Key Takeaways
- President Trump indicated that a 100% tariff on China is "not sustainable", suggesting a potential easing of trade tensions ahead of an anticipated meeting with Chinese counterparts.
- White House Economic Adviser Kevin Hassett expressed confidence in sustained 4% U.S. economic growth and signaled that expected Federal Reserve rate cuts are just the beginning.
- State Street (STT) outperformed Q3 2025 earnings estimates, reporting adjusted EPS of $2.78 on $3.55 billion in revenue, driven by strong fee revenue growth.
- The UK's Competition and Markets Authority (CMA) is set to release Google (GOOGL) from its Privacy Sandbox commitments, a move that could reshape the digital advertising landscape.
- Abu Dhabi conglomerate IHC announced a massive expansion plan, committing to spend $36 billion every 18 months.
President Donald Trump has signaled a potential shift in his administration's approach to China tariffs, stating that a 100% tariff is "not sustainable" and that he believes relations with China "will be fine." These comments come as both nations prepare for a meeting in the coming weeks to address trade relations, which Trump emphasized must result in a "fair deal." White House Economic Adviser Kevin Hassett echoed a nuanced view, acknowledging China's "little bit of leverage" but asserting that further retaliatory actions, such as on rare earths, would ultimately hurt China more. Hassett also expressed confidence that the U.S. and China can "get back to a place that is good for both countries."
On the domestic front, Hassett offered an optimistic outlook for the U.S. economy, stating there is "no reason 4% [growth] can't continue." He also commented on monetary policy, suggesting that the Federal Reserve's "expected three rate cuts are a start," indicating a potential for further easing. Hassett affirmed the independence of the Federal Reserve, a stance he has consistently held. He also assured that "banks have ample reserves" and expressed optimism about staying "ahead of the curve" in credit markets. Hassett warned that if a government shutdown continues past the weekend, President Trump could "ramp up actions."
In corporate news, State Street Corporation (STT) reported strong third-quarter 2025 earnings, surpassing analyst expectations. The financial services giant posted an adjusted EPS of $2.78, exceeding estimates of $2.66, on revenues of $3.55 billion, which also beat the $3.47 billion estimate. While net interest income came in slightly below estimates at $715 million, the company's assets under management (AUM) reached $5.41 trillion. State Street also reported a credit loss provision of $9 million and a return on equity (ROE) of 13.4%.
Meanwhile, the UK's Competition and Markets Authority (CMA) is moving to release Google (GOOGL) from commitments related to its Privacy Sandbox initiative. This development follows Google's decision in April 2025 to abandon plans to prompt users to block third-party cookies from Chrome, a move that the CMA believes negates the need for its previous oversight. The CMA had initially imposed these commitments to ensure that Google's Privacy Sandbox would not unfairly favor its own advertising services.
In global investment news, Abu Dhabi conglomerate IHC is embarking on an aggressive expansion, planning to invest $36 billion every 18 months. This significant capital deployment underscores the company's growth ambitions.
From the European Central Bank (ECB), Governing Council member Olaf Sleijpen commented that "policy is in a good place" and that the economy "has been more resilient than thought." However, Sleijpen cautioned about "a lot of risks & uncertainty out there" and noted that a "good place" for policy "doesn’t mean it will stay put," indicating potential for future adjustments.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.