Authored by Jack Phillips via The Epoch Times (emphasis ours),

President-elect Donald Trump’s nominee to co-lead a new Department of Government Efficiency (DOGE) said on Sunday that some federal agencies will be “deleted outright” and that contractors may see “massive cuts” in what they can charge when the incoming administration takes office next year.

Last week, Trump named former Republican presidential candidate Vivek Ramaswamy and Tesla CEO Elon Musk to lead the presidential advisory commission, DOGE. Their work must be completed no later than July 4, 2026, Trump said in his statement.

Ramaswamy told Fox Business on Sunday that “there is massive waste, fraud, and abuse right now.”

“Federal contractors are really exploiting the federal government,” he said.

When Fox host Maria Bartiromo asked him whether entire government agencies will be closed, he responded in the affirmative.

“We expect mass reductions. We expect certain agencies to be deleted outright,“ Ramaswamy said. ”We expect mass reductions in force in areas of the federal government that are bloated. We expect massive cuts of all federal contractors and others who are overbilling the federal government. So, yes, we expect all of the above.”

Will entire agencies be deleted? Answer: yes. pic.twitter.com/QPe5VNGDhr

— Vivek Ramaswamy (@VivekGRamaswamy) November 17, 2024

As a presidential candidate, Ramaswamy had called for totally eliminating or restructuring of several agencies, including the FBI, the Department of Education, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Centers for Disease Control and Prevention.

Elaborating on Fox, Ramaswamy said that “failures of the executive branch need to be addressed.”

“Unelected bureaucrats in the administrative state that was created through executive action” are running the government, he said, which needs to be fixed by the executive branch.

“This is about restoring self-governance and accountability in America as well. Elected leaders, if they make the wrong decisions, voters have a great choice. You can vote them out and remove them,” Ramaswamy said.

“Most of the people making these decisions from health care to the Department of Defense are failing on effectiveness because they have no accountability. Historically, it’s been the view of many scholars to say that those people could not even be fired. Now, we take a different view with the environment the Supreme Court has given us in recent years, and we’re going to use that in a pretty extensive way to move quickly.”

DOGE will not be an official government agency, meaning that both Ramaswamy and Musk are not considered Cabinet members in the incoming Trump administration and therefore not subject to the Senate confirmation.

Both Ramaswamy and Musk, as well as Tulsi Gabbard, House Speaker Mike Johnson (R-La.), and Robert F. Kennedy Jr. joined the president-elect at a UFC event at New York City’s Madison Square Garden on Saturday night. Gabbard is Trump’s pick for director of national intelligence, while Trump nominated Kennedy to lead the Department of Health and Human Services (HHS).

On Thursday, DOGE’s account on social platform X, which is owned by Musk, posted a job listing announcement that is calling for individuals to work 80 or more hours per week ahead of Trump’s return to the White House.

Musk and Ramaswamy both threw their support behind Trump this year.

Elon Musk’s super PAC spent around $200 million to secure a Trump-Vance victory in the US presidential election. Musk’s influence with top Trump officials to push for a more efficient government, fewer regulations, and greater adoption of technology could be positioning the billionaire’s companies—from electric vehicles to space exploration and social media—for an era of super growth.

Bloomberg reports Trump officials told advisors they’re planning to construct a federal framework for fully self-driving vehicles as one of the Transportation Department’s top priorities. The media outlet cited sources that were familiar with the plans. 

“This would be a huge step forward in easing US rules for self-driving cars and be a significant tailwind for Tesla’s autonomous and AI vision heading into 2025,” said Wedbush analyst Dan Ives, who was quoted by Market Watch.

Ives added, “Musk’s significant influence in the Trump White House is already having a major influence and ultimately the golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump/Musk strategic alliance playing out in real-time and very in line with our thesis.” 

Cybercab is individualized point-to-point autonomous transport pic.twitter.com/So9vA5sw35

— Tesla AI (@Tesla_AI) October 29, 2024

Tesla shares are up 6.5% in premarket trading to around $341. As of Friday’s close, shares are up 29% on the year. Ives reiterated a $400 price target for America’s top EV company. 

Goldman’s Laiya Kamanga and Daniel Dickerson told clients this AM:

“Autonomous vehicle technology remains highly topical, with many investors and industry participants focused on the degree to which the latest AI technology will lead to a faster rate of AV deployments. With Waymo opening up its network this past week in LA, and Reuters reporting that Tesla CEO Elon Musk is looking to take a role in streamlining federal AV rules, AVs have remained top of mind. The bottom line is that Mark Delaney believes it’s an exciting time for the industry as more AVs are deployed, although he believes various factors are gating the rate of growth in the near term more so than federal regulations.”

Last Thursday, the final chapter of the EV price war was realized after reports suggested the Trump team will eliminate the $7,500 consumer tax credit next year. Tesla is the only EV company that can survive in a world without the tax credit. 

Furthermore, at the end of last week, Gwynne Shotwell, president of SpaceX, told investors that the company plans 400 Starship launches during Trump’s second term. 

Deregulation and the end of weaponization of federal agencies against Musk’s companies could supercharge his empire and ultimately thrust America into a new era of technological success, outperforming the communists in China. 

Authored by Jack Phillips via The Epoch Times (emphasis ours),

President-elect Donald Trump’s nominee for secretary of defense, Pete Hegseth, released a statement through his lawyer addressing reports that he sexually assaulted a woman in 2017 and paid off the accuser. The lawyer stated that Hegseth paid the accuser to head off the threat of a baseless lawsuit. He also fielded allegations related to a tattoo of a cross on Hegseth’s chest.

Hegseth, a Fox News host who served several tours in the Afghanistan and Iraq wars and holds degrees from Harvard and Princeton, was accused of sexual assault in 2017 after an appearance at a Republican event in Monterey, California, according to a statement released by the City of Monterey. No charges were filed.

Hegseth’s lawyer, Tim Parlatore, said on Nov. 17 that the woman who made the accusation days later was the “aggressor,” although the city did not mention that.

“He was falsely accused and my position is that he was the victim of blackmail,” Parlatore said.

Parlatore added that Hegseth’s encounter with the woman was consensual and that the payment was made to her as part of a confidential settlement several years after the police investigation because she threatened a lawsuit that Hegseth believed could have resulted in him losing his job as a Fox News host.

Parlatore called it a case of “successful extortion.”

The statement released by the City of Monterey, meanwhile, provided few details about the matter. It said that the name and age of the alleged victim is “confidential,” adding that there was a report of “contusions to [the] right thigh” in the alleged incident, and no weapons were involved.

The incident occurred between 11:59 p.m. on Oct.7 and 7 a.m. on Oct. 8, 2017, according to the statement.

“Accordingly, the full police report, including its analysis and the conclusions reflected therein, is exempt from public disclosure pursuant to the aforementioned (California) Code sections,” the city stated, adding that the code only “requires limited disclosure of specific, non-private information relating to complaints or requests for assistance.”

Trump’s transition team had no immediate response to the memo on Nov. 17. The Epoch Times contacted his campaign for comment on the memo but did not receive a reply by publication time.

After the claims emerged about Hegseth, a spokesperson for Trump’s team said in a statement that the president-elect is “nominating high-caliber and extremely qualified candidates to serve in his Administration.”

“Mr. Hegseth has vigorously denied any and all accusations, and no charges were filed,” spokesman Steven Cheung said in the statement. “We look forward to his confirmation as United States Secretary of Defense so he can get started on Day One to Make America Safe and Great Again.”

Aside from the report, Hegseth has spoken out against recent attacks regarding a Jerusalem cross tattoo on his chest as well as a tattoo on his arm that reads “Deus Vult,” which is Latin for “God Wills It.” That motto dates back to a Christian chant used as a rallying cry during the First Crusade in the late 11th century.

Vice President-elect JD Vance also defended Hegseth in response to an Associated Press report that claimed Hegseth was flagged as an “insider threat” because of the cross tattoo.

“They’re attacking Pete Hegseth for having a Christian motto tattooed on his arm,” Vance wrote in a Nov. 15 post on social media platform X.

“This is disgusting anti-Christian bigotry from the AP, and the entire organization should be ashamed of itself.”

Hegseth wrote on X that if he is nominated to head the Department of Defense, “this type of targeting of Christians, conservatives, patriots and everyday Americans will stop on DAY ONE.”

The Associated Press contributed to this report.

Finnish networking company Cinia reports that its submarine communications cable, “C-Lion1,” which connects Finland and Germany and provides a direct, high-capacity data link between Northern and Central Europe, has encountered a “fault.”

“A fault has been detected in the Cinia C-Lion1 submarine cable between Finland and Germany on  18 November, 2024. Due to the fault, the services provided over the C-Lion1 cable are down. The cause of the fault is being investigated. More information of the situation will be updated on Tuesday 19 November, 2024,” Cinia wrote in a statement on its website. 

C-Lion1 is an undersea fiber cable between Rostock, Germany, and Helsinki, Finland, connecting businesses in central Europe with data centers in northern Europe. It was constructed in early 2016 and has a total capacity of 144 terabits per second, facilitating low latency and secure data transmission. 

Cinia did not provide further details about the cause of the fault on C-Lion1 or if there were any disruptions in data communications.

One X user speculated, “Potential cause of C-lion1 cable break The crude oil tanker Magic Lady on its way from St. Petersburg to Dakar, which behaved strangely 2024-11-18 10:23:17 UTC in the Baltic Sea.”

Potentiaalinen syypää C-lion1 kaapelin katkeamiseen Pietarista Dakariin matkalla ollut raakaöljytankkeri Magic Lady, joka käyttäytyi oudosti 2024-11-18 10:23:17 UTC Itämerellä.#clion1 #magiclady https://t.co/kFwJt9bh0O pic.twitter.com/OQoWraNBXz

— Aarne Leinonen LIB kuntavaaliehdokas HKI (@AarneLeinonen) November 18, 2024

A little more than two years ago, in a similar area of the Baltic Sea, Russia’s Nord Stream undersea pipeline feeding Germany NatGas exploded. Russia’s Foreign Minister Sergei Lavrov has stated that the US ordered the attack on the vital pipeline.

*Developing… 

The group of prospective Trump Treasury Secretary picks has expanded from two (Howard Lutnick and Scott Bessent – as we detailed here) to four (now including former Fed governor Kevin Warsh and Apollo Globla chief Marc Rowan).

While we noted earlier that Elon Musk and RFK Jr. are pushing for Howard Lutnick, with Musk praising the Cantor Fitzgerald CEO as a disruptor compared to Key Square Group (and George Soros protégé) Scott Bessent – the latter of whom met with Trump on Friday, and has the backing of many including noted investor Kyle Bass; The FT reports that people close to the process said Kevin Warsh, a former Federal Reserve governor, Marc Rowan, chief executive of Apollo Global Management, and Bill Hagerty, the Tennessee senator, are also now in the running, along with Robert Lighthizer, the former US trade representative under Trump.

Scott Bessent is eminently more qualified than Howard Lutnick to run the U.S. Treasury. Scott understands markets, economics, people, and geopolitics better than anyone I’ve ever interacted with. Markets have already anticipated a Bessent choice. Lutnick is not Trump’s answer. pic.twitter.com/qnpfBt6ZPt

— 🇺🇸 Kyle Bass 🇹🇼 (@Jkylebass) November 13, 2024

The FT continues to note that since Trump was elected, Bessent has been on the defensive about his commitment to enacting the president’s economic vision.

In an opinion piece for Fox News last week, he described tariffs as “a means to finally stand up for Americans”.

But his critics have seized on comments to the Financial Times that the president-elect’s agenda represented “maximalist” positions that were negotiating tools, as a sign he would be soft on the issue.

Trump’s aides are reluctant to repeat the tensions over trade in Trump’s first administration, when Steven Mnuchin, then-Treasury secretary, frequently sought to moderate tariff plans for fear of disrupting markets.

Several people familiar with the discussions inside Trump’s team said Lighthizer, who served as US trade representative in the first administration, had previously expressed interest in becoming Treasury secretary. 

On Sunday the Coalition for a Prosperous America, a pro-tariff think-tank, backed Lighthizer publicly for Treasury secretary. 

“The next Treasury secretary must be 100 per cent aligned with President-elect Trump’s policy on tariffs,” it said in a post on X.

“Former USTR Robert Lighthizer is a steadfast champion for the US economy and the best choice to carry out President Trump’s trade agenda.”

Marc Rowan

Rowan, 62, is a billionaire investor who leads Apollo Global Management, which he cofounded in the 1990s. It now has nearly $700 billion in assets under management. Apollo recently announced that it plans to double its assets under management to $1.5 trillion by 2029.

The Journal, citing people familiar with the matter, reported that while the billionaire’s aides are in touch with Trump, Rowan isn’t actively trying to secure the Treasury Secretary role and hasn’t spoken to Trump personally about such a position.

But the Times also wrote that Trump has been telling his staff that he’s impressed with Rowan, who Bloomberg estimates to be worth $10.9 billion.

Rowan has said that US economic concerns must be fixed by what he called “wholesale change,” which he said Trump and his new administration would bring.

Kevin Warsh

Warsh, 54, is a former Morgan Stanley banker and one of the newer contenders.

He was an economic advisor to President George W. Bush from 2002 to 2006 and a governor of the Federal Reserve Board from 2006 to 2011. During the latter period, Warsh was a central figure in shaping the nation’s response to the 2007-2008 financial crisis, working to rescue major ailing banks.

Trump had been floating Warsh that year as a frontrunner for Fed chair. He eventually picked Jerome Powell for the role.

More recently, he’s been working on Trump’s transition team, helping with economic policy and personnel, according to The Journal.

Most recently, Warsh was outspoken in questioning The Fed’s independence with regard the 50bps rate-cut right before the election.

“if that’s all true, maybe they’re not data-dependent.”

“I do not want to be the person accusing them of politics … but when you don’t have a theory of the case and you don’t follow it, it is easy to get that accusation and it is harder … to defend them.”

Finally, Bessent – the former strong favorite – has seen his odds plunge in the last week, now tied according to Polymarket with Howard Lutnick as Kevin Warsh’s odds rise quickly…

We give the last word to Jim Bianco who had a good take on how this plays out:

The Treasury Secretary gets to sit in the room and opine on policy. And their voice will be taken seriously.

But they do not set the policy; the President does. When the president says what they will do, they expect the Treasury Secretary to sell that policy as if it were theirs.

The second part, selling something they don’t believe in but are told to do, is something Jamie Dimon will never do, so he will never be the Treasury Secretary. (Dimon wants to tell everyone else what they should sell).

Lutnick will sell whatever you tell him and do it with gusto! Bessent will do so too, but he does not command the room like Lutnick.

In other words, the Treasury Secretary is the administration’s chief spokesman. This is a sales job, and it needs a salesperson.

The problem with Yellen was that she needed to be a better salesperson. Yes, she is an outstanding economist, but she was never a good spokesperson for the Biden Agenda.

She would have been a better National Economic Council head, the “smart person in the shadows advising the President.”

If I had to guess ….

• Lutnick = Treasury Secretary
• Bessent = National Economic Council head

Meanwhile, Charlie Gasparino reported that “Kevin Warsh has assumed the top position, I am told (which, of course, could change the minute you read this),” adding that “I don’t know what is in Donald Trump’s head for a Treasury Secretary and I hear a dark horse might emerge.”

Authored by Steve Watson via Modernity.news,

The MAGA crew took over UFC 309 in Madison Square Garden over the weekend, triggering demon energy woke seethery into action.

Behold their media leaders, the CNN mole guys. Why do they all wear those thick heavy black rimmed glasses?

Anyway, these guys, it doesn’t matter what their names are, lets call them Howard and Greg, couldn’t cope with president Trump leading out his transition team to uproariously loud cheering at the event.

Howard said Trump was “giving supporter based permission structure,” by bringing his crew with him, while Greg said it was like ancient Rome with Caesar bringing his gladiators into the Colosseum.

“It really looks like ancient Rome here. This is the conquering Republican Caesar who’s going into the Colosseum, and everyone’s cheering, and he’s got his political gladiators with him,” Howard excitedly whined, ignoring the fact that Julius Caesar was long dead when construction on the Colosseum began.

“That appearance isn’t just about him enjoying the applause. He’s sending a message to the Senate. For sure,” Greg continued blathering.

“Not only are you entertained, but these are my people, and are you willing to fight?”Because here’s who I have,” Greg clamoured.

🚨 NEW: CNN panel member says Trump bringing out his top allies with him to UFC looks like ancient Rome.

“It really looks like ancient Rome. This is sort of a conquering, Republican Caesar, going into the Colosseum, and everyone’s cheering. And he’s got his political gladiators… pic.twitter.com/tNcIQD3Iyz

— Eric Daugherty (@EricLDaugh) November 17, 2024

It’s hilarious watching these people having a meltdown analysing Trump’s team and the UFC crowd having fun.

So we switched from Hitler to Caesar LOL 🤡🤡🤡

— Jennifer 🇺🇸 🦅 (@Jenny_MommaLion) November 17, 2024

They were having a well deserved day off, celebrating, watching the event and dancing to YMCA by the Village people, but the mole people want you to believe it’s some kind of scary authoritarian display of power.

UFC at MSG was epic! pic.twitter.com/BxpiZK00qu

— Speaker Mike Johnson (@SpeakerJohnson) November 17, 2024

Trump’s enemies are his most effective propagandists b/c they’re so weird that they really think the coolest and/or most genuine things about him are actually his weaknesses.

We’re actually the most critical of him b/c we want him to be “worse” than he is.

— Dogmatic Tower (@DogmaticTower) November 17, 2024

The smell of meltdown by the left in the morning reminds me of VICTORY.

— Eagles (@Ed53861632) November 17, 2024

Soy boys are melting down 🤣🤣🤣

— Jared Brehm (@JaredBrehm) November 17, 2024

CBS News also couldn’t cope.

Controversial rally 😂🤣😂.
You guys still haven’t figured out why you lost. 🤭

— The 🐰🕳️ (@TheHoleTweet) November 17, 2024

The article states “Trump is a longtime UFC enthusiast and frequent attendee of major fights. He made promoting hypermasculine tones a signature of his campaign — as he looked to further widen the gap among male voters between himself and his Democratic opponent, Vice President Kamala Harris.”

“Trump and his top supporters embraced alpha-male terms and often accentuated them with vulgar and demeaning language.”

It gets even more hilarious…

“While campaigning, Trump appeared frequently on podcasts, gaming platforms, and with key supporters who described a vote for Trump as a way to demonstrate true manliness. While Trump taped a podcast with Rogan, who himself has spoken about hypermasculinity, Harris failed to do a similar appearance, citing scheduling conflicts.”

They’re deathly afraid of ‘masculinity’ and strong personalities.

It was only controversial to the #fakenews. Have you REALLY learned nothing. You’re irrelevant now. pic.twitter.com/wiqvCYZohw

— Mattox Mcmurdo (@MattoxMcmurdo) November 17, 2024

The mole people have promised to hit back, however. They are set to unleash “woke 2.0” led by this final boss.

Why do they all look like they’re inhabited by actual demons? https://t.co/urelNdNMrO

— m o d e r n i t y (@ModernityNews) November 18, 2024

They get their power from those glasses.

It’s the gigantaur eyeglasses. Everytime.

— Jahaziel Maqqebet (@JMaqqebet) November 17, 2024

“Spread the love.” 😠 pic.twitter.com/XE5vhUYVVe

— m o d e r n i t y (@ModernityNews) November 18, 2024

Do they all buy their glasses from the same place?

— James (@TheFastestDogs) November 17, 2024

Just get any pair that isn’t black framed, rectangular, and too big for your face. Lol

— James (@TheFastestDogs) November 17, 2024

* * *

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

US futures are higher even as European and Asian markets fail to stay positive, as traders waited for fresh pointers on growth and the future of interest rates. As of 8:00am ET, S&P 500 futures rose 0.1%, while Nasdaq 100 futures added 0.3% as Tesla shares surged 8% in premarket trading on speculation Trump’s team will ease self-driving car rules; the boost was enough to offset the 2% drop in NVDA ahead of its earnings Wednesday. Bond yields resume their trek higher (10y 4.47%, +3bp this morning) after sliding on Friday, while the USD is trading near session highs erasing an earlier drop. Commodities are mostly higher led by oil (+0.9%), aluminum (+5.3%) and precious metals (gold +1.1%, silver +1.5%). Gold rose more than 1% after Goldman analysts predicted the precious metal would hit a record by the end of next year. Bitcoin recovered from its biggest two-day retreat since the US vote to trade past the $90,000 mark.  This week, the key focus will be earnings (NVDA, WMT, TGT) and global PMIs.

In premarket trading, Tesla gained 7% after Bloomberg reported that members of President-elect Donald Trump’s transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities. Nvidia falls 2% after the Information reported that the chip giant has asked its suppliers to change the design of the server racks for its new Blackwell graphics processing unit due to an overheating problem. Here are some other notable premarket movers:

• Astera Labs (ALAB) gains 3% as Citi initiates coverage of the semiconductor stock with a buy rating, saying the shares provide artificial intelligence investors with a unique opportunity.
• CVS Health (CVS) gains 1.5% after naming Glenview Capital Management founder Larry Robbins to its board as part of an agreement with the activist firm that’s been pressuring the company for change.
• Liberty Energy (LBRT) climbs 5% after President-elect Donald Trump nominated Chris Wright, who runs the Colorado-based oil and natural gas fracking services company, to lead the Energy Department.
• Newmont (NEM) rises 2% after agreeing to sell Musselwhite for up to $850 million.
• Shift4 Payments (FOUR) rises 5% after S&P Dow Jones Indices said the company will replace R1 RCM in the S&P MidCap 400 prior to the opening on Nov. 20.
• Super Micro Computer (SMCI) climbs 12% as the server maker approaches a deadline to either file a delayed 10-K annual report or submit a plan to file the form to Nasdaq in order to remain listed on the exchange.
• Syndax Pharmaceuticals (SNDX) rises 7% after the FDA approved its drug Revuforj (revumenib) for the treatment of certain leukemia patients.

While the S&P 500 has given up more than half its rally since Trump’s election win, Morgan Stanley’s Mike Wilson – best known for being bearish and wrong for much of 2023 and 2024 – is now predicting gains will resume over the longer term.  Wilson, once considered a prominent bear on Wall Street, sees the S&P 500 ending next year up around 11% from Friday’s close amid improving economic growth and further Fed interest-rate cuts. Goldman Sachs analysts, meanwhile, said gold will reach a record $3,000 an ounce by December 2025 due to central-bank buying and US interest rate cuts.

“It should be a quieter week as the recent relentless wave of US macro and political news flow in theory slows down,” said Jim Reid, Deutsche Bank’s global head of macro and thematic research. “The main story on this front being on potential political appointments for the new Trump administration with Treasury secretary the one creating most interest.”

Indeed, Trump’s pick for Treasury secretary is in focus this week along with Nvidia earnings on Wednesday that are set to test the sustainability of AI-led stock gains. US financial leadership under incoming Trump administration remains unclear, with Robert Lighthizer, Senator William Hagerty, Apollo Global Chief Executive Officer Marc Rowan and Kevin Warsh now among the candidates for Treasury secretary.

In Europe, the Stoxx 600 was down 0.3% amid continued worries about potential US tariffs under the new administration and weakness in China. Real estate and technology stocks declined the most, while miners outperformed after iron ore rebounded on signs of robust Chinese steel output in the short term. Here are some of the biggest movers on Monday:

• Melrose Industries shares rise as much as 9.3% after the aerospace technology provider reiterated its profit guidance for this year and next.
• Bavarian Nordic gains as much as 11%, the most since August, after the Danish vaccines maker was upgraded to buy from hold at Carnegie.
• Ence Energia y Celulosa gains as much as 5.1% following an upgrade to buy at Jefferies, which sees pulp prices reaching a bottom in 1Q next year and scope for strong Ebitda growth in renewable biomass energy.
• ASR Nederland rises as much as 3.2% after UBS upgrades the stock to buy from neutral, preferring the Dutch insurer to peer NN Group due to the likelihood of more share buybacks ahead.
• Judges Scientific plummets as much as 19% after the scientific instrument developer says not all the orders it expected to be crystallized and delivered in the second half of the year will be achieved in time.
• UK homebuilders are underperforming on Monday after asking prices for residential properties fell more than usual in November as the budget disappointed prospective buyers and affordability remained stretched, according to Rightmove.

Earlier, Asian equities gave up gains, as initial advances in China disappeared as traders weigh the outlook for more stimulus measures. The MSCI Asia Pacific Index declined 0.1%, with TSMC and SK Hynix among key losers. China’s CSI 300 Index fell 0.5%, while the Japanese benchmark slipped to a near two-week low. Stocks in Taiwan also declined, while Korean equities rose the most in about two months as Samsung shares rose more than 5% on Monday in response to a $7.2bn share buyback plan – the first since 2017 – aimed at boosting its stock, which had fallen to four-year lows last week. Investors are waiting to see if Chinese authorities are inclined to issue more stimulus measures while President-elect Donald Trump’s threat of tariffs looms over the region’s sentiment. Chinese state-owned companies’ stocks received a boost Monday after the country’s securities regulator issued a supportive guideline, urging them to come up with clear and executable plans to boost their valuation.  

In FX, the Dollar Spot Index erases a 0.2% drop and traded near session highs while 10-year US Treasury yields edge two basis points higher to 4.46%. The Japanese yen weakened as much as 0.5% to 155.14 against the greenback after Bank of Japan Governor Kazuo Ueda avoided giving a clear hint that he will raise interest rates at a December meeting. EUR/USD +0.1% at 1.0548.

In rates, Treasury futures were near lows of the day in early US trading following similar losses in bunds ahead of several speeches by ECB policymakers this week. US curve steepens as long-end leads losses, pushing 2s10s and 5s30s spreads beyond Friday’s highs. US session has little economic data and no scripted Fed speeches slated. Yields were cheaper by 1bp-4bp across the steeper curve, with 2s10s and 5s30s spreads both ~2.5bp wider on the day; 10-year around 4.465% is ~3bp higher with bunds underperforming by around 0.5bp in the sector.  German bonds fall, led by the short-end, as traders remove some ECB interest-rate cut premium ahead of a number of speeches from policymakers this week. German two-year yield climbs 6bps to 2.18%, sector underperforms Treasuries and gilts

In commodities, oil rebounded, with Brent crude trading near $72 per barrel. Bitcoin fell almost 3% over Saturday and Sunday before rising back to $92,000 on Monday morning. Trump has made various pro-crypto pledges, but there are open questions about the timetable for implementation and whether all are feasible — such as setting up a US Bitcoin stockpile.

Today’s US economic data calendar includes November New York Fed services business activity (8:30am), NAHB housing market index (10am) and September TIC flows (4pm). Fed speaker slate includes Goolsbee at 10am. Schmid, Cook, Bowman, Hammack and Barr are scheduled to appear later this week. Eurozone and UK inflation readings due on Tuesday and Wednesday, respectively, will help investors gauge the outlook for Bank of England and European Central Bank policy. A swathe of officials from the respective institutions are also due to speak.

Market Snapshot

• S&P 500 futures little changed at 5,897.50
• STOXX Europe 600 down 0.3% to 501.48
• MXAP little changed at 182.06
• MXAPJ up 0.2% to 576.58
• Nikkei down 1.1% to 38,220.85
• Topix down 0.7% to 2,691.76
• Hang Seng Index up 0.8% to 19,576.61
• Shanghai Composite down 0.2% to 3,323.85
• Sensex down 0.3% to 77,322.56
• Australia S&P/ASX 200 up 0.2% to 8,300.17
• Kospi up 2.2% to 2,469.07
• German 10Y yield little changed at 2.39%
• Euro up 0.2% to $1.0566
• Brent Futures up 0.5% to $71.39/bbl
• Gold spot up 1.1% to $2,591.11
• US Dollar Index down 0.13% to 106.55

Top Overnight news

• Chinese leader Xi Jinping told President Biden that Beijing remains committed to stable relations with the U.S., an expression of hope for continuity in ties before Donald Trump returns to the Oval Office in the midst of promises to squeeze Beijing over trade. WSJ
• China’s population is expected to shrink by ~51M over the next 10 years as the country continues to grapple within enormous demographic headwinds. BBG
• BOJ’s Kazuo Ueda avoided giving a clear hint that the BOJ will raise rates at its December meeting, saying the timing of its next adjustment will depend on the economy and prices. The yen weakened. BBG
• US pump prices are set to dip below $3 a gallon, a three-year low, just in time for Thanksgiving travel, which is expected to reach pre-pandemic levels. BBG
• As western leaders look to talks with Putin, Russia hit Ukraine over the weekend with one of the largest missile and drone barrages of the entire war. WSJ
• Nvidia asked suppliers to redesign server racks for its new Blackwell GPU, leading to worries about delays, the Information reported. BBG
• Trump is broadening his search for a Treasury Sec and rather than Bessent or Lutnick, could decide to select Kevin Warsh, Sen. Bill Hagerty, or Apollo’s Marc Rowan. WSJ
• Trump seeks assurances from Treasury Sec candidates that they will execute a plan to implement sweeping tariffs. FT
• US President-elect Trump picked Chris Wright to be Energy Secretary and named Commissioner Brendan Carr as the Chairman of the FCC. It was also reported that Trump is considering Kevin Warsh and Marc Rowan for US Treasury Secretary, according to NYT, while Trump was reportedly seeking a pledge that his Treasury Secretary will enact tough tariffs, according to FT.
• Tesla +7.7% in the premarket after people familiar said Trump’s team is seeking to encourage the development of fully self-driving vehicles. BBG
• Fed’s Barkin (2024 voter) said on Friday that he always expected core PCE would stay in the ‘high twos’ in H2 and is still seeing progress on inflation, while he added that pricing power is getting more limited, according to a Yahoo Finance interview. Furthermore, Barkin said he hopes and expects that inflation numbers will come down in Q1, as well as noted that they are a long way from knowing what will happen with tariffs and it is hard to know the impact.
• Fed’s Collins (2025 voter) said on Friday that there is not a moment where policy forward guidance is a good idea and Fed policy is well positioned for what lies ahead in the economy, while she added it is too soon to say the impact of the election on the economic policy and the Fed needs to see data before deciding on the December FOMC. Furthermore, Collins said they do not need the labour market to soften further and they are not seeing signs of fresh inflation pressures, while she added the data suggests more room to run on the balance sheet rundown, as well as noted that monetary policy is restrictive and will need to ease over time.
• Fed’s Goolsbee (2025 voter) said on Friday that he does not like tying the Fed’s hands and there is still more data to come when asked about a December rate cut or pause, while he added that markets react immediately and in most extreme terms. Goolsbee also said the Fed needs to focus on longer trends and he will be looking at rate cuts along the lines of the September Fed policymaker projections.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks began the week with a mildly positive following last Friday’s tech-led declines on Wall St which were triggered by hot US data and with quiet newsflow from over the weekend aside from Russian geopolitical-related headlines. ASX 200 was contained as losses in tech, healthcare and financials offset gains in utilities, commodities and consumer stocks. Nikkei 225 declined at the open after last Friday’s currency strength and with a surprise contraction in Machinery Orders, although was off today’s worst level with some mild support seen as the yen weakened following BoJ Governor Ueda’s comments. Hang Seng and Shanghai Comp traded higher amid a focus on recent earnings releases and after the PBoC continued its liquidity efforts, while Chinese President Xi said that China is ‘ready to work’ with Trump during a meeting with US President Biden.

Top Asian News

• RBA’s Kent says most borrowers have buffers to help manage higher interest rates; Worth reviewing the RBA’s approach to forward guidance from time to time; forward guidance in Australia might be less useful than in the US
• US President Biden told Chinese President Xi that keeping open lines of leader-to-leader communication is vital through transition and beyond, while they agreed that AI will not ever take control of nuclear weapons and Biden raised concerns about unfair, non-market economic practices by China and issues in the South China Sea.
• Chinese President Xi told US President Biden that China’s commitment to a stable, healthy and sustainable development of China-US relations remains unchanged and China is willing to maintain dialogue, expand cooperation and manage differences with the US government in an effort to realise a smooth transition period in China-US relations. Xi also told Biden that common interests between their countries are expanding rather than shrinking and that containing China is unwise, unacceptable and bound to fail. Furthermore, Xi said the China-US relationship would make considerable progress when the two countries treat each other as a partner and a friend and that he is ready to work with Donald Trump to manage ties.
• Chinese President Xi told US President Biden the Taiwan question, democracy and human rights, the system, and rights to development are China’s four red lines which allow no challenge, while Xi said the US should refrain from making any moves that have a chilling effect and told Biden to deal with the Taiwan issue with “extreme caution”, according to state media.
• China’s Commerce Minister met with the Canadian Minister for International Trade in Peru and discussed the tariff situation.
• China’s securities regulator said it is to improve the coordination mechanism for overseas listing supervision and regulation, while it will expand the scope of eligible stocks under the stock connect.
• China and the EU are said to have reached a “technical consensus” in talks regarding tariffs the bloc applied to Chinese electrical vehicles, according to a Weibo account affiliated with the state-run China Central Television cited by Automotive News.
• BoJ Governor Ueda said they will continue to raise the policy rate and adjust the degree of monetary support if the economy and prices move in line with their forecasts, while he also stated there is no change to BoJ’s stance to underpin economic activity and the timing of rate hike will depend on economic, price, and financial outlook. Ueda said they will make a policy decision by updating the economic and price outlook with data and information available at the time, while he noted that gradually adjusting the degree of monetary support will contribute to durably achieving the price target through sustained economic growth and they must be vigilant to various risks including overseas and market developments. Furthermore, Ueda said there are numerous factors they want to check including on US economy but won’t necessarily wait until there is clarity for all of them and if they don’t adjust the degree of monetary support appropriately, they could be forced to hike rates rapidly.

European bourses began the session on a mixed/flat footing, and initially lacked any firm direction. Soon after the cash open, sentiment improved, however, this upside quickly dissipated to show a mostly negative picture across Europe. European sectors hold a strong negative bias, with only a couple of sectors in positive territory. Basic Resources tops the pile, benefiting from strength in underlying metals prices. Real Estate & Tech are found at the foot of the pile, hampered by the relatively high yield environment. US Equity Futures are mixed, with slight outperformance in the tech-heavy NQ, attempting to pare back some of the hefty losses in the prior session. Barclays cuts Europoean Healthcare to underweight, Utilities to Market weight, Luxury, Insurance to Overweight

Top European News

• ECB’s Nagel says global integration would have to decline substantially to prompt a notable increase in inflationary pressures. Proposed tariffs by US President-elect Trump would upend international trade but only have a “minor impact” on inflation.
• ECB’s de Guindos says balance of risks have shifted to growth from inflation.
• ECB’s Makhlouf does not think the job is done on taming inflation; services inflation is higher than he wants. Adds that he does not feel the need to rush, at the moment. Says ECB must think like a long-distance runner. Says prudence and caution have a premium to them, ECB should continue in that manner
• UK government confirmed the spread of bird flu in commercial poultry at premises near Rosudgeon, St. Ives, Cornwall, according to Reuters.

FX

• DXY has kicked the week off on a contained footing with not much to shift the macro dial over the weekend. DXY is currently caged within Friday’s 106.33-96 range. If upside resumes, last week’s YTD peak sits at 107.06.
• EUR/USD currently sits towards the upper end of Friday’s 1.0516-93 range as the USD gives back some of its recent gains. EZ-specific newsflow has been light, but ECB’s Lagarde and Lane are due later.
• JPY is the marginal laggard vs. the USD across the majors after BoJ Governor Ueda continued to signal a lack of urgency to hike rates but reiterated the BoJ will continue to adjust monetary support if the economy and prices move in line with their forecasts. He later warned they could be forced to hike rapidly if they don’t adjust the degree of monetary support appropriately. USD/JPY currently sits towards the bottom end of Friday’s 153.85-156.74 range.
• GBP is steady vs. the USD but in close proximity to Friday’s multi-month low at 1.2597 that was triggered by a soft outturn for Q3 UK GDP. Docket for today is light, but inflation/PMI data is due later in the week.
• Antipodeans are both marginally softer vs. the USD with not much in the way of fresh drivers to instigate price action. Both currencies remain sensitive to the fallout from the US election and the tone that Trump will strike towards China.

Fixed Income

• Minor losses for the Dec’24 UST with prices currently in consolidation mode after the election. The Dec’24 UST contract is currently within Friday’s 108.30-109.23+ range; the lower bound of which was a contract low. The US yield curve is marginally bull-steepening with the 2s10s wider by around 14bps.
• Bunds are lower in a slight unwind of some of last week’s upside. Macro focus around the Eurozone remains on the growth outlook with ECB’s de Guindos this morning remarking that this is where the Bank is currently focusing. The Dec’24 Bund contract is currently lingering below the 132 mark, having breached the low on Friday to a current trough of 131.62. ECB President Lagarde & Lane are due to speak later.
• Gilts are marginally softer, in-fitting with price action in global peers. The macro narrative towards the back-end of last week was characterised by the soft outturn for Q3 UK GDP. The Dec’24 Gilt contract is currently capped by resistance at 94.00 which coincides with Friday’s peak. The UK 10yr yield currently lingers just above Friday’s trough at 4.46%.

Commodities

• WTI and Brent are firmer in what has been a choppy session for the complex thus far, having initially swung between gains and losses since the cash open. Brent’Jan 25 resides towards the upper end of a USD 70.70-71.80/bbl range.
• Precious metals are on a firmer footing, having rallied overnight alongside strength in silver, but without a clear catalyst driving the upside. XAU currently holds towards the upper end of a USD 2,566-597/oz range.
• Base metals hold a positive bias, continuing the price action seen overnight, where the complex benefited from a generally positive risk sentiment in APAC trade overnight.
• US President Biden’s administration plans on releasing a study on LNG environmental impacts and hopes to finalise a clean fuel bill before the January 20th Inauguration Day, according to the White House.
• Goldman Sachs sees Brent crude trading USD 70-85/bbl but could climb on harsher Trump sanctions on Iran, while it reiterated its gold target of USD 3,000/oz by December 2025.
• Russia’s Ilsky oil refinery (300k bpd) has asked government for help, mainly over facility modernization and high interest rates.

Geopolitics: Middle East

• A Lebanese official says “We are open to the content of the draft US proposal and deal with it positively”, via Al Jazeera.
• Israel conducted a strike on Beirut which killed Hezbollah’s media relations chief Mohammad Afif, according to security sources cited by Reuters.
• Tens were killed in an Israeli strike on a residential building in northern Gaza’s Beit Lahiya, according to Reuters.
• Iranian Foreign Minister Araqchi said he strongly denies the reported meeting between Iran’s envoy and Elon Musk, while he added if the IAEA Board of Governors passes a resolution against Iran, Tehran will take reciprocal action and implement new measures in its nuclear program.
• Iran reportedly keeps the door open to talks with US President-elect Trump and its Deputy Foreign Minister noted that Tehran favours negotiations but will not yield to maximum pressure strategy, according to FT.

Geopolitics: Ukraine

• US President Biden’s administration lifted restrictions on Ukraine using US-made weapons to strike deep inside Russia, according to sources familiar with the decision cited by Reuters. NYT also reported that President Biden allowed Ukraine to strike Russia with long-range US missiles, while Ukrainian President Zelensky said missiles speak for themselves and such things are not announced regarding long-range strikes.
• Russia’s Kremlin on reported decision by Biden Administration to allow Ukraine to strike deep into Russia says these reports did not have official sources; if such a decision has been made by the US, this will usher in a new round of tensions. It would mean a new situation with the involvement of the US in the Ukraine conflict. If Western weapons are fired deep into Russia, this will not be Ukraine doing the targeting, but those countries which gave permission.
• US President Biden’s decision to allow Ukraine to use long-range missiles to hit the Russian depth was communicated to Kyiv about 3 days ago, while the motive behind the decision is to deter North Korea from sending more troops to Russia, according to a source cited by Axios.
• Russian upper house’s international affairs committee deputy head Dzhabarov said the decision to allow Ukraine to strike inside of Russia with US missiles is an unprecedented step that could lead to World War Three and will receive a swift response, according to TASS. Furthermore, it was also reported that a senior Russian senator said the US decision to allow Kyiv to strike Russia with long-range weapons represents escalation and could result in the Ukrainian statehood being in complete ruins by the morning.
• Ukrainian President Zelensky said Russia launched around 120 missiles and 90 drones in a massive combined air strike on Ukraine’s energy infrastructure early on Sunday morning, while Ukraine’s largest private power company said the Russian air strike damaged thermal power stations, according to Reuters. Furthermore, Russia’s Defence Ministry said Russian forces launched a massive strike on Ukraine’s critical energy infrastructure facilities that support the defence industry and military enterprises, according to RIA.
• Russian forces struck critical infrastructure in Ukraine’s Zaporizhzhia region and western Ukraine’s Rivne region, while Russia’s missile attack damaged energy infrastructure in Ukraine’s north-western Volyn region.
• Poland activated aircraft to ensure airspace security after Russia launched a missile attack on Ukraine.
• French President Macron said the massive Russian attack on Ukraine shows Russian President Putin does not want peace and they must continue helping Ukraine defend itself.
• Australia’s Defence Minister Marles said Japanese troops are to have regular deployment in Australia and focus on cooperation between Australian and US Marines.
• North Korean leader Kim urged the military to improve capabilities for fighting an actual war, while he added that threats by the US and allies brought tensions and calls for war preparations, according to KCNA.
• North Korea said Russia’s delegation led by the national resources minister arrived in North Korea, according to KCNA. It was separately reported that North Korea may end up sending 100k troops to Russian President Putin to support Russia’s war in Ukraine although it was also stated that the move is not imminent and troops could rotate in batches, according to Bloomberg.

US Event Calendar

• 08:30: Nov. New York Fed Services Business, prior -2.2
• 10:00: Nov. NAHB Housing Market Index, est. 42, prior 43
• 16:00: Sept. Total Net TIC Flows, prior $79.2b

DB’s Jim Reid concludes the overnight wrap

I went to bed at 7:30pm last night as a bout of suspected food poisoning has left me drained. I had a fever in the night which probably explains why I had the most peculiar dream where I was flying on a magic carpet. So please read the rest of the daily below this morning in that context.

At least it should be a quieter week as the recent relentless wave of US macro and political news flow in theory slows down with the main story on this front being on potential political appointments for the new Trump administration with Treasury secretary the one creating most interest with a huge amount of jockeying for position over the weekend between what are perceived to be the front runners, namely Scott Bessent and Howard Lutnick. Elon Musk endorsed the latter over the weekend suggesting he would be a disruptor. Indeed one of his recent quotes is that “When was America great? 125 years ago. We had no income tax, and all we had was tariffs.” So this will be a fascinating race.

Although the macro world will be much quieter this week just when you thought it was a good point to have a lie down after a busy few weeks, the biggest global earnings event happens after the bell on Wednesday with $3.48 trillion of market cap at stake. Yes you guessed it Nvidia reports after the bell. For context, the entire FTSE, DAX and CAC have a market cap of £2.08tn, €1.71tn and €2.31tn, respectively. So it’s like a whole G7 country’s stock markets reporting at exactly the same time.

The next most important event might be the global flash PMIs on Friday. The reason being that they may capture some of the initial sentiment impact from around the world regarding Trump’s victory. Europe will be especially interesting on this front as the continent awaits their trade fate.

Outside of that there will be a focus on inflation with final Eurozone CPI (tomorrow), Canadian CPI (tomorrow), UK CPI (Wednesday), German PPI (Wednesday), and Japan CPI (Thursday) being the key ones. For the UK, our economist sees a mixed bag of inflation data, with headline CPI (DB forecast 2.07% YoY) and RPI (DB forecast 3.29%) picking up amid higher energy prices but core CPI is seen declining to 3.07% YoY and services CPI slowing to 4.78% YoY. His full preview is here. In Japan, our Chief Japan economist sees the nationwide CPI printing 2.1% YoY for core inflation ex. fresh food (2.4% in September) and core-core inflation ex. fresh food and energy at 2.2% (+2.1%).

There are also plenty of central bank speakers which you can see in the day-by-day week ahead at the end as usual which includes all the other data highlights this coming week.

Over the weekend, the war in Ukraine made headlines as President Biden authorised Ukraine to use US long-range missiles to strike targets hundreds of miles inside Russia for the first time, according to reports. That followed Russia embarking on its largest missile/drone attack on Ukraine in months on Saturday night. It seems ahead of Trump taking office both sides want to be in as strong a position as they can as any possible deal will be negotiated from their current position in the war.

Moving onto Asia, it’s a mostly bright start to the week with the KOSPI (+1.90%) leading the way, driven by a rally in Samsung Electronics (a recent big laggard) after the company announced a surprise stock buyback plan. Chinese stocks are also higher, with the Shanghai Composite (+1.24%), the Hang Seng (+1.18%), and the CSI (+1.08%) all in positive territory following a call from China’s securities regulator for listed companies to boost stock returns through share buybacks and other methods. Conversely, the Nikkei (-1.03%) is bucking the regional trend after BOJ Governor Kazuo Ueda indicated that the central bank would continue raising rates if the economy and prices evolve as expected. S&P 500 (+0.28%) and NASDAQ 100 (+0.73%) futures are strong for this time of day after a sizeable -2.24% slump for the latter on Friday.

Early morning data showed that Japanese core machine orders unexpectedly contracted -4.8% y/y in September (v/s +1.8% expected) as against a -3.4% drop in the previous month.

Recapping last week now, markets lost ground from their post-election surge as the week progressed, as concerns about inflation and a potential trade war dampened risk appetite. In particular, US core CPI came in at +0.3% for a third month running in October, whilst core PPI was also at +0.3%, raising fears that inflation was becoming stuck above the Fed’s target. Then on top of that, Fed Chair Powell himself said that the economy was “not sending any signals that we need to be in a hurry to lower rates”. So that led to growing doubts about a December rate cut, and futures dialled back the probability of a cut to 58%, down from 65% the previous week and a high of 82% last Wednesday.

With investors pricing in more hawkish policy, 2yr Treasury yields rose +5.0bps on the week, though they retreated -4.2bps amid a risk-off mood on Friday. The rise in yields was larger at the long-end, with the 10yr yield up +13.5bps (+0.3bps Friday) to 4.44%, its highest weekly closing level since May. That rise was led by real yields, with the 10yr real yield +15.9bps higher (+0.7bps Friday) to 2.11%. In turn, that meant the dollar index strengthened for a 7th consecutive week to a one-year high, having risen by +1.61% (+0.01% Friday). That dollar strength was partly as the rise in yields was not matched in Europe, with investors pricing a widening rate differential between the Fed and the ECB with the 10yr bund yield actually falling -1.1bps over the week (+0.3bps Friday) to 2.35%.

In the equity space, the S&P 500 fell -2.08% (-1.32% Friday), its worst performance in ten weeks, and erasing 60% of its post-election jump. The retreat was fairly broad, with weakness among chipmarkers and pushing the Philadelphia Semiconductor index -8.64% (-3.42% Friday), while the small-cap Russell 2000 was down -3.99% (-1.42% Friday). European equities saw a relative outperformance, with the STOXX 600 only down -0.69% (-0.77% Friday), but this still marked a 4th consecutive weekly decline for the index.

Finally, it was another strong week for Bitcoin, which was up by another +17.08% in the week ending Friday, with a closing value of $89,511. Moreover, at its intraday peak on the Wednesday, Bitcoin had risen as high as $93,462. However, for commodities it was a pretty poor performance, with Brent crude down -3.83% to $71.04/bbl, whilst gold suffered its worst weekly performance since June 2021, with a -4.53% decline last week to $2,563/oz.

By Eric Peters, CIO of One River Asset Management

“Three key things can be done immediately, with no need for legislation,” said the Chairman, election results behind us, tailwinds for crypto building.

“Number one, SAB 121 can be repealed as soon as the new administration takes over,” he continued, referring to the SEC’s 2022 staff accounting bulletin no. 121, which unnecessarily slowed the industry, pushing investors and innovators offshore.

“Number two, we should see the SEC and the banking regulators coordinate on stablecoin guidance, which will bring stablecoin into the regulatory mainstream, allowing for its adoption throughout the banking system and our capital markets.”

“Bringing dollar stablecoin into the core of the financial system, will accelerate the buildout of crypto rails across the US and global financial sector,” said the Chairman. “This is in the US national interest as it will accelerate the usage of dollar stablecoin at home and abroad, which should expand the usage of the dollar internationally, extending dollar dominance.” I nodded. The opposition by the Biden administration to providing sensible stablecoin guidance made no economic or geopolitical sense. But no matter, those policies will soon be behind us.

“As stablecoin is adopted by the banking system,the infrastructure necessary for the tokenization of other assets will be in place,” explained the Chairman. “This will invite innovation in our financial markets; reducing transaction costs, increasing speeds, improving security, and providing transparency to counterparties and regulators which in turn will enhance financial stability.” The path to blockchain replacing legacy financial infrastructure is opening. “And there’s one more thing that is overdue and should happen quickly,” he said.

“Number three is that clear guidance from the SEC and CFTC should be given to the trading of tokens in the secondary markets,” said the Chairman.

“For example, providing guidance that tokens that have been outstanding for two years with no new issuance are presumptively good to trade, as opposed to the opposite, is the kind of thing that can be done without the need for legislation.” I smiled. Common sense prevailing.

“We get those things done quickly and responsibly, including addressing anti-money laundering and other illicit finance issues, and we unlock US entrepreneurial energy in this exciting new field. It’s great for our innovators, for finance, and for America.”

* * *

“We will soon see something economically unlike anything you’ve experienced in your career,” said the Oracle, seated on a hot rock, serene. “A comprehensive set of policies designed to dramatically boost productivity and growth across the US economy.” I had traveled far to see the Oracle, the political changes he had foreseen many months ago, now manifest. “The unlock of energy resources, the buildout of AI infrastructure to support rapid advances, the slashing of government waste and headcount to make way for private sector growth. Tax cuts.”

“Fed rate cuts have been a mistake given what is on the horizon,” said the Oracle, his gaze unfocused, taking in the infinite horizon. “With rising productivity growth, the demand for capital will rise, the economy will boom, and energy prices will remain firm even as supplies rise. Pressure on interest rates will be upward, not downward.” And the Oracle closed his eyes. “I see real GDP jumping towards a 4% rate in the coming cycle, and 25-30% late-1990s equity market gains for the next few years. I’ve never seen such a bullish future.”

Authored by Tom Ozimek via The Epoch Times,

For the seventh year in a row, the Department of Defense (DOD) has failed its annual financial statement audit, a massive undertaking meant to ensure accountability for its $3.8 trillion in assets and $4 trillion in liabilities.

Despite the setback, Pentagon officials highlighted incremental progress and reaffirmed their commitment to securing a clean audit opinion by 2028.

The latest results, released on Nov. 15, confirmed that the DOD, once again received a disclaimer of opinion, meaning auditors could not provide assurance over the completeness and accuracy of the Pentagon’s financial records.

This year’s audit, like the six before it, exposed persistent challenges in the DOD’s financial management systems.

Teams of auditors conducted hundreds of site visits, assessing how the DOD manages taxpayer dollars across its operations, which span more than 4,000 sites in more than 160 countries.

Of the 28 sub-audits conducted across Pentagon entities that undergo standalone financial statement audits, only nine received unmodified (clean) opinions. Another entity received a qualified opinion, while 15 entities were issued disclaimers. Three audit opinions remain pending.

Secretary of Defense Lloyd Austin said that, while some progress was made in this year’s annual audit, challenges remain.

“There are several areas where we need to work harder and achieve better results,” Austin said in a statement.

Critical improvements are needed in areas such as improving efficiency and property valuation, increasing accountability, capturing all accounting system transactions, and modernizing the Pentagon’s financial systems, he said.

The audit report revealed that the Pentagon reported a Fund Balance with Treasury (FBWT) of $855.5 billion but failed to perform accurate and timely reconciliations, increasing the risk of material misstatements.

Key issues noted in the report include unresolved variances and inadequate internal controls in reconciliation processes.

The Pentagon also reported $452.1 billion in General Equipment and Internal Use Software but failed to provide adequate documentation or controls to support its valuation, raising the risk of inaccuracies in its financial statements.

To address these shortcomings, auditors recommended enhanced monitoring, timely variance resolution, and implementing standardized processes to ensure compliance with accounting standards.

Austin said although “significant strides” have been made this year, more work needs to be done. He expressed confidence that the Pentagon will achieve a passing grade in 2028.

“We are determined to reach this milestone. I have zero tolerance for fraud, waste, and abuse—in the Pentagon or elsewhere in the Department,” he said.

Despite failing to pass the annual audit, the Pentagon has made progress in resolving key material weaknesses identified in prior audits, according to Mike McCord, the DOD’s chief financial officer. McCord singled out the U.S. Marine Corps’ unmodified audit opinion—a first for the branch—as a model of success driven by high-level leadership and sustained effort.

“We expect this same commitment from the leaders of the other Military Services,” McCord said in a statement.

The Pentagon also closed its DOD-wide Contingent Legal Liabilities material weakness and made progress in other critical areas, with 19 material weaknesses closed or downgraded in 2024, including improvements in Fund Balance with Treasury reporting, according to McCord.

To meet the 2028 deadline for an unmodified opinion, McCord said the Pentagon will focus on addressing the root causes of its most significant material weaknesses.

He emphasized the importance of training initiatives across the Pentagon’s financial management workforce to close essential skills gaps, while leveraging advanced technologies, such as machine learning and robotic process automation, to increase data reliability and streamline financial processes.

Depending on where you live, it can cost a lot more, or a lot less, to travel the world.

While passports unlock global mobility, how much countries charge for this essential identification document differs significantly across nations.

This infographic, via Visual Capitalist’s Kayla Zhu, shows the 10 least expensive passports in the world in U.S. dollars and their validity periods.

The data comes from Compare The Market and is updated as of April 2024.

The United Arab Emirates Has The World’s Cheapest Passport

While the world’s cheapest passports are fairly regionally diverse, European nations (Hungary, Spain, Poland, and Sweden) appear the most, followed by African countries (Kenya, South Africa).

Below is the table with the cheapest passports and the amount of years each one is valid for.

The cheapest passport in the world belongs to the United Arab Emirates, which only charges $17.63 for a 5-year passport.

In terms of cost per year, India’s passport offers the best value, costing only $18.01 for a 10-year validity period.

Both of Spain’s passport options cost the same price ($32.17), but the passport for people 30 years and older has significantly better value with its 10-year validity.

Spain also offers one of the most powerful passports in the world, offering visa-free access to 194 countries. The country shares a six-way tie for the most versatile passport in the world.

To learn more about passports from around the world, check out this graphic that maps out the most powerful passports in the world.