Good morning.

The Syrian opposition continues to establish control of the government in coordination with members of the Assad regime, continuing the surprisingly orderly and measured takeover of power. Isreal is continuing to destroy military installations across the country, reportedly hitting almost 500 sites in the last 48 hours. [SOURCE - AL Jazeera]

A significant wildfire, named the Franklin Fire, continues to burn in Malibu County CA, a major suburb of Los Angeles. The suburb is popular with celebrities, and many well-known figures are among those being forced to evacuate. [SOURCE - BBC] [SOURCE - CalFire map]

Commodity and Rate Snapshot

_{As at Dec 11, 06:00ET -Data is illustrative, not for decision-making.}

Financial data via Bloomberg, Freightos and AlphaVantage

Europe Stability Ratings and News Summary

More Unstable

🇦🇱 Albania, 🇧🇾 Belarus, 🇧🇦 Bosnia And Herzegovina, 🇨🇾 Cyprus, 🇫🇷 France, 🇩🇪 Germany, 🇭🇺 Hungary, 🇮🇪 Ireland, 🇮🇹 Italy, 🇱🇻 Latvia, 🇲🇰 Macedonia, 🇲🇹 Malta, 🇲🇩 Moldova, 🇲🇪 Montenegro, 🇳🇱 Netherlands, 🇵🇱 Poland, 🇷🇴 Romania, 🇷🇺 Russia, 🇷🇸 Serbia, 🇸🇰 Slovakia, 🇪🇸 Spain, 🇸🇪 Sweden, 🇹🇷 Turkey, 🇺🇦 Ukraine

More Stable

No countries were more stable over this period

Unchanged

🇦🇩 Andorra, 🇦🇹 Austria, 🇧🇪 Belgium, 🇭🇷 Croatia, 🇨🇿 Czech Republic, 🇩🇰 Denmark, 🇪🇪 Estonia, 🇫🇮 Finland, 🇬🇷 Greece, 🇮🇸 Iceland, 🇱🇮 Liechtenstein, 🇱🇹 Lithuania, 🇱🇺 Luxembourg, 🇲🇨 Monaco, 🇳🇴 Norway, 🇵🇹 Portugal, 🇸🇲 San Marino, 🇸🇮 Slovenia, 🇨🇭 Switzerland, 🇬🇧 United Kingdom

European News Summary

Switzerland's economic outlook has been mixed, as the country grapples with a decline in foreign reserves for the second consecutive month, attributed to the strength of the US dollar. This trend raises concerns about potential impacts on currency exchange and trade policies [SOURCE - Yonhap News Agency]. However, there are signs of resilience in the Swiss financial sector, highlighted by the successful Hong Kong-Switzerland Financial Dialogue aimed at strengthening economic ties, and a notable recovery in Watches of Switzerland's stock [SOURCE - Hong Kong Government Information Centre].

Meanwhile, France is engulfed in a political crisis following the collapse of Prime Minister Michel Barnier's government after a no-confidence vote. This political turmoil has raised concerns about the stability of President Emmanuel Macron's administration and its ability to address pressing socio-economic issues, including strikes and protests that have plagued the country [SOURCE - NDTV]. The fallout from this crisis could have broader implications for the European economy, particularly as France has blocked the EU-Mercosur trade deal, citing environmental and labor concerns [SOURCE - Riotimes].

In the context of the ongoing conflict in Ukraine, international support for Kyiv remains strong. The EU Council has approved a €4.2 billion tranche for Ukraine, while Denmark has delivered additional F-16s to bolster its defense capabilities [SOURCE - TASS]. The US has also committed nearly $1 billion in weaponry to Ukraine, demonstrating continued Western backing amid escalating tensions with Russia [SOURCE - UPI].

Poland is facing its own challenges, with a visa corruption scandal leading to the prosecution of former officials and heightened tensions with Russia following the expulsion of Polish diplomats [SOURCE - Notes from Poland]. Despite these issues, Poland's economy shows signs of growth, with a recent rise in stock prices and a commitment to strengthening military capabilities amid regional security concerns [SOURCE - Investing.com].

In the broader European context, the economic landscape remains uncertain, with the OECD downgrading growth prospects for Germany amid ongoing labor disputes and production declines in key industries like Volkswagen and Airbus [SOURCE - Investing.com]. This uncertainty is compounded by rising inflation and a tightening labor market, which could further strain the region's economic recovery.

MENA Stability Ratings and News Summary

More Unstable

🇮🇶 Iraq, 🇮🇱 Israel, 🇯🇴 Jordan, 🇱🇧 Lebanon, 🇱🇾 Libya, 🇸🇾 Syria, 🇹🇳 Tunisia, 🇾🇪 Yemen

More Stable

No countries were more stable over this period

Unchanged

🇪🇬 Egypt, 🇸🇦 Saudi Arabia

MENA News Summary

Bashar al-Assad’s government collapsed in Syria after a lighting advance by Hayat Tahrir al-Shams (HTS) from their stronghold in the north to Damascus. In just over ten days, the rebels took control of all major Syrian cities in the west with little opposition, leading to Assad’s resignation and escape to Moscow, where he is sheltering. The HTS leader Ahmed al-Sharaa, HTS Prime Minister Mohammed al-Bashir, and former Prime Minister, Mohammad Ghazi al-Jalalihave, met as part of the handover of power and an emergency ‘caretaker’ cabinet of ministers from both the HTS and former Syrian government has convened. [SOURCE - al Jazeera]

Israel took advantage of the Syrian Army’s collapse, hitting over 300 bases in Syria, reported sinking the Syrian Navy, and seized additional ground in the Golan Heights. [SOURCE - BBC]

Regional players are increasingly involved in the crisis. The Iraqi Prime Minister has highlighted the interconnectedness of events in Syria with those in Gaza and Lebanon, while Iranian and Saudi foreign ministers have engaged in discussions regarding the developments in Syria. China has also called for a political solution to restore stability in the war-torn nation [SOURCE - Khabar Online].

In Yemen, the humanitarian crisis is equally dire, with the United Nations reporting that approximately 305 million people are in need of emergency aid. The UN has launched its largest-ever appeal for $47 billion, highlighting the urgent need for assistance amid a global aid shortfall. The ongoing conflict has intensified, with Houthi forces launching drone strikes against Israeli targets, further complicating the regional security landscape [SOURCE - JPost].

Saudi Arabia is actively working to strengthen its ties with neighboring countries and international partners. The kingdom has extended a $3 billion loan to Pakistan and is collaborating with India to promote regional stability. Additionally, Saudi Arabia is making strides in clean energy initiatives, signing partnerships for a major carbon capture project and unveiling significant environmental projects at the Saudi Green Initiative Forum [SOURCE - Daily Excelsior].

Meanwhile, Israel's military operations in Gaza continue, with increased airstrikes raising concerns over civilian casualties. The conflict has drawn criticism from human rights organizations, with allegations of genocide against Israel being met with strong denials from the Israeli government. Amidst this turmoil, India's Foreign Minister has reaffirmed the importance of Israel as a strategic ally, further solidifying Indo-Israeli ties [SOURCE - Kaieteur News].

In Lebanon, the fragile ceasefire with Israel is under strain, with renewed strikes targeting Hezbollah and significant casualties reported. The ongoing conflict has resulted in thousands being displaced, and the Lebanese government is bolstering its military presence along the Syrian border in response to the shifting dynamics following the fall of the Assad regime [SOURCE - JPost].

Carpe tomorrow!