Euroclear Warns EU on Russian Asset Plan's Impact on Borrowing Costs

Euroclear's Warning on Russian Asset Use

• ⚠️ Euroclear, a depositary firm holding frozen Russian state assets, has warned the EU against its plan to use these assets to back €140 billion in loans for Ukraine.
• 📈 The firm's CEO, Valeriane, stated in a letter that this move could make Euroclear liable for confiscation claims, leading to a risk premium and a sustained increase in European sovereign bond spreads.
• 💰 This would ultimately result in higher borrowing costs for all EU member states.

Market and Economic Updates

• 📉 Chinese stocks traded flat to lower as industrial profits fell over 5% in October year-on-year.
• 🇯🇵 In Japan, the Nikkei closed higher, boosted by tech stocks, while Toyota shares saw a slight decrease despite rising sales, with US demand offsetting slumps in China and Japan.
• 🇺🇸 Investors are pausing ahead of potential US Federal Reserve rate cuts in December, following previous market boosts.

Asahi Cyber Attack and Data Leak

• 💻 Japanese beer giant Asahi is recovering from a major ransomware attack in September that crippled operations and forced manual order-taking.
• 👤 The company revealed that personal details of over 1.5 million customers (names, gender, addresses, contact info) may have been leaked, though credit card details were not affected.
• ⏳ Asahi has spent nearly two months containing the attack, restoring systems, and enhancing security, with a goal to return to normal delivery levels by February.

Thanksgiving Dinner Costs and Inflation

• 🦃 The cost of Thanksgiving dinner is a barometer for US grocery prices, with mixed signals on inflation.
• 📊 While some estimates show overall grocery prices up 1.4% for the recent quarter and 2.7% year-on-year, national brand retail turkey prices have decreased by 3.7%.
• 💸 Despite some price increases, consumers can expect promotions and sales as the holiday season progresses, with some estimates suggesting Thanksgiving dinner costs could be 2-3% lower this year.