International News 12 December 2025
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Fed Cuts Rates but Signals a Pause Ahead
The U.S. Federal Reserve delivered a 0.25% rate cut on Wednesday (Dec 10, 2025), though the decision was not unanimous and policymakers warned that further easing will likely be paused. Fresh projections show officials expect only one 25 bps cut in 2026, unchanged from September’s outlook, with inflation projected to ease to 2.4% next year. Despite stronger-than-trend GDP growth of 2.3% and unemployment holding at 4.4%, the Fed emphasized it will assess incoming data carefully before adjusting policy again—signaling a wait-and-see stance as inflation remains sticky. Markets, however, still price in two rate cuts next year. Chair Jerome Powell noted that after 75 bps of easing since September, the federal funds rate is now within its estimated neutral range, giving policymakers room to monitor how the economy responds. The decision generated three dissents: two regional Fed presidents favored no rate cut, while Governor Stephen Miran argued for a larger 50 bps reduction. Following the announcement, U.S. stocks rose, the dollar weakened, and Treasury yields dipped. Looking ahead, how policy evolves will depend heavily on upcoming labor and inflation data—still distorted by the 43-day federal government shutdown earlier this year. Projections for 2026 remain relatively upbeat, but officials crafted them without the latest job and inflation readings, which will be released next week.
Musk Hints at a 2026 SpaceX IPO, Potentially One of the Largest Ever
Elon Musk has signaled that SpaceX may pursue an IPO, responding to a post from Ars Technica aerospace reporter Eric Berger by saying, “As usual, Eric is accurate.” The exchange came after Berger shared his article outlining why he believes SpaceX is preparing to go public. Reports from Reuters and other outlets earlier this week indicated that the rocket maker is targeting 2026 for the listing. According to those reports, SpaceX aims to raise over US$ 25 billion through the IPO, a move that could push its valuation above US$ 1 trillion, making it the second-largest IPO in history, behind Saudi Aramco’s US$ 1.7 trillion listing in 2019. The California-based company is currently the second most valuable private startup in the world, trailing only OpenAI. Discussions with banks have reportedly begun, with a potential launch window around June or July next year.
SoftBank Drag Sends Nikkei Lower Despite Strong Opening
Japan’s Nikkei index reversed early gains and slipped 0.1% to 50,554.10 on Thursday, after a sharp decline in SoftBank Group weighed on broader sentiment. SoftBank tumbled 5.17%, tracking an over 11% drop in Oracle during after-hours U.S. trading, as the tech giant’s revenue and profit forecasts missed Wall Street expectations. Investors grew concerned this could undermine progress on the companies’ joint U.S. AI data center initiative, part of the ambitious Stargate project. The broader Topix index also fell 0.17% to 3,383.12, reflecting the tech-led pullback. Other Japanese tech shares followed the downward trend, with Tokyo Electron down 0.75%, Shin-Etsu Chemical falling 1.83%, and Fanuc dropping 1.48%. Meanwhile, financials moved higher, with Mizuho Financial Group up 0.53% and Sumitomo Mitsui Financial Group rising 0.62%. Despite Wall Street’s overnight gains following a Fed rate cut, growth stocks in Tokyo slipped 0.32%, while value stocks were flat. Notable outliers included Advantest, which jumped 4.49%, and Toppan Holdings, the top Nikkei gainer with a 5.3% surge. Of the 1,600+ stocks on the TSE’s main board, 25% advanced, 70% declined, and 4% were unchanged.