Good Morning

South Korea's police searched President Yoon's office because of his martial law decision. Ex-Defense Minister Kim attempted suicide in prison. Yoon is under pressure due to accusations of sedition and parliament is planning impeachment proceedings. Protests and strikes on the rise.

Mohamed al-Bashir, Syria's new interim prime minister, announced that he would bring back refugees, protect citizens and ensure basic services. However, without foreign currency, the situation is financially catastrophic. Following the fall of Assad in a lightning attack by the rebels, there are calls for an inclusive transitional regime. The USA urges respect for minority rights and humanitarian access. The destruction caused by the civil war, international sanctions and new challenges such as an Israeli military operation are making reconstruction more difficult. Millions of refugees are hoping for better times, while the West continues to classify HTS as a terrorist organization.

China's leadership is planning to devalue the yuan in 2025 in response to possible higher tariffs under a second Trump presidency. A weaker currency could promote exports and alleviate deflationary pressure, but harbors risks of international countermeasures. Analysts expect the yuan to potentially fall to 7.5 per dollar. The central bank is signaling a loose monetary policy, but is avoiding explicit commitments to exchange rate stability. While Trump is threatening higher tariffs on imports, particularly from China, devaluation is being discussed as a short-term means of supporting the economy.

Luigi Mangione, 26, charged with the murder of UnitedHealth manager Brian Thompson, is resisting extradition to New York. He was carrying a manifesto depicting the crime as a protest against corruption in the health care system. Mangione, an Ivy League graduate with chronic back pain, possessed an unregistered gun. He plans to plead not guilty.

Over 400 people were arrested in Georgia during protests against the postponement of EU accession talks. The opposition criticizes police violence and attacks on activists, while the government defends its actions as pragmatic. The EU and Western states are sharply critical.

Dietmar Woidke (SPD) did not receive a majority for re-election as Minister President of Brandenburg in the first round of voting. He received 43 of the 45 votes required. An absolute majority is required again in the second ballot. Woidke has governed Brandenburg since 2013, with the SPD forming a new coalition with the Sahra Wagenknecht (BSW) alliance.

Ukraine is increasingly relying on self-produced missiles and drones to defend itself against Russia. President Selensky announced successful tests of new weapons such as the Peklo missile. While the military situation remains difficult, a Russian missile attack in Zaporizhia claimed several lives. Poland plans to coordinate peace negotiations in the winter. The USA pays Ukraine a 20 billion dollar loan, financed by frozen Russian assets.

Adidas confirms that tax investigators have carried out searches at the company's headquarters in Herzogenaurach and other locations. The investigation relates to compliance with customs and tax law when importing products to Germany between October 2019 and August 2024. Adidas is cooperating with the authorities and providing the necessary documents. The company emphasizes that no significant financial impact is expected.

In the USA, demand for structured financial products reminiscent of the 2008 financial crisis is booming. Deals worth 380 billion dollars were concluded this year, an increase of 20%. These products offer higher returns, but are riskier as they combine loans with conversion into company shares. Risky financial products based on unusual assets such as music rights are also particularly popular. Banks benefit from higher fees, but experts warn of the long-term risks of such investments.

Rising prices for services and food have pushed the inflation rate in Germany back above the 2% mark for the first time since July. In November, consumer prices were 2.2% higher than in the same month last year, as confirmed by the Federal Statistical Office yesterday. (STAT)

There is still no agreement in the dispute over cuts at Volkswagen. The fourth round of wage negotiations also ended without a result. It was accompanied by warning strikes at nine of the ten VW locations. (TAG)

The neobroker Scalable launches a new electronic trading platform together with the Hanover Stock Exchange. This is the broker's response to stricter EU regulation, which aims to restrict the existing discount model. (FAZ)

• DAX: hardly moved yesterday (FIN)

• Bankers: European IPO market expected to recover in 2025 (BBG)

• Energy transition: Skills shortage worse than expected (TAG)

• Adidas: Had a visit from the tax investigators yesterday (MM)

• Meta & Google: Targeted by the EU for advertising to young people (HB)

• US markets: Mixed overall - Dow Jones slightly up, Nasdaq slightly down (TAG)

• USA: Import prices reach record highs in the face of tariff threats (RT)

• Japan: Bankruptcies rise to highest level in 11 years (RT)

• India: Foreign investors buy as many shares as last in June 2023 (BBG)

• Taylor Swift: Allegedly pays crew members around $200m in bonuses (MM)

• EXTRA:

• China is restricting the supply of UAV parts to the USA and Europe, as Bloomberg reports. Many Ukrainian companies use Chinese parts. China could introduce stricter export restrictions on drone parts from 2025 in response to US restrictions.  Western drone manufacturers, particularly in Ukraine, Poland and Estonia, have been working on decoupling from China for some time. However, production there is cheaper and in larger quantities.

• The SDF have been heavily reinforced on the Turkish border. A joint offensive by Turkey and the SNA in north-eastern Syria is expected.

• The neo-Nazi cell “Werewolf Division” is accused of planning an assassination attempt on Giorgia Meloni and Klaus Schwab, the chairman of the World Economic Forum. Twelve arrests were made.

• The UN would consider removing the Syrian rebel group that toppled the regime of Bashar al-Assad from its list of designated terrorist groups if it passes the crucial test of forming a truly inclusive transitional government, according to a senior official at the organization.

• The major German software manufacturer SAP plans to cut thousands of jobs, Handelsblatt reports, citing sources within the group. According to the report, the number of jobs in Germany is to be reduced by 14 percent, with around 3,500 employees affected. They will initially be offered a termination agreement