There's a positive underlying momentum in the economyFood price inflation is still strong I'm still seeing stickiness in services inflation (came down from 4% but still above 3%)Inflation risks are tilted a little bit to the upsideCan tolerate small deviations from inflation target in either directions (repeated by most ECB members)The main focus should be on core inflationNot seeing sustained disinflationary pressuresInterest rates are absolutely in a good placeSchnabel has been leaning on the hawkish side as she recently said that rate hikes could come earlier than people expected. She's also one of the most influential ECB policymakers, so her views grab the market attention. Given her stance though, hawkish comments aren't seen as surprising. This article was written by Giuseppe Dellamotta at investinglive.com.

Fundamental OverviewThe USD remains weak across the board as market participants now await the key US data releases with the government shutdown expected to end this week. Yesterday, we saw some more weakness following soft weekly ADP data that showed job losses in the second half of October. The initial weakness didn’t hold though as the US dollar eventually regained some ground. It seems like the market is now just waiting for the government data to confirm the weakness and the December cut. In fact, the market pricing is still standing around 64% probability for a December cut.On the NZD side, the RBNZ cut by 50 bps at the last meeting bringing the OCR to 2.5%, which is the lower bound of their estimated neutral range (2.5%-3.5%). They kept an easing bias though as they are trying to “feel their way” as RBNZ’s Conway recently said. The market is still pricing a 91% probability of a 25 bps cut at the upcoming meeting given lack of improvements in the economic data.NZDUSD Technical Analysis – Daily TimeframeOn the daily chart, we can see that the NZDUSD continues to consolidate around the recent lows. We have a major downward trendline 0.5700 handle. If we get a pullback into it, we can expect the sellers to lean on the trendline with a defined risk above it to position for a drop into new lows. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the 0.5850 resistance next. NZDUSD Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see that we have a key swing high around the 0.5670 level where we got the first rejection. That’s where we can expect the sellers to step in with a defined risk above the swing level to position for a drop into new lows, while the buyers will look for a break higher to increase the bullish bets into the major trendline.NZDUSD Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that we have a minor upward trendline defining the bullish momentum. We can expect the buyers to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to increase the bearish bets into new lows. The red lines define the average daily range for today. This article was written by Giuseppe Dellamotta at investinglive.com.

Unlike the S&P 500 and Nasdaq, which break records almost every week, oil has been struggling. Since January 1, the price of Brent crude has dropped nearly 15%. Not even new sanctions on Russian oil companies or the threat of a U.S. military operation in Venezuela from Trump have been enough to push oil prices back above $70 a barrel, let alone reach 2022 levels.OPEC+ hasn’t helped either. Its decision to suspend production growth in the first quarter of 2026, after a modest increase in December 2025, citing concerns about oversupply, hasn’t made oil particularly appealing. Even a potential escalation with Iran, while likely to give prices a temporary lift, seems unlikely to have any lasting effect on market confidence.So why, despite all these potential catalysts, are oil prices not rising?On one side, traders seem worried about slower economic growth in China, driven by weak domestic demand, issues in the real estate sector, low consumer and investor confidence, and trade tensions with the U.S. — all of which weigh on global fossil fuel demand, clearly a negative for oil. The fact that China’s trade surplus came in at USD 90.07 billion in October, smaller than expectations of USD 95.6 billion, doesn’t help the case.On the other hand, high U.S. commercial inventories might be keeping a lid on oil’s ability to regain upward momentum. For context, data from the Energy Information Administration show that reserves actually rose by about 5.2 million barrels to 421.2 million, well above expectations of a 2.4 million-barrel decline. Strategic petroleum reserves also ticked up by 500,000 barrels, reaching 409.6 million.Traders may also face disappointment from a series of upcoming reports. In particular, the OPEC Monthly Oil Market Report, due this Wednesday, could push prices lower if the cartel revises production forecasts in response to slowing global growth. The same applies to the International Energy Agency, which is scheduled to release its annual and monthly reports, and the U.S. Department of Energy, which will present its short-term outlook.Other factors are also at play. The dollar index has been gaining strength recently, which is typically a headwind for commodities. Oil prices could also react to a potential shift in Fed rhetoric toward a more dovish stance if signs of a weakening labor market continue to emerge. And, of course, geopolitical developments can always surprise — another surge in tensions between China and the U.S. could quickly move markets. This article was written by IL Contributors at investinglive.com.

Will closely coordinate with the BOJ to achieve economic growthMonetary policy needs to aligned with goals for the economy, stable pricesWill ask Ueda for regular reports at council meetingsShe's continuing her subtle - or perhaps not so subtle - attack at the BOJ in wanting the central bank to play ball with her fiscal plans. Comments like these won't help to alleviate pressure on the Japanese yen whatsoever. From earlier: Japan prime minister Takaichi: We cannot say that Japan has emerged from deflation This article was written by Justin Low at investinglive.com.

The drop earlier at the tail end of Asia trading saw price briefly nudge under $4,100. However, that downside shove was a brief one with dip buyers coming in again around the figure level as they did yesterday. That's starting to see a bit of a line in the sand for gold in trading this week. In the bigger picture though, there's much more to consider: Gold getting ahead of the curve? This article was written by Justin Low at investinglive.com.

Fundamental OverviewThe USD remains weak across the board as market participants now await the key US data releases with the government shutdown expected to end this week. Yesterday, we saw some more weakness following soft weekly ADP data that showed job losses in the second half of October. The initial weakness didn’t hold though as the US dollar eventually regained some ground. It seems like the market is now just waiting for the government data to confirm the weakness and the December cut. In fact, the market pricing is still standing around 64% probability for a December cut.On the AUD side, the commodity currency has been supported by the US-China deal and the more hawkish RBA following the very hot Australian quarterly CPI which erased all the rate cut bets as traders expected the central bank to keep rates steady for a more sustained time. Tomorrow, we have the Australian employment report but it’s unlikely to change anything for the RBA if it comes out good as it would just reinforce the RBA’s patient stance. Conversely, if we get bad data, we might see the market bringing forward the rate cut bets and weigh a bit on the AUD. AUDUSD Technical Analysis – Daily TimeframeOn the daily chart, we can see that AUDUSD broke above the key 0.6520 level opening the door for a rally into the 0.6627 level next. The buyers piled in on the break targeting the 0.6627 level, while the sellers will want to wait for the price to fall back below the 0.6520 level to position for a drop back into the 0.6440 level next.AUDUSD Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see more clearly the break and the consolidation above the 0.6520 level. This morning, we are seeing some more USD weakness, which should keep the buyers in charge into the 0.6575 level. AUDUSD Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that the price is breaking above the upper bound of the recent consolidation. We can expect the buyers to increase the bullish bets into the 0.6575 level as long as the price stays above the upper bound. The sellers, on the other hand, will want to see the price falling back below the upper bound to fade the move into the 0.6520 level. The red lines define the average daily range for today. Upcoming CatalystsTomorrow we get the Australian employment report. This article was written by Giuseppe Dellamotta at investinglive.com.

JP Morgan continues to underscore the vulnerabilities of the Japanese yen currency, in saying that a push above 154.35-50 could quickly see USD/JPY run up towards another test of the 155 mark. And in turn, that could trigger fresh verbal intervention from Tokyo. Well, that's something we're already seeing here earlier today.But as for actual intervention risk, the firm notes that the key 'danger zone' is around the range of 157-160 for USD/JPY. That especially if the move higher in the pair is one that is rapid and speculative. In other words, JP Morgan feels that we're not that far away from a point where Tokyo might feel compelled to take action in the market again.They do mention though that if the Ministry of Finance's response remains limited, the upside momentum could accelerate towards the upper end of that range sooner or later.From yesterday: Limited risk of JPY intervention for the time being, says Goldman Sachs This article was written by Justin Low at investinglive.com.

How Solitics' AI Expert is turning campaign ideation into measurable impact in minutes, not weeks.In the FX space, relevance is currency, and time is the cost of staying competitive. Yet despite rising investments in marketing technology, many brokers still struggle with a fundamental gap: the distance between what they want to do and how quickly they can do it. By the time a conversion campaign is designed, approved, built, and deployed, the newly registered traders it was meant to convert have already moved on.This is a structural problem that is already costing brokers conversions, retention, and revenue. Traditional automation and AI tools promised to solve this. Chatbots and assistants offered speed, automation, and smarter workflows. But they've hit a ceiling. They can respond to queries, execute preset actions, and help with isolated tasks. What they cannot do is think strategically, analyse behavioural data at scale, or autonomously deploy multichannel personalised user journeys that drive measurable performance.The result is a market caught between two inadequate options: ideation without execution or execution without intelligence. Neither wins, and as competitive pressure intensifies, this gap is becoming unsustainable.Sealing the gap between ideation and strategy buildingLifecycle management, i.e. re-activating dormant users or converting high-intent prospects, has always been central to FX marketing strategy. But in a densely serviced market, standing out requires more than speed. It demands precision, relevance, and personalisation at scale.The growing disconnect between what marketers need and what legacy tools can deliver has paved the way for a more capable solution. One that doesn't just assist but acts. That's where Solitics' AI Expert enters the picture.Unlike traditional chatbots that only assist, Solitics’ AI Expert strategises. Built on agentic AI technology, it is the first marketing automation system designed to bridge the gap between planning and execution.It learns your verticals and goals and provides you with ideas and strategies based on substantiated industry knowledge, using its deep knowledge of the Solitics platform. It can help marketing executives make data-driven decisions, create tailored journeys and campaigns quickly. You remain in complete control and have final approval. Solitics’ AI Expert works to assist with your decision-making by using extraordinary amounts of data. It’s the difference between occupying resources to process a huge amount of data and using it to create a data-driven, tailored, and responsive customer journey in a fraction of the time. In its current release, the AI Expert generates KPI-driven strategies, creatives, and journey concepts with full flows. Full campaign deployment within Solitics’ environment is part of the next iteration, which, according to the company, “is already in motion.”Even in these early stages, the impact is clear. Marketers are closing the gap between vision and execution faster than ever before.What marketers get nowHere's what FX marketers can do today with Solitics' AI Expert:Generate strategy concepts aligned with their performance goals.Use new activation tools, including gamification widgets and anonymous traffic conversion techniques.Build multichannel journey concepts in minutes.Receive ready-to-use flow structures, creatives, and mockups.Operate within FX-specific logic and compliance frameworks.By merging data, design, and compliance into one motion, the AI Expert enables creative and strategic approaches to user experience and marketing campaigns, removing the friction that slows campaign delivery. Marketers gain the much-needed flexibility to navigate from idea to creative concept and from planning to launch in minutes.What early adopters are seeingIn early pilots, brokers using AI Expert reported tangible performance improvements across key metrics:Observable increases in conversion rates through hyperpersonalised journeys that reduce churn and drive engagement.Significantly higher retention rates by delivering timely, relevant messaging that keeps traders active.These outcomes reflect the AI Expert's ability to reduce manual workload, increase speed and quality of execution, and boost engagement with hyperpersonalised journeys. Why FX-specific AI changes everythingGeneric AI tools treat all industries the same. Solitics' AI Expert is trained specifically for FX and fintech. That means it understands trader behaviour, market volatility, regulatory frameworks, and the operational realities brokers face every day."One size does not fit all. One problem can have multiple solutions, all equally accurate and rooted in the operational structure." — Guy Shemer, Solitics VP ProductThis specificity allows the AI Expert to deliver what matters most: instant relevance and personalisation. Campaigns aren't just fast; they're smart. Journeys adapt to user motivations. Messaging aligns with trading patterns. Triggers respond to real behavioural and market signals.Whether your goal is to increase funded accounts, boost trading volumes, or improve onboarding completion, the AI Expert doesn't just drive engagement. It builds loyalty. Most importantly, all operations remain within your own environment, so you maintain full data integrity and compliance. The shift brokers must makeThe FX marketing landscape has reached an inflection point. As competitive pressure is intensifying, customer acquisition costs are soaring, and retention is harder than ever. The brokers who win will be those who can execute faster, smarter, and ‘more personally’ than anyone else.AI assistants had their moment. They helped marketers work more efficiently within existing workflows. But efficiency isn't enough anymore. The market demands transformation. Solitics' AI Expert is at the forefront of this transformation. It's not another tool in your martech stack. It's a strategic builder that turns marketing vision into measurable impact today, with even more power coming tomorrow.Follow this link to schedule a product demonstration. This article was written by IL Contributors at investinglive.com.

Fundamental OverviewThe USD remains weak across the board as market participants now await the key US data releases with the government shutdown expected to end this week. Yesterday, we saw some more weakness following soft weekly ADP data that showed job losses in the second half of October. The weakness didn’t hold though as the US dollar eventually regained some ground. It seems like the market is now just waiting for the government data to confirm the weakness and the December cut. In fact, the market pricing is still standing around 64% probability for a December cut.On the JPY side, the currency has been weakening since last BoJ policy decision where the central bank left interest rates unchanged as expected with again two dissenters voting for a hike. There were no surprises but Governor Ueda focusing on spring wage negotiations suggested that the next hike could be delayed to January or even March 2026. We got some verbal intervention last week from the Japanese Finance Minister near the 155.00 handle and another one today. This is generally just short-term stuff that provides pullbacks for traders as long as the conditions for more yen weakness persist. But it shows that the 155.00 level is where the Japanese officials start to draw a line. USDJPY Technical Analysis – Daily TimeframeOn the daily chart, we can see that USDJPY reached the key 154.80 level. This is where we can expect the sellers to step in with a defined risk above the level to position for a drop into the 151.00 support. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the 158.00 handle next. USDJPY Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see that we have an upward trendline defining the bullish momentum. If we get a pullback into it, we can expect the buyers to lean on the trendline with a defined risk below it to position for a rally into new highs. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 151.00 support.USDJPY Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that we have another minor upward trendline defining the bullish momentum on this timeframe. Again, the buyers will likely lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to increase the bearish bets into new lows. The red lines define the average daily range for today. This article was written by Giuseppe Dellamotta at investinglive.com.

Eurostoxx +0.5%Germany DAX +0.7%France CAC 40 +0.4%UK FTSE +0.2%Spain IBEX +0.5%Italy FTSE MIB +0.6%And so the party rages on as regional equities continue with the more positive run after a brief setback from last Friday. The more optimistic mood is helped by gains in US futures today as well, with S&P 500 futures up 0.3% with tech shares seen rebounding. Despite growing political uncertainty in the UK, stocks aren't all too perturbed even if we do see yields in gilts rise around 2-3 bps across the curve at the open here. This article was written by Justin Low at investinglive.com.

In the European session, we don't have anything on the agenda other than a couple of ECB speakers who are going to repeat the same old stuff.In the American session, we just have the BoC Meeting Minutes which are rarely a market-moving release. We will also hear from many Fed members but it's unlikely they will deviate from their recent views since we still haven't got the key data like NFP and CPI. The main event today is the US House vote on the stopgap bill to reopen the government expected at 21:00 GMT/16:00 ET. Central bank speakers:10:45 GMT/05:45 ET - ECB's Schnabel (hawkish - voter)11:15 GMT/06:15 ET - ECB's de Guindos (neutral - voter)12:05 GMT/07:05 ET - BoE's Pill (hawkish - voter)14:20 GMT/09:20 ET - Fed's Williams (neutral - voter)15:00 GMT/10:00 ET - Fed's Paulson (dovish - voter in 2026)15:20 GMT/10:20 ET - Fed's Waller (dove - voter)17:15 GMT/12:15 ET - Fed's Bostic (hawkish - non voter)17:30 GMT/12:30 ET - Fed's Miran (uber dove - voter) This article was written by Giuseppe Dellamotta at investinglive.com.

German DAX futures +0.4%French CAC 40 futures +0.3%UK FTSE futures flatThis comes after the more solid showing yesterday, with Wall Street also seeing a rotation out of tech with the Dow posting a record close while the Nasdaq slumped lower. The latter owes much to a decline in Nvidia, with this news here perhaps reverberating across the tech sector. So far today, the mood music is better with S&P 500 futures up 0.3% as well and Nasdaq futures up some 0.6%. This article was written by Justin Low at investinglive.com.

Nomura bucks consensus, sees Fed holding steady in DecemberNomura now expects the Federal Reserve to leave interest rates unchanged at its December 9–10 meeting, arguing that recent indicators still point to a resilient labour market despite the government shutdown’s disruption to official data releases.In a note to clients, the bank said Chair Jerome Powell’s unexpectedly hawkish tone at the October press conference reinforced its view that the Fed is likely to pause after two consecutive cuts. Nomura remains one of the few major institutions calling for no change in December, diverging from market pricing that continues to favour another quarter-point reduction.The firm added that a pause could reignite political pressure on the central bank, with President Trump expected to criticise the decision as premature restraint on growth heading into an election year. This article was written by Eamonn Sheridan at investinglive.com.

McDonald’s warns SNAP disruptions may hit low-income diners as shutdown drags onInfo via Dow Jones/Market Watch. McDonald’s has warned that the partial freeze in U.S. food assistance payments is adding strain on low-income consumers, as the government shutdown continues to disrupt Supplemental Nutrition Assistance Program (SNAP) benefits across the country.Speaking on the company’s recent earnings call, CEO Chris Kempczinski said the interruption in payments “added to the stress” already felt by lower-income households. “If you’re higher income, you don’t feel it as acutely — but lower income, for sure, you’re feeling it acutely,” he said, noting the shift is starting to weigh on spending patterns in the fast-food sector.Executives at other major food companies echoed those concerns. Tyson Foods’ chief growth officer Kristina Lambert told investors the firm is seeing consumers “reallocate spending from non-food to more food categories,” underscoring a shift in household budgets as government support falters.The longest shutdown in U.S. history has left millions of Americans facing uncertainty over SNAP payments. The benefits pause — following recent cuts to the program — has strained food banks and spurred a court fight over the flow of aid. Roughly 40 million Americans rely on SNAP, which represents around 12% of national food and beverage spending, according to TD Cowen analyst Robert Moskow.A bill to keep the government funded through 30 January cleared the Senate on Monday, and the House is expected to vote on it Wednesday. Even if passed, officials say it could take days before SNAP services and other programs are fully restored. ---The comments underline the growing risk to U.S. consumer-spending resilience as the shutdown drags on, potentially weighing on Q4 sales for low-margin food and retail firms reliant on value-oriented shoppers. This article was written by Eamonn Sheridan at investinglive.com.

Fed divisions deepen as policymakers split on inflation versus jobs.Info via the Wall Street Journal, in brief:The Federal Reserve’s once-united front on policy direction has fractured, with officials increasingly divided over whether stubborn inflation or a weakening labour market poses the greater threat to the economy — a split without much precedent under Chair Jerome Powell.The rift has muddied the path for further interest-rate cuts that looked all but assured just weeks ago. While investors still see a December cut as slightly more likely than not, officials themselves appear deeply conflicted following two consecutive reductions that brought the federal funds rate down to a 3.75%–4% range.When the Fed eased by a quarter-point in September, a slim majority of policymakers projected another two cuts by year-end. But a group of hawks pushed back hard after October’s follow-up move, questioning the need for further easing given resilient consumer spending and rising tariff-linked costs. The debate over the December meeting has become especially contentious, forcing Powell to publicly temper expectations at his last press conference in an effort to hold the committee together.The month-long government shutdown has made matters worse, cutting off access to key economic data on jobs and inflation and allowing both sides to lean on selective anecdotes and private surveys to reinforce their views. Doves see mounting labour-market fragility but lack fresh data to bolster their case, while hawks argue inflation pressures could resurface if rate cuts continue unchecked.Whether the Fed cuts again at its December 9–10 meeting remains uncertain. Some officials suggest a compromise — another small cut accompanied by guidance that future moves will require stronger evidence of economic weakness. Others say waiting until January would make little practical difference. ---The Fed’s policy divide adds uncertainty to bond and currency markets, where traders are now pricing a roughly 60% chance of a December rate cut but bracing for volatile repricing if the hawkish camp gains sway. This article was written by Eamonn Sheridan at investinglive.com.

Chinese banks reportedly issuing 'phantom loans' to hit targets amid weak economyChinese banks are reportedly resorting to "quick-lend-and-recover" tactics to meet government-mandated lending quotas as real-world demand for credit falters in the slowing economy.According to bankers, this practice involves issuing short-term loans, only to reclaim them weeks later. The strategy helps banks meet official targets on paper, but the money never makes it into the real economy.Regulators have pledged to crack down on this behaviour, which they describe as "funds circulating within the banking system." State-owned banks have previously been found issuing loans just before assessment periods, only to withdraw them shortly after.The credit squeeze is being compounded by other factors. The Ministry of Finance has recently intensified scrutiny of financial guarantees for local government financing vehicles (LGFVs). This has prompted banks to raise their lending thresholds, further limiting credit access for this sector.This struggle is reflected in stark economic data. In July, new yuan lending shrank for the first time in 20 years. In September, loan growth (excluding lending to other financial institutions) rose by just 6.4% year-on-year, the weakest rate since records began in 2003. Furthermore, investment has fallen for the first time since 2020. This article was written by Eamonn Sheridan at investinglive.com.

Trump to revive offshore drilling in California, Alaska and Gulf in major policy reversalInfo via a Wall Street Journal (gated) report. The Trump administration is preparing to unveil a sweeping proposal to allow oil drilling off the California coast, as well as in federal waters near Alaska and the Eastern Gulf of Mexico, according to people familiar with the matter. The move would reverse a ban imposed under the Biden administration and reignite a fierce political battle over U.S. energy policy.The announcement, expected later this week, aligns with President Trump’s “drill, baby, drill” campaign pledge to ramp up domestic energy production and lower fuel costs. It follows a Louisiana federal court ruling that deemed Biden’s offshore drilling moratorium illegal, clearing the path for new lease plans.Trump argues that expanding oil and gas exploration could cut energy costs by up to 50%, though analysts note that most producers remain reluctant to invest heavily in expensive offshore projects. Many companies are prioritising shareholder returns over output growth, especially amid uncertain long-term demand and environmental scrutiny.In a sign of the policy shift, Interior Secretary Doug Burgum earlier this year ordered officials to begin drafting a schedule for new offshore lease sales, citing “responsible energy development” aimed at job creation, economic growth, and energy independence.---The proposal could bolster U.S. energy sector sentiment and offshore service stocks but may face lengthy legal and environmental challenges, limiting near-term production gains. This article was written by Eamonn Sheridan at investinglive.com.

Goldman Sachs expects first U.S. job loss since 2020 as labor market coolsGoldman Sachs economists expect U.S. nonfarm payrolls to have declined by around 50,000 in October, marking what would be the first monthly job loss since late 2020, as signs mount that the labor market is losing steam.In a note released Monday, Goldman said its job-growth tracker slowed to just 50,000 new jobs in October from 85,000 in September, while the Trump administration’s deferred-resignation program—which let thousands of federal employees leave their posts but remain on payrolls through September 30—will likely reduce reported employment by roughly 100,000 positions in October.Goldman noted that the drop reflects both private-sector softness and a technical adjustment as deferred government departures finally register. The last major decline in payrolls came in 2020 during the pandemic shock.The official jobs data for September and October remain delayed due to the recent government shutdown, leaving markets to rely on private estimates and high-frequency indicators to gauge the true pace of labor market cooling.---Earlier:investingLive Americas market news wrap: Weekly ADP employment cools---A negative payroll print would reinforce signs of cooling labor conditions, potentially strengthening the case for further Fed rate cuts if confirmed once official data resume. This article was written by Eamonn Sheridan at investinglive.com.

The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a "band," around a central reference rate, or "midpoint." It's currently at +/- 2%.The previous close was 7.1178 The 7.0833 reference rate set today is the strongest for CNY since 15 October 2024PBOC injects 195.5bn yuan at 1.40% via 7-day reverse reposafter maturities today the net injections is 130bn yuan This article was written by Eamonn Sheridan at investinglive.com.

White House weighs curbs on proxy advisers, index-fund voting power Info via a Wall Street Journal (gated) report: The White House is considering an executive order that could limit the influence of proxy-advisory firms and curb how major index-fund managers vote, marking a potential overhaul of the U.S. corporate governance system.According to people familiar with the discussions, Trump administration officials are weighing measures that would restrict firms such as Institutional Shareholder Services (ISS) and Glass Lewis, whose recommendations help shape investor votes on issues from executive pay to environmental policy. One draft proposal could ban firms from making recommendations on companies that have paid them for consulting work, while another could bar them from issuing shareholder guidance altogether.The White House is also exploring limits on how index-fund giants — including BlackRock, Vanguard, and State Street — exercise their voting power. Together, these firms control about 30% of shares in many large U.S. companies on behalf of clients. One option under discussion would require them to mirror client preferences in their voting rather than decide independently.The proposals follow public criticism from high-profile CEOs, including Elon Musk and Jamie Dimon, who argue that proxy advisers hold outsized sway over corporate decisions. Musk has branded them “corporate terrorists” after ISS and Glass Lewis recommended voting against his $1 trillion Tesla pay package, which shareholders nevertheless approved last week.The White House cautioned that no decisions have been finalised, calling the reports speculative. ISS responded that it operates transparently and is already regulated by the Securities and Exchange Commission, while Glass Lewis declined to comment.If enacted, the measures would mark the most significant challenge yet to the proxy-advisory and index-fund voting model, a cornerstone of modern shareholder engagement. ---Any move to limit proxy advisers and index-fund voting would reshape U.S. corporate governance, reducing the influence of major asset managers and potentially shifting power back to individual shareholders and company boards. This article was written by Eamonn Sheridan at investinglive.com.