☕️ US and China extend trade truce to January

Hi there, this is your daily ☕️ Finpresso.

In today's newsletter:

🤝 US and China extend trade truce to January

☁️ Microsoft commits $10B to Gulf AI buildout

💵 US weighs global push for dollar stablecoins

📈 NYSE partners with Blockchain.com on tokenized stocks

🇨🇳 China targets Broadcom switches in state data centers

Plus: 🌍 9 macro news, 🏢 9 corporate news, and 📑 6 research & reports.

📊 Before The Bell

• The U.S. and China have extended their trade truce to January 10, keeping tariffs lower and rare-earth exports flowing, Treasury Secretary Scott Bessent said, as President Xi Jinping arrived in Washington for a state visit through Friday.
• The one-year truce struck by Trump and Xi in South Korea last October was set to expire in November, and Bessent said Beijing still needs to fulfill more deliverables under the arrangement.
• The extension falls short of expectations ahead of the summit, where many had anticipated the truce would be prolonged by six months or longer, while the two sides also discussed setting up an alert system for artificial intelligence incidents.

• Microsoft will invest more than $10 billion in cloud and AI infrastructure across Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates through 2030, covering both capital and operating costs as it expands in the region.
• On top of the headline figure, the company plans over $400 million on subsea and land connectivity in the Middle East by 2030, adding to a fiber network of more than 275,000 miles and stakes in cables serving Gulf states.
• Microsoft is deepening ties with national AI bodies including Saudi Arabia's HUMAIN, Abu Dhabi's G42, and Qatar's QAI, though the HUMAIN and QAI arrangements carry no capital commitments, unlike the $1.5 billion it put into G42 in 2024.

• The Trump administration is weighing a plan to promote dollar-backed stablecoins abroad, using government-private joint ventures involving the Treasury, State Department and the DFC, to reinforce the dollar's role as the world's main reserve currency.
• Because these tokens hold US Treasurys as reserves under last year's GENIUS Act, wider foreign use could lift demand for US government debt, an outcome officials have said could generate trillions of dollars in new appetite for Treasurys.
• The push tracks rival efforts, as China's State Council reviews a yuan stablecoin roadmap and the European Central Bank prepares a 12-month digital euro pilot for late 2027, while the Senate's failure to advance the CLARITY Act last week stalled the broader crypto agenda.

• The New York Stock Exchange's parent has struck a preliminary deal with crypto exchange Blockchain.com to offer tokenized U.S. stocks and ETFs on the NYSE's planned round-the-clock digital trading venue, pending regulatory approval.
• The arrangement channels Blockchain.com's more than 44 million confirmed accounts across over 70 jurisdictions toward the NYSE, whose venue, first announced in January, promises 24/7 trading and instant settlement of blockchain tokens representing listed shares.
• The pact follows the SEC's "innovation exemption" last week, which lets qualifying platforms trade tokenized U.S. stocks without registering as exchanges, as Blockchain.com, which filed confidentially for a U.S. IPO in May, competes with rivals including Coinbase; no launch date or financial terms were disclosed.

• China's state-asset regulator has surveyed how deeply Broadcom's networking switches are embedded in state-run data centers, and could issue informal guidance to cut back, extending Beijing's push to swap out American AI hardware for domestic gear.
• The survey found Broadcom switches installed in as much as 90% of state-owned companies, making it the last major US supplier in China's state AI build-out after Nvidia was already barred, though private operators like ByteDance and Alibaba are exempt.
• China including Hong Kong was 17% of Broadcom's FY2025 revenue, about $10.9bn of $63.9bn, and the stock rose about 0.5% on the news, signaling limited near-term damage even as a multibillion-dollar switching market gets reserved for domestic rivals.

🌍 Macro News

• Traders price a 73% chance of an October Fed hike after Barr backs tightening. LINK
• Oil industry warns a diesel export ban would raise fuel prices. LINK
• UK banks complete first tokenized deposit transfers, advancing blockchain settlement beyond testing. LINK
• Senate Democrats urge bills tightening China sales of advanced AI chips. LINK
• Oil falls as traders weigh Asia's expected record crude imports and tensions. LINK
• Swiss central bank holds rates at zero, diverging from major peers. LINK
• US stocks fall as Treasury yields hit their highest since 2007. LINK
• Dollar reaches a two-month high, potentially pressuring Indian stocks. LINK
• Former SEC chair says crypto lawsuits were dropped to preserve agency credibility. LINK

🏢 Corporate News

• Amazon falls after report of a $3 billion India delivery expansion. LINK
• Disney raises prices for its ad-free Disney+ and Hulu bundle. LINK
• Meta plans up to $145 billion in capital spending in 2026. LINK
• NSE debuts after raising $2.35 billion in India's second-largest IPO. LINK
• Tekever valued at $6.4 billion after a $580 million funding round. LINK
• Royal Caribbean reportedly discusses a $3 billion deal for half of Sandals. LINK
• McDonald's announces an $8.5 billion franchisee plan through 2036 to boost sales. LINK
• Grab executives buy over $30 million in shares after the stock slump. LINK
• MoonPay buys North Capital to expand tokenization with securities infrastructure. LINK

📈 Stocks

📑 Research & Reports

• A free guide to gold and retirement: lays out one economist's case for gold reaching $10,000 and what it would mean for a retirement portfolio. Read the free guide
• Bank-style protections lift US consumer stablecoin interest from 36% to 56%. LINK
• Survey finds institutions maintained crypto allocations despite bitcoin's 50% decline. LINK
• Crypto activity held near $9.4 trillion despite market value plunging 50%. LINK
• PitchBook values Kalshi at $30.4 billion in its base case, up to $42.1 billion. LINK
• AI bills rise as agents drive heavier computing despite falling model costs. LINK
• HSBC raises STOXX 600 year-end target, citing stronger profits and an improving economy. LINK

📅 Market Calendar

💬 How did you find today's edition?

We read every reply — just reply to this email and let us know how we can improve!