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UK Chancellor of the Exchequer Rachel Reeves is visiting Brussels to foster closer economic ties with the European Union. At the Eurogroup meeting, she will emphasize the importance of building a relationship based on trust and mutual respect, aiming to reduce trade barriers and enhance investment opportunities.
China is set to implement an "appropriately loose" monetary policy in 2025, marking its first shift towards easing since 2010, as part of efforts to stimulate economic growth. The Politburo emphasized the need for a proactive fiscal policy and measures to boost consumption and domestic demand. This approach aims to balance progress with stability while enhancing policy tools for counter-cyclical adjustments.
Moody's has upgraded its global bank outlook for 2025 to stable, despite ongoing geopolitical crises, with most G-20 economies expected to experience slow and sustainable growth due to lower interest rates. However, Asia is projected to lag behind other regions, facing no positive drivers for improvement. The outlook could shift based on geopolitical developments and inflation trends.
Major investment firms, including AllianzGI, abrdn, and Franklin Templeton, are hesitant to invest in French debt due to ongoing political instability that clouds economic growth and public finances. The uncertainty surrounding next year's budget is hindering efforts to address France's significant deficit, currently at 6% of GDP, which exceeds the EU limit.
Trump 2.0 will inherit a robust US economy, characterized by a projected 2.6% real GDP growth in 2024, outperforming major developed markets. While consumer spending remains strong due to rising disposable incomes, the labor market is moderating, with a slight increase in unemployment to around 4%. Rate cuts are anticipated, totaling 100bps in 2025, amid inflationary pressures from proposed tax cuts and tariffs.
China's leadership plans to adopt a "moderately loose" monetary policy and enhance fiscal spending in 2025, marking a significant shift since 2011. This decision comes as the country prepares for potential economic challenges with the anticipated second trade war following Donald Trump's inauguration. The Politburo has committed to a more proactive fiscal approach, signaling a robust response to upcoming economic pressures.
Oppenheimer Asset Management has set a bullish target of 7,100 for the S&P 500 by the end of next year, citing a strong economy as the driving force behind this optimistic outlook. Chief Investment Strategist John Stoltzfus noted that the current resilience of both the economy and the stock market is expected to persist into the next year.
India should prioritize the internationalization of the rupee rather than pursuing de-dollarization. The US dollar remains the dominant reserve currency, accounting for approximately 58% of global foreign exchange reserves, despite the recognition of eight major reserve currencies by the IMF.
China's top leaders are preparing for the annual central economic work conference on December 11-12 to discuss the GDP growth target and stimulus measures amid economic challenges. While the 2025 growth target is expected to remain around 5%, persistent issues like a housing downturn and weak domestic consumption continue to pressure the economy. Recent stimulus efforts, including interest rate cuts and a $1.4 trillion debt relief package for local governments, aim to bolster growth, but trade tensions with the U.S. and potential tariffs from the incoming Trump administration pose additional risks.
Auto stocks declined on Monday, led by Hyundai Motor and Tata Motors, following a report of weak November retail sales. The Nifty Auto index fell 0.44%, with Hyundai shares down 1.2% and Tata Motors down 0.7%, amid concerns over a 13.7% drop in passenger vehicle registrations and a 6.1% decline in commercial vehicle sales. The broader market also faced losses, with the BSE Sensex down 275 points.

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