Morning brief: Trump flags Netflix–WBD deal concerns; Japan’s GDP contracts

Global markets opened the week weighing a mix of political, economic, and trade developments, from US President Donald Trump’s remarks on Netflix’s proposed acquisition of Warner Bros. Discovery to renewed concerns over Japan’s economic trajectory.

Meanwhile, China’s export performance surprised to the upside, and Asian equities traded cautiously ahead of a pivotal Federal Reserve decision.

Trump raises competition concerns over Netflix–WBD deal

United States President Donald Trump said Netflix’s bid to acquire Warner Bros. Discovery “could be a problem,” citing concerns about market concentration.

Speaking ahead of the Kennedy Center Honors, Trump said the proposed transaction would lead to “a lot of market share,” adding that the final decision would involve economists as well as his own assessment.

Trump acknowledged his “respect” for Netflix co-CEO Ted Sarandos but reiterated the size of the combined entity as a potential issue.

“It is a lot of market share. There’s no question about it,” he said.

The remarks come as antitrust scrutiny over large technology and media mergers continues to intensify in Washington.

Japan GDP shrinks more than expected in Q3

Japan’s economy shrank more sharply than anticipated in the third quarter, according to revised data from the Cabinet Office.

GDP fell 0.5% quarter-on-quarter, compared with the earlier estimate of a 0.4% decline.

On an annualized basis, the economy contracted 2.3%, reversing the 2.1% expansion recorded in the previous quarter.

The GDP deflator rose 3.4% from a year earlier, exceeding the preliminary projection, signaling stronger price pressures even as growth momentum weakens.

The contraction underscores the challenges faced by Japan amid slowing global demand and domestic headwinds.

China’s exports rebound despite manufacturing weakness

China’s exports delivered a stronger-than-expected rebound in November, buoyed by a temporary easing of tensions with the United States.

Manufacturers accelerated shipments after Beijing and Washington reached a one-year trade truce during a meeting in South Korea in late October.

Outbound shipments rose 5.9% year-on-year, beating the 3.8% growth forecast in a Reuters poll and reversing October’s 1.1% decline, the first contraction since March 2024.

Imports increased 1.9%, falling short of expectations but improving from October’s 1% rise.

The agreement between the two countries paused restrictive measures, rolled back tariffs, and eased export controls on critical minerals and advanced technologies.

Still, US tariffs on Chinese goods stand at around 47.5%, while Beijing maintains tariffs of roughly 32% on US products.

Despite the export rebound, China’s factory sector remains under pressure.

Official data shows manufacturing contracted for the eighth straight month in November, while a private exporter-focused survey signaled a return to contraction.

Asian markets steady ahead of key Federal Reserve decision

Asian equities were cautiously higher on Monday as markets positioned for a widely expected US Federal Reserve rate cut.

Futures imply an 85% chance of a quarter-point reduction, though analysts anticipate a contentious meeting with possible dissents.

Japan’s Nikkei was little changed, while South Korea’s Kospi added 0.65% after strong gains last week.

China’s CSI300 index rose nearly 1.15% following the upbeat export data.

MSCI’s broad Asia-Pacific ex-Japan index added 0.18%.

India's Nifty 50 fell 0.44%.

In global markets, bond yields steadied, the dollar slipped slightly, and commodities from copper to oil were supported by expectations of further US policy easing and geopolitical risks.