Hong Kong’s Deadliest Fire in Decades Sparks Corporate Solidarity and National Outcry

Economic

Summary:

Following the catastrophic blaze at Hong Kong’s Wang Fuk Court that killed at least 55 people, Chinese tech giants and industrial firms have pledged millions in emergency aid...

Corporate Giants Mobilize Rapidly in Response to Deadly Blaze

In the aftermath of the devastating high-rise fire in Hong Kong’s Tai Po district, a wave of donations has poured in from China’s most powerful private-sector players. Alibaba Group and Ant Group jointly committed HK$30 million, with Alibaba founder Jack Ma separately pledging the same amount through his foundation. Other major contributors included Anta Group (HK$30 million), Tencent, Xiaomi, ByteDance, and NetEase, each pledging HK$10 million. The China Red Cross, along with automakers like BYD, Xpeng, and Geely, also offered support.

This surge in corporate giving reflects both public pressure and the broader political climate. President Xi Jinping swiftly called for "all-out efforts" to reduce casualties and emphasized the importance of coordinated relief. In a political context increasingly focused on social accountability, these donations not only aid victims but signal alignment with Beijing’s expectations for socially responsible capitalism.

Human Toll and Accountability in Focus

The blaze, which erupted in Wang Fuk Court a dense eight-tower public housing estate sheltering over 4,600 residents has left at least 55 confirmed dead, with hundreds still missing. The scale and intensity of the disaster mark it as Hong Kong’s worst since the 1948 Shek Kip Mei fire. Firefighters struggled for nearly 24 hours to contain the blaze across seven blocks, ultimately stabilizing four towers while others continued to burn into Thursday morning.

Preliminary investigations suggest the fire began on bamboo scaffolding, commonly used in Hong Kong construction, before spreading rapidly through wooden poles and protective netting. Authorities have arrested three individuals from the construction company responsible for the site, citing "gross negligence" and the use of flammable foam and plastic materials that likely failed to meet fire safety codes. They are now being investigated for manslaughter.

This tragedy has brought Hong Kong’s construction and safety practices into sharp relief, particularly regarding outdated materials and oversight lapses in densely populated areas.

Scrutiny Over Housing Safety and Regulatory Oversight

The fire has ignited public criticism over building safety, particularly in public housing, where cost-saving practices often intersect with vulnerable populations. Officials face growing pressure to reevaluate not only the materials used in scaffolding and protective construction but also the regulatory framework overseeing such developments.

The alleged use of substandard materials raises the question of whether current enforcement is adequate or if systemic weaknesses in inspection and compliance played a role. The public housing sector, already burdened by aging infrastructure and rising occupancy pressures, may now face a broader reckoning.

Philanthropy Amid Political Realignment

The scale of private-sector pledges reflects a deeper trend within China: the realignment of elite entrepreneurs with national policy directives. Figures like Lei Jun (Xiaomi), Zhang Yiming (ByteDance), and Wang Xing (Meituan) have in recent years launched philanthropic foundations or contributed billions to social causes, particularly in education, science, and welfare.

While these acts are humanitarian in nature, they also serve a strategic function in China’s tightening regulatory environment. By echoing Xi Jinping’s vision of “common prosperity,” these firms are reinforcing their social license to operate and potentially shielding themselves from further scrutiny.

A National Tragedy and Turning Point

As the death toll rises and investigations continue, Hong Kong's fire disaster has exposed systemic gaps in urban construction practices and forced renewed focus on regulatory integrity. Meanwhile, the private sector’s rapid philanthropic response demonstrates a complex interplay between corporate citizenship, political alignment, and public expectation.

This tragedy may serve as a turning point in both Hong Kong’s urban safety strategy and the broader redefinition of corporate responsibility across Greater China, as national leaders demand that profit be increasingly paired with purpose.

Source: CNBC

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George Anderson

Economic

Stocks

European Stocks Stall After Global Rally

Following a strong pan-European performance the previous day where the Stoxx 600 gained nearly 1.1% Thursday’s early trading signals revealed a more hesitant tone. Germany’s DAX was projected to edge up 0.2%, France’s CAC 40 to rise by 0.1%, and Italy’s FTSE MIB to open slightly higher. In contrast, the UK’s FTSE index hovered marginally below the flatline, suggesting regional divergence in investor expectations.

This pause follows a broader global upswing driven by increasing market confidence that the U.S. Federal Reserve will implement a rate cut in December. According to CME’s FedWatch tool, traders now price in an 84.9% chance of a quarter-point cut at the December 9–10 meeting. While this has supported Wall Street and buoyed Asia-Pacific markets, European traders appear to be taking a breather after pricing in much of the optimism.

Lack of Domestic Catalysts Shifts Focus to U.S. and China

The subdued open reflects a combination of cautious sentiment and limited domestic drivers. There were no major earnings reports scheduled for Thursday in Europe. Economic data releases such as Germany’s GfK consumer confidence and broader EU sentiment indicators are unlikely to shift market direction significantly unless they diverge meaningfully from forecasts.

The absence of major local headlines pushes investor attention outward toward U.S. monetary policy and geopolitical developments like China’s industrial slowdown and ongoing trade uncertainties. These external conditions influence European equities both directly, through multinational corporate exposure, and indirectly, through currency and commodity markets.

Speculation Around Puma Sparks Corporate Activity Interest

Despite the broader market's quiet tone, individual names are attracting attention. Bloomberg reported that Chinese sportswear giant Anta Sports may be preparing a bid for Germany’s Puma, one of Europe’s key athletic brands. While Puma has declined to comment, this potential acquisition could rekindle interest in the consumer discretionary and retail sector, especially given the growing wave of outbound Chinese investment despite capital controls.

Mergers and acquisitions often have a strong signaling effect in Europe’s fragmented corporate landscape, and any confirmation of interest from Anta may prompt revaluations across the sector.

Wall Street and Asia Set the Tone, But Europe Decelerates

Wall Street’s Wednesday rally marking its fourth consecutive day of gains has been a primary sentiment driver globally. The S&P 500, Dow, and Nasdaq each gained 0.7% to 0.8%, with technology and financial stocks leading the surge. Asian markets followed suit, with Japan’s Nikkei up 1% and South Korea’s Kospi rising 0.7%. India’s indices reached record highs, reflecting strong domestic investor appetite.

However, Europe’s slower Thursday opening suggests the region is entering a phase of tactical recalibration. Investors may be awaiting clearer signals from both central banks and corporate earnings, particularly in the absence of concrete fiscal stimulus from European governments.

While the global rally, fueled by Fed dovishness and improved earnings sentiment, continues to shape equity markets, Europe’s hesitant open reflects a more measured approach. Traders appear to be digesting gains and awaiting fresh catalysts, particularly data that might validate or challenge the current rate-cut narrative. Until then, European markets may remain range-bound, supported by global optimism but restrained by domestic uncertainties and structural inertia.

Source: CNBC

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FXOpen

Commodity

The United States is celebrating Thanksgiving, meaning trading activity across financial markets will be lower than usual today (and to some extent tomorrow). Yesterday, we noted a decline in volatility in the gold market.

Against this backdrop, the silver market is drawing attention – and may not allow traders to relax. As the XAG/USD chart shows, silver has risen by more than 7% since the start of the week.

It is reasonable to assume that the holiday-induced drop in liquidity has opened the door to broader price movements. It is not impossible that we may soon see an attempt to break the all-time high (around $54.45 per ounce), which as of this morning lies roughly 1% away.

Technical Analysis of XAG/USD

Examining the XAG/USD chart, we can identify key swing points that allow us to outline an ascending channel. This week's strong advance has pushed silver into the upper half of that channel.

The bulls' strength is reflected in:
→ the steep slope of the orange channel, within which we see impulsive bullish candles followed by brief corrections – a classic pattern of a strong market;
→ a higher peak on the Awesome Oscillator.

Given this context, it is plausible that the median line could switch from resistance to support (as it has previously – shown by arrows), potentially helping the bulls gather the confidence needed to challenge the record high.

Source: FXOpen

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Gerik

Economic

Chinese Tech Giants Turn to Southeast Asia for AI Advancement

Facing increasingly stringent U.S. export restrictions on cutting-edge semiconductor technology, leading Chinese technology firms are reportedly shifting their AI model training operations overseas. According to a Financial Times report, companies like Alibaba and ByteDance have begun utilizing data centers in Southeast Asia to train their most recent large language models (LLMs) using Nvidia hardware specifically chips now restricted in sales to China.

The move reflects an escalating workaround strategy by Chinese firms to maintain momentum in the highly competitive AI race, particularly in generative AI development. The Biden administration has introduced successive rounds of export controls targeting high-performance AI chips like Nvidia’s A100 and H100, widely considered critical to training sophisticated models. These restrictions, aimed at preventing China’s military and surveillance sectors from acquiring advanced computing capabilities, have unintentionally disrupted the commercial R&D pipelines of major private-sector firms as well.

Strategic Implications for China’s AI Industry

By outsourcing AI training tasks to offshore data centers outside U.S. jurisdiction especially in countries like Singapore, Malaysia, and Thailand Chinese companies are leveraging legal and logistical gray zones to circumvent domestic limitations. This strategy allows continued access to Nvidia’s high-powered GPUs, which remain indispensable for the computational requirements of training large-scale models, including those that rival OpenAI’s GPT or Google’s Gemini.

This approach is not without risks. Outsourcing data-intensive operations to foreign infrastructure introduces concerns over data security, regulatory compliance, and strategic exposure. However, the shift also reflects the adaptability of Chinese tech firms as they face tightening access to core technology, especially from American and allied suppliers.

Global AI Supply Chain Fragmentation Accelerates

This development signals a further fragmentation of the global AI supply chain, with national security policies increasingly intersecting with commercial innovation. As Chinese firms deepen their reliance on offshore facilities for chip access, the traditional model of domestic end-to-end development becomes less viable. Meanwhile, it also underscores Southeast Asia’s emerging role as a regional AI infrastructure hub, potentially attracting increased investment from both Chinese and Western technology players seeking jurisdictional neutrality.

The reported offshore training by Alibaba and ByteDance represents a tactical response to geopolitical technology constraints. While it allows continuity in AI development, it may also invite closer scrutiny from both U.S. and host-country regulators. More broadly, it reflects how technology firms are now compelled to recalibrate operations in response to the reshaping of global semiconductor and AI trade dynamics. As U.S.–China tech decoupling deepens, such maneuvers are likely to become more common, pushing the boundaries of innovation beyond conventional geopolitical borders.

Source: Reuters

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Michelle

Forex

Economic

Consumer sentiment in Germany is set to improve slightly in December as households show more willingness to spend money ahead of the holiday season, though less rosy income prospects are preventing a stronger recovery, a survey showed on Thursday.

The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), rose to -23.2 points for December from -24.1 points the month before, in line with analysts' expectations.

Overall sentiment was boosted by a 3.3-point rise in consumers' willingness to buy for a second month in a row, bringing it to the same level as a year earlier at -6.0 points.

A 2.1-point dip in their readiness to save also helped.

"Consumer sentiment is currently at almost exactly the same level as last year. This is good news for retailers with an eye to year-end business: The data points to stable Christmas sales," said Rolf Buerkl, head of consumer climate at NIM.

"On one hand this shows a certain stability in consumer sentiment but on the other hand, it shows that consumers do not expect a drastic recovery in the short term," he added.

Households' economic expectations for the next 12 months fell nearly 2 points month on month, to -1.1 points, but were still 2.5 points higher compared with last year's level.

Germany's economy is expected to grow by only 0.2% in 2025 after two years of contraction as Chancellor Friedrich Merz's spending measures need time to translate into better conditions.

DEC NOV DEC

2025 2025 2024

Consumer climate -23.2 -24.1 -23.1

Consumer climate components

NOV OCT NOV

2025 2025 2024

- economic expectations -1.1 0.8 -3.6

- income expectations -0.1 2.3 -3.5

- willingness to buy -6.0 -9.3 -6.0

- willingness to save 13.7 15.8 11.9

The survey period was from October 30 to November 10, 2025.

An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier.

According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.

The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?"

The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.

The economic expectations index reflects respondents' assessment of the general economic situation over the next 12 months.

($1 = 0.8618 euros)

Source: Investing

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Gerik

Economic

Structural Overhaul: A Reform Decades in the Making

India’s new labor codes implemented just months after a major GST revision signal a robust push by Prime Minister Narendra Modi’s government to reshape economic fundamentals. By merging 29 fragmented laws into four streamlined labor codes, the government is addressing a long-standing barrier to industrial expansion: rigid labor regulation. These changes are set against the broader ambition of achieving a $10 trillion economy by 2047.

The reforms aim to create a unified framework for employment, social security, wages, and occupational safety. For investors and multinational manufacturers, this simplification offers a clearer compliance path. HSBC has noted that restrictive labor laws historically discouraged firms from scaling due to high compliance burdens, preventing them from realizing economies of scale. The removal of such barriers could catalyze industrial growth and attract both foreign direct investment and domestic capital.

Balancing Flexibility with Worker Protections

At the heart of the new codes is a dual objective: increase formal workforce participation while protecting worker rights. Gig workers, previously excluded from welfare programs, will now gain access to social security. Startups must allocate up to 2% of their turnover to welfare funds for these workers, institutionalizing a social safety net in one of India’s fastest-growing employment segments.

The extension of permanent employee benefits leave, medical coverage, and social security to fixed-term and contract workers is expected to raise labor costs significantly in labor-intensive sectors such as construction, real estate, and manufacturing. Real estate developers like Tru Realty estimate a 5%–10% increase in baseline labor costs over the next 18 months. However, this rise may be partially offset by productivity improvements made possible by new provisions such as longer shift durations and simplified retrenchment processes.

Political Resistance and Legal Implications

Despite its economic rationale, the reform has faced immediate pushback from labor unions and opposition parties. Protests erupted across cities like Hyderabad, with union leaders criticizing the government for allegedly pushing through reforms without adequate stakeholder consultation. Notably, the threshold for mandatory government permission for retrenchment has been raised from 100 to 300 employees, which trade unions argue weakens worker bargaining power and restricts their right to strike.

The legal flexibility granted to states in implementing procedural rules could lead to policy fragmentation. While the central government will set a national minimum wage floor, individual states retain authority to enforce higher standards or tweak operational thresholds, creating possible regulatory divergence. Experts such as BDO India’s Preeti Sharma suggest that this divergence could reflect states’ competition for investment, much like China's provincial strategies.

E-commerce and Gig Economy Under Pressure

India’s booming gig economy, projected to grow from 10 million workers in FY2025 to over 23 million by FY2030, will be directly affected. E-commerce platforms and delivery service providers such as Zomato, Swiggy, and Amazon face the dual challenge of rising labor costs and reduced flexibility. Legal experts warn that mandated welfare contributions and minimum wage adjustments may compress operating margins, at least in the short term, with those costs eventually passed on to consumers.

Yet, major aggregators have responded with cautious optimism, welcoming the move as a step toward institutional legitimacy for platform-based work. This response suggests a broader acceptance that long-term scalability of gig platforms depends on improved trust and transparency with the labor force.

India's labor market is overwhelmingly informal, with only around 1 million of its estimated 63 million enterprises formally registered. The new codes aim to bridge this divide by reducing bureaucratic hurdles. Observer Research Foundation highlights that simplified documentation and digital compliance mechanisms reduce the burden of corruption and administrative discretion, encouraging informal businesses to transition into the formal economy.

While the initial transition may increase regulatory compliance costs, the broader economic rationale hinges on the belief that formalization will lead to improved productivity, better tax compliance, and stronger legal protections for workers factors that could boost long-term investor confidence.

A Reform with Short-Term Pain, Long-Term Gain

India’s labor reform initiative is both ambitious and controversial. Its impact will vary by sector and geography, depending on how states implement operational guidelines. In the near term, businesses will face higher costs and legal ambiguity, especially those reliant on non-permanent labor. Yet, the reform’s structural goals greater formalization, scalable employment, and improved business climate align with India’s long-term growth vision.

The ability of the central and state governments to coordinate effectively will determine whether these reforms accelerate industrialization or generate further complexity. For now, India has taken a bold step toward aligning its labor market with its aspirations as a global economic powerhouse.

Source: CNBC

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Blue River

Forex

Technical Analysis

The USD/JPY pair fell to 156.13 on Thursday, with the Japanese yen recouping recent losses as markets remain on high alert for potential intervention by Japanese authorities.

Traders are speculating that the US Thanksgiving holiday, which typically sees lower liquidity and thinner market conditions, could provide a strategic "window" for regulators to intervene and support the yen. Notably, the mere risk of intervention is already acting as a deterrent, effectively capping the currency's recent decline.

Fundamentally, sentiment is also shifting as investors reassess the Bank of Japan's (BoJ) policy trajectory. Recent media reports suggest the central bank is actively preparing for a potential rate hike as early as next month. This shift is driven by persistent inflationary pressures, the pass-through effects of a weak yen, and a perceived easing of political pressure to maintain ultra-loose monetary settings.

Externally, the yen has found additional support from a broadly weaker US dollar. Markets have increased bets on further Fed easing, weighing on the greenback across the board.

Technical Analysis: USD/JPY

H4 Chart:

On the H4 chart, USD/JPY is forming a consolidation range around 156.40. We anticipate a near-term decline to 154.90, which is likely to be followed by a technical rebound to retest the 156.40 level. A decisive upward breakout above this resistance would open the path for a more significant rally towards 158.47. However, following such a move, we would expect the formation of a new lower high and the start of a fresh downward impulse, targeting 154.00 and potentially extending the correction to 153.30. The MACD indicator supports this bearish medium-term bias. Its signal line is below zero, pointing downward, confirming that selling momentum remains strong.

H1 Chart:

On the H1 chart, the pair is developing a clear downward wave structure with an initial target at 154.90. We expect this target to be reached, after which a corrective wave of growth should emerge, retesting the 156.40 level from below. The Stochastic oscillator corroborates this near-term bearish view. Its signal line is below 50 and falling towards 20, indicating that short-term downward momentum remains intact for now.

Conclusion

The yen is strengthening on a confluence of intervention threats and a fundamental reassessment of BoJ policy. Technically, USD/JPY is in a corrective phase with an immediate target at 154.90. While a rebound to 156.40 is expected thereafter, the broader risk is tilted to the downside. A break above 158.47 would be required to invalidate the current bearish corrective structure. Traders should remain vigilant for intervention-driven volatility, particularly during periods of low liquidity.