China Seeks French Support Amid Growing Diplomatic Rift with Japan

A Long-Awaited Legislative Breakthrough

Institutional Reforms and Enforcement Enhancements

Economic Impacts and Growth Potential

Source: Bloomberg

Mexico's Attorney General Alejandro Gertz Manero resigned under pressure from President Claudia Sheinbaum, who had grown increasingly frustrated over his handling of high-profile investigations.

The Senate approved his resignation Thursday afternoon and announced that the next attorney general will be selected through an open contest allowing up to 10 candidates to compete for the job. People familiar with the matter said Ernestina Godoy, who served as Mexico City's prosecutor when Sheinbaum was mayor, has the president's support.

The president's office didn't immediately reply to a request for comment.

Sheinbaum's dissatisfaction with Gertz Manero deepened as her team considered his office responsible for leaking sensitive information related to a widening fuel-smuggling scandal known in Mexico as "huachicol fiscal," the people familiar added, requesting anonymity because they're not authorized to speak publicly.

The last straw was how the Attorney General's Office handled a probe into one of the owners of Mexico's Miss Universe franchise, Raul Rocha Cantu, who is facing allegations of smuggling fuels and weapons into the country as part of the "huachico fiscal" scheme.

Details of the investigation leaked to the press revealed Rocha Cantu's ties with state oil company Pemex and the father of the current Miss Universe winner, raising questions about the fairness of the competition.

Sheinbaum was displeased by media reports that the attorney general had offered criminal immunity to Rocha Cantu during the investigation, the people familiar said. She was particularly upset about the probe's impact on Miss Universe, a cherished event in Mexico, according to one of the people.

Speaking to reporters on Wednesday morning, the president said the investigation into Rocha Cantu's dealings should not overshadow the beauty queen's win.

"That's separate from the young woman who won the contest," Sheinbaum said. "They want to lump it together, but it's different. They want to take away her merit."

In his letter to the Senate, Gertz Manero justified his resignation by saying Sheinbaum offered him the position of ambassador to a "friendly country," without specifying which one.

The 86-year-old lawyer became Mexico's attorney general in 2019 after the position was revamped the previous year. He had three years left in his mandate. A former Mexico City prosecutor, federal security minister and congressman, he was appointed by former President Andres Manuel Lopez Obrador — a move questioned by some within the ruling party given his roles in previous administrations and his age.

Gertz Manero's replacement marks the second major change in Sheinbaum's one-year-old administration after she appointed Edgar Amador as finance minister in March.

Source: Bloomberg Europe

While US Markets are away for the Thanksgiving holiday, leaving the broader session fairly calm, the FX markets remain open and active, with all eyes turning to the Kiwi Dollar (NZD), posting yet another strong session.

1-Day FX Performance – NZD demarks itself in the calm Thanksgiving Session – Source: Finviz

The Antipodean currency has faced its share of struggles this year, weighed down by a slowing New Zealand economy that proved more sensitive than its neighbor Australia to the slowdown in global trade post-tariffs—a weakness that was starkly evident in a terrible Q2 GDP growth rate of -0.9%.

However, after 325 basis points of cuts, the data has started to come back in a flash. New Zealand Retail Sales just posted a strong beat of 1.9% versus the 0.5% expected, a sign of strong recovery that follows stronger inflation prints and improving Manufacturing PMIs.

New Zealand's Main Interest Rate (OCR) since 2020 – Source: Reserve Bank of New Zealand

Adding to the shift in sentiment, RBNZ Governor Christian Hawkesby mentioned that a future rate cut faces "significant hurdles."

This wording sufficed the market to assume that the 2.25% rate is the lower bound for the Kiwi rate, with markets now pricing rates to stay put throughout 2026.

This fundamental pivot is a clear sign of renewed strength for the NZD, which is up 2.65% against the US Dollar since last Friday.

Let's look at the major Kiwi pair, NZD/USD, to spot where that takes the action looking forward.

NZD/USD Multi-Timeframe Technical Analysis

Daily Chart

NZD/USD Daily Chart, November 27, 2025 – Source: TradingView

Since July 1st and the comeback of the US Dollar, the NZD/USD has been in a one-way descent, exacerbated by diverging policies between the Fed and the RBNZ.

Taking the pair all the way down to a retest of the Liberation Day troughs in a Monthly Downward Channel, the action is now marking a first clear rebound in months.

Propulsed by changing fundamentals and bullish daily divergences, the ongoing action is strong and will face hurdles at the 50-Day Moving Average (0.57268) and Channel highs.

Still, when looking at how strong the current candles are, these hurdles could be breached soon. For confirmation, look at a session close above the 50-MA.

4H Chart and Technical Levels

NZD/USD 4H Chart, November 27, 2025 – Source: TradingView

The ongoing rally is also facing a few hurdles on the intraday timeframe:

Overbought RSI levels within the Pivot Zone (0.5720 to 0.5750) could trigger some small mean-reversion.

A retest of the 4H-MA 200 (0.5690) could see higher probability for the action to continue its path higher.

NZD/USD Technical Levels to keep on your charts:

Resistance levels (NZDUSD)

Support levels

1H Chart

NZD/USD 1H Chart, November 27, 2025 – Source: TradingView

Looking even closer, the action is strongly following the 20-Hour MA at 0.57140;

Source: MarketPulse by OANDA Group

Hong Kong fire authorities said they expected to wrap up search and rescue operations after the city's worst fire in nearly 80 years tore through a massive apartment complex on Friday, killing at least 94 people and leaving scores more missing.

Soon after dawn on Friday, firefighters had mostly contained the blaze that destroyed the Wang Fuk Court housing complex in the northern district of Tai Po. The eight-tower estate housing more than 4,600 people had been undergoing renovations and was wrapped in bamboo scaffolding and green mesh.

Police said they had arrested three construction company officials on suspicion of manslaughter for using unsafe materials, including flammable foam boards blocking windows.

Firefighters said they expect a search and rescue operation at the still-smoldering complex to be completed by 9 a.m. (0100 GMT).

"We'll endeavor to effect forcible entry to all the units of the seven buildings, so as to ensure there are no other possible casualties," Deputy Fire Services Director Derek Chan told reporters early on Friday.

As many as 279 people were listed as missing in the early hours of Thursday morning, but that figure has not been updated for more than 24 hours. Chan said 25 calls for help to the Fire Department remain unresolved, including three in recent hours which would be prioritised.

Rescuers battled intense heat, thick smoke and collapsing scaffolding and debris as they fought to reach residents feared trapped on the upper floors of the complex.

A distraught woman carrying her daughter's graduation photograph searched for her child outside a shelter, one of eight that authorities said are housing 900 residents.

"She and her father are still not out yet," said the 52-year-old, who gave only her surname, Ng, as she sobbed. "They didn't have water to save our building."

Most of the victims were found in two towers in the complex, while firefighters found survivors in several buildings, Chan said, but gave no further details.

WORST FIRE SINCE 1948

The confirmed death toll rose to 94 early on Friday, the Hospital Authority said. It is Hong Kong's deadliest fire since 1948, when 176 people died in a warehouse blaze.

Police arrested two directors and an engineering consultant of Prestige Construction, a firm that had been doing maintenance on the buildings for more than a year.

"We have reason to believe that the company's responsible parties were grossly negligent, which led to this accident and caused the fire to spread uncontrollably, resulting in major casualties," Police Superintendent Eileen Chung said on Thursday. Prestige did not answer repeated calls for comment.

Police seized bidding documents, a list of employees, 14 computers and three mobile phones in a raid of the company's office, the government added.

The city's development bureau has discussed gradually replacing bamboo scaffolding, opens new tab with metal scaffolding as a safety measure.

Hong Kong's leader, John Lee, said the government would set up a HK$300 million ($39 million) fund to help residents while some of China's biggest listed companies announced donations.

On the second night after the blaze, dozens of evacuees set up mattresses in a nearby mall, many saying official evacuation centres should be saved for those in greater need.

People - from elderly residents to schoolchildren - wrapped themselves in duvets and huddled in tents outside a McDonald's restaurant and convenience shops as volunteers handed out snacks and toiletries.

Hong Kong, one of the world's most densely populated cities, is scattered with high-rise housing complexes. Its sky-high property prices have long been a trigger for discontent and the tragedy could stoke resentment towards authorities despite efforts to tighten political and national security control.

The leadership of both the Hong Kong government and China's Communist Party moved quickly to show they attached utmost importance to a tragedy seen as a potential test of Beijing's grip on the semi-autonomous region.

The fire has prompted comparisons to London's Grenfell Tower inferno, which killed 72 people in 2017. That fire was blamed on firms fitting the exterior with flammable cladding, as well as failings by the government and the construction industry.

Source: Reuters

Nexperia warned that customers across industries are facing impending production halts, while calling on its Chinese unit to take concrete steps to re-establish dialog.

The Dutch chipmaker, which has lost the cooperation of its Chinese subsidiary since the Netherlands government took action to gain influence over decision making, said it welcomed efforts by Chinese authorities to facilitate the resumption of exports but its customers were "still reporting imminent production stoppages."

"This situation cannot persist," Nexperia wrote in an open letter to Nexperia's entities in China on Thursday. The company designs and makes essential semiconductors for the automotive and consumer electronics sectors. Carmakers from Asia to Europe have raised alarm about disruption of its output.

The Dutch government last week suspended an order that gave it powers to block or revise decisions at Nijmegen-based Nexperia. Dutch Economic Affairs Minister Vincent Karremans had called it a "show of goodwill," noting that discussions with Chinese authorities were continuing.

Nexperia said in its letter that it had made repeated attempts to directly communicate with its subsidiary through calls, emails, proposed meetings and even "formal correspondence to demand performance of rights," but did not receive "any meaningful response."

The Dutch company also pushed its Chinese unit to engage in talks either through email or a "neutral, professional third-party mediator" to restore predictable supply flows.

Wingtech Technology Co., the chipmaker's Chinese owner, did not immediately respond to an email requesting comment. It has asked for the restoration of its full control and shareholder rights over Nexperia in the Netherlands.

Earlier on Thursday, the Chinese government urged the Netherlands to take concrete actions to resolve concerns around Nexperia and to bring back stability to the global supply chain.

Source: Bloomberg Europe

Tokyo's inflation held steady and industrial output unexpectedly rose, keeping the Bank of Japan (BOJ) on track to consider an interest rate hike in December or January.

Consumer prices excluding fresh food in the capital advanced 2.8% in November from a year earlier, according to the Ministry of Internal Affairs and Communications on Friday. Faster gains in electricity costs helped offset slower increases in processed food prices. The result was a tad stronger than the median economist forecast of 2.7% and matched the result for the previous month.

The measure that also strips out energy also increased 2.8%, unchanged from last month. Service prices, a vital component to gauge the sustainability of inflation, increased 1.5% from a year earlier. Rice prices, a driving force for this year's price gains, rose 37.9%, continuing to decelerate after the pace hit a record high of 93.8% in April.

The data, a leading indicator for national price trends, are likely to instill confidence in the BOJ that the probability of its economic outlook being realised is rising. The figures may give traders' bets on a December interest rate hike another boost after such speculation mounted recently.

"Overall, there was nothing in today's data to stop the BOJ from mulling a rate hike," said Taro Saito, head of economic research at NLI Research Institute. "My base case is a hike in January but it will be determined after considering the yen and politics."

What Bloomberg Economics says..."Tokyo's November CPI data show inflation remains sticky, supported by solid wage growth, stronger price expectations, and the rollback of energy subsidies. With Tokyo's trend pointing to national inflation near 3%... the reading would bolster confidence that price growth is persistent enough to justify further scaling back stimulus as early as December." — Taro Kimura, economist

The yen was little changed around 156.25 to the dollar after the data, while stocks were narrowly mixed.

The high cost of living is a primary focus of Prime Minister Sanae Takaichi's government. She unveiled her first economic package last week to tackle the problem. While gains in processed food slowed, the pace remained elevated at 6.5%. In addition to rice, chocolate and coffee contributed to gains.

The number of price increases by Japan's major food companies is set to reach 20,609 this year, rising 64.6% from the previous year, Teikoku Databank reported Friday.

In other data Friday, industrial production rose 1.4% in October from September, beating the consensus estimate of a 0.6% decline, while rising 1.5% from a year earlier, the Ministry of Economy, Trade and Industry reported. Car production rebounded as the US-Japan trade deal cut auto tariffs to 15% from 27.5%, while artificial intelligence (AI) demand gave a boost to information and communications equipment.

"The data suggest manufacturing is recovering from earlier US tariff hits," said Taro Kimura, economist at Bloomberg Economics. "This reinforces the Bank of Japan's assessment at its October meeting that downside risks to growth are easing."

Separately, the jobless rate held steady at 2.6% and the jobs-to-applicant ratio nudged lower to 1.18 in October, meaning there were 118 jobs offered for every 100 applicants.

In an interview with Bloomberg this week, Tomoko Yoshino, the leader of Japan's largest labor union group, urged Takaichi's government to do more to fight inflation as the yen could help inflation continue to outpace nominal wage growth. Real wages have fallen for the last nine months. Yoshino's group, Rengo, will be pushing for wage increases exceeding 5% in negotiations with employers that will culminate in March.

Takaichi unveiled an economic stimulus package last Friday with fresh spending totaling ¥17.7 trillion (US$113 billion, or RM466.63 billion), as she focuses on addressing rising costs of living with steps including expanded utility subsidies and a cut in gasoline taxes. SMBC Nikko Securities estimates the direct impact of those measures will shave 0.38 percentage point from Japan's core CPI next year.

"Owing to government gasoline and utility measures, Japan's inflation is going to decelerate quickly from here," Saito said. "I expect Tokyo inflation to be around 2.5% in the next data, but that doesn't mean the price trend will also be going down."

The national key inflation gauge picked up to 3% last month, extending the streak of readings at or above the BOJ's 2% target to more than three and a half years. Elevated costs of living were a primary reason that Takaichi's ruling Liberal Democratic Party suffered setbacks in the last two national elections, losing majorities in both houses of parliament.

BOJ governor Kazuo Ueda has kept the benchmark rate at 0.5% since January, as he awaits more evidence that underlying inflation will achieve the 2% target. With the economy having escaped a devastating impact from US tariffs, as was once feared, almost all BOJ watchers expect a rate hike no later than January.

Kazuo Momma, former BOJ executive director in charge of monetary policy, told Bloomberg this week that the odds of a rate hike are "fairly high" at the December policy meeting, given the recent weakening of the yen. The central bank will deliver its next policy decision on Dec 19.

"Food inflation is expected to subside but a risk is the renewed weakening of the yen," Saito said. "The yen could be boosting upside risks."

Source: Theedgemarkets