Flash News

TREE NEWS update: Canadian and European Union leaders launched a forward-looking alliance. The statement announced the new partnership but did not specify its scope or timeline. No further details were provided in the announcement.

TREE NEWS update: Amazon has established a supplier financing arrangement allowing it to borrow up to $80 billion against the value of hardware it purchases, with the facility drawable at the company’s discretion from early 2027 through the third quarter of 2028. Lenders will receive security interests in portions of the acquired assets. Amazon’s third-quarter results showed capital expenditure growth exceeding expectations, pushing free cash outflow to $42.4 billion for the year through September 30.

TREE NEWS update: Canada and the European Union agreed in a joint statement to define the concept of a closer Canada-EU relationship that stops short of full membership before their 2027 summit. The two sides will work out the framework ahead of the meeting.

TREE NEWS update: German President Frank-Walter Steinmeier said he deeply admires China’s development achievements, noting that the country’s economic growth since reform and opening-up has been unprecedented in world history in both speed and scale. Steinmeier made the remarks during a state visit to China on October 29, speaking at Peking University in Beijing.

TREE NEWS reports: Germany’s DAX 30 closed provisionally down 0.94% at 25,795.31 points, leaving it up about 2.3% for October. Italy’s main index fell 1.06%, with its bank index down 1.45% and down about 11% on the month. France’s index slipped 0.19%, while the UK index edged up 0.01%.

TREE NEWS reports: The pan-European STOXX 600 index closed provisionally 0.46% lower at 646.04 points, leaving it up about 1.7% for October. The euro zone’s STOXX 50 fell 1.32% to 6,125.23, down about 2.2% over the month. The FTSE Eurofirst 300 lost 0.49% to close at 2,576.21.

TREE NEWS update: St. Louis Fed President Alberto Musalem said further interest-rate increases are needed to bring inflation back to the Federal Reserve’s target and that the central bank should act soon. Speaking at a Shadow Open Market Committee event in New York, Musalem said rates remain accommodative after September’s hike and that inflation risks are tilted toward staying above target. He does not hold a policy vote this year.

TREE NEWS reports: Deutsche Bank global head of FX strategy George Saravelos said the dollar’s risk in the event of an AI-driven market pullback is “more two-sided than what the market has priced so far.” The remark flags that the greenback could swing either way if an AI-fueled selloff hits markets, rather than moving in one direction as current pricing implies.

TREE NEWS reports: Manulife Investment Management senior portfolio manager Nathan Thooft said investors should be cautious about overstating the long-term impact of U.S. midterm election results on the dollar. Currency markets are ultimately driven more by relative economic growth, inflation, interest rates and capital flows than by election outcomes, he said. A divided government implies fewer changes and reduced uncertainty, offering some stability to financial markets including the dollar.

TREE NEWS reports: The dollar’s rebound may have enough momentum to shrug off the US midterm elections, as high interest rates and a surge in AI-related spending pull capital into the US. Investors see the main drivers of dollar strength as unlikely to change regardless of the election outcome, with FX markets driven more by relative growth, inflation, rates and capital flows. A divided government could offer some stability to financial markets including the dollar, while a Fed resuming rate hikes could lift it further.

TREE NEWS update: Mexico’s state oil company Pemex said its refining output reached its highest level since 2014, with domestic fuel sales also climbing to their highest since 2018. The company disclosed both figures in a statement. No specific volumes or dates were provided in the material.

TREE NEWS reports: The cost of insuring against default on debt issued by several US tech giants hit record highs on Friday, as disappointing quarterly results from Intel and Amazon deepened concerns over whether the AI financing boom will ultimately pay off. Intel’s five-year credit default swap spread jumped as much as 22.4 basis points to 127.9 basis points a year, a record in both daily increase and absolute level, ICE Data Services data showed. Amazon’s spread rose 6.9 basis points to 94 basis points a year, also a record.

TREE NEWS update: European Central Bank Chief Economist Philip Lane said artificial intelligence has only a limited effect on inflation. The assessment from the ECB’s chief economist addresses whether AI-driven changes in productivity and pricing could shift the euro area’s inflation path. Lane did not elaborate on the specific channels or magnitude of that limited impact.

TREE NEWS update: Federal Reserve Bank of San Francisco President Mary Daly, a 2027 FOMC voter, said artificial intelligence is crucial to the Fed’s price stability and employment mandates. AI is critical to how the central bank thinks about near- and medium-term policy, Daly said. She did not announce any policy decision or specify a timeline for rate moves.

TREE NEWS reports: Bitcoin traded around $77,000 as a US stock-market sell-off spread to gold, which fell to its lowest level in a year. The decline puts the largest cryptocurrency on course for its worst October performance in 12 years, with crypto markets tracking broader risk-asset weakness.

TREE NEWS reports: JPMorgan strategists said short-term U.S. Treasury valuations are unlikely to strengthen significantly next year, with pressure likely to be more pronounced as supply ramps up sharply in 2027. They warned that weakness in short-term Treasury prices could spill over into funding markets, especially if money market funds cut repo allocations to absorb more bill supply or if funding markets become more sensitive to bill settlement dates. Debt-ceiling dynamics may also come into play next spring, while the Treasury could keep the TGA balance low, further clouding the supply-demand picture.

TREE NEWS reports: JPMorgan strategists including Jay Barry and Pankaj Vohra said in a report that U.S. T-Bill issuance is expected to keep growing, with privately held issuance rising by another $991 billion in 2027, making demand the core question. They see headwinds, expecting money-market fund AUM growth to match the larger inflows of 2024 or 2025 absent major market disruption like the 2020 COVID shock or 2023 regional bank stress. Foreign official investors still have room to return to steadier T-Bill buying, but stablecoins lack a similar rationale without a crypto rebound or clearer regulation.

TREE NEWS reports: South Africa’s FTSE/JSE Africa Top 40 index closed down 2.42% at 99,412.34 points on Friday, October 30, capping a 0.58% weekly decline and a 1.37% drop for the month. Mining stocks led the losses as spot gold fell below $3,900 an ounce, with Northam Platinum down 7.28%, Pan African Resources 6.95% and Sibanye Stillwater 6.43%.

TREE NEWS reports: Mexico’s state oil company Pemex reported a third-quarter net loss of 10.79 billion Mexican pesos, narrowing sharply from a loss of 61.25 billion pesos in the same period a year earlier. The figure was disclosed without further breakdown of the results.

TREE NEWS update: Russian presidential aide Yuri Ushakov said on the 30th that Russia plans to hold trilateral talks with Ukraine in Abu Dhabi under US mediation, calling them of “decisive significance” for resolving the Ukraine issue. In an interview with VGTRK host Pavel Zarubin, Ushakov said the Russia-US-Ukraine talks are “decisive” for everything that has happened in recent years and for the future. President Vladimir Putin had already confirmed Russia’s readiness to resume trilateral talks during a meeting with US special envoy Steve Witkoff.