Featured News Headlines
- 1 Federal Reserve Under Spotlight: Trump Nears Choice for Next Chair as Cryptos Falter
- 1.1 Trump Hints at Fed Leadership Change
- 1.2 Global Market Reaction: Crypto and Stocks Retreat
- 1.3 Bank of Japan Signals Possible Rate Hike
- 1.4 China’s Real Estate and Auto Sector Challenges
- 1.5 Hong Kong Real Estate Moves
- 1.6 ASX Restores Operations After Outage
- 1.7 Disney Scores Big in China
- 1.8 Australia’s TikTok and Instagram Ban for Youth
- 1.9 Uncertain Times for Crypto and Global Markets
Federal Reserve Under Spotlight: Trump Nears Choice for Next Chair as Cryptos Falter
Federal Reserve Shakeup Imminent? The financial world is bracing for a potential shake-up at the Federal Reserve as U.S. President Donald Trump signals a choice for a new central bank chair, while global markets, including cryptocurrencies, show signs of volatility.
Trump Hints at Fed Leadership Change
On his return to Washington aboard Air Force One, Trump told reporters, “I know who I am going to pick, yeah. We’ll be announcing it,” without revealing the name. Sources familiar with the matter suggest White House National Economic Council Director Kevin Hassett is the likely candidate to replace outgoing chair Jerome Powell.
Trump reportedly trusts Hassett to advocate for aggressive interest-rate cuts, aligning with the former president’s economic priorities. While Hassett has expressed willingness to accept the role if offered, analysts caution that he may face challenges uniting the Fed’s rate-setting committee.
Other contenders include Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, and BlackRock’s Rick Rieder. Treasury Secretary Scott Bessent, who oversees the selection process, hinted that a formal announcement could come before Christmas.
Global Market Reaction: Crypto and Stocks Retreat
Markets reacted cautiously to the Fed chair news and upcoming U.S. economic data. Global stocks fell, and cryptocurrencies entered a fresh wave of selling pressure. Bitcoin slid as much as 6% to below $86,000 in early Asian trading, while Ether fell over 7% to around $2,800.
The crypto market remains fragile after a weeks-long selloff triggered by the liquidation of roughly $19 billion in leveraged positions in early October. Bitcoin’s value dropped nearly 17% in November but briefly rebounded above $90,000 last week.
Bank of Japan Signals Possible Rate Hike
Meanwhile, Bank of Japan Governor Kazuo Ueda hinted at a potential interest-rate increase, signaling a shift in global monetary policies. Ueda emphasized that the board will evaluate economic, inflation, and market conditions before deciding, which markets interpreted as a likely December rate hike. Government bonds reacted negatively as traders priced in a 76% probability of a rate increase, up from 58% the previous week.
China’s Real Estate and Auto Sector Challenges
In China, government-directed information control impacted the real estate market, as two private agencies withheld November home sales data from the nation’s 100 largest developers. The move followed China Vanke’s attempt to postpone local bond repayments.
Meanwhile, Chinese carmakers saw a slight decline in European market share, with hybrid vehicle sales dropping to 12.6% in October from a previous peak in September. EV registrations fell to 11.8%, largely due to lower sales in the UK, although the brands continued to grow elsewhere in Europe.
Hong Kong Real Estate Moves
Henry Cheng, Hong Kong tycoon, is exploring the sale of Rosewood Hotel Group properties to improve liquidity for New World Development, the city’s most indebted major developer. The asset sale aims to strengthen cash flow amid broader real estate pressures.
ASX Restores Operations After Outage
In Australia, ASX, the main exchange operator, resumed publishing company statements after a prolonged system outage. The exchange implemented initial remediation, processing announcements received since 11:22 a.m. Sydney time, while trading for halted securities will resume once associated announcements are published.
Disney Scores Big in China
On the entertainment front, Walt Disney’s Zootopia 2 opened to $272 million in China, marking the second-largest opening ever for a foreign film in the country. The movie’s strong performance highlights Disney’s strategy to expand the Zootopia franchise in China, a historically unpredictable market for U.S. films due to geopolitical and censorship factors.
Australia’s TikTok and Instagram Ban for Youth
Australia is set to ban users under 16 from platforms like TikTok and Instagram starting December 10, making it the first democracy to implement such restrictions. Non-compliant companies face fines up to A$49.5 million ($32 million). Policymakers in countries including Denmark, Brazil, and Indonesia are reportedly monitoring Australia’s rollout as they consider measures to protect young users from cyberbullying and harmful content.
Uncertain Times for Crypto and Global Markets
As Trump prepares to announce a new Federal Reserve chair, global markets are reacting to a combination of potential U.S. monetary shifts, central bank signals in Japan, and ongoing crypto volatility. Bitcoin and Ether continue to feel the pressure of leveraged sell-offs, while traditional sectors from Chinese real estate to Disney’s cinematic ventures reflect a mix of challenges and opportunities in a rapidly evolving economic landscape.
