Daily Discussion - November 27, 2024

Israel and Lebanon’s Hezbollah agree to a ceasefire

France on the Brink: Budget Battle Threatens Government

French sovereign bonds and stocks fell on Wednesday as concerns intensified among investors that a dispute over a belt-tightening draft budget could bring down Prime Minister Michel Barnier’s government.

The sell-off pushed the gap between 10-year French borrowing costs and those of Germany to as high as 0.9 percentage points, a level not reached since the Eurozone crisis in 2012. It later fell back to 0.86 points.

The benchmark Cac 40 stock index was down 0.7 per cent, the worst performer among major European markets, having earlier dropped more than 1 per cent.

Jefferies’ chief…  Read more European strategist Mohit Kumar said the sell-off was due to “concerns that the current government may not survive the budget”.

Israel Settles for Ceasefire in Lebanon

Many factors fed into Benjamin Netanyahu’s eventual decision to take up a US-brokered ceasefire and stop Israel’s offensive in Lebanon. His war aims against Hizbollah were also always more modest than the “total victory” he has sought against Hamas in Gaza.

But in confronting the many domestic critics of the deal — including far-right government ministers, northern Israeli mayors and opposition figures — Netanyahu calculated that his goals had been largely met, while the risks of pushing on were mounting.

“Hizbollah is not Hamas. We cannot totally destr…  Read moreoy it. It was not on the cards,” said Yaakov Amidror, a former national security adviser to Netanyahu who now works at Washington think-tank Jinsa. “Lebanon is too big. Hizbollah is too strong.”

US secures release of 3 Americans in prisoner swap with China

Three Americans who had been detained in China for years have been released in a prisoner swap between Washington and Beijing.

“We are pleased to announce the release of Mark Swidan, Kai Li and John Leung from detention in the People’s Republic of China,” a US National Security Council spokesperson told CNN on Wednesday. “Soon they will return and be reunited with their families for the first time in many years.”

The Americans were released in exchange for unidentified Chinese nationals and are now in US custody, according to a US official. On Wednesday, the US als…  Read moreo lowered its travel advisory level to Level 2: Exercise increased caution for mainland China. Politico first reported the release of the Americans.