KEOI Daily Briefing · Oct 9
KEOI Daily Briefing · Oct 9
> Note: The Economist section is absent today — all 8 selected articles were blocked by a Cloudflare human-verification challenge and were not bypassed per policy. WSJ access was normal.
1. U.S. Budget Deficit Jumps to Nearly $2 Trillion
The FY2026 deficit (year ended Sept. 30) hit $1.993 trillion per the CBO, up 12% nominally and the highest since 2021. Net interest on public debt topped $1.1 trillion (+11%), accounting for more than half the deficit increase — the U.S. now spends more on interest than on defense or Medicare. Publicly held debt reached $32 trillion, over 100% of GDP. Tariff revenue fell short after the Supreme Court ruled the president overstepped his legal authority, forcing refunds.
Original: read here
2. The Credit-Card Bill That Banks Fear Most Has Gained Trump as an Ally
President Trump and VP Vance endorsed the Credit Card Competition Act, which would let merchants choose which network processes a transaction and require major-bank cards to support at least two networks — a direct hit on the Visa/Mastercard interchange-fee system. The White House claims hidden swipe fees cost households $1,200 a year; banks warn rewards programs would be gutted. Merchant lobbyists are pushing to attach it to legislation after the midterms.
Original: read here
3. Five Things to Know About Tokenized Stocks
The SEC cleared U.S. trading of tokenized stocks via two five-year "innovation exemptions" last month. Tokens must carry the same dividend and voting rights as regular shares — ruling out today's synthetic offerings — and issuers get 30 days' notice plus veto rights. Proponents tout 24/7 trading, fractional ownership, and instant settlement; risks include thin off-hours liquidity and nonexistent surveillance. Nasdaq, NYSE, BlackRock, and JPMorgan are all moving in.
Original: read here
4. U.S. Suspends Microsoft and Adobe From H-1B Green Card Program
VP Vance announced the suspension of Microsoft, Adobe, and several tech recruiters from the employment-based green card program, accusing them of gaming the labor-market test to retain foreign workers. Microsoft says most of its U.S. staff are citizens and 80% of its ~6,000 H-1B petitions last year were renewals. Vance has called the H-1B program "completely broken" and signaled support for eliminating it.
Original: read here
5. China Is Offering Half Measures to Its Mounting Economic Problems
Beijing's recent "steady drip" of mortgage subsidies, bank capital injections ($54B in September), and infrastructure spending is judged insufficient by economists. Q2 GDP grew 4.3% — the slowest in over three years and below target — driven almost entirely by exports. With the property crash in its sixth year and local-government debt constraining big stimulus, analysts warn of prolonged deflation.
Original: read here
6. Takaichi Promises Consumption-Tax Cut Won't Touch Social Security Funding
In the House of Councillors' representative questioning on Oct. 8, Prime Minister Takaichi pledged that the food consumption-tax cut would be funded through spending and revenue reforms — not deficit bonds — and would not affect social security financing. The government is also preparing a second supplementary budget limited to disaster relief and essential items, breaking with the autumn "economic stimulus" tradition.
7. Japan's Current-Account Surplus Hits ¥4.06 Trillion in August
Japan's current-account surplus reached ¥4.06 trillion in August, up ~12% year-on-year and the 19th straight monthly surplus, driven by overseas dividend repatriation while the trade balance slipped into deficit (~¥688B). The weak yen continues to amplify repatriated earnings.
Original: read here
Comments