1) Goldman Sachs CEO, 'Trump's pro-growth policies expected'. US small business optimism highest in 3 years
David Solomon, CEO of Goldman Sachs, said that the Trump administration is expected to pursue pro-growth policies, which is a good thing. He emphasized, "I am very optimistic that this administration will operate a very growth-friendly agenda." Regarding Scott Bwent, who was nominated as Secretary of the Treasury, he said, "I know him well. He has great insight into the market and capital flows," adding, "We have high expectations for the new economic team." Meanwhile, according to the National Federation of Independent Business (NFIB), the US small business optimism index rose to 101.7 in November, the highest level since June 2021. The index rose 8 points from the previous month, reflecting an atmosphere of anticipation for more favorable economic policies following Trump's election victory.
2) Trump: 'Invest $1 billion or more and get expedited permits'
Donald Trump, US President-elect, said he plans to expedite the processing of various permits for individuals or companies investing $1 billion or more in the United States. "Anyone who invests $1 billion or more in the United States will receive all environmental permits, and not limited to that, completely expedited," he said. "Get ready!!!" He has promised to strengthen investment in the US, including energy and infrastructure, and to abolish federal regulations that he claims are hindering economic growth by the Republican Party.
3) Asset managers: 'Trump tariff concerns overblown'
Some global asset managers argue that concerns about Trump's announced high-tariff policies are excessive and that they are merely negotiating cards. Anne Walsh of Guggenheim Partners Investment Management said, "I think tariffs will be applied across the board rather than as a negotiating strategy," and is expected to be selectively implemented in specific areas. Although Trump has repeatedly emphasized his America First policy during the election campaign, there is a sense among asset managers that its impact will not be as severe as initially feared. Paula Volent, who was appointed by Trump's nominee for Treasury Secretary, Scott Bwent, expressed a similar view. He said that while reviewing investment strategies that can withstand inflation, "Scott and Trump are likely to use tariffs as negotiating cards, and it won't be as bad as many people fear."
4) Pound Sterling hits highest level against Euro since 2022
The pound sterling has risen to its highest level against the euro since 2022. The outlook for the Bank of England (BOE) to cut interest rates less aggressively than the European Central Bank (ECB) is gaining momentum. Traders expect the BOE to freeze the benchmark interest rate at its last policy meeting of the year next week and maintain a cautious stance on further cuts. This is because economic growth remains robust and inflation is still high in some sectors. Meanwhile, the ECB is expected to push for another 25bp cut to support the sluggish Eurozone economy. Brad Bechtel of Jefferies said that the BOE would "lag far behind" the ECB in terms of the pace and scope of interest rate cuts, and predicted that the euro-pound exchange rate, currently around 0.8250, could test the 0.8200 level.
5) China expected to see largest interest rate cut in years and expansion of government spending
Economists are expecting the largest fiscal deficit ratio in 30 years and the biggest interest rate cut since 2015 as Chinese authorities signal bolder economic stimulus measures. At least seven Chinese brokerages forecast that the fiscal deficit for next fiscal year will reach 4% of gross domestic product (GDP). This is the highest level since a major tax reform in 1994, and the Chinese government has kept its fiscal deficit target below 3% of GDP so far. The Central Political Bureau of China recently promised to adopt a "moderately easing" monetary policy by 2025, deviating from the "prudent" strategy it has maintained for 14 years, signaling further interest rate cuts.
(Source: Bloomberg News)
