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Top Overnight News
The government shutdown officially ended and furloughed federal employees were set to return to work. Donald Trump signed a temporary funding bill into law, but it may take days to weeks to backpay workers and reinstate food aid, among other functions. BBG
US President Trump's administration froze flight cuts at 6% rather than hiking to 8% on Thursday, according to the US Department of Transportation.
White House Economic Adviser Hassett said the government shutdown will impact this quarter's GDP and anticipates it to be between 1.5-2%, as well as noted that GDP for the year will be roughly 2% and that supply-side policies will allow growth without inflation. Hassett said he agreed with the last two Fed meetings that it was time to cut rates and noted the Fed is unlikely to cut 50bps, with the Fed more likely to do 25bps, while he added that he will do it if asked to be the Fed Chair.
US data center developers are flooding utilities with inflated growth plans, muddying efforts to plan for future power needs with projects that may never materialize. Developers are approaching multiple utilities with the same project in a quest to find the lowest-priced power, leading to so-called phantom data centers. FT
Volodymyr Zelenskiy implored EU allies to overcome their divisions on the use of frozen Russian assets, telling Bloomberg Television that fresh funding is critical for Ukraine to stay in the fight against Moscow. BBG
Boston Fed President Susan Collins said Wednesday there should be a “high bar” for further easing by the Federal Reserve in the months ahead, projecting that the Fed should likely “keep policy rates at the current level for some time.” Also, NY Fed’s Perli said it won’t be long before the Fed is purchasing assets to grow the balance sheet as reserves are no longer abundant. WSJ, BBG
China’s credit expansion slowed more than expected in October from a year ago, dragged down by weaker government bond sales and sluggish borrowing demand across the economy. BBG
UK economic data for the month of Sept falls short across the board (GDP, industrial production, and manufacturing production all came in below the consensus). FT
Alibaba is overhauling its main AI app to resemble OpenAI’s ChatGPT, adding shopping-focused features as it works to develop a full AI agent and build a user base. BBG
BoJ Governor Kazuo Ueda said the central bank is aiming for moderate inflation accompanied by wage rises and economic improvement, signaling that its goal aligns with Prime Minister Sanae Takaichi's focus on reviving growth. Moreover, giving voice to the Takaichi administration's view that it was premature for the central bank to raise interest rates, Finance Minister Satsuki Katayama said inflation has yet to sustainably hit the BOJ's 2% target. RTRS
Australian employment surged in October as firms took on more full-time workers, pulling the jobless rate down from a four-year high and bolstering a growing view that the current easing cycle may have run its course. RTRS
Investors are turning bullish on small-cap stocks, as earnings growth outpaces their larger counterparts and cheap valuations are seen sparking an M&A wave. BBG
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