Wealthion Macro Bites 12/9/25

China Watch:  China’s 24-man Politburo (top decision-making body) pledged Monday to implement more proactive fiscal policy and adopt a “moderately loose” monetary policy in 2026 (first introduction of such language since the GFC in ’08).  The Politburo also vowed to be more active in responding to economic downturns, to boost domestic demand and to stabilize the housing market.  Separately, the Telegraph reports that as of end-Nov., the two private agencies releasing home sales data in China (China Rela Estate Information and China Index Academy) have been instructed by Beijing to halt releases until further notice.

The EU has delayed until Dec. 16 its regulatory proposals for the auto sector which are expected to postpone the (March ’23) ban on CO2 emitting cars from 2035 to at least 2040.  The delay follows significant pressure by Germany, Italy, Bulgaria, Czech Rep., Hungary, Poland and Slovakia to allow continued sales of plug-in hybrids and combustion engine cars that run “CO2-neutral” fuels such as those made form crops or waste.  Additionally, the new proposal widens the list of products subject to the EU’s Carbon Border Adjustment Mechanism to include tariffs on washing machines and other manufacturing products. 

The U.S. military announced plans to develop a fleet of small-scale refineries to produce critical minerals used to make bullets, armor and other types of weaponry.  The plans are being developed by the U.S. Army in conjunction with the Idaho National Laboratory and antimony and gold miner Perpetua Resources with antimony being the first mineral the military aims to refine. 

Ahead of the Fed’s expected Wednesday rate cut, U.S. corporate borrowing costs ticked higher to open the week, with the average junk bond yield rising 11bps on Monday to 6.69% (highest in a month).  10-year Treasury yield has increased 15bps so far in Dec. (4.165%).

One of President Trump’s recently brokered ceasefires appears to be fraying as fighting between Cambodia and Thailand escalated along their contested border on Tuesday.

Spot gold +0.3% and spot silver +0.9%.