Five things to know to start your Thursday

South Korea’s President Yoon won’t back down

South Korean President Yoon Suk Yeol made some controversial statements on Thursday, attacking his political rivals and defending his recent actions. He called his opponents “anti-state forces” and claimed that North Korea had interfered with the country’s elections. Yoon also defended his brief martial law order, arguing that it was a legal step to protect democracy.

The situation intensified as a leader from Yoon’s own political party suggested he should be impeached. This comes after the president has shown no indication of resigning. The parliament will hold a second impeachment vote on Saturday, following a previous vote that failed because most of the ruling party did not participate.

Defiantly, Yoon stated, “I will fight to the end” during a lengthy televised address. He is currently under criminal investigation for allegedly attempting an insurrection related to his martial law declaration on December 3rd. This event has triggered the most significant political crisis in South Korea in decades.

The US will increase tariffs on China’s wafers and polysilicon

The United States plans to significantly increase import taxes on certain Chinese solar and industrial products starting January 1st. Following a four-year review, the Biden administration will raise tariffs on solar wafers, polysilicon, and some tungsten products to 50%.

The US has been imposing import taxes on Chinese solar exports since 2012, arguing that China is intentionally overproducing to prevent other countries from developing their own solar manufacturing industries. However, the impact of these new tariffs might be limited. According to research from Australia’s Griffith University, the US only imported 0.3% of China’s direct solar component exports last year.

“The tariff increases announced today will further blunt the harmful policies and practices by the People’s Republic of China,” US Trade Representative Katherine Tai said in the statement. “These actions will complement the domestic investments made under the Biden-Harris Administration to promote a clean energy economy, while increasing the resilience of critical supply chains.”

Read Also: China bans exports of critical minerals used in tech manufacturing to the US

Nigerian banks lost over N42bn to fraud in six months

Nigerian banks have reported massive financial losses due to fraud in the first half of 2024. According to the Financial Institutions Training Centre’s report, banks experienced a staggering 42.33 billion naira in fraud-related losses across different payment methods.

The report reveals a troubling increase in fraudulent activities across most channels. Bank branch fraud saw a dramatic 31% rise, jumping from 133.9 million naira in the first quarter to 42.2 billion naira in the second quarter of 2024. Perhaps even more alarming is the surge in computer and web-based fraud, which skyrocketed by an astonishing 1,560.3%. The value of this type of fraud escalated from 24 million naira in the first quarter to 400.8 million naira in the second quarter.

Interestingly, mobile fraud was the only payment channel that did not show an increase during this period.

Australia’s unemployment dropped to an 8-month low

Australia’s job market showed unexpected strength in November, defying economic predictions and demonstrating remarkable resilience despite high interest rates. According to the Australian Bureau of Statistics, the unemployment rate dropped from 4.1% to 3.9%, which is significantly lower than economists had anticipated.

The employment data revealed a robust increase of 35,600 jobs, with all of the growth coming from full-time positions. This positive news had immediate effects on financial markets: the Australian dollar rose to 64.11 U.S. cents, and the three-year government bond yield increased by 5 basis points.

The yuan is under pressure as China seeks to devalue its currency

The Chinese yuan experienced volatility in currency markets on Thursday, influenced by a report suggesting China might intentionally allow its currency to weaken in response to potential trade challenges.

The People’s Bank of China initially set the yuan’s midpoint rate at 7.1854 per dollar, which was relatively stable compared to the previous session. This midpoint serves as a reference point, with the yuan allowed to trade within a 2% range around this rate.

The spot yuan opened at 7.2578 per dollar but quickly lost its morning gains, trading 32 pips lower than the previous session’s close and 1.1% weaker than the midpoint. This fluctuation came after a Reuters report that revealed China’s top leaders are considering allowing the yuan to weaken in 2025, anticipating potential increased U.S. tariffs if Donald Trump returns to the White House.