The fracturing of the world economy

Gold prices remained steady as traders assessed the potential for a U.S. interest rate cut against the backdrop of ongoing peace discussions in Ukraine. The market is closely monitoring economic indicators that could influence Federal Reserve policy decisions.

China's stock and bond markets are showing signs of decoupling, as the traditional inverse correlation between equities and debt is breaking down. Recent market dynamics indicate that expectations of monetary easing by the People's Bank of China (PBOC) are not driving bond prices higher despite stock losses.

US oil futures experienced a slight increase as the American Petroleum Institute (API) reported a smaller-than-expected rise in crude oil inventories, indicating a potential tightening in supply. This development reflects ongoing fluctuations in the oil market, influenced by various economic factors.

Volkswagen has announced the completion of a new R&D centre in Hebei, eastern China, enabling the company to develop new cars entirely outside Germany for the first time in its history. This move aims to strengthen its position in the world's largest auto market.

Stocks advanced as U.S. Treasury yields retreated, driven by increasing expectations for a potential interest rate cut by the Federal Reserve in December. This positive sentiment in the markets reflects a recovery in technology stocks and a broader optimism among investors.

Nvidia shares have fallen significantly amid concerns that Google is gaining a competitive edge in the artificial intelligence sector, leading to a $115 billion sell-off for the chipmaker. This decline reflects investor anxiety about the sustainability of Nvidia's market position in the face of rising competition.

On November 25, 2025, Bloomberg Businessweek Daily featured a discussion on the potential nomination of Kevin Hassett as the next Federal Reserve Chairman, alongside insights into US cybersecurity challenges linked to AI and the philanthropic priorities of affluent women. The episode highlighted the growing influence of AI technologies, particularly in the context of companies like Google and Nvidia.

The US budget deficit reached $284 billion in October, a significant increase attributed to the recent government shutdown, which has disrupted normal fiscal operations and reporting. This deficit highlights ongoing challenges in managing the federal budget amid political uncertainties.