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  • Tesla Cybercab reportedly spotted testing on public roads in Austin (Bullish!)

    Summary

    • Reports suggest Cybercab testing on public roads

    • Austin seen as key autonomy testing hub

    • Autonomy central to Tesla’s long-term narrative

    Shares of Tesla are likely to draw fresh attention after social media reports suggested the company’s long-awaited Cybercab vehicle has been spotted testing on public roads in Austin, Texas for the first time. While Tesla has not formally confirmed the sightings, the reports have fuelled speculation that development of its dedicated autonomous ride-hailing vehicle may be entering a more advanced testing phase.

    According to posts circulating on X, the vehicle appeared to be operating on open roads rather than closed or private testing areas, a step that would mark a meaningful milestone for Tesla’s autonomous ambitions. Austin has become a central hub for Tesla’s self-driving efforts, hosting both its headquarters and extensive testing operations, and is viewed as a favourable regulatory environment for autonomous vehicle trials.

    The Cybercab concept, unveiled earlier this year, is designed as a purpose-built, fully autonomous vehicle with no steering wheel or pedals, aimed at powering a future robotaxi network. Tesla has positioned the project as a key pillar of its long-term growth strategy, arguing that autonomy and mobility services could eventually eclipse vehicle sales as a revenue driver.

    Market focus has increasingly shifted toward tangible progress on autonomy following years of ambitious timelines from Chief Executive Elon Musk. Public-road testing, if confirmed, would be seen as an incremental but important step toward regulatory approval and broader commercial deployment, though significant hurdles remain.

    Regulatory scrutiny, safety validation and real-world performance data are expected to be decisive factors. U.S. regulators have taken a more cautious stance on autonomous driving claims in recent years, and any expansion of testing will likely be closely monitored at both state and federal levels.

    From an investor perspective, the reports underline Tesla’s effort to re-anchor its valuation narrative around artificial intelligence and autonomy at a time when global EV demand growth has moderated. While near-term financial impact is limited, progress on Cybercab development could influence longer-term expectations for Tesla’s addressable market and margin potential.

    For now, markets await official confirmation from Tesla, with sentiment likely to remain sensitive to further evidence of real-world testing and regulatory engagement.

    This article was written by Eamonn Sheridan at investinglive.com.

  • Japan should consider nuclear weapons – source shaping security policy in government

    Summary

    • PM office source raises nuclear weapons debate

    • Comments clash with Japan’s non-nuclear tradition

    • Security concerns driving renewed discussion

    Japan’s long-standing stance on nuclear weapons has come under renewed scrutiny after a source within the prime minister’s office suggested the country may ultimately need to possess nuclear arms, comments that risk sparking political backlash both domestically and internationally. Kyodo reporting.

    Speaking to reporters on Thursday, the source — who is involved in shaping security policy under Prime Minister Sanae Takaichi’s government — said Japan should consider nuclear weapons in principle, while simultaneously acknowledging that such a move would be highly impractical. “I think we should possess nuclear weapons,” the source said, adding that “in the end, we can only rely on ourselves,” while stressing that nuclear armament is not something that could be achieved quickly.

    The remarks come as Prime Minister Takaichi, known for her hawkish views on national security, weighs whether to review Japan’s Three Non-Nuclear Principles, which prohibit the possession, production, or introduction of nuclear weapons. First articulated by then-Prime Minister Eisaku Sato in 1967, the principles became a cornerstone of Japan’s postwar identity. Sato later received the Nobel Peace Prize in 1974 for his role in promoting nuclear restraint.

    Any attempt to revisit Japan’s nuclear policy remains deeply controversial. Public opposition is rooted in the country’s pacifist constitution and its unique historical experience as the only nation to have suffered atomic bombings. The issue also conflicts with Japan’s longstanding diplomatic commitment to nuclear disarmament, a cause strongly supported by survivors of Hiroshima and Nagasaki.

    At the same time, critics note that Japan already relies on the U.S. nuclear umbrella for deterrence, a dependence some argue sits uneasily alongside the non-nuclear principles. This tension has periodically resurfaced during periods of heightened regional security risk.

    The prime minister’s office source said there had been no direct discussion with Takaichi on formally revising the principles. Still, the comments have revived memories of past political fallout: in 1999, then parliamentary vice defence minister Shingo Nishimura was dismissed after suggesting Japan consider nuclear armament.

    For now, the remarks underscore the growing strain between Japan’s historical pacifism and evolving regional security realities.

    —

    When these guys are your near neighbor …

    Anyway, more near term, the BoJ is set to make history today:

    This article was written by Eamonn Sheridan at investinglive.com.

  • Economic and event calendar in Asia December 19, 2025 – Bank of Japan rate hike expected

    Summary

    • BoJ expected to hike rates to 0.75%
    • Real rates remain negative despite move
    • Yen reaction hinges on guidance, not decision

    A crowded global macro calendar lies ahead, but for markets the clear focal point is the Bank of Japan’s policy decision, followed closely by Governor Kazuo Ueda’s press conference. Together, the two events are expected to shape near-term expectations for Japanese monetary policy and the yen.

    Unlike most major central banks, the BoJ does not announce its decision at a fixed time. Instead, the statement is released once deliberations conclude, a system that contrasts with the clock-driven approach of its global peers. In practice, the decision typically lands between 0230 and 0330 GMT (2130–2230 US Eastern time), a window closely watched by global traders.

    The BoJ is widely expected to deliver a 25bp rate hike to 0.75%, which would mark its highest policy rate in roughly three decades. An historic occasion! Despite the near-certainty of a move, expectations for a strongly hawkish signal from Governor Ueda remain low. Policymakers are acutely sensitive to the recent rise in Japanese government bond yields and the broader impact of higher borrowing costs on domestic financial conditions.

    Even after the expected hike, the BoJ continues to judge real interest rates as firmly negative, reinforcing the view that policy will remain accommodative in real terms and that any further tightening will proceed cautiously. While market pricing suggests another rate increase as early as June or July next year, a growing number of analysts argue this timeline may be too aggressive.

    An alternative view places the next hike closer to October 2026, giving policymakers time to assess how higher rates feed through to bank lending, corporate financing, household consumption and capital expenditure. Spring wage negotiations and yen dynamics will be key inputs into that assessment.

    Debate around Japan’s neutral rate has also resurfaced, but officials continue to stress it is a conceptual range rather than a fixed target. The BoJ is expected to maintain its 1–2.5% neutral estimate, implying no urgency to accelerate tightening.

    From a market perspective, the fully priced nature of this week’s move reduces the risk of sharp volatility. Unlike August 2024, when a surprise policy shift triggered broad yen carry unwinds, currency moves this time are likely to hinge on forward guidance rather than the hike itself.

    USD/JPY update, the pair topped out again this week circa 156.00:

    This article was written by Eamonn Sheridan at investinglive.com.

  • New Zealand records November trade deficit as imports exceed exports (d’uh ;-) )

    New Zealand recorded a monthly trade deficit of NZ$163 million in November, as import growth slightly outpaced exports, according to data released by Statistics New Zealand. While the deficit was relatively modest in monthly terms, the figures highlight the ongoing challenge of balancing external trade amid uneven global demand and domestic consumption trends.

    Total exports rose to NZ$6.99bn in November, reflecting steady shipments across key commodity categories, including dairy and agricultural products. However, imports climbed to NZ$7.15bn, resulting in the net deficit for the month. The strength in imports suggests resilient domestic demand and ongoing investment needs, though it also points to continued pressure on the external balance.

    On an annual basis, New Zealand’s trade deficit widened to NZ$2.06bn, underscoring the structural imbalance between export earnings and import spending over the past year. While export performance has improved from earlier lows, it has not yet been sufficient to fully offset higher import volumes and prices, particularly for capital goods and energy-related items.

    For financial markets, the trade data offers a mixed signal. A narrower-than-feared monthly deficit may provide some reassurance around near-term external stability, but the persistent annual shortfall reinforces the view that net trade is unlikely to be a strong driver of economic growth in the near term. Currency markets tend to focus less on the headline deficit and more on broader macro dynamics, including interest-rate expectations and global risk sentiment.

    From a policy perspective, the data is unlikely to materially alter the Reserve Bank of New Zealand’s near-term outlook on its own. However, sustained trade imbalances could remain a background consideration as policymakers assess growth momentum, inflation pressures and the transmission of monetary policy through the economy.

    Overall, November’s trade figures point to steady but unspectacular export performance, offset by firm import demand, leaving New Zealand’s external position modestly in deficit as the year draws to a close.

    This article was written by Eamonn Sheridan at investinglive.com.

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