Goldman Sachs CEO Warns of US National Debt 'Reckoning'; US and China Reach Trade Deal
Key Takeaways
- US and China reach trade deal; China to buy US farm goods, cooperate on fentanyl.
- Goldman Sachs CEO warns US national debt at $38T needs faster economic growth.
- Federal Reserve to expand balance sheet in early 2026, potentially buying $35 billion monthly.
- WPP shares plummet 13% after lowering full-year growth forecast to -5.5% to -6.0%.
- US secures digital tax deals with Malaysia, Cambodia, and a preliminary agreement with Thailand.
Top Stories
US and China reach trade deal; China to buy US farm goods.
On October 30, 2025, President Trump announced a trade deal with China after meeting President Xi, where China agreed to purchase US farm products and cooperate on fentanyl control. The agreement also involves China potentially purchasing US energy from Alaska.
Goldman Sachs CEO warns of US national debt 'reckoning'.
On October 30, 2025, Goldman Sachs CEO David Solomon warned about the rising US national debt, which has reached $38 trillion, stating that a 'reckoning' will occur if economic growth does not accelerate.
Federal Reserve to expand balance sheet in early 2026.
In early 2026, the Federal Reserve is set to begin expanding its balance sheet again to ease investor concerns over U.S. borrowing needs, potentially buying $35 billion a month.
WPP shares plummet 13% after lowering growth forecast.
On October 30, 2025, WPP PLC shares fell 13% after lowering its full-year growth forecast to a decline of 5.5% to 6.0% in like-for-like revenue less pass-through costs, following disappointing Q3 results.
US secures digital tax deals with Malaysia, Cambodia, Thailand.
On October 31, 2025, the White House secured deals with Malaysia and Cambodia, and a preliminary agreement with Thailand, ensuring no digital services taxes or discrimination against US providers.
Financial Analysis
Tokyo's October CPI at 2.8%, exceeding expectations; inflation persists.
On October 30, 2025, Tokyo's headline CPI for October was reported at 2.8% year-on-year, exceeding the expected 2.4%, while core and core-core CPI also came in at 2.8%, suggesting persistent inflation.
World Bank: Commodity prices to hit six-year low in 2026.
The World Bank projects commodity prices will reach a six-year low in 2026, with declines of 7% in both 2025 and 2026, due to oil oversupply and global economic slowdown, while gold and silver will benefit from safe-haven demand.
Chinese financial stocks' earnings growth forecasts rise to 3.2%.
On October 30, 2025, during peak reporting season, Chinese financial stocks' earnings growth forecasts have risen to 3.2 per cent, outpacing the broader market's 1.7 per cent.
Market Insights
Eli Lilly raises guidance on strong Zepbound, Mounjaro sales.
On October 30, 2025, Eli Lilly reported strong Q3 earnings, driven by $3.57 billion in Zepbound sales and $6.52 billion in Mounjaro sales, leading to increased full-year revenue forecasts of $63-$63.5 billion and adjusted EPS of $23-$23.70.
Crypto prices drop as Fed hints at pausing rate cuts.
On October 30, 2025, cryptocurrency prices, including Bitcoin (down 3.8% to $108,000) and Ethereum (down 3.6% to $3,850), fell due to Federal Reserve Chairman Jerome Powell signaling a potential pause in interest rate cuts.
CN Rail lays off 400 managers amid freight traffic decline.
On October 30, 2025, Canadian National Railway Co. (CN Rail) laid off approximately 400 managers due to a decrease in freight traffic volumes impacted by tariffs.
Magnificent Seven stocks decline, dragging down S&P 500, Nasdaq.
On October 30, 2025, the Magnificent Seven stocks declined following their latest earnings reports, dragging down the S&P 500 by 0.36% and the Nasdaq Composite by 0.88%.
Stock futures mixed amid earnings, US-China trade talks.
On October 30, 2025, stock index futures showed mixed trading as investors awaited earnings from Apple and Amazon and updates on U.S.-China trade talks.
Oil prices ease despite Trump's tariff cut announcement.
On October 30, 2025, oil prices eased with Brent at $64.72 and WTI at $60.28 per barrel, despite US President Donald Trump's announcement of cutting tariffs on China from 57% to 47%.
Asian stocks mixed amid Fed rate cut, US-China meeting.
On October 30, 2025, Asian stocks showed mixed performance as investors reacted to the Federal Reserve's quarter-percentage-point interest rate cut and awaited the outcome of a meeting between US President Trump and Chinese leader Xi Jinping.
Alphabet (GOOGL) closes up 3.10% at $283.07 on October 30.
On October 30, 2025, Alphabet Inc. Class A (GOOGL) stock closed at $283.07, an increase of $8.50 (3.10%), with a market cap of $3.32T.
Policy Watch
Japan's Finance Minister: BOJ's policy hold is appropriate.
On October 30, 2025, Japan's Finance Minister Katayama stated that the BOJ's decision to maintain its monetary policy, keeping the policy interest rate at around 0.5% for the sixth consecutive meeting, was appropriate given the economic situation.
ECB delivers monetary policy statement; press conference held.
On October 30, 2025, Christine Lagarde and Luis de Guindos held a press conference to deliver the ECB's monetary policy statement, covering topics such as monetary policy and financial stability.
ECB holds interest rates at 2%, signals monetary pause.
On October 30, 2025, the European Central Bank (ECB) maintained its interest rates at 2%, continuing its monetary pause and cooling expectations of further cuts.