As global markets continue to respond to economic signals and shifting political winds, several key developments are shaping the week’s outlook:

Capitol Hill Eyes SALT Breakthrough
House Republicans are moving closer to a deal on lifting the cap on State and Local Tax (SALT) deductions, according to Speaker Mike Johnson. The controversial issue, long a sticking point for blue-state lawmakers, appears to be inching toward resolution as bipartisan negotiations gain momentum.

Fed’s Goolsbee Flags “Noisy” Data, Tariff Concerns
Federal Reserve Governor Austan Goolsbee acknowledged that incoming data remains murky, making it difficult to gauge the economic impact of recent tariffs. The Fed remains in a wait-and-see mode, with inflation and trade policy under close scrutiny.

EU Tightens Screws on Russia
The European Union has approved its 17th round of sanctions on Russia, underscoring its long-term commitment to economic pressure amid the ongoing war in Ukraine.

NATO Revisits Defense Spending Targets Amid Trump Pressure
NATO is drafting plans to meet former President Trump’s call for member states to spend 5% of GDP on defense—a significant increase from the current 2% target—highlighting persistent U.S. pressure on allies to shoulder more of the alliance’s financial burden.

BoE’s Mann Cites Market Conditions in Rate-Cut Hesitancy
Bank of England policymaker Catherine Mann said recent market movements deterred her from backing further interest rate cuts, suggesting the central bank is approaching monetary policy with caution.

Japan Skips High-Profile APEC Meeting
Notably, key Japanese trade officials chose not to meet with U.S. Trade Representative Sarah Greer at the APEC summit, raising eyebrows as Tokyo pursues domestic goals, including a targeted 1% real wage increase over the next five years.

Energy & Industry Highlights
U.S. crude stockpiles rose by 4.3 million barrels last week, according to API data, just as OPEC prepares to release its monthly market report. Meanwhile, Tesla plans to resume shipments of Chinese parts to the U.S. for its upcoming Cybercab and Semi models—highlighting the EV giant’s global supply chain juggling act.

Corporate Shake-Ups & Strategic Moves
GSK is making a $2 billion bet on liver disease treatments, acquiring assets from Boston Pharmaceuticals. On the flip side, British fashion house Burberry will cut up to 1,700 jobs in a cost-reduction effort. Taiwanese tech giant Foxconn saw profits soar on AI demand but issued a cautious outlook for 2025.

Security & Geopolitics in Focus
The U.S. issued a global warning against using Huawei-made chips, citing national security concerns. Meanwhile, diplomatic sources confirm that Iran and European powers will resume nuclear talks this Friday—another flashpoint in the complex Middle East puzzle.

As these developments unfold, investors, policymakers, and observers worldwide are navigating a dynamic and volatile mix of economic signals and geopolitical maneuvers. Stay tuned for more updates as the week progresses.