Wednesday Watch

Around X:

• @Business  

• The loans underscore a major challenge facing policymakers as China’s economy slows: They can make funds cheaper and more abundant, but they can’t force people to borrow, spend or invest. 
• Australia’s spy chief has accused hackers working for China’s government of probing his nation’s communications and infrastructure networks. 
• South Korea’s POSCO will buy a 30% stake in Mineral Resources' lithium business, giving it partial ownership of the Mount Marion and Wodgina mines in Western Australia.
• President Donald Trump will host financial industry executives for dinner Wednesday at the White House, according to two sources.
• Treasuries rallied as trading in the cash market resumed after a holiday, with traders pricing in a higher chance of a Fed rate cut in December following a weak private payrolls report.
• The US FDA has named Richard Pazdur as its lead drug regulator, turning to a longtime official to stabilize the agency after a period of turmoil. 
• US Transportation Secretary Sean Duffy warned Tuesday that flight disruptions could worsen considerably and airlines could ground planes if the government stays closed.
• Get up to speed on what's moving global markets.
• Here's what you need to know to start your day.  

• @ZeroHedge

• White House Declares 'Anti-Communism Week' Honoring 100 Million Lives Lost.
• NEW: Kamala Harris on campaigning against TRUMP. "I understood the game that was being played. And I made a decision that I wasn't gonna get played." *CACKLES*. "Three-dimensional chess!" Maybe she lost because Trump was playing 4D chess while she was playing 3D. (video)
• Rep. Massie Still Investigating Jan. 6 Provocateur Ray Epps.
• *SOFTBANK SHARES FALL AS MUCH AS 10%. Maybe liquidating NVDA to invest in its biggest cash-incinerating client wasn't the best idea.
• Land In "Data Center Alley" Sets New Price Record.
• Florida AG Targets JPMorgan Over Trump Debanking, Jack Smith Collusion.
• China Bars U.S. Military From Access To Rare Earths, Increasing Risk Of "Derailing" Trade Truce.
• Conservatives are being targeted by a t*rrorist organization at Berkeley and basically nothing is being done about it. @UCBerkeley is not safe for Conservative students. Antifa is allowed to terrorize Conservatives there with impunity.  
• How AI Is Supercharging Scientific Fraud.
• US Government Agencies Terminate 67 Wasteful Contracts Worth $1.4 Billion: DOGE. 
• New Alliance, Old Scandal: The COVID Failure Haunting Hochul.
• Tech Wrecked, Crypto Dumped, Crude Pumped, & Bonds Bid On Bad Data.

• @CNBC

• CNBC Daily Open: SoftBank doubles down on AI amid warnings from 'Big Short' investor.
• Wednesday's big stock stories: What’s likely to move the market in the next trading session.
• Asia-Pacific markets set to rise after mixed trading on Wall Street on hopes of U.S. government shutdown ending; AI trade pullback.
• Stock futures little changed after Dow notches record high: Live updates.

• @WSJ  

• In recent weeks, drones appearing mysteriously above airports and halting flights in Europe have made headlines. Those are just the tip of the iceberg.
• The U.S. Navy’s largest aircraft carrier arrived in waters near Latin America on Tuesday, expanding the American military’s buildup as the Trump administration seeks to ratchet up the pressure on Venezuelan President Nicolás Maduro. 
• Wall Street is getting creative to meet AI's insatiable demand for money. We break down three huge—and unusual—deals. 

• @TheTranscript

• Softbank CFO on ChatGPT's weekly active users: "As of October 2025, they have already exceeded 800M WAUs...making an even bigger gap with other competitors who provide a similar type of service...the number of app downloads for ChatGPT is 871M...which also outpaces competitors". (graph)

Night Trading 

• Asian equity indices are -.25% to +.75% on average. 
• Asia Ex-Japan Investment Grade CDS Index 65.0 -.75 basis point.
• China Sovereign CDS 41.0 unch.
• China Iron Ore Spot 102.0 USD/Metric Tonne +.4%. 
• Swiss Franc/Offshore Chinese Renminbi Cross 8.89 +.02%.
• Bloomberg Emerging Markets Currency Index 36.2 -.1%.
• Bloomberg Global Risk-On/Risk Off Index 85.5 -.5%.
• US 10-Year Yield 4.08% -4.0 basis points.
• Volatility Index(VIX) futures 19.3 +.03%.
• Euro Stoxx 50 futures +.31%. 
• S&P 500 futures +.15%.
• NASDAQ 100 futures +.32%.

Morning Preview Links

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and financial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.