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A commission will present its findings today on the Credit Suisse-UBS merger, focusing on the actions of Swiss authorities during the crisis. Meanwhile, Switzerland and the EU are expected to officially conclude their negotiations, with key decisions on financial contributions and the free movement of persons anticipated. Other notable news includes ongoing investigations into a Chinese ship in the Baltic Sea and a tragic stampede in Nigeria that resulted in the deaths of 35 children.
Major equity indexes closed lower amid global uncertainty, with S&P 500 earnings forecasts revised down by 0.5%. The Nasdaq Composite fell 0.6%, while Hershey's stock surged 10.9% on acquisition talks with Mondelez. Nvidia's stock dropped 2.6% due to a Chinese investigation into its business practices. As the Federal Reserve enters a blackout period ahead of its December meeting, CPI data due Wednesday could influence interest rate decisions, with expectations of a potential 25-basis-point cut.
Lebanon's defaulted dollar bonds have nearly doubled in value in under three months, with prices rising from around 6 cents to over 12 cents on the dollar. Soeren Moerch, a portfolio manager at Danske Bank AS, began buying the bonds in September, anticipating that Israel's actions against Hezbollah would diminish the militia's political power in Lebanon. He believes the bonds could potentially double again following the fall of Syrian dictator Bashar Al-Assad.
The swift overthrow of Bashar al-Assad's regime in Syria by rebel forces has significant global implications, particularly for Russia and Iran, who are seen as major losers. The U.S., Turkey, and Israel emerge as key beneficiaries, with potential shifts in regional power dynamics and market confidence. Analysts warn of a possible power vacuum in Syria, which could lead to instability, while Turkey's influence may grow if a stable government replaces Assad.
Syrian President Bashar al-Assad has resigned and fled the country as rebel forces successfully seized Damascus, marking a significant shift in the ongoing conflict. Meanwhile, South Korean prosecutors have launched an investigation into President Yoon Suk Yeol for treason and abuse of power following a failed coup. In other news, the EU has finalized a major trade deal with four South American nations, and a US appeals court has upheld a law that could force TikTok's owner, ByteDance, to sell the platform or face a ban next year.
Syria's President Bashar Al-Assad has fled to Russia, marking the end of 50 years of his family's rule as rebel forces advance towards Damascus. Meanwhile, South Korea's President Yoon Seok Yeol survived an impeachment vote, and a U.S. court upheld a law requiring TikTok's sale. Despite geopolitical turmoil, U.S. markets reached new records, with traders anticipating a Federal Reserve rate cut that could boost market performance.
President-elect Donald Trump indicated that Ukraine may receive reduced military aid from the U.S. once he takes office, questioning why Europe contributes less despite the ongoing conflict. He emphasized the need for NATO allies to share the financial burden and called for an immediate ceasefire and negotiations to end the war. Trump also noted his strong ties with Vladimir Putin and expressed confidence in brokering peace, while commenting on Russia's diminishing interest in Syria following the conflict in Ukraine.
Romania's presidential election has been annulled by the highest court due to alleged Russian interference, necessitating a repeat election. In Syria, Islamist forces are advancing towards Homs, threatening the Assad regime's coastal access. Meanwhile, ETH Zurich will triple tuition fees for foreign students starting in fall 2025, and the Swiss Alpine Club faces a CHF 1.7 million deficit from the 2023 Climbing World Championships.
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