Fed’s Powell confident on independence under Trump

Good morning. Here's what happened overnight and what you need to know today.

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1.

Fed speaks: US Federal Reserve Chair Jerome Powell said he expects the central bank to keep its independence during the upcoming Trump administration. Speaking at The New York Times’ DealBook conference, Powell said he was not concerned “that there’s some risk that we would lose our statutory independence”. He said the US economy was “in very good shape right now,” adding, “we are sort of the envy of other large economies around the world”. Powell dismissed the idea that President-elect Donald Trump could move forward with plans advocated by some of his allies to appoint a “shadow” head for the Fed, which would render Powell irrelevant. His comments come as Trump and his allies have proposed measures that could potentially reduce the Fed's autonomy, including plans to allow the president to directly set interest rates and subject the Fed to more oversight. (NYT)

2.

SEC replacement: Donald Trump nominated Paul Atkins, a pro-business conservative and former Bush-administration SEC commissioner, to succeed Gary Gensler as SEC chair. In a post on its social media platform, the US president-elect said Atkins is a "proven leader for common sense regulations" and recognises the importance of digital assets in strengthening the economy. Atkins, who founded financial consultancy Patomak Global Partners, has advocated for lighter regulations and criticised high penalties on companies, claiming they harm investors. His leadership is expected to contrast sharply with Gensler’s tenure, which included significant crypto enforcement actions. The crypto industry has welcomed Trump’s promises to scale back regulatory crackdowns, including on high-profile cases such as Coinbase. Atkins’ nomination requires Senate confirmation. Meanwhile, reports emerged Trump was in discussions to replace his controversial nominee to lead the Pentagon, Pete Hegseth, with Florida governor Ron DeSantis. (Bloomberg)(NYT)

3.

Insurer targeted: The CEO of one of the largest insurers in the US, Brian Thompson, was fatally shot outside the Hilton Midtown Manhattan early Wednesday, in what New York’s police commissioner called a “brazen targeted attack”. The 50-year-old was shot in the back and leg around 6:45am and later pronounced dead at Mt Sinai Hospital. Thompson, UnitedHealthcare CEO since 2021 after joining parent company UnitedHealth Group in 2004, was at the hotel for the healthcare giant’s annual investor conference. Presentations reportedly continued until 9:10 am. Group CEO Andrew Witty then told attendees: "We're dealing with a very serious medical situation with one of our team members, and as a result, I'm afraid we're going to have to bring to a close the event today," Reuters said. Authorities believe the attack was targeted and the NYT said he had received several threats.(Reuters)(Bloomberg)(NY Post)(NYT)

4.

Growth warning: The OECD forecasted global growth of 3.3% annually for 2025 and 2026, up from 3.2% this year and supported by easing inflation and fiscal stimulus, but warned of risks from trade tensions, protectionism and fiscal challenges. The US economy is projected to grow 2.4% in 2025, while China slows to 4.4% by 2026 due to weak consumption and real estate struggles. Australia is expected to grow at 1.9% in 2025 and 2.5% the year after, while in Europe, growth is expected to improve modestly, though Germany lags at 0.7% next year. India was described as a “shining light” for growth, while persistent budget deficits in France and the US were flagged as concerns. The OECD said its forecasts assumed no changes in global trade practices, which seems unlikely given US President-elect Donald Trump has already unveiled plans for tariff hikes on key trade partners. (OECD)(Capital Brief)(WSJ)(Reuters)(Bloomberg)

5.

Seoul debacle: South Korea’s opposition lawmakers moved to impeach President Yoon Suk Yeol over his abrupt and short-lived martial law declaration, unanimously overturned by parliament. The six-hour decree, the first since 1980, sparked a rush to the National Assembly, where armed troops failed to block lawmakers—some climbing walls to re-enter. The declaration banned political activity and censored the media, drawing criticism even from Yoon’s own party, which urged him to lift it. Defence Minister Kim Yong Hyun, accused of advising the move, has resigned. Led by the Democratic Party, the opposition also plans treason charges against Yoon. An impeachment vote could occur by Friday or Saturday, requiring two-thirds of the legislature and six Constitutional Court justices to confirm. If impeached, Yoon’s powers would transfer to Prime Minister Han Duck-soo. Protests erupted in Seoul Wednesday as markets dropped 1.4%, prompting a government pledge for unlimited liquidity. (Capital Brief)(Reuters)(AP)

6.

GM write-down: General Motors (GM) will record over USD5 billion ($7.76 billion) in non-cash charges linked to its joint venture with SAIC in China, citing writedowns of up to USD2.9 billion and restructuring costs of USD2.7 billion. The charges, primarily impacting fourth-quarter earnings, were attributed to declining sales and increased competition from domestic carmakers backed by government subsidies. GM reported losses of USD347 million in China during the first three quarters of 2024. CEO Mary Barra has described the market as "untenable" for some corporations and said GM would take steps to ensure sustainability. The company expects its JV with Chinese manufacturer SAIC Motors to return to profitability and proceed without requiring new capital investment, a spokesperson told Bloomberg. (Bloomberg)(Reuters)(WSJ)

7.

Salesforce beat: Salesforce shares hit a record high after reporting third-quarter revenue of USD9.44 billion ($14.66 billion), exceeding analysts' USD9.35 billion estimate. The 8.3% revenue growth was driven partly by its AI platform, Agentforce, launched in October, which secured 200 deals during the period. Adjusted earnings were USD2.41 per share, slightly below the USD2.44 consensus. Fiscal year 2025 revenue guidance rose to USD37.8–USD38 billion, adding USD100 million to the low end of its prior forecast. The adjusted operating margin was also above the 32.2% estimate at 33.1%. Subscription revenue increased 9% to USD8.88 billion. Shares surged by over 11% to USD368.70 each adding about USD40 billion to its market cap. Key acquired divisions like Mulesoft and Tableau showed mixed performance, with Mulesoft growth slowing to 1%. (Reuters)(Bloomberg)

8.

AI Clouds: Apple and Baidu are working to adapt Baidu's Ernie 4.0 AI model for use in iPhones sold in China but are facing issues with the model’s prompt understanding and accuracy, The Information reported. Apple’s privacy policies, which prevent user data collection for AI queries, conflict with Baidu’s need to analyse such data. iPhone sales in China fell 0.3% in Q3, while the leader, Huawei, saw sales soar 42%. Separately, Google DeepMind’s GenCast AI model achieved a 15-day weather forecast accuracy surpassing traditional methods in 97.2% of variables, generating its results within minutes. Trained on four decades of ECMWF data, research results showed GenCast is more efficient than traditional systems but requires improvements in hurricane intensity predictions. (The Information)(Reuters)(Bloomberg)(FT)