Economy

Fed vs. inflation
Fed cuts 25 basis points as expected – signals cut next year

The Fed cuts the key interest rate by 25 basis points to a range of 3.50-3.75 percent, as expected. Two members voted for an unchanged interest rate while Stephen Miran, who was recently elected Fed governor by Donald Trump, voted for a double cut.

The central bank's interest rate path points to another cut in 2026. According to a Bloomberg survey of economists, expectations were for two cuts next year.

CNBC writes that the Fed also sees a rate cut in 2027. This means that the outlook for the interest rate path has not changed since the September meeting.

Xi Jinping's China
Chinese companies cover up gloomy housing data

Two private Chinese companies that collect home sales data from China's largest property developers are withholding their figures after instructions from Beijing, The Telegraph reports.

The companies' figures often come well ahead of official statistics to give investors an insight into China's property crisis. Interest was particularly high in November after the crisis-stricken property company China Vanke revealed problems repaying a heavy debt that falls due in December.

But the data was never published and China's property market is suddenly in the dark. According to the newspaper, Beijing has instructed the players to withhold the figures until further notice.

According to the newspaper, clients who paid for the reports could receive them, provided they keep them confidential

Trump's tariff policy
Sources: US-Indonesia customs agreement at risk of collapse

Indonesia's customs agreement with the US may be on the verge of dissolution, after the country, according to US government officials, has begun to "backtrack" on several commitments made in the agreement. This is reported by the Financial Times.

These are points in the agreement where Indonesia, according to reports, does not fully agree with certain binding commitments. The country wants to reformulate these points in a way that the Trump administration believes would create a worse deal for the US than other agreements with neighboring countries Malaysia and Cambodia.

- This is extremely problematic and is not well received by the US. Indonesia could risk losing its agreement, says a person with insight into the matter.

Climate Threat Global Challenges
Volvo Cars Urges EU to Maintain Emissions Target

Leaders from across Europe’s electric car industry are urging the European Commission to stick to the zero-emissions target for new cars by 2035, Reuters reports.

In an open letter, E-Mobility Europe, with 200 signatories including Volvo Cars and Polestar, urges Commission President Ursula von der Leyen to maintain the targets.

“We are deeply concerned by the latest attempts to water down your targets. Every delay in Europe only widens the gap with China,” the letter says.

The EU’s package of measures for the automotive industry has been the subject of intense lobbying. It was due to be presented today, but has been postponed until December 16.

In 2023, the EU hammered out a plan that all new cars sold from 2035 onwards must have zero carbon emissions.