• Competition from stablecoins and faster payment networks

What XRP Is NOT Designed For: Another key consideration is understanding what XRP is not meant to do. It is not designed to replace Bitcoin as a store of value, not a stablecoin, and not built as a universal currency for everyday consumer spending. It also is not a token for decentralized app ecosystems. Misunderstanding its intended purpose can lead to unrealistic expectations about what is the future of xrp or its potential market role.

Key Risks to Keep in Mind

Like any digital asset, XRP carries risks that investors should consider seriously. These concerns are relevant to users exploring what is xrp or how XRP fits within the broader crypto market.

• Future regulatory shifts that may impact liquidity or exchange access
• Market volatility driven by overall crypto sentiment
• Potential delays in institutional adoption or global payment integration
• Dependence on Ripple’s strategy and escrow management
• Competition from blockchain and non-blockchain payment networks

Understanding these risks helps investors make informed decisions rather than relying on overly optimistic assumptions about what is the future of xrp.

FAQs about What Is XRP

1. Where and How to Buy XRP

Users can buy XRP on major exchanges that support the asset. The basic process includes creating an account, completing verification, depositing funds, and purchasing XRP. Some platforms allow bank transfers, while others support card payments or stablecoin pairs.

• Open an account on a supported exchange
• Complete required identity verification
• Deposit funds in fiat or crypto
• Search for the XRP trading pair
• Place a buy order and store XRP securely

2. What Exactly Does XRP Do in the Real World?

XRP is used as a bridge asset for fast international transfers, enabling institutions to source liquidity on demand. Payment companies use it to settle remittances, reduce costs, and improve transparency. For everyday users, XRP supports quick asset transfers between exchanges and low-cost cross-border transactions.

• Faster international remittance settlement
• Lower operational and FX costs
• Liquidity bridging for banks and payment firms
• Quick transfers between digital asset platforms

3. Does XRP Still Have a Future?

XRP’s long-term outlook depends on adoption, regulatory clarity, and its role in global payments. Many investors researching what is the future of xrp want to understand whether institutions will continue integrating XRP for settlement and liquidity bridging. As payment corridors expand and more financial firms explore blockchain-based solutions, XRP may remain relevant in specific payment use cases.

Conclusion

Understanding what is xrp helps new users see why the asset was created and how it fits into modern payment systems. XRP offers fast settlement, low fees, and real-world adoption in remittances and institutional liquidity. While risks remain, informed users can evaluate XRP’s potential based on utility, regulation, and long-term market trends.

US President Donald Trump gave Saudi Arabia's crown prince a lavish reception in Washington, offering a defense agreement that includes cutting-edge warplanes and absolving him of the murder of an American journalist.

Less clear was what Trump got in return.

The US leader greeted Mohammed bin Salman with a dozen flag-carrying soldiers on horseback, a Marine Corps band playing from the White House balcony and a flyover by the F-35 fighter jets that the Saudis have long coveted. The presidency later said Trump and the crown prince signed a defense cooperation pact, though details were scarce, and agreed to formalize negotiations on help with a civil nuclear program.

The pomp matched that which greeted Trump on his visit to Saudi Arabia earlier this year. In exchange, Trump got a vague promise for the Saudis to invest as much as $1 trillion in the US — up from a previous pledge of $600 billion. That adds to trillions of dollars in similar pledges that Trump has received in trade deals with other partners, and which experts say may never materialize.

It was a victory for the crown prince, who has sought to repair and deepen ties with the US while using closer relations with China as leverage. Trump repeatedly praised MBS, as Saudi Arabia's 40-year-old de facto leader is known, calling him a "very good friend of mine" and saying he'd done incredible things "in terms of human rights and everything else."

"I do think it's lopsided," said Frederic Wehrey, a former Air Force officer who is a senior fellow in the Middle East program at the Carnegie Endowment for International Peace. "The US is surrendering enormous leverage here by giving up so much, so quickly."

In addition to the sale of F-35 fighter jets, the US agreed to green-light the first deliveries of advanced artificial intelligence chips to a Saudi Arabian firm, according to people familiar with the deal. That came despite US national security concerns about economic ties between Saudi Arabia and China.

Just as important, Trump offered Prince Mohammed's image a much-needed rehabilitation in the seven years since the killing of commentator Jamal Khashoggi. A US intelligence report concluded that MBS authorized the killing of the Saudi insider turned Washington Post columnist, who was dismembered inside the Saudi consulate in Istanbul by a team that included officers of the prince's protective detail.

"He knew nothing about it, and we can leave it at that," Trump said, criticizing a journalist who asked about it as "insubordinate."

Live Q&A: What the MBS-Trump Talks Mean For Oil, Tech and Gaza

The Khashoggi assassination — as well as civilian casualties as a result of Saudi Arabia's war in Yemen — hung over US-Saudi relations for years, including in the second half of Trump's first term. Former President Joe Biden called MBS a "pariah," though he later softened his tone and started negotiations on a sweeping defense pact.

To be sure, the lush pageantry of the Oval Office meeting obscured the scarcity of hard details and timeline on some of the agreements. While a fact sheet was released laying out the broad framework of deals, there was no signing ceremony, and negotiations beforehand had been fraught.

While a potential sale of marquee warplanes and oil-fueled investment pledges helped bolster the impression of a much closer US-Saudi relationship, Trump was unable to get Saudi Arabia to normalize ties with Israel by signing onto the Abraham Accords he's championed since his first term. And Saudi Arabia did not — at least, as of yet — obtain a mutual defense pact similar to that of fellow Gulf state Qatar.

"The fact he was able to come to Washington and to be received at the White House was a win for him," said Abdullah Alaoudh, a Washington-based Saudi human rights advocate. "But the trip so far has failed on a strategic level."

As with many of the initial announcements on deals that Trump reaches with partners, it wasn't immediately clear how fast Saudi Arabia will be able to reap the benefits of US promises. The pledge to sell F-35s will kickstart a long negotiating process that likely won't see planes delivered for several years — if ever. National security officials in Washington are wary about the technology being shared elsewhere, particularly with Beijing.

While the announcements on Tuesday allowed both leaders to claim wins, the biggest deal between the two sides — the complex security and diplomatic agreement that requires the cooperation of the US, Saudi Arabia and Israel — may still take years.

The Saudis envision a deal that would see the US offer Senate-ratified security guarantees to the kingdom, in return for Riyadh normalizing diplomatic ties with Israel.

Given the devastation caused by Israel's war in Gaza, Saudi Arabia says normalization is also conditional on concrete steps toward Palestinian statehood.

"The big thing the Saudis want is a mutual defense treaty and that's only going to be available if there's a whole packaged deal involving normalization," said Michael Ratney, who was the US ambassador to Saudi Arabia during the Biden administration and is now at the Center for Strategic and International Studies.

Khashoggi's murder was "a horrific incident," he said. "But even the Biden administration sort of figured that as horrible as it was, it can't be a reason not to pursue things where we have fundamental national security interests."

Source: Bloomberg Europe