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Clandestine Campaign To Defund ZeroHedge, The Federalist & Breitbart Traced To Kier Starmer Operation Very early into the COVID-19 pandemic, ZeroHedge suggested that a little-known Chinese lab in Wuhan might know something about the novel coronavirus sweeping the globe. As a result, and as you know, we were subject to an intense demonetization / deplatforming campaign that included getting kicked off of Twitter, PayPal, Facebook and other platforms, dropped by our advertisers, and targeted by MSM hit pieces which colluded with foreign 'watchdogs' to inflict maximum damage. These same groups also targeted outlets including The Federalist and Breitbart over various reporting, which suffered similar fates. Now, thanks to a new book by investigative journalist Paul Holden that builds on reporting by Matt Taibbi, Paul Thacker and others, we learn that the origin of these campaigns, launched years before the pandemic, was none other than UK Prime Minister Kier Starmer's political machine, which began targeting left-wing outlets speaking critically of Starmer such as The Canary, and then went after conservative outlets in America - just in time for the 2020 US election. Documents and internal accounts, many drawn from newly disclosed materials, reveal a coordinated project that operated behind a veil of anonymity, misdirection, and unreported political financing. This murky operation known as the Stop Funding Fake News (SFFN) was launched and resourced through a think tank, Labour Together, that would later be fined for failing to declare £739,000 in donations between 2018 and 2020. Said funds helped underpin this clandestine anti-media strategy which affected news outlets from the UK to the United States. At the center of the effort was Morgan McSweeney, a political strategist who has since become Starmer’s chief of staff and, according to public commentary by prominent journalists, one of the most powerful unelected figures in the modern Labour Party. Morgan McSweeney The newly disclosed materials reveal that SFFN was not in fact some grassroots, anonymous activist collective it claimed to be, but a political weapon forged by senior Labour figures and funded by millionaire donors, including individuals active in pro-Israel political advocacy. The goal: destabilize independent media ecosystems aligned with Labour’s left under Jeremy Corbyn, elevate Starmer’s leadership bid, and delegitimize outlets - domestic and foreign - that threatened the faction’s consolidation of power. Publicly, SFFN claimed to be run by anonymous activists. Privately, it was shaped by McSweeney and operated from the same small office suite in South London that housed Labour Together. SFFN ultimately migrated under the umbrella of the Center for Countering Digital Hate (CCDH), an organization that grew out of a corporate shell once controlled solely by McSweeney. British political operative and CCDH head Imran Ahmed CCDH would later present SFFN as one of its signature initiatives. Three Fronts of a Political Offensive The documents reported by Holden reveal a three-part strategy that reshaped the British political landscape - and reverberated into U.S. media and politics. In a nutshell, this is how the sausage was made: 1. Destabilizing Jeremy Corbyn’s Leadership SFFN’s narrative interventions were designed to amplify an “antisemitism crisis” that dogged Corbyn, boosting controversies and legitimizing a media ecosystem hostile to Labour’s left. This influence work aligned directly with the political interests of the centrist faction preparing for a post-Corbyn future. 2. Engineering Starmer’s Rise Labour Together later claimed credit for helping deliver Starmer’s 2020 leadership victory, with McSweeney acting as his campaign chief. After Starmer won the July 2024 general election, McSweeney formally became chief of staff, solidifying the faction’s institutional dominance. 3. Silencing Dissenting Media SFFN’s most aggressive project was an astroturf campaign against media outlets perceived as ideological threats. Targets spanned both the left (such as The Canary and Evolve Politics) and the right, as noted above. In each case, the tactic was the same: identify advertisers appearing on targeted sites, publicly shame them through social media threads, and provide tools - including downloadable blocklists - to automatically exclude those outlets from programmatic advertising networks. The effort succeeded in devastating the business model of some targets; others survived but saw sustained pressure. We took matters into our own hands, launching our premium service and later the ZeroHedge store in order to keep the lights on (thank you). The Breitbart Offensive Holden reports that SFFN then set their sights on Breitbart in October 2019 - after an anonymous X account tagged the UK Parliament and likened its ads on Breitbart to funding extremism. SFFN ran hard with this - promoting the allegation and labeling Breitbart a "bigoted, conspiracist fake news site." Later that day, the Press Association contacted Parliament for comment. Within hours, Parliament suspended the ads. To further legitimize the operation, anti-Corbyn MP Mary Creagh publicly leaned on the Conservative leadership to formalize the ban, citing a list of SFFN-identified sites. Two weeks later, SFFN announced another victory: the UK Cabinet Office had implemented a “whitelist” that barred Breitbart, The Canary, and a long roster of other outlets from receiving government advertising. On the 18th of October 2019, SFFN posted that they had contacted an unnamed journalist about how the UK’s Cabinet Office was advertising on its target websites. The journalist found out that the Cabinet Office “now implemented a ‘whitelist’ meaning the government now only advertises on pre-approved websites. The Canary, Evolve, Rebel, Politicalite, Breitbart etc no longer receive government advertising.” The post ended with three handclap emojis. “Good to see government use its authority to set an example against these dishonest & hateful websites.” -Paul Holden via Drop Site The campaign extended into the private sector. In 2020, Ford UK publicly stated it was investigating ad placements on Breitbart. By 2021, SFFN was targeting Breitbart’s YouTube monetization and urging advertisers to block the site across Google’s ad infrastructure. The group’s blocklist eventually included 28 domestic and international sites, among them U.S. outlets aligned with the alt-right and the British far-right figure Tommy Robinson. Weaponizing the Image of Grassroots Activism Throughout 2019, SFFN steadfastly refused to disclose who ran the operation, claiming its activists faced undefined risks. Interviews and profiles repeated the fiction that it was just a small band of concerned citizens. Yet from its inception, SFFN was powered by political professionals. It was launched only after McSweeney and CCDH’s Imran Ahmed recruited television personality Rachel Riley to front the campaign. Labour Together’s funds and office space supported its rollout. The project was effectively shielded from legal accountability by its anonymity, even as it issued sweeping defamatory accusations against its targets. McSweeney and Ahmed asked if Riley would front a campaign to tackle The Canary. She agreed “with alacrity,” according to an account by two Sunday Times journalists. Her celebrity endorsement lifted SFFN out of obscurity and powered its success. She would later become a patron of CCDH and now lists herself on X as an “ambassador” of the organization. -Paul Holden via Drop Site One of SFFN’s earliest and most consequential victims was The Canary. Though independently regulated and later cleared of allegations of racism or incitement, the outlet lost crucial advertising revenue and shed staff. Former employees described a chilling effect across the left media ecosystem as prominent commentators distanced themselves from a now-toxic brand. The attack’s success was openly celebrated within liberal circles; commentators hailed SFFN for restoring “objective reality in politics,” even as its covert origins remained concealed. CCDH, Twitter Files, and the Attempt to Rewrite History The political sensitivity surrounding SFFN resurfaced in 2024, when leaked emails from CCDH showed repeated internal discussions about targeting Elon Musk’s Twitter. Amid the backlash, CCDH sources insisted McSweeney had played no operational role in the organization - a claim contradicted by company records showing he was the sole director of its precursor entity for more than a year and remained formally involved until April 2020. In 2024, Matt Taibbi and Paul Thacker reported on emails leaked from within CCDH. They showed that, for over a year, CCDH’s internal team meetings included the action item: ‘kill Musk’s Twitter.’ ‘This is war,’ Musk posted in response. In the furor that followed, The Guardian was told that McSweeney had played no operational role in CCDH, which now claims ownership of the SFFN project. Imran Ahmed, who later claimed credit for both SFFN and CCDH on Twitter, claimed that McSweeney had simply gifted him a “shell company” (Brixton Endeavours) that was then converted into CCDH, and which later absorbed SFFN . The response was canny in not stipulating whether McSweeney had any operational role in SFFN. -Paul Holden via Drop Site CCDH’s later retellings cast SFFN as an example of its “global” anti-hate strategies. One of its leaders described the financial approach explicitly: if news sites rely on advertising, “within a couple of months, you can completely eviscerate the economic base of a website.” SFFN had been the proving ground. In 2023, Paul Thacker wrote in Tablet: In March of 2021 a nonprofit group called the Center for Countering Digital Hate (CCDH) released a report about online misinformation. Founded in the U.K. by a former Labour Party political figure named Imran Ahmed, the CCDH was virtually unknown at the time in the U.S., but that was about to change. The report quickly reached the hands of executives at Twitter. “COVID-19 misinfo enforcement team is planning on taking action on a handful of accounts surfaced by the CCDH report,” a Twitter official wrote on March 31. One account they eventually took action against belonged to Robert F. Kennedy Jr., who was then running against Joe Biden for the Democratic Party’s nomination for president. A few months later, the same report was being cited by the Biden administration. At a press briefing in July 2021, White House Press Secretary Jen Psaki quoted from the CCDH report in a briefing where she accused Facebook of undermining federal vaccine policies. “There’s about 12 people who are producing 65% of anti-vaccine misinformation on social media platforms,” Psaki claimed, citing the CCDH’s work, while warning social media companies to shut down these “misinformation” accounts. “They’re killing people,” President Biden told a reporter a short time later, leveling the charge of murder against Facebook for its alleged role in providing a platform for “vaccine misinformation.” Facebook’s Vice President Monika Bickert later criticized CCDH’s claims for being free of evidence—failing to define the term “anti-vaxx,” for example—and neglecting to explain how they came up with their numbers and conclusions. But it had little effect. By then the report had popularized the idea of a “disinformation dozen,” a narrative that hardened as it was promoted by countless news outlets, fact checkers, and social media accounts devoted to round-the-clock attacks on “disinformation.” More recently, the CCDH has popped up again, leading the battle against Twitter’s new owner, Elon Musk, who has been cast as a champion of racists and antisemites. “The CCDH has been at the forefront of reporting on the hate proliferating on X/Twitter since Musk completed his takeover in late October 2022,” Ahmed wrote last month in The Observer. In a number of publications over the past year, the group has repeatedly blamed Musk for allowing his platform to spread hate speech. Once again, these efforts have been uncritically amplified in the press and in a letter to Musk from House Democrats that reiterates Ahmed’s claims, and cites him and CCDH. Meanwhile, last month it was reported that the Trump White House plans to deport Imran Ahmed - who Thacker says should be prosecuted before that's done. You can read Holden's entire report over at Drop Site News, even though Ryan Grimm (formerly of HuffPost and The Intercept) is a massive dick who hates us for some reason. 💥NEW: How PM Keir Starmer’s Machine Quietly Moved to Cripple Breitbart, The Federalist, ZeroHedge, and Left Independent Outlets On Breaking Points, Ryan introduces Drop Site’s latest investigation, adapted from Paul Holden’s book, exposing how Keir Starmer and his chief of… pic.twitter.com/NVPDm7aWmw — Drop Site (@DropSiteNews) December 4, 2025 Tyler Durden Thu, 12/04/2025 - 13:25
Man Arrested In Jan. 6 Pipe Bomb Case Identified As Brian Cole Update (1202ET): The man arrested in the Jan. 5, 2021 pipe bomb incident in DC has been identified as Brian Cole, according to Fox News. The current scene outside the J6 pipe bomber suspect Brian Cole’s Virginia homepic.twitter.com/3CptZpuxsD — Benny Johnson (@bennyjohnson) December 4, 2025 🚨 BREAKING: The FBI has surrounded a home in Woodbridge, VA where alleged DC pipe bomber Brian Cole Jr., reportedly 33, was arrested this morning Cole seemingly has very little online presence, and has been described as an “anarchist” He’s expected to be arraigned today. pic.twitter.com/RsGhaEOydf — Nick Sortor (@nicksortor) December 4, 2025 It is being reported that Cole's father's bail bond company was raided today along with his house. A Reddit user posted at 9:21 AM claiming to see police blocking off area outside a bail bonds shop (driving down Chain Bridge) On Google Maps Street View at 4085 Chain Bridge Rd, there is a sign for 'Brian Cole' Bail Bonds pic.twitter.com/k75zhSh3A5 — Torch (@puss_q) December 4, 2025 MASSIVE: J6 Pipe Bomber suspect identified as Brian Cole from Virginia, per NBC. There are new reports that the man is potentially tied to the terrorist group ANTIFA. Major questions arise: Why did Biden's FBI fail to arrest the perp? Why did the suspect use dummy bombs… pic.twitter.com/H1wd0ZgQXN — Kyle Becker (@kylenabecker) December 4, 2025 * * * The FBI has arrested a Virginia man nearly five years after pipe bombs were placed at both the Republican and Democratic National Committee headquarters on Jan. 5, 2021 - the day before the events of Jan. 6. The suspect is expected to face charges for allegedly planting the devices, which were later deemed to be viable explosives that could have caused "serious injury or death." The FBI did not share additional information about the suspect, however MS Now reports that the suspect has been linked to statements that show support for an anarchist ideology. The bureau has conducted more than 1,000 interviews, reviewed over 39,000 video files, and fielded over 600 tips from the public - yet what led to the arrest was "the same trove of material that had mostly been gathered in 2021 and 2022," two sources told the outlet - meaning that the Biden administration had the evidence over three years ago. Video footage and photos of the suspect showed a figure walking around in a hoodie and a face mask. The bombs were quickly disarmed shortly after they were discovered. "There is a massive cover-up, because the person who planted those pipe bombs -- they don't want you to know who it was, because it's either a connected anti-Trump insider, or this was an inside job," Dan Bongino, now the deputy FBI Director, said in November 2024 on his show. "Those bombs were planted there. This was a setup. I have zero doubt." Last month a forensic analysis pointed to a former US Capitol Police officer, whose unique gait due to a sports injury suggested that she was a match using a software tool that compared her stride to the suspect's, Blaze Media reported. Former FBI Special Agent Kyle Seraphin told Blaze News that, in the days immediately after Jan. 6, he and his team conducted surveillance “one door away” from the residence tied to the female suspect. He says the team was pulled off the assignment without explanation, and requests to interview a person linked to the suspect’s movements were denied. So the fact that a man was just arrested suggests that while the FBI may have been looking into her, it may have been a dead end - or they've arrested the wrong person. The Blaze report was disputed by Headline USA and journalist Breanna Morello. The mysterious handling of the bombs drew scrutiny from Congress and the Department of Homeland Security’s inspector general. Surveillance footage later released by Rep. Thomas Massie (R-KY) showed Secret Service agents responding slowly after being told a device was found at the DNC. Agents remained in their vehicle eating lunch for roughly two minutes before investigating and allowed pedestrians and cars to pass near the device. Earlier this year, a House committee report provided new insight into the investigation, highlighting multiple failures by law enforcement to detect the devices and properly secure the scene after their discovery. Tyler Durden Thu, 12/04/2025 - 13:20
Police 'Will Not Cooperate With ICE Agents': Minneapolis Mayor Authored by Janice Hisle via The Epoch Times, As Minnesota anticipates more U.S. Immigration and Customs Enforcement (ICE) action in Minnesota—a state where many Somali immigrants are accused of defrauding welfare programs—Minneapolis Mayor Jacob Frey said the city’s law enforcement will not work with federal agents. “Our police officers are not ICE agents; they will not cooperate with ICE agents,” Frey said at a Dec. 2 news conference. ICE has been conducting large-scale immigration enforcement operations in a number of cities, sometimes drawing opposition from protesters and from Democratic leaders. At the news conference, Minneapolis Police Chief Brian O‘Hara and St. Paul Mayor Melvin Carter III emphasized support for law-abiding Somalis and other immigrants who hold jobs and run businesses. People who are fearful of ICE action should inform themselves about their rights, the officials said. O’Hara also said that his officers “absolutely have a duty to intervene” if people’s rights are being violated. O‘Hara said his officers “do work with federal law enforcement literally every day around violent crime, around people smuggling fentanyl into the country, gang violence, those types of things.” However, O’Hara said, “Federal law enforcement is aware that we absolutely will have nothing to do with anything related to immigration enforcement.” That has been true for years in the Twin Cities, which are among more than a half-dozen so-called sanctuary cities that the Justice Department has sued over policies that shield illegal immigrants. The pending lawsuit, coupled with the new public remarks from the Twin Cities’ leaders, reflects increasing tensions between Minnesota and the federal government. After recent publicity over massive Minnesota welfare-fraud schemes that mostly involve suspects of Somali origin, President Donald Trump announced plans to end “temporary protected status” for Somalis in the North Star State. Minnesota Democrats, including Rep. Ilhan Omar (D-Minn.), Gov. Tim Walz, and Attorney General Keith Ellison, have criticized the president’s actions. At Trump’s direction, Homeland Security Secretary Kristi Noem said she investigated immigration programs in Minnesota; she reported finding that “50 percent of visa applications” and other immigration-related programs were fraudulent. Noem, speaking during the president’s Dec. 2 Cabinet meeting, did not specify which immigrant groups were allegedly submitting false immigration applications. During “Operation Twin Shield” earlier this year, ICE, the FBI, and U.S. Citizenship and Immigration Services (USCIS) found 275 cases of suspected immigration fraud in and around Minneapolis and St. Paul, USCIS officials said, calling it a first-of-its-kind operation to detect and deter immigration fraud. Mayors Defending Somalis Amid Fraud Cases The two mayors, Frey and Carter, said that the entire Somali community is being unfairly targeted and wrongfully vilified over the actions of a few. Since 2022, charges have been brought against 78 people, and dozens have been convicted or await trial in the Minnesota-based Feeding Our Future scandal, which involved a nonprofit and its affiliates falsely claiming they provided meals to needy children. A pair of other welfare-fraud scandals emerging from the region are still developing. Altogether, the fraudulent claims amount to billions of dollars, authorities have said. The fraud was allegedly committed mostly by Somalis who sent much of the stolen money back to their homeland. The Treasury Department is investigating claims that Somalia-based terrorist group al-Shabaab took a percentage of those financial transfers. Frey and Carter emphasized that most of the estimated 80,000 Somalis living in Minnesota are U.S. citizens. Seventy-eight percent of them live in the Twin Cities, according to Minnesota Compass, making Minneapolis home to America’s largest Somali community. Frey said he is proud of that fact. On Dec. 3, the day after the Minnesota news conference, a reporter asked Trump to react to Frey’s expression of pride in the Somali community. The president criticized Frey’s comments, adding that Somalis “have taken billions of dollars out of our country” and hail from a crime-ridden nation. Trump has also stated that Somalis who complain about America are unwanted. The Epoch Times sought a comment from Frey, who did not immediately respond. Frey criticized Trump’s stance at the news conference. “He’s wrong, and we want them here,” Frey said. “Somali people have been an extraordinary benefit ... They have started businesses and created jobs. They have added to the cultural fabric of what Minneapolis is. They were welcoming to me when I first came out to Minneapolis.” ‘Zero Tolerance’ for Impeding ICE Both mayors expressed concern that ICE will make mistakes and snare lawful Somali American citizens once the illegal-immigrant dragnet hits the Twin Cities. In response to the comments from the Twin Cities’ officials, border czar Tom Homan said, “We’re going to enforce the law, without apology.” Homan, in a Dec. 2 interview with Fox News, said Noem’s findings and the welfare-fraud crimes are making the Twin Cities a higher priority for ICE. He didn’t say when increased enforcement operations might begin, or how many agents might be sent there. Homan said he has told police in other sanctuary cities that it is their duty to make their communities safer—and that communities do become safer after ICE removes criminal illegal immigrants and legal immigrants who commit deportable offenses. Homan said it was “shameful” for local law enforcement not to partner with ICE to achieve that common goal. He urged non-cooperative police to “stand aside” and allow ICE to operate. Otherwise, the Justice Department will show “zero tolerance” and will prosecute anyone who impedes ICE. O'Hara, the police chief, said his officers stay out of immigration issues. “We don’t provide information to federal immigration authorities; we don’t ask people about their immigration status,” he said at the news conference. Those actions align with a city ordinance that forbids city employees from asking people about their citizenship or immigration status. The local law also prohibits city workers from using “any knowledge of [a resident’s] status to enforce immigration laws,” the Minneapolis government website states. Within days, Minneapolis officers will be receiving updated guidance for handling immigration-related matters, the police chief said, incorporating “feedback from community and community-based organizations.” Tyler Durden Thu, 12/04/2025 - 13:05
Jensen To Rogan: "Next 6-7 Years You Will See A Bunch Of Small Nuclear Reactors" Jensen "sign my tit" Huang, the CEO of NVIDIA and the man responsible for the AI boom, was recently on the Joe Rogan Experience podcast discussing a wide range of topics, when he gave the nuclear sector the ultimate tailwind: the AI revolution needs small modular reactors (SMRs), something we have been saying for over a year. When the conversation turned to energy, and particularly new nuclear power, Huang spoke about the immense and growing power demands of AI data centers, which he dubbed as "gigawatt factories", and echoed what we just said, namely that that these power needs cannot be integrated into the existing public grid without risking instability and soaring power prices... To prevent skyrocketing electric bills, every state has to follow the Texas example: each data center must have its own "behind the meter" onsite power generation. “We believe data centers should pay for the full cost of their power,” Dominion Energy spokesperson Aaron Ruby… https://t.co/0u1owTeAs8 pic.twitter.com/8W421s3rzV — zerohedge (@zerohedge) November 23, 2025 ... and should instead remain "behind the meter", with data centers using dedicated or off-grid power generators - such as SMRs - necessary for the continued growth of AI. As a result, Jensen sees "a whole bunch of small nuclear reactors in the next six or seven years" Rogan: By small, like how big are you talking about? Huang: Hundreds of megawatts. Rogan: Okay. And that these will be local to whatever specific company they have. Huang: That's right. Will all be power generators. Reactors such as those currently being built by Nano Nuclear and Oklo. No wonder their stocks are soaring today. Here is the exchange: JR-"Currently that is a big bottleneck right, it's energy? JH-It is The Bottleneck...The next 6-7 years I think your going to see a whole bunch of small nuclear reactors JR- probably the smartest way to do it JH-It takes the burn off the grid" $NVDA $NNE pic.twitter.com/tUh1BxhPXl — NANO Nuclear Energy (NASDAQ: NNE) (@nano_nuclear) December 3, 2025 Of course, we have been pounding the table on modular nuclear reactors as the only real solution to the data center power drain for nearly two years, focusing on the more realistic options in recent weeks, and highlighted this very scenario just a few days ago, when the Department of Energy said it was assisting the Tennessee Valley Authority and Holtec International with the development and deployment of 300 MW small reactors in the 2030s, all small but critical initial steps in the rollout of small modular reactors. There was also a significant development from the Nuclear Regulatory Commission when they announced the completion of their final safety evaluation for the construction permit application for Bill Gates’ sodium reactor project in Wyoming. This was the last stage of reactor developer TerraPower’s construction permit review for their 345 MW reactor, and they now expect to have the construction license in hand early next year. Commercial operations are targeted for 2031. Anyway, back to the podcast where, to the surprise of none of our readers, it took only 5 minutes of them talking to come to the topic of how dependent new AI is on the development of new energy. Jensen went on a short run about how critical it was to the AI industry that Trump started his latest term by beating the table on new energy development: “[Trump] came into office and the first thing that he said was ‘drill baby drill’. His point is we need energy growth. Without energy growth, we can have no industrial growth. It saved the AI industry. I got to tell you, flat out, if not for his progrowth energy policy we would not be able to build factories for AI, not be able to build chip factories, we surely won't be able to build supercomputer factories, none of that stuff would be possible without all of that. Construction jobs would be challenged, right? Electrician jobs, all of these jobs that are now flourishing would be challenged. And so I think he's got it right, we need energy growth. We want to re-industrialize the United States. We need to be back in manufacturing.” As we recently covered in our summary of how well Europe's grand green energy transition is going, we highlighted how the availability of cheap energy is enabling the growth of the AI industry in the US. Had the US followed in the footsteps of our peers across the water, we could have been facing energy prices as much as three times higher for industrial customers. With the U.S. taking the more productive “and” approach to renewable energy, the country has added GW of power across a range of energy varieties, including both green sources like wind and solar, and traditional sources like coal, gas, and nuclear. Then again, as we discussed yesterday, the US will need to add over 100+ GW by 2032 to maintain the AI cycle, a staggering amount of power generation. Jensen elaborated a little bit further on the energy-AI relationship, noting that energy is “the” bottleneck with developing new AI factories: Rogan: So currently that is a big bottleneck, right? [It] is energy. Huang: Yeah, it is the bottleneck. The bottleneck Because you can print money, you can't print energy. The money is not the problem: AI is the new global arms race, and capex will eventually be funded by governments (US and China). If you want to know why gold/silver/bitcoin is soaring, it's the "debasement" to fund the AI arms race. But you can't print energy https://t.co/qwdD8QbVON — zerohedge (@zerohedge) October 14, 2025 Tyler Durden Thu, 12/04/2025 - 12:45
Maduro Describes 'Cordial' Trump Call As Senators Reintroduce War Powers Bill Venezuelan President Nicolas Maduro has very belatedly confirmed speaking with US President Donald Trump by phone late last month amid a huge US military buildup accompanied by Washington threatening war. The phone call was ten days prior, but Maduro on Wednesday said he decided to speak about his "cordial" call with Trump as he wished to avoid "microphone diplomacy" at a moment international reports are ripe with speculation over the contents of the call. US Marines of the 26th Marine Expeditionary Unit, Source: Stars & Stripes US media, for example, has widely reported that Maduro and Trump talked amnesty, but this was ultimately rejected by the US side after Maduro attacked certain conditions to the transfer of power in Caracas. Speaking to state-run Venezolana de Television, Maduro described, "I don’t like diplomacy with microphones; when there are important matters, they must be handled quietly until they are resolved!" He further welcomed that the call may have been a step towards "respectful dialogue" and that Venezuela would always seek peace. But out of "prudence" and "respect" Maduro said he would not divulge further details of the call. "With the favor of God and our Commander of Commanders, Our Lord Jesus Christ, everything will go well for the peace, independence, dignity, and future of Venezuela," he said. Notably he did not confirm whether he was offered a safe exit by Trump or some kind of amnesty if he would relinquish rule of the country. Meanwhile in Washington a bipartisan group of senators have reintroduced a War Powers Resolution designed to prevent Trump as commander-in-chief from unilaterally initiating military action against Venezuela without approval from Congress. By and large lawmakers have been missing in action, though there has been rising anger and questions on the over 20 deadly strikes on suspected drug boats. However, this has mostly focused on details of which precise orders Pentagon chief Pete Hegseth did or didn't give. The measure was brought forward by Senators Tim Kaine (D-VA), Rand Paul (R-KY), and Adam Schiff (D-CA), the latter who also sponsored the earlier version. There was a new name added - Senate Minority Leader Chuck Schumer (D-NY) - as a co-sponsor. There's obviously some degree of urgency given Trump recently said land operations against cartels in Venezuela could start 'very soon'. Kaine's office said in a press release that the renewed resolution is privileged, meaning it can be brought to the Senate floor for a vote within 10 days. Hope for last-minute diplomacy to avoid all-out military action to accomplish regime change? President Maduro on his call with Trump: “I received, I had a call and spoke with the President of the United States, Donald Trump. I can say that the conversation was respectful in tone. I can even say it was cordial between the President of the United States and the… pic.twitter.com/j82IFqjYfI — Camila (@camilapress) December 4, 2025 The previous resolution was narrowly defeated last month in a 49–51 vote. It was only two Republicans - Paul and Lisa Murkowski of Alaska - who voted in favor. "The American people do not want to be dragged into endless war with Venezuela without public debate or a vote," says Sen. Paul. "We ought to defend what the Constitution demands: deliberation before war." Tyler Durden Thu, 12/04/2025 - 12:05
USDA Will Withhold SNAP Funds From 21 States That Refused To Provide Data Via American Greatness, U.S. Secretary of Agriculture Brooke Rollins says she will be moving to stop federal funding to 21 non-compliant states that have refused to provide data from the Supplemental Nutrition Assistance Program (SNAP). In February, the Trump administration had asked all states to provide their SNAP data to the federal government as part of the administration’s efforts to root out waste and fraud in the welfare program. 29 mostly Republican-led states provided the data and revealed 500,000 cases of duplicate benefits as well as 186,000 deceased individuals’ Social Security numbers in use. But 21 mostly Democrat-led states, including California, Minnesota and New York, have dug in their heels and refused to provide the information, citing concerns over privacy. Secretary Rollins told reporters that if a state refuses to share data on criminal use of SNAP benefits, “it won’t get a dollar of federal SNAP administrative funding.” NO DATA, NO MONEY — it’s that simple. If a state won’t share data on criminal use of SNAP benefits, it won’t get a dollar of federal SNAP administrative funding. Let’s see which states stand for accountability and which are just protecting their bribery schemes. 🤔💸 pic.twitter.com/Y1UXXDOoao — Secretary Brooke Rollins (@SecRollins) December 2, 2025 Rollins said that cooperation is needed from all states in order to root out fraud in the SNAP program and that action is impending for those states that refuse to provide names and immigration status of aid recipients. Speaking at a Cabinet meeting Tuesday, Rollins said, “We asked for all the states for the first time to turn over their data to the federal government to let the USDA partner with them to root out this fraud, to make sure that those who really need food stamps are getting them, but also to ensure that the American taxpayer is protected.” Rollins accused former president Joe Biden of trying to “buy an election” by ramping up food stamp funding by 40% last year. Roughly 42 million recipients currently use SNAP benefits to help buy their groceries, at an annual cost to taxpayers of nearly $100 billion a year. Tyler Durden Thu, 12/04/2025 - 11:45
Dollar General Soars Most In Six Months As Cash-Strapped Consumers Flock To Value Dollar General shares jumped the most in six months following a quarterly earnings beat and an upward revision to full-year guidance, reflecting continued momentum from value-seeking, cash-strapped consumers. Dollar General posted a strong quarter, with third-quarter EPS of $1.28, beating last year's .89 cents and coming in well above the Bloomberg consensus estimate of .94 cents. Same-store sales rose 2.5%, also ahead of BBG expectations, driven entirely by higher traffic (+2.5%) while average ticket remained flat. Gains were broad-based across consumables, seasonal, home, and apparel. Here's a snapshot of the third quarter (courtesy of Bloomberg): EPS: $1.28 vs. $0.89 y/y, estimate $0.94 Net sales: $10.65 billion, +4.6% y/y, estimate $10.62 billion Comparable sales: +2.5% vs. +1.3% y/y, estimate +2.47% Gross margin: 29.9% vs. 28.8% y/y, estimate 29.5% SG&A as % of revenue: 25.9% vs. 25.7% y/y, estimate 26.4% Operating profit: $425.9 million, +32% y/y, estimate $328.1 million Dollar General also lifted its FY25 outlook: Sees comparable sales +2.5% to +2.7%, prior +2.1% to +2.6%, estimate +2.5% (Bloomberg consensus) Sees EPS $6.30 to $6.50, prior $5.80 to $6.30, estimate $6.12 Sees net sales +4.7% to +4.9%, prior +4.3% to +4.8% Sees capital expenditure at the low end of $1.3 billion to $1.4 billion, unchanged, estimate $1.39 billion Still sees an effective tax rate of about 23.5% In markets, DG shares surged nearly 11% - the biggest jump since early June. The stock had been down as much as 73% from its 2022 highs as high interest rates crushed lower-income consumer activity, but the rebound is now well underway. DG suddenly looks like a name to watch heading into next year. Goldman Sachs Managing Director Kate McShane is "Buy" rated on Dollar General with a 12-month price target of $126 ... Here's what other Wall Street analysts are saying: Bernstein, outperform (Zhihan Ma) This is another "strong beat and raise" from Dollar General, with gross margin outperformance (up 110bps y/y) the key driver amid shrink recovery, higher inventory markups, partly offset by LIFO charges NOTE: "Shrink" in retail refers reduced inventory due to theft, damage or other causes of product loss before it is sold to the consumer Ma notes that comp. sales were "entirely led by traffic growth while ticket was flat" "We don't expect outsized comp sales growth from DG, like what Five Below reported yesterday, as DG doesn't benefit nearly as much from tariff-driven price increases or Temu's pullback," she says For DG, she sees further gross margin recovery potential into FY26 "Jury is still out on the retail media growth potential," which she hasn't assigned any value to Bloomberg Intelligence, Jennifer Bartashus "Dollar General's efforts to improve operations by executing well on retail basics like clean stores, in-stock levels and sufficient labor are gaining traction with core and higher- income trade-down shoppers," though it remains to be seen whether those new customers will stick, Bartashus writes Gains in both consumable and discretionary categories in 3Q enabled the retailer to boost annual sales and profit forecasts Jefferies (buy), Corey Tarlowe This is a "clean beat" on both top- and bottom-line, driven by better‑than‑expected margins and "steady traffic gains" Boosted guidance signals "confidence in holiday execution and continued market share gains across both departments" Inventory discipline is "notable" "Near term, the story strengthens on operational leverage and improved cost efficiency," while longer term, "store growth and remodel productivity provide visibility into sustained EPS growth" "The Company is raising its financial expectations for the year, primarily to reflect its outperformance in the third quarter, as well as its improved outlook for the remainder of the year, while also taking into consideration the potential for uncertainty related to consumer behavior," Dollar General wrote in a press release. Important to note: Dollar General's customer base is primarily lower- to middle-income households that have been trapped in the K-shaped economy so far this year, still dealing with lingering woes from the Biden-Harris regime years. The third-quarter beat and rosier outlook suggest improvement within these cohorts as value-seeking consumers continue to trade down. This previous earnings season revealed that consumers are aggressively hunting for deals: TJ Maxx Hikes Outlook As Consumers Trade Down In Ominous Economic Signal And there is good news for working-poor households heading into next year: As K-Shaped Consumer Breakdown Widens, Bessent Points To Brighter 2026 And Walmart remains the discount retailer consumers gravitate to most. Tyler Durden Thu, 12/04/2025 - 11:25
In Case Of Emergency Break Rules By Michael Every of Rabobank Markets start the day mixed. Bad US ADP jobs data saw the old rule that this is bullish for rates, so stocks. By contrast, Australian household spending of 1.3% m-o-m (regardless of how many it covers) saw rate hike bets pick up, with the 3-year yield above 4% for the first time since January. This morning, China also set the daily reference rate for CNY significantly weaker than expected, underlining its rule remains that its currency goes where it wants, not markets – and it doesn’t want it too strong even as its trade surplus reaches staggering dimensions. But the rules are changing. The FT says hedge funds warned the White House about picking the head of the National Economic Council, Kevin Hassett, as the next Fed Chair because he “will be swayed by Trump on interest rates.” As our US strategist Philip Marey notes in his 2026 Outlook, that’s exactly what we expect to happen. Moreover, as underlined here many times before, that’s potentially just part of the new central banking rules as economic statecraft wins, and technocracy loses. Indeed, Bloomberg reports Treasury Secretary Bessent is floated to replace Hassett at the top of the NEC, double hatting like Secretary of State Rubio. ‘Move fast and break things’ comes to mind. Likewise, Brussels floated “emergency” powers to raise €210bn from frozen Russian assets as: NATO’s head pledged it’s “ready to do what it takes” to protect Europe - when it isn’t; the Telegraph warned ‘Trump may now abandon both Russia and Ukraine’ - as Rubio will skip the NATO foreign ministers’ meeting for the first time in 20 years and send a NATO sceptic instead; and talk is of ‘Europe's race back to the draft’ as “Europe’s defence debate now centers on one blunt question: how many people can fight if they must?” – and “very few” is the clear answer. The EC proposal is still de facto seizure of Russian assets with extra pledged protections for Belgium vs. Moscow’s retaliation and qualified majority voting under Article 122, allowing for ‘exceptional measures’ when the European economy is at risk, to block Hungarian or Slovakian vetoes. EU leaders will make a final decision on 18 December: if no deal can be struck, von der Leyen stated the EU will resort to joint debt issuance, as in Covid. Either way, rules are going to be broken, it seems. Yesterday, Europe also broke more of its preferred free-market rules. It banned Russian LNG by end-2026 and pipeline gas by September 2027, with oil floated by end-2027; revived its China de-risking plans in an economic security package; threatened to use its Anti-Coercion Instrument vs. China; pushed a magnet recycling plan; and announced a target for 70% of ‘critical goods’ to be “made in Europe”. Make Europe Great Again? But can Brussels focus as the rule of law comes down on it? Politico argues, ‘Fraud probe risks plunging EU into biggest crisis in decades’ and “People who don’t like von der Leyen will use this against her.” Euractiv says, ‘Welcome to the jungle: Raids, arrests, and a crisis of EU credibility’, and “As far-right parties hammer Brussels over corruption, the EU’s own investigators may be proving them right.” Reportedly, top Commission official Sannino is also taking early retirement amid this scandal. For those thinking maybe economic statecraft is a flag to rally round, Germany’s far left just saved Chancellor Merz from a potential humiliation on pensions by abstaining in a key vote. What if a real military draft or joint debt issuance has to be voted on in Berlin, Paris, Madrid, Rome, etc.? For the UK, this is tricky given Labor leans towards Europe, with suggestions it might consider a rule-breaking push to re-enter the Customs Union. Yet the EU’s new stance means the UK couldn’t supply most critical goods on top of limiting its ability to trade freely with the US, the Anglosphere, Japan, or South Korea, etc., unless/until a higher tariff pan-Western trade umbrella is eventually raised vs. China (which we see as the broad Trump plan). Grand macro strategy is hard when you don’t know you are in it. At the macro level, some rule changes are the rule. In the UK, the OBR, stuck in a scandal, says billions in green energy subsidies were excluded from the recent, controversial Budget, as Chancellor Reeves has ordered a Treasury inquiry over leaks about it. (Not the officially sanctioned ones.) In China, Shanghai launched a clampdown on “property market doom-mongering,” with up to internet 70,000 accounts shut down. That’s after the government reportedly told two private data agencies to withhold monthly home sales data for November, and until further notice. There are questions over when we will see those series return: presumably when sales are going up… which could be some time. Yet neither this nor the news that Chinese AI and big data are officially to guard against Western values and promote socialism will shake the market rule that says China is very investable vs. the previous “uninvestable.” THAT isn’t made by portfolio managers or analysts, but the MSCI equity index review process. Until one day it isn’t. In the US, Axios reports the White House response to political and economic pressures is to double down on “ultra-MAGA”. As a new example, car fuel efficiency standards are to be relaxed to try to bring down vehicle prices, after floated changes in health insurance and mortgages. Part of that will also be a White House focus on robotics to match that on AI, mirroring China. Yet how that eases MAGA voters’ concerns over looming job losses is unclear, unless robots first replace the millions of workers Trump wants to deport? Logically, labor costs don’t have to rise if so – and yet that again wouldn’t please many voters either. Mirroring rule breaking because of cost pressures and potential geopolitical emergencies also sees the Pentagon deploying a new, cheap kamikaze drone directly copied from an Iranian design, the Shaheed (as used by Russia vs. Ukraine, and which was unwittingly developed in part by British universities, “because markets”). Ultra-MAGA also seems OK with its rule change towards backing regime change in Venezuela, as the Telegraph claims Maduro’s ‘terms of surrender’ were unacceptable to Trump: a blanket amnesty for himself and top officials as well as $200m. However, there rumours fly of a looming Maduro exit to various global locations, including Qatar. For its part, China is seen as unlikely to aid Venezuela: its experts reportedly think a Trump takeover could benefit Beijing if ‘spheres of influence’ come back into vogue, which obviously brings Taiwan into the mix again. To come full circle, once spheres of influence are brought into the debate, and they are, the underlying emergency in Europe is even clearer. It doesn’t have one - it IS one. If so, many more rules are going to be broken; either that or comfortable delusions will be. Remember: IN CASE OF EMERGENCY BREAK RULES Tyler Durden Thu, 12/04/2025 - 11:05
"We Must Protect Volodymyr": Leaked Call Shows European Leaders Conspiring Against Trump Peace Plan In a development that is not entirely surprising, European leaders are claiming that Washington is looking to "betray" Ukraine and President Zelensky during potential formal peace negotiations with Russia. "There is a possibility that the United States will abandon Ukraine on territorial questions without providing clarity on security guarantees," French President Emmanuel Macron reportedly said according to a "leaked" phone call record with other European leaders. Likely this was an intentional leak and bit of strong signaling to the Trump administration, as Europe has not been on board with the US President's proposed peace plan from the start. "There is a possibility that the US will betray Ukraine on the issue of territory without clarity on security guarantees," Macron continued. He laid his view that there was "a great danger" for Zelensky. However, Macron's office has subsequently sought to clarify that "The president did not use those words." Via Reuters The leaked transcript of the call between European leaders strategizing about how to protect the Zelensky government and Kiev's interests was published Thursday by the German magazine Der Spiegel. Also reportedly on the line engaged in the conversation were German Chancellor Friedrich Merz, NATO Secretary-General Mark Rutte, Finnish President Alexander Stubb, and of course Zelensky as well. Merz had in the dialogue agreed that Zelensky should be "extremely careful in the coming days" and warned the Ukrainian leader that "they are playing games with you and with us." Finland's President Stubb followed with, "We must not leave Ukraine and Volodymyr alone with these people" - after NATO Secretary General Rutte chimed in: "I agree with Alexander. We must protect Volodymyr." The underlying assumption seems to be that Zelensky is in a weak position and is being bullied by the more powerful US officials who have leverage. The context to this part of the conversation is particularly interesting, given it seems to focus on Trump envoys Steve Witkoff and Jared Kushner, who were just in Moscow meeting with Putin, and are spearheading efforts to get the Trump 28-point peace plan (or 19-points based on reports of a revised version) past the goal line. Politico presents the section of the transcript as follows: Finland’s Stubb seemed to agree with Merz, according to the transcript. "We cannot leave Ukraine and Volodymyr alone with these guys," he said, apparently referring to Witkoff and Kushner, which attracted agreement from Rutte. "I agree with Alexander — we must protect Volodymyr [Zelenskyy]," the NATO chief said. NATO declined to comment when reached by POLITICO. Der Spiegel admits in its report that "These and other statements reproduced in the notes of the conversation illustrate the Europeans' deep distrust of the two Trump confidants." Michael Weiss, who was one of the report's co-authors, framed all of this as focused on countering "American dirty tricks to the end war." One aspect to the conversation was the leaders found agreement on the issue of frozen Russian assets kept in EU banks, which they consider a purely European prerogative, amid recent reports the US is ready to return these to Moscow as part of a finalized Ukraine peace deal. Washington efforts to quickly achieve peace by seriously engaging both sides are likened to "dirty tricks"?... New at @derspiegel: We obtained the transcript of a conference call of top European leaders and Volodymyr Zelensky, warning of American dirty tricks to the end war. Emmanuel Macron said there's a chance the U.S. will "betray" Ukraine on territory. Friedrich Merz said: "They… pic.twitter.com/BjvzKPTw52 — Michael Weiss (@michaeldweiss) December 4, 2025 Zelensky's office has meanwhile neither conformed nor denied the accuracy of the leaked transcript. An unnamed Ukrainian diplomat did respond as follows when probed by Politico: "In general, only the Russians benefit from any splits between Europe and America, so our consistent position is that transatlantic unity must be maintained." But the reality is that Zelensky has constantly pushed back against the idea of forging a peace without direct Ukrainian oversight and input. He has also consistently refused territorial concession, and his European backers have also balked at this key part of the Trump plan. The Kremlin is currently insisting that its control over the Donbass and Crimea not be just deemed de facto - but it wants full international and Ukrainian legal recognition that these territories are under the Russian Federation. Tyler Durden Thu, 12/04/2025 - 10:45
Why Tether Is Buying More Gold Than Many Central Banks, And What It Signals Authored by Dilip Kumar Patairya via CoinTelegraph.com, Tether purchased 26 tons of gold in Q3 2025, a larger quarterly acquisition than any reporting central bank. Its total holdings reached 116 tons, placing it among the world’s top 30 gold holders. Stablecoin issuers, sovereign wealth funds, corporations and tech firms are increasingly active in gold markets. This trend marks a structural shift in global demand once dominated by central banks. Central banks added 220 tons of gold in Q3 2025, up 28% from Q2. Countries such as Kazakhstan, Brazil, Turkey and Guatemala made notable additions despite record prices. While central banks buy gold for national monetary policy, Tether’s purchases come from profits and support diversification, resilience and collateralization for USDT. The global financial system is witnessing a period when non-state entities are competing with central banks to build gold reserves. Tether, the issuer of Tether USDt - the largest stablecoin in the world - is now one of the largest buyers of gold. In a single quarter, the company purchased more gold than most central banks did in the same period. This article explores how an enterprise moved ahead of central banks in purchasing gold for its reserves and discusses independent attestations of the purchase. It also examines the rise of non-state gold buyers and what Tether’s gold buying does not indicate. A private company outpacing central banks in buying gold During the third quarter of 2025, Tether added 26 metric tons of gold to its holdings. According to analysts at Jefferies, this made Tether the single-largest gold buyer in that quarter, larger than the combined purchases of all reporting central banks. By the end of September 2025, Tether’s total reported gold holdings stood at about 116 tons. If ranked alongside countries on the International Monetary Fund (IMF) official gold reserves list, this would place Tether among the top 30 holders worldwide, ahead of nations such as Greece, Qatar and Australia. Per analysis from the investment bank Jefferies, Tether’s 26-ton purchase in Q3 2025 exceeded the official gold purchases of many mid-sized central banks during the same period. This reflects a wider trend. Large private players, including stablecoin issuers, sovereign wealth funds and multinational corporations, are becoming significant participants in markets once dominated by governments. Research from the World Gold Council has also pointed to rising non-sovereign demand for gold. Tether CEO Paolo Ardoino said on X, “While the world continues to get darker, Tether will continue to invest part of its profits into safe assets like Bitcoin, Gold and Land.” The company has emphasized that these gold purchases are made from profits, not from customer reserves that back USDT. It holds that diversification into real assets strengthens long-term resilience. Independent attestations: The verified gold breakdowns Tether publishes quarterly independent attestations prepared by major accounting firms. These reports provide insight into the company’s reserves: As of Sept. 30, 2025, gold and precious metals represent about 7% of Tether’s total consolidated reserves. This figure includes both gold-backed USDT and gold allocated to Tether Gold, Tether’s tokenized gold product. XAUT has a market value of roughly $1.6 billion, which corresponds to less than 12 tons of gold. More than 100 tons of the reported gold is not tied to XAUT and forms part of Tether’s broader corporate reserves and investments. How Tether compares with central banks The WGC “Gold Demand Trends – Q3 2025” report shows that central banks globally added a net 220 tons of gold in Q3 2025. For context, this was 28% higher than the Q2 figure and 6% more than the five-year quarterly average. In 2025, the price of gold rose about 50% year-to-date. Record-high prices likely constrained the scale of initial purchases. However, the renewed increase in central bank demand during the latest quarter indicates that these institutions are continuing to add gold strategically. They are doing so even in the face of significantly higher prices. To help you compare Tether’s gold purchase in Q3 2025, here is information about similar activity by central banks: The National Bank of Kazakhstan was the most significant purchaser in the quarter, boosting its gold reserves by 18 tons to a total of 324 tons. The Central Bank of Brazil, making its first gold purchase since July 2021, reported a 15-ton rise in its gold reserves in September 2025, bringing its total gold holdings to 145 tons. The Central Bank of Turkey maintained its continuous gold accumulation, with its official central bank and Treasury gold reserves growing by seven tons in Q3 to 641 tons. The Bank of Guatemala increased its gold reserves by six tons during the quarter, a substantial 91% jump. The bank now holds a total of 13 tons of gold, accounting for 5% of its total reserves. While making such comparisons, it is important to remember that central banks have different objectives when purchasing gold. Central banks acquire gold as part of their national monetary strategy, whereas Tether holds gold as part of its corporate reserves. The acquired gold serves as collateral for its stablecoin and as an asset diversification tactic. The rise of non-state gold buyers Before the rise of non-state gold buyers like Tether, demand for gold was driven mainly by central banks, the jewelry sector and commodity investors. In recent years, however, a growing share of gold purchases has come from private institutions, sovereign wealth funds, stablecoin issuers and corporate treasuries. This shift is being driven by geopolitical uncertainty and fluctuations in currency values. Stablecoin issuers, in particular, have become significant participants. They are acquiring gold in quantities once associated with medium-sized national central banks. Major technology companies and investment funds are also adding gold to their portfolios as part of broader strategies. The rapid expansion of non-state gold buyers makes them a noticeable part of overall gold demand. They now form a steadily growing segment that is reshaping the pattern of global gold demand. What Tether’s gold buying does not indicate To prevent any misunderstanding, it is important to be clear about what this gold accumulation does not mean: It does not indicate liquidity problems or a risk of insolvency. Independent attestations confirm the relationship between assets and liabilities. A private entity buying gold does not, on its own, indicate financial difficulty unless such concerns are disclosed by the entity. It does not signal upcoming gold price moves. Gold buying by a non-state actor does not imply any market forecast or directional view. It is not a monetary decision in the way central banks operate. Private companies manage their reserves under different objectives and rules, and their gold holdings serve corporate and operational purposes rather than national monetary policy. This helps place Tether’s gold buying in its proper context and supports a better understanding of what the move represents. Tyler Durden Thu, 12/04/2025 - 10:30
US Durable Goods Orders Solid In September While 'soft' survey data has been a shitshow, 'hard' data has been stable (what little we actually had during the shutdown)... Source: Bloomberg Today we get more 'catch-up' data with Factory Orders and Durable Goods data for September. US Factory Orders disappointed, rising just 0.2% MoM (+0.3% exp) and slowing notably from the +1.3% MoM jump in August (and up 3.6% YoY)... Source: Bloomberg Core Factory Orders (ex-Transports) also rose 0.2% MoM, up notably from the downwardly revised 0.1% MoM decline in August (but remains up over 1% YoY)... Source: Bloomberg The final print for Durable Goods Orders were all in line with the flash prints, with the headline rising 0.5% MoMm which helped push Orders up a solid 9.6% YoY... Source: Bloomberg Core Durable Goods orders rose for the 6th straight month and are up over 3% YoY... Source: Bloomberg Of course, this data is extremely stale now, but still it's positive overall (despite job losses in the goods-producing sector). Tyler Durden Thu, 12/04/2025 - 10:08
Meta Shares Jump After Zuckerberg Prepares Deep Cuts To Metaverse Following Epic Flop Meta shares jumped the most in months after a Bloomberg report said Mark Zuckerberg is preparing deep cuts to the company's metaverse ambitions. The metaverse, once pitched by Zuckerberg as the "next chapter of the internet," has been nothing more than a colossal failure. According to Bloomberg, Meta executives have discussed slashing the metaverse budget by up to 30% for 2026, which includes the virtual-worlds product Meta Horizon Worlds and its Quest virtual-reality unit. These upcoming cuts to Reality Labs' VR operations will likely result in layoffs as early as January. Zuckerberg has reportedly asked all divisions to find 10% savings, but the metaverse unit was asked for much deeper cuts because it has been a total flop since its introduction early in the pandemic. Here's more from the report: The proposed metaverse cuts are part of the company's annual budget planning for 2026, which included meetings at Zuckerberg's compound in Hawaii last month, the people said. Zuckerberg has asked Meta executives to look for 10% cuts across the board, which has been the standard request during similar budget cycles the past few years, they added. In 2021, Zuckerberg told investors in a founder's letter that the metaverse marked "the beginning of the next chapter for the internet — and the next chapter for our company." Zuckerberg's failures continue piling up. Meta AI - fail Metaverse - fail Meta glasses - fail Meta Portal Services- fail Meta Clubhouse - fail Meta Threads - fail Time to retire Zuckerberg. https://t.co/OW0IX6b4O7 — Ewan Morrison (@MrEwanMorrison) September 18, 2025 News of the metaverse cuts sent Meta shares up more than 5% in premarket trading in New York... If the gains hold during the cash session, this would be the largest intraday jump since the 11% spike in late July. Year-to-date, shares are up 9.3% as of Wednesday's close. In 2023... Meta Hit With Trifecta Of Fails: Metaverse, Smart Glasses, Threads https://t.co/FLlVTDNZ5e — zerohedge (@zerohedge) August 4, 2023 However, one area that hasn't been a failure is Meta's Ray-Ban smart glasses. Tyler Durden Thu, 12/04/2025 - 09:55
Sam Altman Quietly Tried To Buy A Rocket Startup To Compete With Musk's SpaceX The relationship between the OpenAI cofounders, Sam Altman and Elon Musk, has devolved into X sparring and legal battles. As the conversation surrounding data center shifts to space, a new report specifies that Altman attempted to acquire a rocket company to compete with Musk's SpaceX. The Wall Street Journal reports that Altman explored acquiring or partnering with rocket startup Stoke Space. This move would've put him in direct competition with SpaceX, only suggesting the rivalry between the two billionaires has no limits. Those familiar with the Altman-Stoke Space talks said those discussions to invest billions and take a controlling stake were over the summer and have since ended. WSJ's report comes days after OpenAI declared "code red," telling employees that ChatGPT needs significant improvement in user experience, including personalization, speed, reliability, and the ability to answer a broader range of questions. In the companywide memo, Altman also said that OpenAI would be pushing back work on other initiatives, including advertising, AI agents for health and shopping, and a personal assistant called Pulse. A separate report from Financial Times showed that OpenAI rivals from Google and Anthropic are quickly catching up in terms of features and popularity... Altman's space ambitions come as Musk recently laid out his vision of humanoid robots, as well as AI data centers in low Earth orbit. The lowest cost place for data centers is space when 300 GW of computer data center you can power and cool in space when you have continuous solar and no batteries needed. @elonmusk pic.twitter.com/J5EMJt8rRw — Marc Benioff (@Benioff) November 19, 2025 Jeff Bezos has also recognized the need for data centers in space. Also, Bezos has the rocket company Blue Origin Jeff Bezos plans to build a data center in space within the next 10+ years. Unlimited solar energy available 24/7, space is an ideal location for data centers.$AMZN AWS is set to make major moves out there. pic.twitter.com/KJCEO973eQ — Bourbon Capital (@BourbonCap) October 3, 2025 Given the "code red" memo Altman sent to staff earlier this week, perhaps the ChatGPT billionaire should focus on achieving AGI and keeping the AI bubble alive (read report) into next year, rather than overextending, and let Musk and Bezos figure out data centers in space with their rocket companies doing the heavy lifting. Tyler Durden Thu, 12/04/2025 - 09:25
Treasury Boss Bessent Nukes NYT Hypocrisy Over Desperate Trump Health Smears Authored by Steve Watson via Modernity.news, Treasury Secretary Scott Bessent delivered a brutal takedown of legacy media frauds Wednesday, calling out The New York Times for their shameless double standard on presidential fitness. Fresh off a three-hour cabinet marathon with President Trump, Bessent faced down a Times hack at their own summit and laid bare the hypocrisy. The same outlet that buried Joe Biden’s dementia for years now peddles baseless panic about Trump’s vigor. It’s the latest desperate ploy from a press corps still seething over their 2024 election wipeout, desperate to undermine a leader who’s delivering on all fronts. ? BREAKING: In a mic drop moment, Sec. Scott Bessent just PUMMELED the NYT to their faces for a HUGE double standard on Donald Trump's health "WHERE was the New York Times? We just had a 3 hour cabinet meeting yesterday!" "For 10 MONTHS Biden did not have a cabinet meeting.… pic.twitter.com/HyPWjPWFUF — Eric Daugherty (@EricLDaugh) December 3, 2025 The fireworks erupted Tuesday at the NYT’s glitzy DealBook Summit, where Bessent squared off against financial columnist Andrew Ross Sorkin. Sorkin, parroting his paper’s latest hit piece “Signs of Fatigue: Trump Faces Realities Of Aging in Office”, tried to corner Bessent on Trump’s supposed “mental decline” and reduced visibility. Big mistake. Bessent didn’t flinch—he fact-checked the fraud live on stage. “You had what was one of the greatest scandals of all time, that the coverage of the Biden administration, Joe Biden’s diminished capacity, and the cover up. And that’s why it’s probably fair to raise these questions. Where was the New York Times? We just had a three-hour cabinet meeting yesterday, Andrew.” He didn’t stop there, dismantling the 25th Amendment fever dreams, noting “For ten months, the Biden administration did not have a cabinet meeting… How are you going to invoke the 25th Amendment if the cabinet secretaries never see the president, which they didn’t?” “I hear from people in the Treasury Building that I see President Trump more in a day than my predecessor saw Joe Biden in half a year!” Bessent urged while Sorkin squirmed, mumbling about “fair questions.” Post-summit, Bessent doubled down in a further interview, admitting the Times’ lies hit him like a freight train. He couldn’t let it slide—not when the “paper of record” was torching its own credibility in real time. “He immediately went into attack and gotcha mode! I couldn’t take the hypocrisy,” Bessent declared. ? NOW: Scott Bessent says he COULDN'T TAKE the New York Times lying to his face on stage – "So I just had to fact-check him!" "He immediately went into attack and gotcha mode! I couldn't take the HYPOCRISY." ? "He just played to the audience…the NYT are so far from the… https://t.co/i1IGBfZFWp pic.twitter.com/nNMnLDNZvD — Eric Daugherty (@EricLDaugh) December 4, 2025 “He just played to the audience…the NYT are so far from the truth,” Bessent continued, noting “How are people gonna construct the narrative of this second Trump presidency when the supposed ‘paper of record’ is so far off?!” Bessent also described Trump’s unbreakable stamina, relating “He’ll call me, ‘Scott, I didn’t wake you, did I?’ No, sir, I’m always awake at 1:52AM on a Tuesday!” He added, “We did the trip to Alaska. We did a round trip one day, and we arrived back…our batteries are out. We land at Andrews, and the president’s like, ‘oh, it’s morning in Europe now.’ I think we had spent probably 20 hours in the air in Alaska. And he said, ‘let’s start making phone calls and call the European leaders!’ So we had to sit on the tarmac for two more hours while he made phone calls!” ? JUST IN: Scott Bessent PUMMELS the media for latching on to the theory that Donald Trump's health is "deteriorating" "He'll call me, 'Scott, I didn't wake you, did I?' No, sir, I'm always awake at 1:52AM on a Tuesday!" ? "We did the trip to Alaska. We did a round trip one… pic.twitter.com/4dwZnCXtLM — Eric Daugherty (@EricLDaugh) December 4, 2025 “He never stops working for the American people. And it’s incredible,” Bessent urged. Democrats and their media allies spent four years gaslighting the nation about Biden’s “sharp as a tack” facade, even as he shuffled through pressers like a man who’d lost his mind. Now, with Trump back in the Oval Office acing cognitive tests and grinding 20-hour days, the smears fly: fatigue, decline, 25th Amendment whispers. Trump himself torched the “crazy lunatics” in the press room, ranting: “I sit here and do four news conferences, I answer questions from very intelligent lunatics– you people.” He mocked their flip, noting “You always find something new. Like, ‘Is he in good health? Biden was great, but is Trump in good health?!’ YOU PEOPLE ARE CRAZY!” White House doctors backed him up with October MRI results showing “perfectly normal” cardiovascular health—no abnormalities for a 79-year-old. Press Secretary Karoline Leavitt hammered it home, noting Trump’s “the most accessible president in history,” spotted “almost every single day.” Meanwhile, Biden’s crew dodged press for eight months straight, peddling “cheap fakes” excuses for his vacant stares. CNN’s Scott Jennings piled on, nailing the Democrats’ gall in a viral clip. “It’s astonishing, frankly, that Democrats have the gall to push conspiracies about President Trump’s health after the Biden cover-up. Sorry to disappoint Democrats, but I was in the Oval Office recently — there is nothing wrong with this man,” Jennings stressed. “This is an attempt to create a narrative that doesn’t exist because Democrats are so butthurt living through the White House claiming Biden was fine,” Jennings asserted, adding “They want to transfer that to Trump.” It's astonishing, frankly, that Democrats have the gall to push conspiracies about President Trump's health after the Biden cover-up. Sorry to disappoint Democrats, but I was in the Oval Office recently — there is nothing wrong with this man. pic.twitter.com/kByIPFS8R9 — Scott Jennings (@ScottJenningsKY) 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 Thu, 12/04/2025 - 09:00
'No Hire, No Fire' Economy Confirmed As US Jobless Claims & Hiring Plans Plummet With the spice flowing once again (post shutdown), initial jobless claims continue to signal no labor market pain at all... plummeting last week to 191k (the lowest since Sept 2022 and before that the lowest since 1969!!) Distortions around Thanksgiving likely skewed the reading, with California, Texas, and New York saw the largest drop in non-seasonally adjusted claims. The drops in both California and Texas are one of the largest weekly declines seen outside of the pandemic... It appears a lack of government firings is helping as the 'Deep Tristate' initial claims tumbled to its lowest since Nov 2024... This lack of firing comes as ADP reports the biggest manufacturing sector job losses since COVID and Challenger, Gray & Christmas reports U.S.-based employers announced 71,321 job cuts in November, up 24% from the 57,727 job cuts announced in the same month last year. “Layoff plans fell last month, certainly a positive sign. That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. Continuing jobless claims continue to oscillate just above the 1.9 million Maginot Line... Yet another alternative labor market signal points to weakness (more in line with ADP's job losses) as Revelio shows 9k job losses in November... Hiring Plans Plummet Through November, global outplacement and executive coaching firm Challenger, Gray & Christmas reports that U.S. employers have announced 497,151 planned hires, down 35% from the 761,954 announced at this point in 2024. It is the lowest year-to-date total since 2010... WARNing Additionally, WARN notices, which have previously led unemployment claims, are rising again. As Bloomberg's Simon White notes, The WARN Act obliges employers with more than 100 full-time workers to provide written notice to the state and the workers themselves at least 60-90 days ahead of planned plant closings and mass layoffs. It is one of the best real-time reads on the labor market, and has remained very low and steady, around an average of 220-230k, over the past two years. As the chart below shows, WARN notices has led previous rises in claims. It has also given some false positives, but given the likely impact on yields should we see a sudden deterioration in employment, the recent rise is notable. That the slowing in the jobs market is set to gather pace is captured in other indicators. The NFIB small business survey polls respondents on whether they think the single most important problem they face is poor sales. That has been rising, which often precedes the unemployment rate. Small businesses employ about half the workforce in the US and given the plunge in small business jobs reported by ADP yesterday, it seems labor market pains are starting to accelerate under the surface. In short - the labor market remains a riddle, wrapped in a mystery, inside an enigma with every indicator pointing in different directions - choose your own adventure. Tyler Durden Thu, 12/04/2025 - 08:58
Futures Rise, S&P Set For 8th Gain In 9 Days US equity futures rise, trading less than a percent away from a new record high amid signs of a leadership rotation with Big Tech not leading the bounce this time. As of 8:00am ET, S&P and Nasdaq 100 contracts are higher by about 0.1% after climbing in seven of the past eight sessions and extend on Wednesday's gains when bad news was good news as a soft ADP jobs report bolstered expectations for a Fed rate cut next week. Challenger job cuts data for November showed job cuts fell 53% to 71,321 last month from October, but rose 24% from the 57,727 job cuts announced in the same month last year. Pre-market, Mag 7 were up a touch, led by TSLA (+0.9%), META (+0.6%) and NVDA (+0.5%). Salesforce is higher after its forecast beat and it gave a positive view on AI adoption. Bond yields were up modestly, USD unchanged, reversing an earlier drop to a one month low. Commodities are mixed: Oil and base metals are mostly higher; gold/silver are lagging. Bitcoin trades around $93, rebounding almost $10K from its low just days ago. Today's calendar includes November Challenger jobs cuts (7:30am), weekly jobless claims (8:30am) and September factory orders (10am) In pre-market trading, tech stocks were broadly steady with all Magnificent Seven megacaps apart from Apple posting modest gains, while Salesforce climbed on signs that customers are embracing its artificial intelligence tools. Mag 7 stocks mostly higher (Tesla +0.6%, Nvidia +0.4%, Meta +0.8%, Alphabet +0.6%, Microsoft +0.4%, Amazon +0.1%, Apple -0.04%) Axogen (AXGN) rises 5% after the provider of medical and surgical instruments said the FDA approved its biologics license application for its Avance nerve graft to treat peripheral nerve discontinuities. Bill Holdings Inc. (BILL) gains 3% after activist investor Barington Capital Group has taken a stake in business payments firm. Costco falls (COST) 1.1% after the retailer reported total comparable sales for November that missed the average analyst estimate. Dollar General (DG) rises 4% after the company raised its full-year outlook, highlighting value-focused retailers are winning over consumers hunting for deals. Guidewire (GWRE) jumps 5% after the software company’s first-quarter results and second-quarter revenue forecast topped analysts’ expectations. Hormel (HRL) rises 6% after the protein producer’s 3Q adj. EPS forecast beat the company’s recently lowered guidance, as well as the Street consensus. MBX Biosciences (MBX) slips 3% after Goldman Sachs initiated coverage of the drug developer with a sell rating, citing risk to the firm’s data readout in the near term. Salesforce Inc. (CRM) is up 1.9% after the software company gave an outlook for revenue in the current period that topped analysts’ estimates, suggesting it is persuading customers to buy its AI tools. Snowflake (SNOW) falls 8% after the software company issued a forecast for operating margin in the current quarter that fell short of the average analyst estimate. Analysts noted a deceleration in product revenue growth. UiPath (PATH) rises 8% after the software company’s third-quarter results beat expectations. It also gave a forecast. UniQure (QURE) falls 13% after saying the FDA indicated that data from its Phase I/II studies of an investigational gene therapy for Huntington’s disease are unlikely to provide primary evidence to support a biologics license application submission. ZIM (ZIM) rises 3% after Globes reports that Hapag-Lloyd submitted a bid to purchase the shipping company, without saying where it got the information. Fed rate-cut expectations have fueled a broad rebound after November’s slump, with investors turning to defensive and other sectors as worries over stretched tech valuations persist. The small-cap Russell 2000 index is now just shy of a record high, while the Nasdaq 100 remains about 2% below its peak. “We’re expecting a broadening of the rally for sectors that have so far been lagging,” said Amelie Derambure, senior portfolio manager at Amundi SA in Paris. “The Russell is very sensitive to interest rates, so the figures reinforced the market’s idea that the Fed will be able to lower rates, in a non-recessionary context.” A report on corporate job-cut announcements from Challenger, Gray & Christmas Inc. added to evidence that the US labor market is softening. Announced layoffs fell last month after surging in October, but were still the highest for any November in three years, according to the outplacement firm. Meanwhile, YTD hiring plans are the lowest since 2010. With official data still delayed, private indicators have increasingly pointed to employment coming under pressure from company belt-tightening and weaker spending. Worries about the jobs market and expectations that President Donald Trump will choose a Fed chair who shares his dovish stance have shifted market pricing toward as many as four rate cuts through 2026. Still, with the broader economy resilient, easier policy should continue to support stocks. “Retail momentum stocks and crypto are still way below the recent peaks, though both have recovered from the recent lows,” wrote Mohit Kumar, chief economist and strategist for Europe at Jefferies. “We see sentiment remaining positive into year-end.” Meanwhile, Goldman Sachs is looking past this month’s decision to what it calls a “foggy” Fed rate path in 2026. Risks to its terminal-rate range are skewed to the downside amid labor-market weakness, the bank wrote. They still expect two rate cuts next year. JPMorgan strategists expect the market to be boosted by higher equity demand next year. They project a supply-demand “improvement” of around $700 billion in 2026, which would be the strongest year since 2023. Europe's Stoxx 600 is 0.3% higher with the DAX outperforming. Autos and industrial stocks are leading the way in Europe while utilities and healthcare dip. Automakers gain as Bank of America upgrades some stocks. Here are some of the biggest movers on Thursday: Mercedes, Renault gain as much as 4.4% and 4.8% respectively while holding company Porsche SE rises 5.7%, as Bank of America upgrades the stocks due to a more positive view on the European autos sector. Storytel gains as much as 6.5% after SEB initiated coverage of the Swedish audiobook and publishing house with a buy rating, saying the company has improved the quality of its subscriber base and its internal efficiency. Cosmo shares rise as much as 5.5%, adding to Wednesday’s 20% jump following positive late-stage trial results for the life science company’s experimental treatment for male hair loss. Balfour Beatty shares rise as much as 2.4% after the engineering and construction group said it expects to grow its order book by 20% in 2025 and confirmed more buybacks are on the way in 2026. Philips shares drop as much as 8.6% after Citi analysts noted tariff and China challenges for 2026. Trustpilot shares fall as much as 21% after Grizzly Research published a report on the consumer-review company. Earlier in the session, Asian stocks rose for a third straight day, led by gains in Japan as regional tech shares tracked their US peers higher. The MSCI Asia Pacific Index advanced as much as 0.9%, with SoftBank Group and Keyence among the biggest contributors. Shares fluctuated in China and Hong Kong, while South Korean stocks slipped. India’s benchmark struggled to hold early gains even as the rupee strengthened against the dollar. Sentiment across the region is improving on rising expectations of a Federal Reserve rate cut this month after the latest US jobs data. Meanwhile, a slightly weaker yen is providing an extra lift to Japanese exporters. Semiconductor shares are showing signs of weakness, with South Korea’s tech-heavy stock index slipping more than 1% as foreign funds take profit. A Microsoft Corp. update is also weighing on sentiment, after a media report that the firm lowered expectations for business customers buying on the cloud unit’s marketplace for artificial intelligence models and agents. In FX, the dollar gives up earlier gains, Aussie outperforming on bets the central bank may pivot back to rate hikes. In rates, global bonds weakened, driven by rising yields in Japan. Sentiment shifted as some senior government officials signaled they wouldn’t oppose a Bank of Japan rate hike this month. Treasury yields are rising across the curve. German bonds falling on growing government uncertainty. Gilts are outperforming after very weak construction activity data sparks a small increase in BOE rate-cut bets. In commodities, oil prices are higher, albeit with some volatility. Brent is trading around $63/barrel. Gold is recovering ground and now trading close to $4,200/oz. Bitcoin, meanwhile, held above $93,000. The dollar was little changed. US economic calendar includes November Challenger jobs cuts (7:30am), weekly jobless claims (8:30am) and September factory orders (10am) Market Snapshot S&P 500 mini and Nasdaq 100 mini little-changed Russell 2000 mini steady Stoxx Europe 600 +0.3% DAX +0.8% CAC 40 +0.4% 10-year Treasury yield +2 basis points at 4.08% VIX +0.1 points at 16.17 Bloomberg Dollar Index little changed at 1212.82 euro little changed at $1.1668 WTI crude +0.4% at $59.21/barrel Top Overnight News Donald Trump’s aides are considering having Scott Bessent also head the National Economic Council if Kevin Hassett becomes Fed chair, people familiar said. BBG Trump's administration ordered an enhanced vetting of H-1B visa applicants, with new H-1B visa screening based on any involvement in censorship or free speech, according to the State Department memo. Trump said he may work out another trade deal with Canada and Mexico. BBG Vladimir Putin said Russia didn’t agree with some points of the US peace proposal for Ukraine, Tass reported, citing his interview with a local media outlet. Earlier, Trump called the meeting between Steve Witkoff and Putin “reasonably good” but next steps remain unclear. BBG Emmanuel Macron met Xi Jinping in Beijing and urged China to boost investments in France, as both sides look to rebalance their economic ties. BBG Cambricon plans to more than triple its production of AI chips to half a million units in 2026, people familiar said. The Beijing-based company aims to rival Huawei in China and fill a void left by Nvidia’s forced exit. BBG Bank of Japan Governor Kazuo Ueda said on Thursday there was uncertainty on how far the central bank could raise interest rates due to the difficulty of estimating the country's neutral rate of interest. RTRS The Indian rupee will regain some lost ground against the U.S. dollar over the next three months, but a reversal in the currency's fortunes hinges upon India and the U.S. agreeing to a trade deal. RTRS Paramount more than doubled its breakup fee to $5 billion in its offer to acquire Warner Bros., signaling confidence it can clear regulatory hurdles. BBG Meta Platforms Inc. has been hit by a full-scale European Union antitrust investigation over how its AI features in WhatsApp may be harming competition, in the latest probe into Big Tech’s dominance on the continent. The bloc’s digital chief signaled she wants to conclude several ongoing investigations into tech giants this month including Elon Musk’s X. BBG For all the focus on ADP (historically very noisy), the Indeed Hiring Lab data actually picked back up in the last couple of weeks (need more data). Notable was the a re-acceleration in open jobs in construction (see below). What if AI adoption is slower or less transformative in the near term… the labor market re-accelerates… and inflation proves hotter in 2026? Not at all my base case but inversion an in important part of the process: Goldman Trade/Tariffs US President Trump said they will either let the USMCA expire or maybe work out another deal with Mexico and Canada. US halted plans to sanction the Chinese spy agency to maintain the trade truce, and the Trump administration will also not enact any major new export controls against China, while the Trump admin is preparing to hold a high-level meeting to decide whether to provide licenses to allow NVIDIA (NVDA) to export the H200 to China, according to FT. Chinese Commerce Ministry, on rare earth export controls, said as long are export license applications are for civilian use, they will be approved. Chinese President Xi said in a meeting with French President Macron that China and France are far-sighted, responsible and independent major countries, while he added that China and France should uphold multilateralism and that China is willing to eliminate interferences and stick to equal dialogues with France. Xi also commented that both countries should support each other on core interests and agreed to expand practical cooperation, as well as consolidate cooperation on airspace and nuclear energy. Furthermore, he said both countries aim to expand two-way investment and that China will expand domestic demand in the 15th five-year plan and will also expand market access and opening-up. India's Trade Minister said exports of autos, electronic goods, textiles and machinery to Russia are expected to increase. India also aims to expand and diversify exports to Russia to address the trade imbalances. India has secured a USD 2bln submarine deal, Bloomberg reported during the visit of Russian President Putin. A more detailed look at global markets courtesy of Newsquawk APAC stocks were mostly higher following the positive momentum from Wall St, where all major indices rose amid a weaker dollar and softer yield environment, but with some of the gains in the region capped amid a quiet calendar and lack of major fresh macro catalysts. ASX 200 edged higher in rangebound trade with strength in materials and resources offsetting the losses in the real estate and consumer sectors, while the mining industry was among the outperformers aside from the gold-related stocks. Nikkei 225 rallied above the 50k level as the tech-related momentum in Japan continued, despite higher yields and bets for a December BoJ rate hike. Hang Seng and Shanghai Comp were mixed amid weakness in auto names and after another liquidity drain by the PBoC, while PBoC Governor Pan noted in an Op-Ed that China must maintain prudent monetary policy and should avoid excessive policy adjustments. Top Asian News PBoC Governor Pan said in a People's Daily op-ed that China must maintain prudent monetary policy and should avoid excessive policy adjustments, while he also suggested preventing overreach from leading to long-term side effects of policies. BOJ BoJ is likely to raise interest rates in December, a decision Japan's government will likely tolerate, according to sources cited by Reuters. Key members of Japanese PM Takaichi's government would not try to prevent a BoJ hike in December, Bloomberg reports, citing sources. BoJ is carrying out an assessment of the level of neutral interest rate, according to Jiji. BoJ Governor Ueda reiterated that they can only estimate the neutral rate with a wide range thus far, while he added they cannot specify a terminal rate and are working on narrowing the estimate on the neutral interest rate, with the findings to be disclosed if successful. Furthermore, he said for now, they have to work with the current estimate set in a fairly wide range, and there is uncertainty on how far interest rates can eventually be raised. European equities opened higher, reflecting positive APAC momentum, though morning news flow has been light. Markets expect Kevin Hassett to be named the next Fed Chair, with some concerns that he could be influenced by President Trump on rates. Meanwhile, Reuters and Bloomberg reported hawkish signals suggesting the BoJ is likely to raise rates in December with government approval. Sectors are mixed with a positive tilt: Autos, Industrial Goods & Services and Technology lead. At the bottom: Utilities, Basic Resources and Health Care. Top European News BoE Decision Maker Panel Survey (Nov): Expectations for year-ahead CPI inflation remained unchanged at 3.4%; Expected year-ahead wage growth rose slightly, by 0.1ppt to 3.8% in the three months to November FX DXY is trading near the lower end of its 98.798–99.029 intraday range, pressured by JPY strength after Reuters and Bloomberg reported the BoJ is likely to hike rates in December with government approval. Money markets were already pricing a 66% chance of a hike following Governor Ueda’s recent hawkish remarks. USD/JPY slipped from 155.54 to a 154.77 low, with next support at the 1 December trough of 154.66. AUD is firmer amid continued hawkish repricing of RBA expectations. G10 FX is otherwise mostly flat and taking its cue from the USD, with few fresh drivers. EUR and GBP were little moved by Construction PMI releases. PBoC set USD/CNY mid-point at 7.0733 vs exp. 7.0554 (Prev. 7.0754) Chinese State-owned banks reportedly bought USD on the onshore spot market this week in a bid to rein in CNY strength, according to Reuters sources. RBI to tolerate a weaker rupee as dollar inflows diminish, according to Reuters sources. Fixed Income Fixed income benchmarks are lower following the hawkish BoJ reports, though the associated softening in risk sentiment has provided a modest haven bid as the morning has unfolded. JGBs underperformed, falling as much as 42 ticks to a new contract low of 134.08. The move pushed the 20yr yield to its highest since June 1999 and the 30yr yield to a record high, with selling driven by reports that boosted December BoJ hike odds to above 65%. The bearish tone extended into USTs and Bunds (now trading the Mar’25 contract), which hit lows of 112-27 and 128.46, down eight and 16 ticks respectively. European newsflow was limited; French and Spanish supply saw no major reaction, with Spain’s auction strong and France’s slightly softer versus prior. For USTs, focus beyond the BoJ remains on the Fed Chair narrative. The FT noted bond investors have expressed concern to the Treasury over Hassett’s potential appointment due to his perceived alignment with the President. Kalshi odds for Hassett have slipped to ~75% from above 80% earlier in the week. Spain sells EUR 2.88bln vs exp. EUR 2.5-3.5bln 2.70% 2030, 0.85% 2037 Bono and EUR 0.481mln vs exp. EUR 0.25-0.75bln 1.15% 2036 I/L. France sells EUR 5.06bln vs exp. EUR 3.5-5.5bln 4.75% 2035, 0.50% 2040, 4.50% 2041, 3.25% 2055 OAT. UK sells GBP 1bln 4.25% 2039 Gilt via tender: b/c 3.88x, average yield 4.813%. Commodities Crude benchmarks were firmer through the APAC session despite constructive comments from US and Russian officials after their recent Moscow meeting. Both benchmarks climbed to highs of USD 59.42/bbl (WTI) and USD 63.08/bbl (Brent) before easing to USD 59.11/bbl and USD 62.74/bbl as risk sentiment softened following the hawkish BoJ reports. XAU posts modest gains early in APAC, reaching USD 4,217/oz before sliding to USD 4,176/oz and remaining below USD 4.2k/oz. Despite a recent soft ADP print and mixed services PMI, gold has unwound its data-driven uptick as broader risk sentiment improves. 3M LME copper traded within a USD 11.43k–11.53k/t range in APAC before retreating from Wednesday’s all-time high of USD 11.54k/t, now at session lows around USD 11.35k/t. The pullback follows Rio Tinto’s raised 2025 copper production guidance and Goldman Sachs’ scepticism over the recent rally. Geopolitics: Middle East Israel identified the body of the hostage received from Gaza as Thai national Sontisek Rintalk and said the body of the last Israeli hostage, Ran Gvili, remains in Gaza. Iraq has decided to freeze the money of "terrorists", including Hezbollah and the Houthis, via the Official Gazette Geopolitics: Ukraine US President Trump said the meeting between Russian President Putin, Special Envoy Witkoff and Kushner was a reasonably good meeting and "we'll see what happens", while he added that Russian President Putin wants to end the war. White House official said the US and Russia had a thorough and productive meeting, while Witkoff and Kusher briefed Trump after the meeting with Putin on Tuesday and are to meet Ukrainian representatives in Miami on Thursday. Russian President Putin said the meeting with US' Witkoff and Kushner was necessary and very useful, but it is "too early to say"; said Russia will take control of Donbas and Novorossiya by military means or otherwise. Russian Foreign Ministry Spokesperson said the attacks on tankers in the Black Sea and CPC are aimed at disrupting the peace talks in Ukraine. A Ukrainian official has reportedly cautioned that Thursday's meeting between Ukraine's Umerov and US' Witkoff is a "debrief" by the US and not "a negotiating session...", FT reported. Geopolitics: Other Venezuela's President Maduro said he had a conversation with US President Trump about 10 days ago, while he added that steps are being taken towards a respectful dialogue between both countries. China is said to be gathering military ships across East Asia in a show of maritime force, according to Reuters sources US Event Calendar 7:30 am: Nov Challenger Job Cuts YoY, est. 48%, prior 175.3% 8:30 am: Nov 29 Initial Jobless Claims, est. 220k, prior 216k 8:30 am: Nov 22 Continuing Claims, est. 1962.61k, prior 1960k 10:00 am: Sep Factory Orders, est. 0.3%, prior 1.4% 10:00 am: Sep F Durable Goods Orders, prior 0.5% 10:00 am: Sep F Durables Ex Transportation, prior 0.6% 10:00 am: Sep F Cap Goods Orders Nondef Ex Air, prior 0.9% 10:00 am: Sep F Cap Goods Ship Nondef Ex Air, prior 0.9% DB's Jim Reid concludes the overnight wrap Markets continue to be in consolidation mode, with the S&P 500 (+0.30%) and the STOXX 600 (+0.10%) both posting modest gains yesterday. The session had started on the back foot as the ADP’s report of private payrolls showed the biggest monthly drop since March 2023, but most assets recovered by the end of the session, as data cemented the view that the Fed would likely cut rates at next week’s meeting. So lots of assets were up by the close, with the 10yr Treasury yield (-2.3bps) down to 4.06%, whilst Bitcoin (+2.30%) reached a two-week high of $93,722 and the small-cap Russell 2000 rose +1.91%. In Japan this morning a strong 30yr auction has led to a decent long-end rally even as other parts of the curve sell off. In terms of that ADP report, the headline was that private payrolls fell by -32k in November, undershooting expectations for a +10k rise. The losses were largely concentrated around small businesses (-120k), which saw their largest decline in employment since the pandemic, although payrolls from medium (+51k) and large businesses (+39k) fared better. There were also some questions about regional distortions as the aggregate decline came due to outsized losses in regions along the Atlantic coast. Still, the negative signal from the ADP report received more attention than usual because of the data backlog from the shutdown. So we aren’t getting the usual payrolls this Friday, and the ADP is one of the final pieces of information the Fed will get on the labour market ahead of next week’s decision. That dovish momentum from the ADP report then got a further boost from the ISM services print. The headline measure was a bit stronger than expected at 52.6 (vs. 52.0 expected), but crucially, the prices paid component fell to a 7-month low of 65.4 (vs. 68.0 expected), which eased concerns about tariff-driven inflation. That component has been strongly correlated to inflation with a lag, so the bigger-than-expected decline helped solidify expectations for a Fed rate cut. Moreover, the employment component remained in contractionary territory at 48.9, so again that echoed the weaker message from the ADP print. Those prints helped US Treasuries to rally across the curve, with the 2yr yield (-2.4bps) down to 3.49%, whilst the 10yr yield (-2.3bps) fell to 4.06%. And in turn, that saw the dollar index (-0.49%) post its worst day in seven weeks and fall to its weakest level since October 28, the day before Fed Chair Powell said that a December rate cut was “not a foregone conclusion”. This morning, 2 and 10yr US yields are back up +2bps, nearly wiping out yesterday's gains. Meanwhile for equities, the S&P 500 (+0.30%) continued to move higher, closing less than 1% beneath its record high from late-October. However, there were some fluctuations over the session, and Microsoft (-2.50%) shares fell after tech news outlet The Information reported that Microsoft had lowered their AI software sales quota. That was pushed back on by a spokesperson for Microsoft, and the share price recovered a bit when CNBC reported they hadn’t lowered the quotas. However, Microsoft shares then sold off again into the close, reviving investor fears about AI valuations. Nevertheless, that wasn’t enough to knock the broader market. The Magnificent 7 (+0.12%) still rose on the day thanks to a +4.08% gain for Tesla. And it was a strong day for market breadth with two thirds of the S&P 500 stocks higher on the day and the small cap Russell 2000 rising +1.91%. Over in Europe, it was also a data heavy day with the final PMI releases. Those were broadly positive, and the final composite PMI for the Euro Area was revised up to 52.8 (vs. flash 52.4), its highest level in two-and-a-half years. So that continues the positive momentum seen in the PMIs over recent months, and helped to bolster sentiment, with upward revisions in Germany, France and the UK for the composite PMI. In turn, that helped the STOXX 600 (+0.10%) to just about post a modest gain, although it was a pretty subdued day across the continent, with the FTSE 100 (-0.10%), the CAC 40 (+0.16%), and the DAX (-0.07%) all seeing little movement. There was also little movement in European fixed income, with 10yr bund yields (-0.2bps) barely moving. However, we did hear from ECB Chief Economist Lane, who discussed how the ECB should react to medium-sized inflation shocks, and energy price shocks in particular. He argued that inflation risk wasn’t one-way and that the bank had recently seen some upside surprises, so his comments offered support for the view that rates are likely to be kept on hold through the energy-induced inflation undershoot in 2026. On the geopolitical front, the perception was that the prospect of a breakthrough in the talks on Ukraine continued to ebb yesterday, with the Polymarket chances of a ceasefire by end-March falling back to just 22%, having been at 27% when we went to press yesterday. In turn, there was a reaction among assets more sensitive to the conflict, with the STOXX Aerospace & Defense index up +2.26%, whilst Brent crude oil prices (+0.35%) were up to $62.67/bbl. In Asia, Japanese stocks are leading the way, with the Nikkei rising by +2.00% and the Topix increasing by +1.86%, both outperforming their regional counterparts. The ASX (+0.27%) is also higher, with the Hang Seng flat and the Shanghai Comp -0.20% lower. The KOSPI is the largest underperformer, down -0.71%. US futures are flat. Early morning data revealed that Australia’s household spending significantly exceeded expectations in October, marking its largest increase since January 2024, thereby strengthening the argument for an interest rate hike next year. Spending rose by +1.3% from September, surpassing economists’ forecasts of a +0.6% increase. Year-on-year, consumption has increased by +5.6%, compared to the anticipated +4.6% rise. 2yr and 10yr Aussie yields are up +7.5bps and 6bps respectively. In the bond markets, Japan’s 30-year bonds gained following an auction that attracted the highest demand since 2019, as elevated yields drew in investors. The yield on the 30-year bond decreased by -3bps to 3.39% after the bid-to-cover ratio surged to 4.04, up from 3.125 at the previous auction in November. This strong outcome for the 30-year auction followed a successful sale of 10-year debt earlier in the week, which also saw robust demand. However the rally at the long end today seems to have been funded from elsewhere in the curve with the 10yr yield +3.8bps higher this morning. To the day ahead now, and we’ll get the US weekly initial jobless claims, the November construction PMIs from the UK and Germany, and Eurozone retail sales for October. Central Bank spearers include the Fed’s Bowman, the ECB’s Kocher, Cipollone and Lane, and the BOE’s Mann. Notable earnings include Kroger, Dollar General and HPE. Tyler Durden Thu, 12/04/2025 - 08:50
Ex-Pornhub Owner Interested In Purchasing Lukoil Assets By Charles Kennedy of OilPrice.com Austrian businessman Bernd Bergmair, former majority owner of Pornhub, has approached the U.S. Treasury about buying assets of Russian oil major Lukoil after the Trump administration sanctioned the company. "Obviously Lukoil International GmbH would be a great investment and anybody would be fortunate to have the privilege of owning those assets,” Bergmair told Reuters. "I don’t comment on potential investments as a matter of course," he added. Last month, U.S. Treasury issued the greenlight for companies to begin talks with Lukoil for its foreign assets, with U.S. oil and gas giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) have already expressed interest. Exxon is in talks with Iraq’s Oil Ministry to buy Lukoil’s 75% stake in the West Qurna 2 oilfield, one of the country’s largest. Iraq's oil ministry has invited several U.S. oil companies to enter negotiations over the West Qurna 2 takeover through a competitive bidding process. West Qurna-2 oilfield produces more than 400,000 bpd of crude. The Iraqi government has taken over operations at West Qurna 2, including paying staff salaries directly. Previously, Lukoil reached a preliminary agreement with Gunvor to buy its international assets. However, the giant commodity trader pulled the $22-billion bid after the U.S. Treasury Department expressed dissatisfaction with the deal, calling Gunvor a Russian “puppet”. “President Trump has been clear that the war must end immediately. As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit,” the U.S. Treasury said in a post on X. Unfortunately, the latest round of peace talks between Russia and Ukraine have been unfruitful after the Kremlin failed to agree to Trump’s 19-point peace plan. Some of the critical amendments in the new plan include no handover of the Donbas region to Russia for free, no automatic veto on Ukraine joining NATO in the future and provision of Article 5-style protection for Ukraine, meaning the U.S. would be bound to intervene if Russia invades in the future. A proposal for full amnesty for war crimes that was part of the first plan has also been removed. Ukraine has doubled down on attacks on Russian energy infrastructure, including the latest attack on a shadow fleet vessel in African waters. Tyler Durden Thu, 12/04/2025 - 08:05
Goldman Warns Copper's Parabolic Breakout Lacks Stability Copper futures on the London Metal Exchange opened the week with a breakout to new record highs (see report). On Wednesday, we highlighted a Goldman note detailing the "circular melt-up" mechanics driving the move higher. By Thursday, a separate Goldman analyst was cautioning clients that the parabolic move above $11,000/ton is unlikely to last. At 6:30 ET, LME copper futures hit a fresh record at $11,575/ton, driven by a scramble to move metal into the US warehouses ahead of potential Trump-era import tariffs and a burst of demand from Asia. The combination has intensified global tightening fears amid soaring AI data center buildouts and massive power grid upgrades. The question now is how long this breakout into record territory can last, and whether the momentum will carry into 2026. To address that question, a team of Goldman analysts led by Aurelia Waltham published an overnight note titled "Copper: Our Favourite Industrial Metal." "For 2026, we hold a selective outlook for industrial metals. Copper is our 'favourite' industrial metal as constrained mine supply growth and structural demand growth from grid & power infrastructure move the market towards balanced in 2026, from oversupplied in 2025," Waltham told clients. She continued, "Additionally, higher ex-US premia and conversations with physical traders point to a larger-than-expected reacceleration of copper flows into the US in H1 2026 ahead of a potential tariff, which should further tighten the ex-US market. As a result, we lift our average H1 2026 LME copper price forecast to $10,710 (from $10,415)." Waltham addressed the ongoing parabolic price surge on the LME this week with a clear note of caution for clients: That said, we do not expect the market to enter a period of material tightness until the end of the decade. Already-stretched speculative length means that we do not expect the current breakout above $11,000 to be sustained (as was the case in October). Most of the recent price increase has been driven by expectations of future market tightness, rather than current fundamentals (Exhibit 4). The analyst noted: While our much smaller 2026 surplus of 160kt moves the market closer to balanced, it means that we do not expect the global copper market to enter a shortage any time soon. Beyond Waltham's view, super-bull Kostas Bintas of Mercuria recently told Bloomberg, "If the world keeps going like this we will be left without copper cathodes in the rest of the world." Bintas warned, "Just looking at the facts, mathematically… what is going to happen if all of this continues? There's only one answer: there will be tightness and a higher price." Li Xuezhi, head of research at Chaos Ternary Futures, a unit of a commodities hedge fund in Shanghai, said, "The rally has just started, we remain bullish on copper prices." The takeaway: LME copper futures look firmly pointed up and to the right for years to come, but the pace of the move is where some analysts' views sharply diverge. If you've been putting off those copper gutters or pipes for your next home-improvement project, you should lock them in sooner rather than later. ZeroHedge Pro subs can read the full note in the usual place. Tyler Durden Thu, 12/04/2025 - 07:45
Clear That 'Something Behind The Scenes Is Breaking' Holter Warns, We're Headed For A Derivative Meltdown Authored by Greg Hunter’s USAWatchdog.com Financial writer and precious metals expert Bill Holter (aka Mr. Gold) said at the beginning of November that there was “more risk in the financial system now than any time ever.” There are so many ways the system can break down it’s hard to keep track, but let’s start with exploding silver prices that happened at the end of last week. Holter says, “In a 48-hour period of time, silver was up over $5 per ounce. It’s pretty clear and pretty obvious that something behind the scenes is breaking. We know that the lease rates have exploded. We know that the borrow rates on SLV have exploded. We also know that in the last 5 to 7 years, silver has been in a deficit... At this point, you are looking at a 400-million-ounce deficit on an annual basis, and global production is 850 million ounces... The rumor is somebody has put in a $20 billion order, which would mean 400 million ounces. If that is the case, that order cannot be met, and that will create shark infested waters... If somebody stands for delivery and it looks like it may be difficult for them to get delivery, then everybody is going to stand for delivery because they know that their contracts are worthless.” What would happen if there is an actual failure to deliver in the silver market? Mr. Gold says, “If that gets confirmed, then that one day you will see a huge spike, but markets won’t open after that. That will cascade. What will happen is all the COMEX contracts for both silver and gold will default. That will spill over to the rest of the CME (Chicago Mercantile Exchange). It has contracts on US Treasuries and stocks. They have contracts on everything. If the silver contracts blow up and the gold contracts blow up, how much confidence are you going to have on pork bellies or stocks... The derivative market is $2 quadrillion. In the future, you are going to measure your wealth by how many ounces of silver and how many ounces of gold you own... Once you get a failure to deliver, you will get a Mad Max scenario. Failure to deliver will melt down all derivatives. The world runs on credit, and credit runs on faith. If you break faith, then you have a real problem in the financial markets and the real economy.” In closing, Holter warns, “The problem is there is very little collateral left. Everything has been borrowed against already.” Holter is not alone in his thinking about huge risk in the system. It appears billionaire investors Jeff Gundlach and Ray Dalio agree with Holter, and they are warning of liquidity problems. For the first time in their successful careers, they are both buying physical gold. On a total system stopping derivative meltdown, Holter says, “Most people think it is not possible, and it can’t happen. Mathematically, a meltdown in derivatives that melts everything down is coming. It’s over. Mathematically, it’s over.” There is much more in the 41-minute interview. Join Greg Hunter of USAWatchdog as he goes One-on-One with financial writer and precious metals expert Bill Holter/Mr. Gold as the risk in the financial system increases for 12.2.25. To Donate to USAWatchdog Click Here Tyler Durden Thu, 12/04/2025 - 07:20
European Carmakers Surge After Trump Rolls Back Fuel Rules European automaker shares rose sharply on Thursday after President Donald Trump moved to roll back U.S. fuel economy limits established under Joe Biden, according to Reuters. The administration framed the proposal as a way to lower consumer costs by making it easier for companies to sell gasoline-powered vehicles. By mid-morning, Porsche shares were up more than 5%, Mercedes-Benz and Volvo Car gained nearly 4%, Renault rose 3.3%, and Stellantis climbed around 2.7% after an 8% rally the previous day. Speaking from the Oval Office alongside industry executives and lawmakers, Trump announced the reversal of the Biden-era rules, saying, “We’re officially terminating Joe Biden’s ridiculously burdensome, horrible, actually, CAFE standards that impose expensive restrictions and all sorts of problems — gave all sorts of problems to automakers. And we’re not only talking about here, we’re talking about outside of our country.” He also said his administration would revoke California’s emission waivers, following a Senate vote earlier this year to overturn them. A White House official said the reset could save Americans up to $109 billion. Reuters writes that automakers responded favorably. Ford CEO Jim Farley said the move aligns regulations with market conditions, adding, “We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability.” Stellantis CEO Antonio Filosa said the company supports policies that are “environmentally responsible” but also allow consumers “the freedom to choose the vehicles they want at prices they can afford.” General Motors backed the idea of a single national standard and said it remains committed to offering both electric and gasoline-powered models. Volvo Cars said it is too early to assess the effects of the regulatory shift. Although aiming to reach net-zero emissions by 2040, the company has already announced plans to expand hybrid production in the United States, with new models scheduled as late as 2029. Market analysts said the rollback had been widely anticipated. Martino De Ambroggi of Equita noted that the change should benefit the industry and pointed to reports that the European Union may loosen or revise its planned 2035 ban on combustion-engine car sales. Industry sources said this week that the European Commission could delay announcing its support package for the region’s carmakers. The move is expected to intensify debate over whether weaker standards actually reduce costs for drivers. Consumer Reports found “no systemic, statistically significant increase” in inflation-adjusted vehicle prices from 2003 to 2021, while fuel economy improved 30% over the same period. The organization estimated that consumers saved “$7,000 in per-vehicle lifetime fuel savings for model year 2021 vehicles compared with model year 2003.” Environmental groups criticized the policy shift, arguing it will raise long-term fuel expenses and emissions. Dan Becker, director of the Center for Biological Diversity’s Safe Climate Transport Campaign, said, “In one stroke Trump is worsening three of our nation’s most vexing problems: the thirst for oil, high gas pump costs and global warming.” He said stronger standards are essential to U.S. competitiveness, warning that Trump’s action “will feed America’s destructive use of oil, while hamstringing us in the green tech race.” Tyler Durden Thu, 12/04/2025 - 06:55
