Good morning ☕ Sunday, December 7, 2025
What’s new across global news, markets, and tech.
🌍 NEWS & GLOBAL
• Tensions rise as jets rattle East Asia skies In a serious air-security incident, jets from China reportedly “illuminated” radar beams at Japanese military aircraft near the Okinawa islands — an act that Tokyo called “dangerous,” heightening fears over regional stability. (Reuters) Japan has formally protested, while China denied wrongdoing, intensifying tension between the two regional powers. (Reuters)
• Japan’s economy shrinks — a concerning retrenchment New data shows Japan’s GDP contracted at an annualised rate of 2.3% in Q3 — worse than the prior estimate of a 1.8% drop. (Reuters) The weakness was driven by disappointing capital spending. Most economists think this contraction is temporary, but the slump adds pressure as the Bank of Japan (BOJ) weighs upcoming rate moves. (Reuters)
• Clean-energy funding stays firm in India despite earlier jitters After reports suggested a halt in new solar-module financing, India’s clean-energy ministry clarified on Sunday that there is no advisory to suspend funding — signaling continued support for the green-energy transition. (Reuters) Still, the ministry acknowledged oversupply risks and urged lenders to proceed “calibrated and well-informed.” (Reuters)
• Peace talk hopes for Ukraine — but Moscow demands more changes A U.S. envoy said a peace deal for Ukraine is “really close,” yet the Kremlin pushed back, saying any agreement would need “radical changes.” The diplomatic deadlock leaves the war’s outcome uncertain for now. (Reuters)
💹 FINANCE & MARKETS
• Markets brace for the big week — all eyes on Federal Reserve With the Fed meeting just days away, global markets are on edge. Investors are betting on at least one rate cut this week, which has buoyed Middle Eastern and gulf-region markets. (Reuters) That said, some caution remains: money markets are now pricing in fewer rate cuts by end-2026 than they were just a week ago. (Bloomberg)
• Big real-estate deal yields ripple across ASX 200 In a surprise move, Australia’s National Storage REIT agreed to a US$2.65 billion takeover by a consortium backed by Brookfield Asset Management and Singapore’s GIC. That pushed NSR shares to record highs — among the top movers on Australia’s ASX 200 index. (Reuters) The deal underlines continued interest from global investors in real-asset plays, even as macro uncertainty looms. (Reuters)
• European CEOs lean toward U.S. over Europe — a trust signal matters A new survey of major European companies found that many CEOs remain skeptical about Europe’s economic prospects. Instead, a growing number are favouring investment in the U.S. over their home markets. (Reuters) That shift reflects lingering doubts about growth in the euro-zone, even as some member states — like France — are now expecting better-than-forecast growth this year. (Reuters)
🧑💻 TECHNOLOGY & TECH TRENDS
• Big data meets AI: IBM to acquire Confluent in $11B deal In a major move signaling seriousness about enterprise AI adoption, IBM announced it will acquire Confluent to build an end-to-end smart data platform that powers AI agents and applications. (IBM Newsroom) The acquisition is expected to boost IBM’s adjusted EBITDA in the first full year — showing confidence that customers are ready to commit to AI-powered infrastructure. (IBM Newsroom)
• As AI draws capital — caution flags are flashing Analysts and funds are increasingly cautious of overvaluation across AI-related firms. With massive capital flooding into AI infrastructure, some warn the momentum may not hold if earnings don’t follow. (Reuters) That said, global inflows into U.S. and Asia-Pacific equities remain strong — driven by expectations around continued growth in AI and tech adoption. (Reuters)
🔭 WHAT TO WATCH
The Fed’s interest-rate decision mid-week — how dovish or hawkish they sound could set the tone for markets for months.
Ongoing developments in East Asia after the radar-locking incident: any further military or diplomatic escalation between China and Japan.
Whether the AI-infrastructure boom delivers real earnings, or cracks under inflated valuations and rising borrowing costs.
How the Japan contraction and Europe’s economic uncertainty influence global capital flows — especially as investors rotate between regions and asset classes.