US President Donald Trump and Chinese President Xi Jinping have reached a one-year trade agreement that includes the postponement of Chinese export controls on rare earths and a reduction in US tariffs on fentanyl-related products. The deal, announced after a summit in South Korea, aims to stabilize trade relations and includes discussions on semiconductors.

The Bank of Japan opted to maintain its benchmark interest rate at its latest meeting, a move widely anticipated by economists. Despite two board members, Naoki Tamura and Hajime Takata, dissenting for a second straight session, the central bank signaled a cautious approach to policy normalization. The yen weakened as much as 0.3% against the dollar, dropping to 153.14.

Global bond markets have rebounded in October, with UK, German and Japanese yields experiencing significant drops amid easing concerns about inflation and government borrowing. UK gilts have led the rally, with 10- and 30-year yields falling about 30 basis points. However, analysts remain cautious because high debt levels and potential political instability in France and the UK could pose risks.

Standard Chartered reported a 3% increase in third-quarter pretax profit, reaching $1.77 billion compared to $1.72 billion the previous year. The result surpassed analyst estimates, driven by strong performance in wealth management, global banking, and markets businesses.

Federal Reserve Chair Jerome Powell has highlighted divisions within the Federal Open Market Committee regarding further interest-rate cuts, emphasizing that another cut in December is not a certainty. Powell noted robust consumer spending alongside a significant slowdown in hiring, complicating the economic outlook. The Fed cut rates by a quarter-point this week but the decision saw split dissents for the first time since 2019, reflecting differing views on the need for further easing.

The US and South Korea have reached terms on a trade agreement that includes $350 billion in South Korean investments in the US and a reduction in US tariffs on South Korean goods from 25% to 15%. The deal, announced after a meeting between President Donald Trump and South Korean President Lee Jae Myung, also involves significant energy purchases by South Korea and cooperation in shipbuilding.

Treasury yields surged after Federal Reserve Chair Jerome Powell said a December rate cut was not to be counted on despite a reduction in the benchmark rate to 3.75% to 4%. Powell's comments led traders to revise expectations for future rate cuts, causing a significant sell-off in the bond market. The Fed also announced the end of its balance sheet reduction program, further influencing market dynamics.

Axis Mutual Fund predicts an end to India's earnings downgrades, citing catalysts such as faster loan growth and GST cuts that could boost key sectors. Foreign investors are also regaining confidence, potentially lifting sectors such as financials and utilities.

Basel III to raise large bank capital requirements The Basel Committee on Banking Supervision's latest monitoring report reveals that the final Basel III reforms are expected to increase capital requirements for large banks by 2.1% by the end of 2024. The primary driver is the output floor, which is estimated to raise requirements by 3.6%. Smaller banks will see a 1.3% increase in capital requirements, down from previous estimates.

The Federal Reserve announced it will end its balance sheet runoff on December 1, shifting from reducing its Treasury holdings to maintaining their current level by rolling over maturing securities. This marks an earlier-than-expected conclusion to quantitative tightening, as the Fed has observed signs of tightening liquidity and declining reserve levels in money markets.

Join us in Brussels on 12 November 2025 to celebrate 20 years of AFME's European Government Bond Conference. Bringing together 120+ professionals, this flagship event offers expert-led panels, keynotes, and roundtables focused on the latest developments impacting European Government Bond markets and Debt Management Offices. Designed with input from AFME members, the programme explores key market trends, regulatory updates, and evolving policy priorities. Held at the Radisson Collection Hotel, the conference provides valuable insights, CPD hours, and excellent networking opportunities for senior stakeholders across the European public debt and capital markets landscape.