Good Morning

 

• China's President Xi Jinping called on US President Joe Biden last year to change US language on Taiwan independence. Xi asked Biden to publicly state that the US was against Taiwan independence instead of just saying that it did not support it. However, the US rejected this change and emphasized its previous “one-China policy”. Since then, Chinese diplomats have repeated the demand, but the Biden administration has stuck to its previous position. Taiwan has been informed of these diplomatic developments by the US.
  
• The Israeli parliament decided on Monday to ban the UN aid organization UNRWA in the country, triggering international concern as this could further worsen the humanitarian situation in Gaza. Israel justified the ban with the involvement of some UNRWA employees in an attack on October 7, 2023 and their connection to Hamas. At the same time, the Israeli army intensified its attacks in northern Gaza, leaving around 100,000 people in towns such as Jabalia and Beit Hanoun without food and medical supplies, according to Palestinian emergency services. There were also further Israeli airstrikes in Lebanon.
  
  
• At a campaign event for Donald Trump in New York, comedian Tony Hinchcliffe referred to Puerto Rico as a “floating garbage island” and made derogatory comments about Latinos. These remarks were criticized as racist by leading politicians from both parties and prominent Puerto Ricans. Trump's campaign distanced itself from the statements, and celebrities such as Jennifer Lopez and Bad Bunny also condemned the remarks. Republican politicians, including Rick Scott, also voiced criticism. However, some Trump supporters played down the significance of the comments.
  
  
• The US has announced that no new restrictions will be placed on the use of American weapons by Ukraine if North Korea supports Russia in the war. According to the Pentagon, around 10,000 North Korean soldiers have been stationed in Russia, with some already near the Ukrainian border in the Kursk region.This is raising fears in the West about a possible escalation of the conflict.NATO Secretary General Mark Rutte condemned the growing military cooperation between Russia and North Korea as a threat to global security, and US President Joe Biden called the situation “very dangerous”.
  
• There is growing resentment in the German government over economic policy, as two competing meetings are taking place instead of a joint economic summit.
  
  Chancellor Olaf Scholz receives business and trade union representatives in the Chancellery this afternoon to discuss measures to strengthen German industry.
  However, the meeting will remain secret and smaller companies, SMEs and trade associations have not been invited.At the same time, the FDP and party leader Christian Lindner organized a separate business meeting in the Bundestag for those business associations that were not invited to the Chancellor's summit. The reaction to this is mixed: SPD parliamentary group leader Rolf Mützenich criticizes the meeting as “silly” and accuses Lindner of obstructionism. Business representatives are increasingly frustrated by the disunity of the coalition and fear being dragged into their disputes.
  
  
• IG Metall has launched the first warning strikes in the metal and electrical industry to demand a seven percent wage increase. Actions took place during the night at the VW plant in Osnabrück and in Hildesheim, among others.
  Employers have so far only offered 3.6 percent over 27 months, which the union considers insufficient. With the end of the peace obligation, the strikes could now be extended to several key industries.
  
• According to a report, CIA Director Bill Burns has proposed a 28-day ceasefire in the Gaza conflict, which would include the release of hostages and prisoners. At the same time, the USA warned Iran against further attacks on Israel and threatened consequences. UN Secretary-General Guterres criticized a possible ban on the UNRWA aid organization by Israel as “devastating” for Palestinian refugees.
  
• Caught: This Indian pharmaceutical company supplies Nvidia chips to Russia According to information from US news agency Bloomberg, an inconspicuous pharmaceutical company in Mumbai, Shreya Life Sciences, has probably supplied state-of-the-art Dell servers with Nvidia and AMD chips to Russia. The USA and EU are alarmed - and are surprised that the Indian government has not noticed anything. (BBG)
• JPMorgan forecast: AI boom puts pressure on US water supplies The bankers at JPMorgan warn that the increasing demand for energy for AI is putting further pressure on the already strained water supplies in the USA. A report produced in collaboration with sustainability consultancy ERM highlights that parts of the US could soon literally be left high and dry during periods of drought. (ERM) 
• Dow Jones & NY Post: Suing Perplexity AI for copyright infringement Dow Jones and the New York Post have filed a lawsuit against Perplexity AI. The AI platform is alleged to have used copyrighted content without permission. This lawsuit once again reflects the increasing tensions between media companies and AI technologies, particularly in relation to the use of copyrighted content by AI systems. (CNN)
• Goetzpartner: scandalous consultancy finds investors The consultancy firm had slipped into crisis following the imprisonment of its founders. Now a financial investor, Kartesia, has stepped in. And the first step is to change one thing in particular: the name. (PE-HUB)
• Sports discounter Decathlon: invests in Munich e-bike start-up The specialist for used electric bikes Rebike has already had to change its business model several times - but Decathlon is not deterred. Handelsblatt explains how the investment could pay off. (HB)
• Japan: PE's favorite target thanks to new corporate governance structures First 7/11, then Fujisoft: Japan's flagship companies are becoming popular investment targets. The Japanese government has helped - for example with laws that oblige companies to generate more shareholder value. A Wall Street Journal deep dive worth reading. (WSJ)
• Volkswagen: plans to close at least three plants in Germany According to the Works Council, Volkswagen wants to close three plants, relocate departments abroad and cut tens of thousands of jobs. Yesterday, the German government also reacted to the cost-cutting plans - Chancellor Scholz called on VW to save jobs. (SPG) 
• Another car: new cars cost almost ten months' wages Chinese manufacturers want to roll up the market with low-cost electric cars. The established manufacturers from Germany are making it easy for them: their cars have become almost unaffordable. (TAG)
• Philips: Biggest daily loss in +30 years Due to weak demand on the Chinese market, CEO Roy Jakobs has to cut the medical technology company's targets. The share price plummeted by 18% at times as a result. (INV)
  
  
• Meta: Releases podcast generator “NotebookLlama”
• Google: Tests AI agent “Jarvis” for automated web tasks
• BlueSky: Twitter successor raises $15 million
• Hedge funds: Increased pressure in takeover poker for Commerzbank
• DAX: Close to record high of 19,500 points again (HB) 
• Hydrogen: Does the German government want to import it from India (TGS) 
• VW employees threaten to blockade the factories (NTV) 
• GoetzPartners: Scandal consultancy finds investors, founders still in custody (HB) 
• Olympus: Medical technology group kicks out CEO - for allegedly buying illegal drugs (MM)
• US equities: Increased volatility due to Q3 reports (FT) 
• Hedge funds: Cuts purchases of China shares drastically again after September rally (RT) 
• Google: Developing AI that can control computers (BBG) 
• Alibaba: Settles shareholder lawsuit for $433m (RT) 
• Delta: Sues CrowdStrike for $500m over global IT failure (CNBC)