Key global financial headlines from overnight and this morning include:
1. US November ADP employment unexpectedly declines by 32,000, fueling labor market concerns 2. Treasury Secretary Bassett proposes Fed reform requiring regional presidents' residency 3. Apple loses top design executive to Meta in latest high-profile departure 4. Micron exits consumer storage business to focus on booming AI chip demand 5. Copper hits record high as withdrawal orders surge amid US tariff supply fears 6. Goldman trader: Stocks enter new year with bull-bear showdown
US November ADP employment unexpectedly declines by 32,000, fueling labor market concerns Private sector payrolls unexpectedly fell by 32,000 in November, marking the largest drop since early 2023 and intensifying concerns about accelerating labor market weakness. This marks the fourth decline in six months, contrasting with Bloomberg economists' median forecast of 100,000 growth. The weak ADP report arrives ahead of the Fed's final 2023 policy meeting, gaining unusual significance due to delayed government employment data.
Treasury Secretary Bassett proposes Fed reform requiring regional presidents' residency Treasury Secretary Bassett announced plans to require Federal Reserve regional bank presidents to reside in their districts for at least three years. Bassett has repeatedly criticized the Fed for overreach beyond its core monetary policy mandate, stating current leadership has "drifted from original design principles" by prioritizing external hires over local candidates. He confirmed three current regional presidents fail his residency criteria.
Apple loses top design executive to Meta in latest high-profile departure Meta Platforms has poached Apple's user interface design chief Alan Dye, signaling the social media giant's push into AI consumer devices. Dye, who led Apple's UI team since 2015, will be succeeded by longtime designer Stephen Lemay according to sources familiar with the transition.
Micron exits consumer storage business to focus on booming AI chip demand Micron Technology announced it will stop consumer storage sales to prioritize meeting explosive demand for AI chips. "The AI-driven data center boom requires reallocating supply to strategic clients in faster-growing segments," said business chief Sumit Sadana. The move highlights how AI infrastructure demand is creating shortages in core components like memory chips.
Copper hits record high as withdrawal orders surge amid US tariff supply fears Copper prices surged 3.4% to record highs above $11,500/ton after LME data showed Asian warehouse withdrawal spikes, compounding existing supply concerns about potential US tariffs. Chilean producer Antofagasta shares rose over 5% to all-time highs as traders warn global inventories may plunge if pre-tariff shipments accelerate.
Goldman trader: Stocks enter new year with bull-bear showdown Goldman Sachs macro trader Bobby Molavi likens equity markets to a boxing match where AI investments and potential stimulus (bulls) battle high valuations and credit stress (bears). Noting the "Magnificent Seven" tech firms may inject $600B in capex alongside potential tax cuts and stimulus checks, Molavi sees multiple tailwinds including QT reversal, $1.2T buyback authorizations, and retail participation supporting bullish momentum.
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