Macro Report

December 12 2025
 
FutureGate | Broadcom delivered a strong update, guiding for Q1 AI chip revenue to double, reinforcing its position as a key beneficiary of accelerating data-centre demand. Oracle’s weakness was viewed as company-specific rather than a reflection of broader enterprise spending. Risk appetite improved across equities, with the Russell 2000 gaining 1.21% and biotech strengthening as the XBI continued its breakout. The Federal Reserve moved earlier than expected to begin $40 billion per month in T-bill purchases, aiming to ease funding pressures. Chair Jerome Powell noted that inflation is already running in the “low twos” once tariff effects are stripped out and said the “balance of risks has shifted” toward labour-market stability, framing the recent rate cut as an employment-support measure. President Trump criticised the decision, arguing the cut should have been “double.”

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Strategists turned more constructive on the outlook for 2026, with Tom Lee expecting Fed easing to support a 10% rise in equities next year and Bank of America projecting a “proud bull” market. Biotech dealmaking accelerated, marking the strongest M&A wave in a decade. China reported standout BCMA/CD19 CAR-T results, with a 100% overall response rate and 97% stringent complete response in newly diagnosed myeloma, underscoring rapid progress in Asian cell-therapy innovation. Meanwhile, Jeff Bezos and Elon Musk opened a new competitive front with plans for space-based AI data centres designed to bypass Earth-bound energy and cooling limits.

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Regulatory shifts also gained attention as the Trump administration proposed requiring travellers from 42 visa-exempt nations to provide five years of social-media history. Across Asia, six in ten wealthy investors plan to increase crypto allocations amid improving liquidity. Vanguard expects Australia to outperform U.S. and global equities over the coming decade, supported by sector resilience, while softer local employment data eased pressure for additional RBA rate hikes. Elon Musk confirmed that reports of a 2026 SpaceX IPO are accurate, adding momentum to investor interest in the private-space sector.