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Key negotiators at COP29 have reached a broad agreement on climate finance, potentially unlocking $300 billion annually for poorer nations, a significant increase from previous pledges. While optimism grew after a productive meeting, consensus among nearly 200 nations remains essential for finalizing the deal. A draft of the agreement is expected to be published for further discussion and approval.
Mexico is investing $2.7 billion to expand its main commercial port, aiming to more than double its capacity. This move reflects confidence in the future of global merchandise trade, despite threats of tariffs from the incoming Trump administration.
Scott Bessent, selected by Donald Trump as Treasury secretary, advocates for tariffs, a shadow Federal Reserve chair, and potentially a weaker dollar. If confirmed, he will oversee public financing, economic sanctions, and the IRS, while also engaging in international economic diplomacy and facilitating financial market operations. Bessent's role will be pivotal in advancing Trump's agenda, including the renewal of 2017 tax cuts and the easing of financial regulations.
Martin Schlegel, a Swiss central banker, emphasized the need to increase equity at the Swiss National Bank (SNB) to mitigate risks associated with its large balance sheet, which currently stands at CHF840 billion. He indicated that prioritizing capital reserves over profit distributions to the government may lead to no payouts this year, following two years of skipped disbursements after a record loss in 2022. With inflation at just 0.6%, concerns arise about the potential for it to fall below the SNB's target range.
Business activity in the euro area unexpectedly contracted this month, raising concerns about the region's economic outlook and prompting speculation that the European Central Bank may need to implement more aggressive interest-rate cuts. The euro has fallen to its lowest level since 2022 against the dollar, influenced by weakened purchasing managers' indices for services and manufacturing, alongside political instability in Germany and France and potential tariffs from a future Trump presidency in the US.
President-elect Donald Trump swiftly appointed many Cabinet members but took his time selecting billionaire investor Scott Bessent as treasury secretary. Bessent, with a background in finance and a Yale education, is expected to help reshape the global trade landscape, implement significant tax cuts, manage national debt, and maintain market confidence. Trump emphasized Bessent's role in driving U.S. competitiveness and addressing trade imbalances while promoting economic growth through energy dominance.
The market has ended a two-week decline, while the rupee has reached a new record low. Investors are encouraged to opt-in for push notifications to receive relevant updates and transaction information.
Investors covered short positions in NSE Nifty and Bank Nifty ahead of the Maharashtra and Jharkhand election results, leading to significant unwinding in the November derivatives series. Nifty surged to reclaim 23,900, with key resistance at 24,000 and support at 23,500, as FIIs increased net long positions, reflecting a cautiously optimistic market sentiment.
Italian producers are stockpiling food and wine in the US amid fears of impending tariffs under President Trump, with exports expected to reach €7.8bn in 2024. While demand for Italian products remains strong, concerns about price hikes and market access persist, prompting urgent shipments before potential duties are imposed.
The US government's debt load has emerged as the primary risk to financial stability, surpassing concerns about persistent inflation, according to a Federal Reserve survey. This finding highlights worries about fiscal debt sustainability, alongside escalating tensions in the Middle East and policy uncertainty. The survey was conducted by New York Fed staff from late August to late October.
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