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Today’s agenda: FTC targets Microsoft; Argentina cools on climate; Chinese car surge in Russia; activist short selling; and UK universities in deficit
Good morning. We begin in the US where companies are rushing to raise funds by tapping the bond market.
Who’s buying: Groups including heavy-machinery maker Caterpillar, biopharma company Gilead Sciences and investment bank Goldman Sachs have raised more than $50bn this week, according to LSEG data, a surge in activity not seen since September, when companies typically return to the market after a summer lull.
Why the rush: Corporate borrowers are taking advantage of “eye-poppingly” buoyant conditions after Donald Trump’s election victory last week. Credit and equity markets have rallied since Trump’s win, pushing corporate borrowing costs relative to US Treasuries to their lowest level in decades, as investors bet that tax cuts will boost profits.
US investment-grade bond spreads — the premium highly rated companies pay to borrow relative to the government — were at 0.8 percentage points late yesterday, close to their lowest level since 1998.
Banks, which typically move fastest to take advantage of tighter spreads, have featured heavily in this week’s borrowing spree. Read the full report.
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More Trump appointments: Trump has nominated vocal vaccine sceptic Robert F Kennedy Jr to run the US health department
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Rubber-stamp government: The president-elect’s controversial picks meet his goal: to pre-empt resistance and surround himself with people who will execute his radical agenda.
Sign up for our White House Watch newsletter for more updates from Washington as it braces itself for Trump’s second term.
Here’s what else we’re keeping tabs on today and over the weekend:
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Economic data: The EU publishes its autumn economic forecast. France has inflation data while the UK has flash third-quarter gross domestic product and productivity estimates.
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African votes: Gabon holds a referendum tomorrow on a new constitution that could see an end to military rule, while Senegal holds parliamentary elections on Sunday.
How well did you keep up with the news this week? Take our quiz.
Five more top stories
1. The Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft’s cloud computing business, as the US regulator continues to pursue Big Tech in the final weeks of Joe Biden’s presidency. Read more on the allegations prompting the probe.
2. Argentina said yesterday it would “re-evaluate” its role in global climate talks after walking out of the COP29 summit, fuelling concerns that the South American country could become the first to follow Donald Trump’s threatened exit from the landmark Paris accord.
3. Exclusive: The founder of Grubhub said he twice attempted to buy back the food delivery business from Just Eat Takeaway for more than $1bn, making the revelation days after the Dutch group announced a deal to sell its US subsidiary at a huge loss for just $650mn.
4. Sales of Chinese cars in Russia have hit fresh records in the wake of sanctions that forced western automakers to cut ties with Moscow. The surge, which has made Russia the largest export destination for Chinese automakers, comes at a time when Beijing faces higher US and EU tariffs on electric vehicle exports.
5. Chancellor Rachel Reeves and Bank of England governor Andrew Bailey have joined forces to call for Britain to rebuild ties with the EU, amid fears of a possible transatlantic trade war with US president-elect Donald Trump. The highly unusual joint intervention comes as Prime Minister Sir Keir Starmer prepares to negotiate improved UK trade terms with the bloc next year.
You can still sign up to the FT Sessions at COP29 that run until tomorrow. Register for free: ftcop.live.ft.com.
The Big Read
Activist short sellers that target corporate malfeasance as well as the hedge funds that quietly fund their trades are coming under increasing regulatory scrutiny.
We’re also reading . . .
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Trade troubles: As Donald Trump prepares to return to the White House, Soumaya Keynes writes a short guide on how to dodge a tariff.
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Klarna: Meet Seb Siemiatkowski, the Swedish entrepreneur seeking to list the “buy now, pay later” fintech in New York.
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VAT on school fees: Ministers argue levies will raise £1.5bn for investment in state schools. But they face a backlash from both parents and private schools.
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Ukraine deal: Donald Trump can demand concessions. If they are cleverly crafted, they won’t be impossible for Vladimir Putin to give, writes Rose Gottemoeller, former Nato deputy secretary-general.
Chart of the day
The financial outlook for England’s higher education sector has deteriorated since the start of the year. A report from the sector regulator has found that almost three-quarters of such institutions are forecast to be in deficit in the academic year starting September 2025.
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Take a break from the news
How does one spend winter in New York? Eric Ripert, chef-patron of the three-star Le Bernardin, likes to keep it local on the Upper East Side, with sorties into SoHo and Nolita. Here are his favourite places to dine this season.
