Morning Bid: The Takaichi trade makes a comeback

China's economy is facing significant challenges as the ongoing trade war and weak domestic demand reveal deeper structural risks. This slowdown is concerning not just for China but for the global economy, as it could lead to reduced trade and investment flows. Understanding these dynamics is crucial for businesses and policymakers worldwide, as they navigate the implications of a less robust Chinese economy.

The dollar is experiencing fluctuations as political developments, credit risks, and trade tensions come to the forefront. This situation is significant because it reflects the interconnectedness of global markets and how external factors can influence currency stability. Investors and policymakers are closely monitoring these dynamics, as they can have far-reaching implications for economic growth and international trade.

Russ Koesterich from BlackRock believes that despite some concerns, the economy remains strong and will positively impact both the credit and stock markets. He highlights three key factors that could drive market growth in the coming months, suggesting that investors might find opportunities as we approach the year's end.

A recent Reuters poll indicates that Mexico's economy is expected to recover slowly in the coming year, despite facing higher inflation risks. This matters because understanding the economic outlook can help businesses and consumers make informed decisions, especially in a time of uncertainty.

The ongoing debate in Washington over extending subsidies for the Affordable Care Act has become a significant issue, with potential economic implications. This standoff highlights the challenges lawmakers face in balancing healthcare access and fiscal responsibility, making it a critical topic for citizens concerned about their health coverage and the broader economy.

In a recent statement, former President Trump has pledged to maintain significant tariffs on India until the country halts its imports of Russian oil. This move highlights ongoing tensions in international trade and energy policies, as it could impact economic relations between the U.S. and India, and further complicate global oil markets. Trump's stance reflects a broader strategy to pressure nations into aligning with U.S. foreign policy, particularly regarding Russia's actions.

The European Union has reached a significant agreement to phase out Russian gas imports by January 1, 2028. This decision marks a crucial step towards energy independence for EU member states, reducing reliance on Russian energy sources amid ongoing geopolitical tensions. By transitioning to alternative energy supplies, the EU aims to enhance its energy security and promote sustainable energy practices, which is vital for both economic stability and environmental goals.

In a significant political shift, Japan's coalition deal positions Sanae Takaichi on the verge of becoming the country's first female Prime Minister. This milestone is not just a personal achievement for Takaichi but also a pivotal moment for gender representation in Japanese politics, which has historically been male-dominated. Her potential leadership could inspire a new generation of women in Japan to pursue political careers, making this development crucial for the future of the nation's governance.

Cleveland-Cliffs is experiencing a surge in demand for its steel products, thanks in part to favorable trade policies from the Trump administration that support U.S. manufacturing. The company is also looking to diversify its operations by exploring the production of rare-earth minerals, which are crucial for various high-tech applications. This move not only strengthens its market position but also highlights the growing importance of domestic production in the face of global supply chain challenges.

Kering has announced a significant $4.7 billion deal to sell its beauty business to L’Oréal, marking a strategic move by the new CEO, Luca de Meo, to rejuvenate the company's performance. This sale is crucial as it allows Kering to focus on its core luxury brands while L’Oréal expands its portfolio in the beauty sector. Such a transaction not only reflects the evolving landscape of luxury and beauty but also highlights Kering's commitment to strengthening its market position.

Amazon's AWS experienced significant disruptions, leading to outages for hundreds of websites for several hours. This incident highlights the vulnerability of online services that rely on cloud infrastructure, affecting businesses and users alike. The impact of such outages can be far-reaching, causing loss of revenue and frustrating users who depend on these platforms for daily activities.

Crude oil prices are continuing to decline due to concerns over supply and demand. Factors such as weak growth projections, the ongoing energy transition in China and the EU, and tensions from U.S.-China tariffs are contributing to this negative outlook. This matters because fluctuations in oil prices can significantly impact global economies and consumer behavior.

Merck has released long-term data demonstrating that its cancer treatment, KEYTRUDA, continues to provide significant survival benefits for patients with lung cancer. This is important because it reinforces the effectiveness of KEYTRUDA as a vital option in cancer therapy, potentially improving the quality of life for many patients facing this challenging disease.

Abbvie's stock price target has been raised to $258 from $240 by BMO Capital, reflecting growing confidence in the company's future performance. This adjustment is significant as it indicates analysts' optimism about Abbvie's potential for growth and profitability, which could attract more investors and positively impact the stock market.