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Switzerland and China are set to enhance their free trade agreement, with implementation expected in 2025. Swiss parliamentarian Thomas Aeschi indicated that negotiations, which resumed in September, aim to reduce heavy tariffs on Swiss exports, particularly watches. China seeks to attract more Swiss investments and companies, highlighting the importance of their trade relationship, valued at CHF33 billion.
The euro is set to experience its worst month in over a year, declining approximately 3% in November to $1.0575, near a two-year low. This significant drop is attributed to concerns that US trade tariffs will further impact the already struggling European economy, marking the largest monthly decline since May 2023.
Trump's impending tariffs could benefit India's exports, but may provoke China to devalue its currency, leading to competitive devaluation among emerging markets, warns Jyoti Jaipuria of Valentis Advisors. Analysts predict the yuan could fall below a 17-year low against the US dollar, potentially dropping by 10%. This scenario echoes China's 2015 devaluation, which aimed to support its slowing economy but resulted in capital outflows and reduced foreign exchange reserves.
France's reputation as a safe bond market is deteriorating, as countries like Ireland, Portugal, Spain, and Greece now outperform it. Amid a prolonged political crisis in Paris, concerns are rising that France may soon face higher borrowing costs than Italy, traditionally seen as fiscally irresponsible.
North Korean leader Kim Jong Un's reliance on Russia for economic support may backfire if Donald Trump successfully ends Vladimir Putin's war in Ukraine, a study from a South Korean think tank suggests. As Moscow strengthens ties with Pyongyang through military and economic exchanges, North Korea has provided troops and ammunition to support Russia, while receiving financial aid and military enhancements in return.
The Swiss economy experienced a slowdown in the third quarter, with a 1.3 percent growth year-on-year, as reported by SECO. While trade, construction, and consumption contributed positively, the industrial sector, particularly chemicals and pharmaceuticals, faced significant challenges, leading to a quarterly growth of only 0.2 percent.
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India's IT stocks are experiencing a notable rally, with a 7% increase in November, driven by expectations of a stronger dollar and increased tech outsourcing following Donald Trump's election. This sector is outperforming others amid weak earnings and significant foreign outflows, as demand from overseas clients improves and potential corporate tax cuts in the U.S. boost technology spending. The performance reflects a shift in fortunes for exporters influenced by Trump's early policy signals, including proposed tariffs on goods manufacturers.
Ghanaians will head to the polls on December 7 to elect a new president and parliament. Investors are closely monitoring the election, as the outcome will significantly influence the direction of an economy that is recovering from a debt default.
Investors are increasingly turning to South Africa as a stable option amid the uncertainties of the Trump administration. Major financial institutions, including Goldman Sachs and Societe Generale, predict that the country's currency, stocks, and bonds may outperform other emerging markets in 2025, offering a buffer against global economic turbulence. South Africa is viewed as relatively insulated from the potential shocks of U.S. policies.
South Africa assumes the G20 presidency on Sunday, marking a historic first for an African nation. The leadership will prioritize inclusive growth and climate change, but faces challenges from ongoing trade wars and diplomatic tensions that could complicate these goals.
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