Housekeeping: Good Morning.
“The Gold reset is a process, not an event”
Today
Discussion: China Loosens Up
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Discussion: China Loosens Up (slide show)
Syria’s Collapse
China’s Politburo
PBOC Buying Returns
Participant Positioning
News/Analysis:
El Salvador’s Gold Reserves Worth Up to $3 Trillion: President Bukele Highlights Economic Potential
Equity Recap:
US equities declined on Monday ahead of the consumer inflation report on Wednesday. Large caps and small caps retreated: S&P 500 (-0.61%) vs. Russell 2000 (-0.67%). MSCI Emerging Markets (EEM) gained 2.05% and MSCI EAFE (EFA) slipped 0.06%.
Market News:
El Salvador’s Gold Reserves Worth Up to $3 Trillion: President Bukele El Salvador could potentially tap into a $3 billion gold reserve, according to President Nayib Bukele. In a recent message shared on X, Bukele outlined that the country sits atop one of the richest gold deposits in the world, with reserves concentrated in the Pacific Ring of Fire, an area renowned for its volcanic activity and mineral wealth. - Story
"China’s leaders on Monday pledged “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption... Later this week, the Beijing administration is reportedly expected to review economic performance and policy implementation in the current year, while setting priorities for the following one. While specifics will not be announced until March, it is widely expected that Beijing will keep its next year’s GDP growth target at “around 5%” — the same level that was set for the current year — if not slightly lower." Source: CNBC
Breaking Bitcoin? Google on Monday said that it has overcome a key challenge in quantum computing with a new generation of chip, solving a computing problem in five minutes that would take a classical computer more time than the history of the universe.- CNN
"The Magnificent Seven tech giants — Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla — are expected to post a combined earnings increase of 18% in 2025, down from a projected 34% for 2024, according to data compiled by Bloomberg Intelligence. Strip out Nvidia, arguably the biggest beneficiary of Wall Street’s AI mania, the rest of the group is expected to post a measly 3% increase in profits in 2025." Source: Bloomberg
"China’s antitrust regulator has launched an investigation into American semiconductor giant Nvidia in an apparent move to hit back at the US government’s escalated chip restrictions. SCMP
Politics/Geopolitics:
"Israeli forces are 20 km from Damascus, according to the Pro-Hezbollah Al Mayaden, as they seized more villages in southern Syria", according to journalist Elster.
Israel military spokesperson denies claims army has advanced to within 25km of Damascus; says troops have remained in the buffer zone.
Israel's Navy has carried out a large-scale operation to destroy the Syrian army fleet, according to sources cited by Al Arabiya.
Israel has received intelligence indicating that Hamas is ready to compromise on some of its conditions, according to five Israeli officials cited by NYT.
"Loud explosions heard in Damascus", according to AFP journalists; details light.
Data on Deck:
MONDAY, DEC. 9 10:00 am Wholesale inventories
TUESDAY, DEC. 10 8:30 am U.S. productivity (revision)
WEDNESDAY, DEC. 11 8:30 am Core CPI
THURSDAY, DEC. 12 8:30 am Core PPI Nov.
FRIDAY, DEC. 13 8:30 am Import price index1
FINAL MARKET CHECK…
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