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China is poised to unveil a substantial fiscal stimulus package this Friday, as the National People’s Congress (NPC) Standing Committee wraps up its session. This comes in the wake of Donald Trump’s recent election as U.S. president, which has heightened China’s focus on economic strategies.

What Happened: Finance Minister Lan Foan has proposed a significant increase in the debt ceiling for local governments to address hidden debts. The stimulus package may also include special sovereign bonds for major banks and local government bonds to buy unsold properties, South China Morning Post reported on Friday.

Vice-minister of finance Liao Min has hinted that the package could be substantial, with market estimates ranging from 6 trillion yuan to over 10 trillion yuan. Despite recent economic hurdles, senior officials remain optimistic about meeting a 5% growth target.

Economists like Ding Shuang from Standard Chartered suggest that China “will likely reserve their firepower for next year as growth risks have decreased.” Meanwhile, Larry Hu from Macquarie Group notes that China may wait for clarity on U.S. trade policies under Trump before making additional economic moves.

See Also: Apple Begins Shifting iPhone 17 Production In India, Cook’s China Optimism, And More: This Week In Applev

Why It Matters: The announcement of China’s fiscal stimulus comes amid heightened economic uncertainty following Trump’s election victory. During his campaign, Trump proposed raising tariffs on Chinese imports by up to 60%, potentially reducing Chinese exports to the U.S. by $200 billion and impacting China’s GDP by one percentage point. This has intensified China’s focus on bolstering its economy through fiscal measures.

In October, investor sentiment towards U.S.-listed Chinese stocks was dampened due to the lack of anticipated large-scale stimulus measures. The forthcoming announcement may reignite investor confidence, as Chinese stocks like Alibaba Group Holding BABA, JD.com, Inc JD, and others have shown signs of recovery following Trump’s victory.

Price Action: At the time of writing, chinese stocks were on the red during the pre-market hours on Friday, as per Benzinga Pro. Alibaba was down by 3.85% while its peer JD.com was down by 4.05%. EV makers Li Auto LI and Nio NIO were trading 4.33% and 2.07% lower.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

George Soros, the renowned hedge-fund manager, issued a warning in the 1980s about the risks of unsustainable U.S. public finances—a caution that has resurfaced amid today’s market boom, stirring concerns among investors and economists alike.

What Happened: In his 1986 investment classic “The Alchemy of Finance,” Soros cautioned about the fundamental deterioration in the U.S.’s financial position. This warning materialized in October of the following year when the U.S. equity market experienced its swiftest crash in history, according to Economist Felix Martin‘s commentary on Reuters Breakingviews.

“The stock market boom has diverted our attention from the fundamental deterioration in the financial position of the United States,” Soros wrote.

As the S&P 500 Index traded at 25 times earnings on the eve of the recent presidential election, the Congressional Budget Office projected that the U.S. public debt would surpass the post-World War Two record in 2027. With a potential Republican majority in Congress, this estimate could be conservative.

According to the Committee for a Responsible Federal Budget, President-elect Donald Trump‘s campaign plans could add a further $15.6 trillion to the U.S. public debt by 2035. This has led to a significant rise in U.S. Treasury yields, making Soros’ decades-old warning alarmingly relevant once again.

However, the issue isn’t confined to the U.S. alone. The International Monetary Fund projects that global public debt will surpass $100 trillion, or 93% of world GDP, this year and could reach 100% by 2030. The IMF notes that past projections have consistently underestimated debt levels.

Following Trump’s election victory on Wednesday, the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, rallied 2.85%. Meanwhile, the Nasdaq 100, tracked by the Invesco QQQ Trust QQQ, soared 4.12% on Thursday.

See Also: Trump White House Could Unlock Trillion-Dollar AI Potential For Tesla, Says Dan Ives

Why It Matters: The recent economic developments in the U.S. have significant implications. Goldman Sachs recently reduced the likelihood of a U.S. recession to 15% following strong job growth.

However, the fiscal policies under a potential Republican administration could counteract these positive signs. Economists have warned that a Republican sweep could lead to increased inflationary pressures due to higher tariffs and a growing budget deficit. This scenario could prompt a more hawkish stance from the Federal Reserve.

Additionally, rising U.S. Treasury yields and a stronger dollar, following Trump’s return to the White House, might undermine the Federal Reserve’s efforts to lower interest rates. The bond market is reacting more to the fiscal and inflationary implications of Trump’s victory than to the Fed’s dovish policy.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

In the wake of successful predictions for the presidential election, cryptocurrency-based betting platform Polymarket disclosed its intentions to reestablish its prediction markets for U.S. users.

What Happened: While talking about the company’s growth strategy in a CNBC interview on Thursday, CEO Shayne Coplan said that having a presence in the U.S. market was “part of the plan” and that they were in a position to be “aggressive around expansion.”

“I want to give a lot of credit to the people who fought the battle to go in and legalize political prediction markets in America,” Coplan stated.

Polymarket has remained offshore since the CFTC penalized it $1.4 million and issued a cease-and-desist order for regulatory violations in January 2022. As such, U.S. residents can’t use the platform.

Kalshi, a rival firm, resumed taking bets on the outcome of congressional elections after an appeals court lifted a ban on the platform’s operations by the CFTC last month.

Since then, other players have thrown their hats in the ring, with Robinhood launching its presidential election event contracts just ahead of the Nov. 5 elections.

See Also: Will MicroStrategy’s $42 Billion Bitcoin Bet Boost MSTR Stock Further?

Why It Matters: Polymarket’s re-entry into the US market comes on the heels of its successful prediction of election outcomes, which, according to Coplan, offered a more accurate view than traditional media.

About $3.6 billion was wagered on the outcome of the presidential race on Polymarket, making it the biggest election prediction market. A fraction of it—about $440 million—was invested in Kalshi for the presidential contract.

One notable bettor, a French ‘Trump Whale’ known as Theo, netted almost $50 million on Polymarket following Trump’s victory.

There were widespread concerns over his significantly larger bets in favor of Trump leading to the election, with many pointing to foreign influence and market manipulation.

However, Theo said that his bets were essentially a challenge to conventional polling methods, and he employed what is known as “the neighbor method” to get his predictions right.

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Wall Street strategist Tom Lee forecasts a significant market rally through year-end, citing renewed investor confidence following President-elect Donald Trump‘s victory and strong market performance.

What Happened: Lee, head of research at Fundstrat, told CNBC’s Halftime Report that markets could surge between 5% and 10% by year-end, following what he called “the best move in the history of any post-election rally.”

“This historic rally needs to be respected,” Lee said, noting unprecedented pre-election derisking and potential “animal spirits” being unleashed by expectations of deregulation and a more business-friendly environment.

Despite positive indicators, Lee acknowledged potential headwinds in the coming months, suggesting market dynamics could shift as fiscal policies take effect or expectations adjust.

The prediction follows strong market performance, with the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, rallied 2.85%. Meanwhile, the Nasdaq 100, tracked by the Invesco QQQ Trust QQQ, soared 4.12% on Thursday.