Friday Watch

Around X:

• @Business

• Lousy schools are the focus of the student protests gripping France, but untenable budget deficits and the soaring cost of borrowing are making solutions harder to find. 
• Morgan Stanley is leading an equity and debt fundraising for the first major new US oil refinery in half a century, according to the company behind the $4 billion fuel-making development. 
• In this weekly documentary, we tally up the unprecedented cash being spent to shape the future of federal regulation of AI. 
• The race for humanoid robots faces two powerhouses: China dominates hardware and components, while the U.S. holds the advantage in AI models. The market could surpass $5 trillion by 2050. 
• MSCI adopted new rules that could push Strategy out of its global equity benchmarks, potentially triggering billions of dollars in stock sales and adding fresh pressure to the financing model behind Michael Saylor’s Bitcoin holdings. 
• Economic growth is up but sentiment is down. We dig into the latest US consumer data with @sarahsholder, @boes_ and @CLindblad1. 
• Here’s what you need to know to start your day: Morning Briefing Asia.
• Get up to speed on what's moving global markets.     

• @ZeroHedge

• Tesla's Flying Car Is Real! 
• *TRUMP: PLENTY OF OTHER TARGETS BESIDES REFINERIES TO HIT. *TRUMP: ZELENSKYY MORE DIFFICULT THAN PUTIN TO DEAL WITH. *TRUMP: ZELENSKYY IS NOT A GOOD GUY TO DEAL WITH. *TRUMP: NEED AN ELECTION IN UKRAINE.
• *TRUMP: MAY HAVE TO GO TO PICKAXE MOUNTAIN. *TRUMP: DON'T SEE TROOPS ON THE GROUND IN IRAN.
• *TRUMP: WOULDN'T USE NUCLEAR BOMB ON IRAN.
• Samsung Electronics has scaled back its Q4 mid-to-low-end smartphone production plans due to supply shortages and price hikes in glass fabric for copper clad laminate (CCL), a core raw material for PCBs. Compounded by surging memory chip prices, rising component costs have severely squeezed margins, rendering higher production volumes unprofitable for the vendor.
• These Are The Top Races To Watch This Midterm.
• SOME INVESTORS DIAL BACK ANTHROPIC VALUATION EXPECTATIONS AMID DISAPPOINTING RESULTS, MARKET SELLOFF: RTRS.
• BlackRock's Record Asset Holdings Are Half The Size Of US Economy.
• NOAA Winter Outlook: Record El Niño Points To Wetter South, Warmer North.
• The Politics Of Denial: When Americans Stop Seeing The Warning Signs.
• 'AI Jesus' Saves The World Again (But Tech Still Lagged); Bond Yields Tumble As Oil Spikes. 

• @CNBC

• CNBC Daily Open: Is the AI sector losing its rose-colored glow?
• Friday's big stock stories: What’s likely to move the market in the next trading session. 
• Stock futures are little changed as S&P 500 heads for losing week: Live updates.  
• Stocks making the biggest moves after hours: Interactive Brokers, J.B. Hunt, Alcoa and more. 
• Harvard’s endowment jumps 27% in fiscal 2026, lifted by SpaceX as top holding. 

Night Trading 

• Asian equity indices are +.75% to +1.75% on average. 
• Asia Ex-Japan Investment Grade CDS Index 73.5 +.75 basis point. 
• China Sovereign CDS 37.25 +.25 basis point.
• China Iron Ore Spot 90.30 USD/Metric Tonne +.5%. 
• Crude Oil 97.38/bbl. -.6%. 
• Gold 4,176.20 USD/t oz. +.2%. 
• Swiss Franc/Offshore Chinese Renminbi Cross 8.09 +.08%.
• Bloomberg Emerging Markets Currency Index 33.55 -.11%.
• Bloomberg Global Risk-On/Risk Off Index 131.3 +.9%.
• US 10-Year Yield 5.08% +2.0 basis points.
• Japan 30-Year Yield 4.01 +4.0 basis points.
• Volatility Index(VIX) futures 17.9 -.4%.
• Euro Stoxx 50 futures +.58%. 
• S&P 500 futures -.04%.
• NASDAQ 100 futures -.31%.

Morning Preview Links

BOTTOM LINE: Asian indices are modestly 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 75% net long heading into the day.