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South Korean President Lee Jae Myung said on Wednesday there was still work to be done to address the fallout of the failed martial law bid by his predecessor a year ago, and the country needed to ensure the perpetrators were brought to justice.

The attempt to impose martial law by former President Yoon Suk Yeol threatened an irreparable setback to the country, but the people rose up and stopped the military with their bare hands, Lee said in an address marking the first anniversary of the shock announcement.

"The recklessness of those who tried to destroy constitutional order and even plan a war all for their personal ambition must be brought to justice," he said.

"The December 3 coup d'etat was not just a crisis for democracy in one country. If democracy in South Korea collapsed, it would have meant a setback...for world democracy."

Yoon's martial law declaration plunged a country that had been viewed as one of the success stories of democratic resilience into months of political turmoil, just as U.S. President Donald Trump's decision to slap tariffs on global trading partners rattled South Korea, an export-heavy economy.

The conservative leader was later ousted and Lee, a political rival who lost to Yoon in a 2022 presidential poll, won a snap election in June with a mandate to steer the country out of the shock of martial law, as those who were accused of being involved were arrested and tried for subversion.

Since coming to office, Lee has managed to strike a U.S. tariff deal after two summits with Trump, but there remain deep fissures in society and concerns over whether the conservative side feels it is being persecuted.

Lee said the work of reforming the country following the martial law crisis was bound to be painful and time-consuming.

"But just as treating cancer by removing the cancer cells that have taken root deep inside the body, it cannot be completed that easily," he said.

NOBEL PEACE PRIZE?

Yoon justified his short-lived martial law by accusing "anti-state forces", including Lee's Democratic Party, of paralysing government and ruining democracy. He said he had no choice but to impose martial law to restore order in a surprise late-night announcement on December 3 last year.

That declaration was reversed within hours by a majority vote in parliament by Lee's Democrats and some members of Yoon's conservative party.

On trial for insurrection and facing life imprisonment or even potentially the death penalty, Yoon has denied ordering the arrest of opposition lawmakers and political enemies and argued the martial law declaration did not harm the country.

A number of former cabinet members, senior military officers and lawmakers are also on trial or under criminal probe. Yoon's wife, Kim Keon Hee, faces a separate trial on charges of corruption and bribery.

Lee said he will propose designating December 3 as a national holiday to celebrate the role of the people in quelling the martial law bid and added that he believed they deserved to be considered for the Nobel Peace Prize.

Lee plans to take part in a citizens' march later on Wednesday to mark how the country defied the attempt to bring in military rule.

The march will pass parliament, where soldiers and police were deployed on the night of December 3, 2024 to try to block lawmakers, who jumped fences to avoid the security cordons and entered the chamber to vote down the martial law declaration.

Source: Reuters

Palm oil stockpiles in Malaysia surged to the highest in more than six years as exports dropped in November, according to a survey.

Inventories jumped 10% from a month earlier to 2.71 million tons, the median of 11 estimates in a poll of plantation executives, traders and analysts. That's the highest level since April 2019 and an increase of 47% from a year ago.

Palm oil reserves have been expanding since March and high stockpiles could pressure prices of the tropical oil. Futures briefly dropped below 4,000 ringgit a ton in November as demand from top importer India eased with the end of the festival season.

Exports dropped about 15% to 1.43 million tons, after jumping almost 19% a month earlier. The Malaysian Palm Oil Board will publish its monthly data on Dec. 10.

Crude palm oil production in Malaysia, the world's second-largest grower, eased 2.9% to 1.98 million tons, after jumping 11% in October, according to the survey.

"Peak production months are over and we are entering into the lower production months, but demand has been rather lethargic," said Paramalingam Supramaniam, a director at brokerage Pelindung Bestari Sdn.

Market participants are looking for confirmation on the size of Malaysian stockpiles, and anything above 2.6 million tons would be considered bearish, Paramalingam said.

Source: Bloomberg Europe

The US Securities and Exchange Commission has issued a flurry of warning letters to some of the country's most prolific providers of high-octane exchange-traded funds, effectively blocking the introduction of products designed to deliver two or three times the daily returns of stocks, commodities and cryptocurrencies.

In a set of nine almost identical letters posted Tuesday, the SEC told firms including Direxion, ProShares and Tidal that it would not move forward with reviewing proposed launches until key issues are addressed. At the heart of the regulator's concern is that the funds' risk exposures may exceed SEC limits on how much risk a fund can take on relative to its assets. The letters direct the fund managers to either revise their investment strategies or formally withdraw their applications.

"We write to express concern regarding the registration of exchange-traded funds that seek to provide more than 200% (2x) leveraged exposure to underlying indices or securities," the SEC wrote to all nine applicants.

The move marks a rare pause in an otherwise permissive stretch for US fund approvals, which has seen a green light given to crypto-linked ETFs of all stripes, private-asset vehicles and increasingly complex trading strategies. The funds now under scrutiny are on the extreme edge of that trend — combining high leverage, daily trading resets and exposure to some of the most unstable corners of the market, including single-name stocks and digital tokens.

A central concern for the SEC is that the funds appear to be measuring their risk against a benchmark that may not fully reflect the volatility of the assets they aim to amplify.

Leveraged products use options to amplify returns, and they're popular with investors because they can offer big profits quickly. Trading volumes have boomed since the pandemic as traders look for a new edge in fast-moving markets while assets have climbed to $162 billion.

Staff in the SEC's Division of Investment Management publicly posted the letters the same day they were written — an unusual speedy move that suggests the regulator wants to get its concerns out fast. The agency typically posts correspondence with firms 20 business days after wrapping up reviews.

Source: Bloomberg Europe

Independent retailers across the UK are facing significant business rates increases next year, with some estimates suggesting rises of up to 15%, despite government assurances of lower tax rates.

Retailers say the latest Budget falls short of promised reforms, leaving many small shops under financial pressure.

Government reforms fall short for high street shops

The British Independent Retailers Association (Bira) has criticised the government for offering only minimal reductions in business rates multipliers.

While ministers promised the "lowest tax rates since 1991" and a transformed system, most independent retailers will see bills rise, not fall. Typical rateable value increases mean a shop currently paying £8,982 could face a £10,329 bill next year, a 15% rise, even after transitional relief.

Andrew Goodacre, Bira's CEO, described the measures as "tinkering around the edges" rather than meaningful reform.

He highlighted that smaller shops will continue to pay more while some large retail outlets benefit from lower valuations, raising concerns over fairness for high street traders.

Rising costs compound pressures on small retailers

The increase in business rates comes alongside other financial challenges. Wage costs are rising, with the National Living Wage set to increase to £12.71 from April 2026.

Independent shops are also affected by a low-value import duty loophole, which allows overseas competitors to undercut prices until its planned closure in 2029.

Bira warns that these factors combine to create a "perfect storm" for small retailers, making it harder for them to compete against larger domestic and international retailers.

The association has called for urgent government action to support independent businesses and level the playing field.

Calls for transparency and faster reform

Retailers and Bira are pressing the Treasury and the Valuation Office to provide clarity on how rates are assessed, particularly why high street shops face large increases while some retail parks see reductions.

The organisation urges policymakers to accelerate reform of the business rates system and close loopholes that disadvantage smaller traders.

"Independent retailers need a system that genuinely supports the high street," said Goodacre. "Without further action, many shops will continue to struggle under rising costs and unfair competition."

"UK shops warn business rates could jump 15% despite government pledge" was originally created and published by Retail Insight Network, a GlobalData owned brand.

Source: Yahoo Finance

Key points:

China's services activity expanded at its slowest pace in five months in November, as growth in new orders softened despite a boost from foreign demand, according to a private survey released on Wednesday.

The RatingDog China General Services PMI, compiled by S&P Global, slipped to 52.1 from 52.6 in October, marking the weakest expansion since June. The 50-mark separates growth from contraction.

The survey broadly aligns with the government's official services PMI released on Sunday, which fell to 49.5 from 50.2 in October.

The RatingDog index is viewed as a better gauge of smaller, export-oriented service providers along China's east coast, while the official PMI primarily tracks large and medium-sized enterprises, including state-owned companies.

Momentum in the world's second-largest economy has faltered this year, with third quarter GDP growth slowing to its weakest pace in a year.

The survey showed the new orders index rose at the slowest pace in five months, while new export business returned to expansion after contracting in October, a shift attributed to reduced uncertainty surrounding U.S.-China trade tensions.

"While a recovery in external demand provided marginal support this month (November), the contraction in employment, pressure on profit margins, and weakening expectations remain the main constraints facing the sector," said Yao Yu, Founder at RatingDog.

Employment in the services sector declined for a fourth consecutive month in November, leading to an increase in unfinished work after a reduction the previous month.

Average input costs continued to rise, albeit at a slower pace, driven by expenses for raw materials, office supplies, and fuel. To mitigate these cost pressures, some firms partially passed on the increases to consumers, resulting in a slight rise in output charges.

Business confidence in the sector expanded yet again last month but at its slowest pace since April.

The Composite Output Index, which combines manufacturing and services performance, came in at 51.2 in November, down from 51.8 in October.

Source: TradingView

Euro zone inflation unexpectedly ticked up last month, likely solidifying bets that no further European Central Bank rate cuts are coming anytime soon, data from Eurostat showed on Tuesday.

Inflation in the 20 nations sharing the euro accelerated to 2.2% from 2.1% a month earlier, hovering near the ECB's 2% goal for most of this year, as falling energy prices offset still robust domestic price pressures, particularly in services.

Underlying figures, which exclude volatile food and fuel prices held steady at 2.4% on continued quick price growth in services but muted figures for durable goods.

The figures confirm the ECB's own view that inflation is largely defeated and policymakers now have ample time to watch price developments unfold before contemplating any further action.

This is why markets see almost no chance of a cut in the ECB's 2% deposit rate at the bank's last meeting for the year on December 18 and see only a one-in-four chance of any easing next year.

The ECB has cut rates by a combined 2 percentage points in the year to June but has been on the sidelines ever since.

BELOW TARGET INFLATION IN 2026

Rate cut talk may get a new lease on life early next year, however, when inflation is set to dip below target on the continued fall in energy costs.

This is seen as a temporary undershooting and the bank tends to look past energy-induced price volatility. But some worry that excessively low figures could weigh on expectations, making low inflation self-perpetuating.

Natural gas prices are now more than 40% lower than a year ago and crude oil (LCOCc1) is down by over 10%, suggesting that plenty of energy deflation is yet to come.

Energy prices were down by 0.5% in November from a year earlier, while services inflation was 3.5% and unprocessed food prices were up 3.3%.

Inflation in non-energy industrial goods, watched to see the impact of Chinese dumping, was 0.6%.

A long list of policymakers have said that the ECB can live with small deviations as long as underlying trends point to a return to target.

Policymaker confidence is held up by relatively upbeat economic data, which suggest that the bloc is weathering exceptionally high uncertainty quite well.

While the economy is not booming, surveys and hard data continue to point to decent expansion near the bloc's potential, which is somewhere in the 1% to 1.5% range.

Growth is also supported by a relatively tight labour market and separate data from Eurostat showed that the jobless rate inched up to 6.4% in October.

Source: Reuters