JPMorgan, HSBC Move Gold to U.S
U.S. Boosts Military Sales to India and Alibaba Shares Surge on Xi Meeting News
FINANCE
JPMorgan, HSBC Move Gold to U.S
Gold prices in New York have surged above London prices, driven by concerns that President Donald Trump may impose a blanket tax on European imports, including gold. This has led to a massive influx of gold into the U.S., with inventories doubling since Election Day to $106 billion, compared to $50 billion on Nov. 5, according to Bloomberg.
Major banks like JPMorgan and HSBC are moving bullion from London to New York, both to cover losses on short positions and to capitalize on arbitrage opportunities. With gold trading $20 higher per ounce in the U.S., institutions with access to both markets can sell in New York for higher profits.
The movement of gold reflects broader market disruptions as tariffs impact critical commodities. Copper prices have also surged in response to Trump's new tariffs on steel and aluminum, signaling further economic ripple effects.
ECONOMY
U.S. Boosts Military Sales to India
India and the U.S. will work to more than double bilateral trade to $500 billion by 2030, Indian Prime Minister Narendra Modi announced at a joint press conference with President Donald Trump. Modi emphasized a commitment to a mutually beneficial trade agreement, while Trump acknowledged India’s recent tariff reductions and pledged to address trade disparities.
Trump also announced increased U.S. military sales to India, including the future provision of F-35 fighter jets, as part of efforts to strengthen defense ties. Additionally, both nations will collaborate on artificial intelligence, semiconductors, and critical mineral supply chains.
The U.S. trade deficit with India, currently at $45.7 billion, may be offset through increased oil and gas exports. Trump’s proposed reciprocal tariffs on foreign nations, including India, remain under review. While economic cooperation is expanding, challenges remain, including India’s defense ties with Russia and ongoing immigration issues.
TECH
Alibaba Shares Surge on Xi Meeting News
Alibaba shares jumped over 6% on Friday following reports that Chinese President Xi Jinping is preparing to meet Jack Ma, the company’s co-founder. The stock, already up 40% in 2025, gained momentum after Alibaba announced it would supply AI technology for Apple’s iPhones in China.
Since taking power, Xi has tightened state control over private businesses, leading to a crackdown on the tech sector. This included the cancellation of Ant Group’s IPO in 2020, shortly after Ma criticized regulators. Ma has largely stayed out of the public eye since, but Bloomberg reports suggest he may meet with Xi and other entrepreneurs as early as next week.
The meeting could signal renewed government support for private enterprise, crucial as China faces economic struggles in real estate, consumer spending, and local debt. Meanwhile, Alibaba’s collaboration with Apple highlights its growing AI influence in China’s competitive tech landscape.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.