Wealthion Macro Bites 11/6/25

Japanese Prime Minister Sanae Takaichi told a parliamentary session that the U.S. and Japan are jointly studying rare earth mining in the waters around Minamitori Island in the Pacific.  Prior surveys have confirmed the presence of rich rare earth mud (including dysprosium, neodymium, gadolinium and terbium) at depths up to 6,000 metres.  Japan plans to test the feasibility of raising the rare earth muds in January.

Cambodia is set to be the first country to take China up on its offer to serve as custodian of other countries’ gold, as it seeks to develop a global financial system less dependent on Western financial centers.  Cambodia (with 54t of reserves) will store new gold purchases in a vault registered with the Shanghai Gold Exchange in Shenzhen’s bonded zone.

Challenger, Gray & Christmas reports U.S. employers announced 153,074 job cuts in Oct. (highest Oct. since ’03), up 175% from Oct. ’24 (56k cuts) and 183% from Sept. ’25 (54k).  Challenger attributed the layoff surge to AI adoption, softening consumer and corporate spending, and cost-related hiring freezes.  Through Oct., job cuts totaled 1.1M, the highest since 2020 and up 65% y/y.

ADP reported October payroll growth of 42k (vs. 30k est. and Sept. -29k), well below the 12-month avg. 81,400 and 24-month avg. 105,200.

AI watch: Financial Times reports that Deutsche Bank executives are exploring different ways to hedge the bank’s burgeoning exposure to AI infrastructure and data centers including shorting a basket of AI-related stocks and purchase of derivatives through a transaction known as synthetic risk transfer (SRT).  Like the old CDO’s, what could go wrong here?

With almost two months left in the year, Bloomberg estimates the 2025 global bond sales have totaled $5.95 trillion, more than any prior full-year total.  Sales have been dominated by financial institutions and increased sovereign issuance to fund growing budget deficits.  So far, demand has continued to outpace net supply, with total investor returns for the year sitting at more than 7% (best year in five).

DXY dollar index -0.25%, spot gold +0.70% and spot silver +1.25%.

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