US Household Debt Rises to $19.1 Trillion as Mortgage Delinquencies Hit Highest Level Since 2018
- US household debt increased 1.8% quarter-on-quarter to $19.1 trillion in the third quarter, according to the New York Federal Reserve's Household Debt and Credit Report.
- The share of household loans at least 30 days overdue rose to 5%, compared with 4.7% in the previous quarter.
- Mortgage balances more than 90 days overdue increased to 1.13%, the highest level since the first quarter of 2018.
- Home equity line of credit balances increased by $23 billion, marking the largest quarterly rise since 2005.
- New auto loan delinquencies also increased, while the pace of student loan delinquencies slowed and credit card delinquencies improved.
- The US 10-year Treasury yield climbed back to 5%, reaching the level for the first time since November.
- Despite rising mortgage delinquencies, the New York Fed said overall household credit quality remains sound.
Iran Says No Ongoing Negotiations With US, Rejects Reports of Planned Meeting With Vice President Vance
- Iran’s Supreme National Security Council Secretary Rezaei said Tehran is not currently engaged in negotiations with the United States, according to Iran’s Fars News Agency.
- Rezaei said Iran had asked Washington for a clear response to its conditions but had received no satisfactory answer.
- He described the US response as deceptive and dismissed claims that negotiations would continue or that a meeting would take place in Qatar as false.
- Rezaei also rejected reports that he was planning to meet US Vice President JD Vance, calling them false and unfounded.
Netanyahu Calls for Regime Change in Iran, Warns of Growing International Pressure to Accept Nuclear-Armed Tehran
- Israeli Prime Minister Benjamin Netanyahu said Iran has not abandoned its objective of destroying Israel and is seeking to rebuild its capabilities after Israel repelled the immediate threat.
- Netanyahu argued that the only way to permanently stop Iran's alleged plans is to overthrow the current Iranian regime.
- He warned that Israel could soon face international pressure to accept a nuclear-armed Iran and called for the formation of a national unity government.
- Addressing domestic political developments, Netanyahu criticised proposals to form a minority government that could rely on support from parties or lawmakers he accused of defending Hamas.
- He said he could not rely on a government made up of people who hate Israel, clarifying that he was not referring to Arabs but to those who oppose Israel.
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Rubio Says US Sees No Need for Large-Scale Military Operation Against Iran, Cites Effectiveness of Sanctions and Naval Blockade
- US Secretary of State Marco Rubio said Washington sees no need for a large-scale military operation against Iran, citing the effectiveness of US economic sanctions and maritime blockade measures.
- Speaking in Paris on November 10 after the G7 foreign ministers' meeting, Rubio said the impact of sanctions on Iran is expected to become increasingly significant.
- He said the US remains open to reaching a “real agreement” with Tehran but described Iran's proposed conditions as “absurd”.
- Rubio reiterated that President Donald Trump has ruled out Iran's demand for war reparations.
- On the latest US, Ukraine and Russia trilateral talks in Abu Dhabi, Rubio described the discussions as “very productive”.
- He also suggested expanding future negotiations to include European representatives.
US Senators Raise National Security Concerns Over Nvidia CEO Jensen Huang’s Reported Ties to Suspected Chinese Spy
- US Senators Elizabeth Warren and Jim Banks said on November 9 that Nvidia CEO Jensen Huang’s reported connection to a suspected Chinese intelligence operative makes national security concerns “even more urgent”.
- CNBC reported that Huang admitted to an affair with Alice Huang, a former executive at Singapore-based Nvidia customer Megaspeed, whom US officials reportedly believe is linked to China’s Ministry of State Security.
- Megaspeed has been accused of helping restricted Chinese companies obtain Nvidia chips.
- Nvidia’s board has launched an independent investigation. The company reportedly said it has no reason to believe trade secrets or US national security were compromised.
- Warren and Banks urged lawmakers to include the proposed AI Overwatch Act in the National Defense Authorization Act. The legislation would prohibit exports to China of AI chips more advanced than Nvidia’s H200.
- Three Republican House committee chairs have also requested a closed-door briefing with Huang on November 18.
- Chinese academics criticised the allegations as politically motivated, while China’s Foreign Ministry dismissed them as “groundless speculation”.
Three Contract Workers Die After Suspected Toxic Gas Leak at Tata Electronics’ iPhone Components Plant Near Hosur
- Three contract workers died on Monday evening after inhaling suspected toxic gas while servicing a nano-filtration tank at Tata Electronics’ Marigold facility in Krishnagiri district, near Hosur, Tamil Nadu.
- The incident occurred around 5:10 pm. Police said one worker, Akmal Babu Bhai, opened the tank’s lid and collapsed after being overcome by gas. Sarathi Kumar fell into the tank while attempting to rescue him, while Kaveri was also overcome by gas as she raised the alarm and tried to help.
- The facility’s safety team pulled all three workers out, but doctors at a private hospital in Hosur declared them dead on arrival.
- Police suspect a chemical powder used to control odour inside the tank may have triggered the release of toxic gas.
- Reuters reported that the effluent treatment plant was operated by Nalco Water, an Ecolab unit.
- Krishnagiri Collector C. Dinesh Kumar said proper safety measures were missing. The district administration, Tata Electronics and Apple have ordered investigations.
- Production was not affected as the facility was shut for Deepavali. The Hosur facility has previously faced fire and contamination-related setbacks.
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SoftBank Reports ¥1.12 Trillion Quarterly Loss as AI Data Centre Investments and Intel Stake Hit Results
- SoftBank Group reported a net loss of ¥1.12 trillion ($7 billion) for its fiscal second quarter, reversing a ¥2.5 trillion profit a year earlier and missing analyst expectations for a profit.
- The loss was driven partly by advance payments for power generation equipment for US AI data centre projects, including a planned campus in Pike County, Ohio.
- SoftBank said it made the payments early to secure equipment amid fears of shortages and long delivery timelines. These advance payments reached $9.48 billion by the end of September.
- Falling share prices of Intel, Arm and Coupang also weighed on results. SoftBank recorded a ¥270.1 billion loss on its Intel investment, according to the Financial Times.
- The company also faced losses on derivative contracts backed by Intel shares. These contracts helped raise $7.4 billion in August.
- Financing costs increased to ¥461.9 billion during the quarter.
- The Vision Fund division reported an ¥81.58 billion loss, compared with a ¥2.38 trillion profit a year earlier. Declines in portfolio companies, including Grab, weighed on Vision Fund 1.
Strong US Inflation Data Fuels Bets on December Fed Rate Hike as AI Investment Adds to Price Pressures
- US monthly inflation remained firm in October, with core CPI rising 0.3% for the month. Gasoline prices increased 1%, slowing sharply from September's 9.1% rise, while food prices recorded their biggest monthly increase since April.
- Annex Wealth Management chief economist Brian Jacobsen said headline inflation remains elevated and warned that recent oil price movements have also fed into underlying price pressures.
- Chicago Fed President Austan Goolsbee flagged AI-driven demand as a potential source of inflation. Officials are increasingly concerned that heavy AI investment could raise input costs and competition for skilled workers, including plumbers and electricians.
- Fed Governor Christopher Waller indicated he could support a larger rate increase if inflation accelerates, saying he would lean towards a 50-basis-point hike under such circumstances.
- Regan Capital CIO Skyler Weinand said stronger-than-expected inflation, robust October payroll growth and upward revisions to previous employment figures provide a basis for a December rate increase.
- Treasury prices fell and yields climbed following the inflation release. Yields on two-year to five-year Treasury notes rose by more than 10 basis points.
- Markets increased bets on further Fed tightening, pricing in at least two rate increases by mid-2027 and a small probability of a 50-basis-point move in December. A 25-basis-point December hike is fully priced in by markets.
US Government Received $12.26 Billion From Venezuelan Natural Resource Exports, Confidential KPMG Report Says
- A confidential KPMG report reviewed by The New York Times says the US government received and spent more than $12 billion from Venezuelan natural resource exports during the first nine months of 2026.
- Between January 3, which the report identifies as the start of US military intervention, and September 30, the US Treasury's Venezuela custodial account received $12.26 billion in deposits.
- Most of the funds were reallocated shortly after receipt. The account held approximately $170 million as of September 30 and generated around $12 million in interest.
- Most funds returned to Venezuela were sold into the market through foreign exchange auctions conducted by Venezuelan commercial banks.
- The report did not identify the ultimate beneficiaries of the proceeds from these transactions.
- The report was dated just days before the US midterm elections.
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Adani Group Plans Over $120 Billion Investment Over Five Years, Targets ₹18 Lakh Crore Asset Base
- Adani Group plans to invest more than $120 billion over the next five years, Adani Enterprises director Pranav Adani told Fortune India.
- Around 70% of the planned investment will go into energy businesses, including renewable and thermal power, data centres, and transmission and distribution. Another 20% will be allocated to ports, airports and roads, with the remaining 10% going to businesses such as cement, copper and aluminium.
- The plan implies annual capital expenditure of more than $20 billion, with scope for further increases.
- The group's three listed power companies account for around $60 billion of the planned investment. Adani Ports and the aviation business are expected to receive a combined ₹1 lakh crore.
- The investment programme is expected to more than double the group's asset base to ₹18 lakh crore, or approximately $191.6 billion, within five years.
- Adani Group is targeting EBITDA of ₹2.6 lakh crore to ₹3 lakh crore over the same period.
- The proposed spending exceeds the group's record FY26 capital expenditure of ₹1,52,967 crore. Its asset base stood at ₹7,85,098 crore and EBITDA at ₹94,834 crore in FY26.
- Karan Adani said the plan excludes additional spending on coal gasification, nuclear energy, aluminium and acquisitions.
- The announcement follows Adani Enterprises' recent plan to spend ₹35,000 crore to ₹40,000 crore annually over the next couple of years, mainly on airports, data centres and a PVC complex at Mundra.
US October CPI Rises More Than Expected, Strengthening Bets on Further Fed Rate Hikes
- US headline CPI increased 0.4% month-on-month in October, while core CPI, excluding food and energy, rose 0.3%, both exceeding expectations, according to the Bureau of Labor Statistics.
- The BLS did not publish annual inflation figures because data collection was disrupted by last October’s government shutdown.
- Core CPI rose 0.296% month-on-month, marking the third consecutive month of increases around 0.3%. The annualised three-month rate climbed to 3.75%, compared with 1.6% in July.
- The report is the final CPI release before the Federal Reserve’s December 8–9 policy meeting. Before the release, Fed Governor Christopher Waller said core inflation of 0.3% or higher could justify a 50-basis-point rate increase.
- Markets increased their bets on further monetary tightening, with investors pricing in at least two Fed rate hikes before mid-2027.
- US Treasury yields climbed following the data. The 10-year yield rose 9.03 basis points to 4.952%, while the two-year yield gained 16.54 basis points to 4.715%.
- The report cited the Iran war, tariffs and the data centre boom among the factors contributing to inflationary pressures this year.
- Brent crude fell below $90 per barrel on Tuesday for the first time since August. Analysts said easing expectations of a US-Iran escalation are gradually reducing the geopolitical risk premium in oil prices.
- However, lower crude prices may take time to feed through to US retail gasoline prices, which typically respond with a lag.
- US October CPI came in hotter than expected, with headline inflation rising 0.4% MoM and core CPI increasing 0.3% MoM, both above forecasts.
- BLS did not release YoY inflation figures due to insufficient October 2025 data following last year's government shutdown.
- US two-year Treasury yields jumped as markets priced in a higher probability of further Fed rate hikes next year. Nasdaq 100 futures fell 1.5%.
France Says Trump Unlikely to Change Trade Policy Despite Republican Midterm Setbacks
- French Trade Minister Nicolas Forissier said US President Donald Trump is unlikely to change his trade policy despite Republicans losing control of both chambers of Congress in the midterm elections.
- Forissier said Democratic control of the House and Senate would increase scrutiny of tariffs but that Trump retains considerable authority and independence over trade policy.
- He expressed uncertainty over how much the election results would actually affect Washington’s trade approach.
- Forissier stressed the importance of continuing discussions on last year’s EU-US trade agreement.
- Under the deal, the EU agreed to eliminate tariffs on US industrial goods in exchange for a 15% cap on tariffs covering most EU exports to the US.
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Trump Says Iran War Is “Effectively Over”, Rules Out Further Strikes for Now; Oil Prices Fall Below $90
- US President Donald Trump said on Monday that the Iran war is “effectively over” following talks with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Tehran’s main mediator.
- Trump signalled no immediate plans to resume bombing Iran, saying further military action was “quite unlikely”. However, the US naval blockade and Operation Iron Gate will continue.
- Trump said Qatar, Saudi Arabia, the UAE, Bahrain and Kuwait prefer the current approach. He described the naval blockade as the “Greatest Naval Blockade in History” and said the US remains “locked and loaded” if circumstances change.
- Operation Iron Gate is a US Central Command task force of around 20 personnel tasked with restricting the movement of weapons, dual-use technology and illicit revenue across Iran’s land borders and the Caspian Sea.
- Qatari officials reportedly presented proposals on Iran’s nuclear programme last week. Tehran has demanded an end to the blockade, sanctions relief, the release of frozen assets and compensation for war damage.
- US Secretary of State Marco Rubio dismissed Iran’s demands as “outrageous and ridiculous”, saying they were unrealistic.
- Qatari Prime Minister Sheikh Mohammed said he was grateful for the positive discussions aimed at reaching a deal and restoring regional peace.
- Brent crude fell 3% to an intraday low of $89.40 per barrel, while WTI declined 2.76% to $84.00, with both hitting their lowest levels since late August.
- ING analysts said expectations of de-escalation have reduced the geopolitical risk premium in oil prices, while recovering regional shipping flows have added further downward pressure.
RBI Asks Banks to Classify Bond Forward Trades as Level 3 Assets, Restricting Dividend Payouts From Unrealised Gains
- The Reserve Bank of India (RBI) has asked some lenders to value bond forward transactions using Level 3 inputs during recent in-person audits, Bloomberg reported, citing people familiar with the matter.
- The classification could restrict banks' ability to distribute profits generated from these transactions, as RBI regulations prohibit dividend payments from net unrealised gains on Level 3 investments recognised in profit and loss accounts.
- Banks are also required to deduct such unrealised gains from their Common Equity Tier 1 (CET1) capital, potentially affecting their reported capital strength.
- Axis Bank and Federal Bank have incorporated similar restrictions into their dividend policies, explicitly prohibiting dividend payments from unrealised gains on Level 3 instruments, including derivatives.
- Banks commonly sell bond forward contracts to insurance companies, allowing insurers to lock in future bond prices and hedge against interest rate fluctuations.
- The notional value of these transactions reached approximately ₹1.1 trillion ($11 billion) this year, according to clearinghouse data.
- Banks have raised concerns with the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and held informal discussions with the Clearing Corporation of India (CCIL) about incorporating additional pricing data into its trade repository.
Anthropic Targets Up to $64.4 Billion From IPO at $70–$78 Per Share, Eyes $1 Trillion Valuation
- Anthropic plans to offer approximately 825 million Class A shares at a price range of $70 to $78 per share, potentially raising up to $64.4 billion, according to a draft prospectus reviewed by Reuters.
- The revised pricing range replaces an earlier filing circulated to banks on Monday, which indicated a range of $70 to $80. Anthropic subsequently withdrew that document, saying the pricing details were inaccurate.
- The company is also planning a separate $26 billion private placement involving strategic investors, including Alphabet, NVIDIA, AMD, Broadcom, Micron, Microsoft and Taiwan Semiconductor Manufacturing Company (TSMC).
- Combined, the IPO and private placement could raise up to $90.4 billion, making it one of the largest capital-raising exercises in history.
- Anthropic is reportedly targeting a valuation of approximately $1 trillion, although earlier discussions had indicated expectations of $1.5 trillion to $2 trillion.
- The prospectus also provides for an additional 23.65 million Class A shares to be sold by existing shareholders. The company's board and related entities may separately seek to sell up to $303 million in shares.
- Anthropic reported annualised revenue of approximately $81 billion as of October 31, 2026, an increase of $10 billion from September 30.
- The number of customers generating at least $100,000 in annual revenue has increased to 11,900.
- The company disclosed approximately $70.7 billion in committed obligations falling due within the 12 months after September 30, alongside total committed spending of approximately $900.9 billion.
- Anthropic expects to incur a $3.8 billion tax liability related to the settlement of restricted stock units.
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Iran Claims Two Oil Tankers Exploded and Caught Fire in Strait of Hormuz; Qatar Warns of Prolonged Crisis as IRGC Inspects Secret Missile Facility
- Iran's Islamic Revolutionary Guard Corps (IRGC) Navy claimed that two oil tankers attempting to cross the Strait of Hormuz through unauthorised shipping routes were intercepted after explosions and are now on fire.
- According to Iran's Tasnim News Agency, one vessel, described as a supertanker, exploded after reportedly striking a sea mine.
- The IRGC also claimed that the second tanker was attempting to make a covert passage under the protection of a US military fighter jet when it encountered an incident and was intercepted.
- Iranian military officials alleged that both vessels had switched off their navigation and identification systems before attempting to cross the restricted route. The ships were reportedly abandoned along the southern shore of the strait and remain engulfed in flames.
- Separately, Qatar warned that a closure of the Strait of Hormuz extending into winter would significantly increase the economic cost of the ongoing crisis.
- Qatar also said both the United States and Iran had responded positively to mediation efforts aimed at easing tensions.
- Meanwhile, Iranian military officials, including General Ali Abdullahhi and IRGC Aerospace Force Commander Brigadier General Saeed Mojtaba Mousavi, inspected a newly established underground missile facility described as a "missile city".
- During the inspection, Abdullahhi reportedly unveiled a new classified weapon and reviewed the latest military developments and operational readiness of the IRGC Aerospace Force.
US Seeks Russia’s Approval for Article 4 and Article 5-Style Security Guarantees for Ukraine at Abu Dhabi Peace Talks
- The United States plans to seek Russia's approval for security guarantees for Ukraine modelled on NATO's Article 4 and Article 5 provisions during the trilateral talks in Abu Dhabi beginning November 10, Politico reported.
- The proposal would mark Washington's first direct attempt to discuss such guarantees with Moscow, as negotiations increasingly focus on Ukraine's post-war security arrangements.
- A US official said resolving territorial disputes would require agreement on a broader post-war security architecture.
- Washington has reportedly shown openness to potential restrictions on Ukraine's ability to rebuild its military capabilities and a gradual lifting of sanctions against Russia.
- US envoy Jared Kushner said a lasting settlement would require direct engagement between Russia and European countries on broader security arrangements affecting the region.
- European officials have expressed concern that the US approach could amount to concessions to the Kremlin. EU foreign policy chief Kaja Kallas has also pushed back against the proposal.
- Russia continues to demand Ukraine's withdrawal from four regions it claims, while the details of any proposed security guarantees remain unclear.
- It is also uncertain how such guarantees could be implemented if Ukraine remains outside NATO. US Secretary of State Marco Rubio said no agreement had been finalised.
France Accuses Iran of Cyberattack on Hundreds of Supermarkets, Seeks Arrest Warrants Against IRGC Linked Hackers
- French Foreign Minister Jean-Noël Barrot on Monday accused Iran of being behind an October cyberattack that disrupted refrigeration systems at hundreds of supermarkets, describing the incident as unprecedented.
- Paris prosecutors have opened a judicial investigation into the head of the Iranian cyber group Shahid Kaveh and two of his deputies, according to reports.
- Prosecutors describe Shahid Kaveh as an offensive cyber unit linked to the Islamic Revolutionary Guard Corps' (IRGC) Electronic and Cyber Centre.
- Paris prosecutor Laure Beccuau said investigators have also requested international arrest warrants against the three individuals.
- The charges include aggravated fraudulent access to computer systems by an organised group and causing damage through methods considered dangerous to people.
- The offences are further aggravated because investigators allege the cyberattack was carried out to serve a foreign power, specifically Iran.
- Barrot said the attack followed methods associated with Shahid Kaveh. Investigators reportedly found evidence including the use of Persian language and IP addresses linked to devices in Iran.
- France is also seeking European Union level sanctions against those responsible for the alleged cyber operation.
- Tehran has not publicly responded to France's latest accusations and has routinely denied involvement in cyber operations.
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Trump Says Gulf Countries Want US to Continue Naval Blockade Against Iran, Warns Washington Is ‘Locked and Loaded’
- US President Donald Trump said Qatar, Saudi Arabia, the UAE, Bahrain, Kuwait and other Middle Eastern countries want Washington to maintain its naval blockade against Iran.
- In a Truth Social post, Trump said he discussed Iran and the ongoing regional conflict during an "excellent conversation" with Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani.
- Trump described the existing restrictions as the "Greatest Naval Blockade in History" and said the US was continuing its Operation Iron Gate through land and sea measures.
- He claimed that all the countries involved agreed Iran must not be allowed to develop nuclear weapons, calling the issue non-negotiable.
- Trump warned that the US remained prepared to take military action if developments in the Middle East changed, saying Washington was "locked and loaded" and ready to respond.
- However, he said further escalation appeared unlikely at present and claimed Israel and other Middle Eastern countries were protected against Iranian threats.
- Trump also pointed to what he described as positive momentum towards ending the conflict, adding that Washington would continue protecting American interests.
Meta Builds Enterprise AI Sales Team, Partners With Accenture, Deloitte and IBM to Target Corporate Customers
- Meta is building a dedicated sales team to target small and medium-sized businesses while approaching major consulting firms, including Accenture, Deloitte and IBM, to expand its enterprise AI business, The Information reported.
- The strategy involves selling directly to smaller businesses and using consulting partners to help large corporations deploy Meta's AI products.
- The move follows the September 28 launch of Meta Enterprise Platform, which CEO Mark Zuckerberg described as the next major pillar of the company's business.
- Former MongoDB CEO CJ Desai was appointed to lead the enterprise initiative as Meta's chief enterprise platform officer.
- The platform initially includes Muse Agent, Meta Business Agent, Muse API and Muse Code, targeting businesses and developers.
- Meta subsequently launched Muse for Small Business, which connects its AI agent with workplace software from companies including Zoom, Intuit and Slack.
- Meta President Dina Powell McCormick said the company's platforms have approximately 200 million small business owners.
- However, analysts say building trust among large enterprises could be a major challenge as Meta competes with established enterprise technology providers such as Microsoft and Salesforce.
Banks Turn Cautious on AI Infrastructure Lending After $2.5 Trillion Nasdaq Sell-Off, Even for Anthropic and Google Deals
- Banks that were aggressively competing for AI infrastructure financing deals just weeks ago are now becoming increasingly cautious, even when projects involve major companies such as Anthropic and Google, Reuters reported.
- The shift follows Thursday's technology sell-off, which wiped approximately $2.5 trillion off the Nasdaq 100 and pushed the index into correction territory.
- Lenders say their debt exposure is approaching capacity, with investors increasingly reluctant to take on additional risk. Banks are stress-testing borrowers' cash flows against a potential economic downturn and examining whether major technology customers could reduce or terminate their commitments.
- JPMorgan Chase and other banks are reportedly considering significant discounts to offload Qualtrics-related debt, according to Bloomberg.
- The pullback is particularly pronounced among riskier borrowers, including neocloud companies and independent data centre operators. Nebius explored a high-yield bond issuance in September but abandoned the plan last month.
- Bonds issued by Meta and SpaceX are also trading below their face value. Bank of America analyst Yuri Seliger said 10-year spreads for hyperscalers have widened by approximately 50 basis points this year, compared with around 20 basis points for high-quality industrial companies without AI exposure.
- JPMorgan's loan category that includes data centres reached $29 billion at the end of the third quarter, representing 12% of its commercial real estate loan portfolio, compared with 8% three years ago.
- Despite the financing concerns, Goldman Sachs CEO David Solomon told CNBC that demand for AI infrastructure investment remains "very strong".
China’s Trade Surplus Crosses $1 Trillion in October as Exports Surge 35.2%, Reaches Record Earlier Than Last Year
- China's trade surplus crossed the $1 trillion mark in the first 10 months of 2026, reaching approximately $1.04 trillion, according to official data released by the General Administration of Customs.
- Exports surged 35.2% year-on-year to $412.3 billion in October, while imports increased 41.6% to $307.1 billion.
- The milestone was reached earlier than last year, when China's annual trade surplus crossed $1 trillion in November before setting a record of approximately $1.2 trillion for the full year.
- Strong global demand for artificial intelligence-related products, including semiconductors, data centre servers and networking equipment, has supported China's export growth.
- The export boom has provided a major boost to the Chinese economy as domestic activity continues to face challenges from the prolonged property sector downturn.
- Pinpoint Asset Management President and Chief Economist Zhiwei Zhang said exporters have been the key driving force behind China's economic performance this year and are likely to remain strong.
- China is on track to surpass last year's record trade surplus, although its growing export dominance has increased trade tensions with several major trading partners concerned about cheaper Chinese goods competing with domestic industries.
- The latest figures come ahead of another high-stakes meeting between Chinese President Xi Jinping and US President Donald Trump.
- China's textile and apparel exports hit $26.11bn in October, up 17.3% year-over-year, according to Customs data released Nov. 10. Textiles brought in $12.96bn (+15.1%), while apparel reached $13.15bn (+19.7%). Total exports for Jan–Oct stood at $259.06bn, a 6.2% increase. The October rise was driven by recovering overseas demand, returning orders, and a low comparison base from last year.
Tesla and SpaceX’s Terafab Orders Japanese Chipmaking Equipment, Targets 1 Million Wafers Monthly by 2032
- Terafab, the semiconductor venture backed by Tesla and SpaceX, has placed orders for Japanese chipmaking equipment, with some delivery deadlines scheduled within the next few months, Nikkei reported on November 9.
- The venture has informally told equipment suppliers that it aims to manufacture approximately 1 million silicon wafers per month from 2032 onwards.
- Of the planned monthly capacity, around 700,000 wafers would be allocated to memory chips and more than 300,000 to logic chips.
- The proposed memory capacity alone would be comparable to Samsung Electronics' estimated total DRAM production capacity of around 650,000 to 700,000 wafers per month.
- Terafab has not yet disclosed whether its memory production will focus on DRAM or NAND, or how capacity will be divided between high-bandwidth memory (HBM) and low-power DRAM (LPDDR).
- Intel is reportedly coordinating technical support for logic chip production using its 2-nanometre and 1.4-nanometre process technologies.
- Elon Musk is targeting volume production by the third quarter of 2028. He has also indicated that the first SRAM test chip could be operational around May or June 2027.
- However, industry executives have questioned the timeline, noting that advanced semiconductor fabrication plants typically take more than three years to build.
- Musk has acknowledged the execution risks, saying the production timeline carries significant uncertainty, while thanking ASML and other suppliers for accelerating equipment deliveries.
LNG Shipments Through Strait of Hormuz Hit Highest Level Since February Conflict; US and Israel Discuss New Military Aid Agreement
- A total of 31 fully loaded liquefied natural gas (LNG) tankers transited the Strait of Hormuz in October, marking the highest monthly volume since shipping disruptions began following the US-Iran conflict in February.
- According to S&P Global Energy ship-tracking data, 23 vessels loaded LNG at Qatar's Ras Laffan facility, while eight departed from the UAE's Das Island.
- The October figure was higher than the 23 LNG tanker transits recorded in September.
- S&P Global Energy senior chief analyst Eric Yep said UAE transit volumes had recovered to pre-conflict levels, while Qatar's shipments through the Strait of Hormuz had recovered to more than 30% of pre-conflict levels.
- Separately, US Secretary of State Marco Rubio said Washington and Israel are discussing a new memorandum of understanding covering American military assistance.
- Speaking after the G7 foreign ministers' meeting in France on November 9, Rubio said President Donald Trump believes Israel is now wealthy enough to purchase US weapons without continued American financial assistance.
- Rubio added that Trump wants the new agreement to be implemented quickly.
India Initiates Anti-Dumping Investigation Into Aluminium Extrusion Profiles From China, Malaysia, Thailand and Vietnam
- India's Ministry of Commerce and Industry has initiated an anti-dumping investigation into aluminium extrusion profiles originating in or imported from China, Malaysia, Thailand and Vietnam.
- The investigation was initiated through a notice issued on November 9, 2026, according to the China Trade Remedy Information Network.
- The dumping investigation period covers April 1, 2025, to June 30, 2026.
- The injury investigation will examine four periods: April 2022 to March 2023, April 2023 to March 2024, April 2024 to March 2025, and April 2025 to June 2026.
Morgan Stanley Says AI Stock Sell-Off Is Overdone, Remains Bullish on Amazon, Microsoft, Meta and Google
- Morgan Stanley believes concerns that US election results could slow data centre construction have triggered an excessive sell-off in AI-related stocks.
- The bank expects AI spending to continue expanding, with approximately 5 GW of planned US data centre capacity originally targeted for 2028 potentially being delayed until 2029 rather than cancelled.
- According to Morgan Stanley, these delays are unlikely to significantly change spending plans among major hyperscale cloud providers.
- Analysts believe delayed construction could extend the AI investment cycle by easing supply constraints and supporting pricing across the industry.
- Morgan Stanley remains bullish on major AI beneficiaries, including Amazon, Microsoft, Meta and Google.
- The bank also sees investment opportunities across semiconductor manufacturers, data centre infrastructure providers and software companies.
RBI’s $239 Billion Net Dollar Short Position Could Limit Rupee Gains Despite Stronger FPI Inflows
- The Reserve Bank of India's (RBI) large net short position in the dollar forward market could limit the rupee's appreciation despite improving foreign portfolio investor (FPI) inflows, according to an IDFC First Bank Economic Research report.
- The RBI's forward book stood at a net dollar short position of $239 billion as of September 2026. This reflects the central bank's future dollar delivery commitments as its earlier buy-sell currency swaps mature.
- Around $40 billion of the short position matures within one year, $56 billion in one to three years and the remaining $143 billion in three to five years. The longer-term positions are largely linked to the FCNR(B) scheme.
- The report said the RBI will need to accumulate dollars to meet these commitments. Consequently, any improvement in foreign capital inflows could be absorbed by the central bank, limiting the rupee's appreciation against the dollar.
- The large forward position also restricts the RBI's ability to sell dollars in the spot market, as its capacity to offset such sales through additional buy-sell swaps is constrained. The central bank is expected to gradually reduce its forward book over the coming years.
- The rupee could strengthen in the near term if US-Iran tensions ease further and US technology stocks face continued corrections. Improved FPI inflows in November have also supported sentiment towards Indian assets.
- However, competition from the US for global capital and elevated US Treasury yields could restrict sustained gains in the rupee.
- IDFC First Bank expects the rupee to trade at ₹92–94 per dollar by December 2026, weaken to ₹94–95 by March 2027 and reach ₹96 by June 2027.
- RBI measures to curb dollar demand, including a special window for oil marketing companies and the Foreign Exchange Risk Reserve (FERR) for importers, have helped reduce pressure in the spot market.
- The gap between client forward dollar purchases and sales fell to $17 billion in October, a 12-month low, compared with $197 billion during the first seven months of FY27. However, importer hedging demand could rise again if expectations of rupee depreciation persist.
Global Markets Rally as Dow Jones Surges 1,104 Points; South Korea’s Kospi Jumps 5%, Nikkei Gains 3%
- US stock markets staged a strong recovery on Monday following their biggest weekly decline since April 2025. Technology stocks led the rebound, with investors returning to major tech names.
- The positive momentum spread across Asian markets on Tuesday. South Korea’s Kospi surged nearly 5%, triggering a temporary trading halt due to the sharp rally. Japan’s Nikkei 225 gained around 3%, while Australia’s S&P/ASX 200 advanced more than 1%.
- The Dow Jones Industrial Average jumped 1,104.02 points, or 2.15%, to close at 52,389.75.
- The S&P 500 gained 173.08 points, or 2.35%, to 7,549.94, marking its biggest single-day advance since April 8.
- The Nasdaq Composite surged 673.71 points, or 2.74%, to close at 25,253.14, recording its biggest daily gain since July 30.
- Falling crude oil prices and renewed buying in technology stocks supported the US market recovery. Brent crude slipped below $92 per barrel, easing concerns over inflation.
- Expectations of reduced tensions between the US and Iran, along with hopes of improved oil supplies, contributed to the decline in crude prices. Lower energy costs also raised expectations that central banks may adopt a less hawkish monetary policy stance.
- Indian stock markets will remain closed on Tuesday on account of Balipratipada.
Zelenskyy Sends Delegation to Abu Dhabi for Russia-Ukraine Peace Talks as US Signals Optimism; Modi and Jaishankar Hold Separate Talks With Ukraine and Russia
- Ukrainian President Volodymyr Zelenskyy said Ukraine's negotiating delegation has arrived in Abu Dhabi ahead of the Russia-US-Ukraine trilateral peace talks scheduled to begin on Tuesday.
- Zelenskyy said the delegation will also hold separate meetings with European partners, with the objective of securing a lasting peace.
- A US official said Washington is cautiously optimistic about the upcoming negotiations, citing signs of flexibility from both Moscow and Kyiv on territorial issues in recent weeks.
- However, the official cautioned that territorial agreements are unlikely to be reached before arrangements on security guarantees are settled.
- Washington believes European allies will play a key role in post-war security arrangements and wants Russia to agree to include European representatives in the next round of negotiations after the Abu Dhabi meetings.
- Separately, Prime Minister Narendra Modi spoke with Zelenskyy on Monday and conveyed India's willingness to contribute to efforts to end the conflict.
- External Affairs Minister S Jaishankar also held discussions with Russian Foreign Minister Sergey Lavrov on bilateral and global issues, according to the Russian Foreign Ministry.
Foreign Investors Pour Nearly ₹8,000 Crore Into Indian Government Bonds in First Week of November
- Foreign portfolio investors (FPIs) increased their holdings of Indian government securities under the Fully Accessible Route (FAR) by nearly ₹8,000 crore in the first week of November 2026, amid improving global market conditions.
- The inflows followed a sharp decline in global crude oil prices and US Treasury yields after the US midterm elections, improving the relative attractiveness of Indian debt.
- Brent crude prices reportedly fell more than 16%, from above $105 to around $96 per barrel. Lower oil prices are expected to ease India's import bill, inflationary pressures and fiscal concerns.
- The US 10-year Treasury yield declined by approximately 7 to 10 basis points, making higher-yielding Indian government bonds more attractive to overseas investors.
- The Indian rupee strengthened from around ₹94.90 to ₹93.74 against the US dollar in a week. Currency appreciation improved potential dollar-denominated returns for foreign investors and reduced exchange-rate concerns.
- India's benchmark 10-year government bond yield recorded its steepest weekly decline in nearly seven years, falling 22 basis points to 7.178%. Investors are also positioning for potential monetary easing or liquidity support from the Reserve Bank of India.
- Earlier regulatory changes have supported foreign participation, including the removal of certain investment concentration limits on longer-maturity FAR bonds, expanding access to 15-year, 30-year and 40-year securities.
- The broader shift in global investment flows, amid a correction in technology and AI stocks, has also increased interest in emerging markets such as India.