Major headlines from global financial media overnight and this morning include: 1. Fed expected to hold rates steady, but Warsh may signal direction for more hikes. 2. Bolsonaro's whereabouts unknown after Brazil election defeat, reportedly flying to the US. 3. Oracle expands OpenAI partnership, integrating ChatGPT and Codex into its applications. 4. Boeing cuts full-year delivery targets, shares post biggest drop in 18 months. 5. AI financing anxiety may be near its peak as billionaire Novogratz expects credit markets to stabilize. 6. US Energy Secretary Wright says the Trump administration may allow more Russian diesel into the market.
Fed Expected to Hold Rates Steady, but Warsh May Signal Direction for More Hikes
As Federal Reserve officials enter this week's policy meeting, they are debating a key question: what the Fed can do, should do, and will do about inflation that shows no immediate signs of abating. When the rate-setting Federal Open Market Committee announces its decision on Wednesday, markets widely expect the benchmark rate to remain unchanged after a 25 basis point hike in September. However, investors will closely watch policymakers, especially Chair Kevin Warsh, for clues about future moves. Deutsche Bank senior US economist Brett Ryan said he will be looking for signals from Warsh about future policy actions, though the Fed chair has said he is very reluctant to do so as he seeks to move the Fed away from the forward guidance approach adopted by most central banks for much of the 21st century.
Bolsonaro's Whereabouts Unknown After Brazil Election Defeat, Reportedly Flying to the US
Brazilian media outlet Folha de S.Paulo, citing sources allied with Flavio Bolsonaro, reported that Bolsonaro has fled Brazil after losing the presidential election and being ordered to surrender his passport. Bolsonaro currently faces multiple criminal investigations. According to reports, Bolsonaro is en route to the United States, potentially landing in Dallas or Miami, and the Trump administration is aware of the plans. A police source familiar with the situation said Bolsonaro did not comply with the Supreme Court's order to surrender his passport within 24 hours, and Brazil's Federal Police have canceled his passport.
Oracle Expands OpenAI Partnership, Integrating ChatGPT and Codex into Applications
Oracle announced on Tuesday an expansion of its partnership with OpenAI, bringing the AI lab's ChatGPT and Codex into the software maker's applications to make databases more actionable. Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, said at Oracle AI World in Las Vegas that using ChatGPT allows anyone to build applications, deploy applications, and manage applications. OpenAI CEO Sam Altman will take the stage at 12:40 PM ET on Tuesday alongside Oracle co-CEO Clay Magouyrk for the Oracle AI World keynote. For OpenAI, the announcement is another example of the frontier lab venturing into the enterprise market, just one day after its main rival Anthropic filed an S-1 in its path toward an initial public offering.
Boeing Cuts Full-Year Delivery Targets, Shares Post Biggest Drop in 18 Months
Boeing lowered its full-year aircraft delivery targets, saying it will take more time to ramp production to higher and sustainable levels, sending shares tumbling by the most in 18 months. Executives said on an analyst call Tuesday that Boeing will be unable to meet its goal of producing 500 737 aircraft for the year, with 787 Dreamliner deliveries expected to be close to 90, at the low end of the previous guidance range. Boeing shares fell 10%, the biggest drop since April 2025. After Boeing reported third-quarter results that fell short of investor expectations, CEO Kelly Ortberg said on the call, "I have said before that our progress is not always perfectly linear, but we continue to improve and I believe we are on the right path."
AI Financing Anxiety May Be Near Its Peak as Billionaire Novogratz Expects Credit Markets to Stabilize
Michael Novogratz, billionaire founder and CEO of Galaxy Digital Inc., a crypto financial services and AI data center operator, said global credit market anxiety over AI spending may be approaching a turning point. After Galaxy reported third-quarter results, Novogratz said on a call Tuesday, "The credit market is experiencing some indigestion right now. Market nervousness may be near its peak. There is no easy path out of the woods, but I think time will gradually improve the situation." Earlier, a co-founder of CoreWeave Inc. said the AI cloud computing provider is exploring ways to raise funds through the investment-grade bond market. Since then, the company's junk bond yields have recently surged to levels that typically signal financial distress, triggering broader concerns about how AI companies will continue to secure financing. CoreWeave is the primary tenant at Galaxy's Helios facility in Texas.
US Energy Secretary Wright: Trump Administration May Allow More Russian Diesel into the Market
US Energy Secretary Chris Wright said in an interview Tuesday that the United States may allow more Russian diesel into global markets depending on Moscow's behavior. Wright described the Trump administration's suspension earlier this month of US sanctions on Russian diesel exports as an incentive to encourage Moscow to end the war in Ukraine. He said this would marginally help fuel supply. Wright said it is highly likely that more tankers carrying Russian diesel will set sail under US sanctions exemptions. "This is putting a carrot in front of Russia," the energy secretary said.
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