Morning report: War or peace: Will Trump's tariffs lead Mexico to retaliate with a trade war? Mr. Biden 'Israel and Hezbollah reach ceasefire agreement'.

◇On the 26th, the US stock market continued to rise. The Dow Jones Industrial Average, which has risen for 5 consecutive trading days, and the S&P 500 Index, which has risen for 7 consecutive trading days, both set new record closing highs.
◇Concerned about the impact of President-elect Trump's proposed additional tariffs on China, Mexico, and Canada, the market opened mixed after Trump's inauguration. The Dow fell following selling pressure due to the disappointing earnings of some companies. The Nasdaq remained steady throughout the day thanks to the rebound in semiconductors. Towards the end of the day, as news broke that the Israeli Security Cabinet had approved a ceasefire agreement with Lebanon, concerns about the deteriorating situation in the Middle East eased. Furthermore, the release of the Federal Reserve Board's Federal Open Market Committee (FOMC) minutes for November noted a decrease in downside risks to the labor market and economy, leading the Dow to recover into positive territory, setting new record highs for consecutive days. By sector, retail stocks rose while durable goods & apparel declined. Automobile giants dropped 9%. $NVIDIA (NVDA.US)$◇On the 27th, the Tokyo stock market is likely to continue to face selling pressure due to position adjustments. The Nikkei Stock Average is expected to hover around the low 28,000 yen range. $General Motors (GM.US)$Automobiles
◇Today's weather in Tokyo is expected to be mostly cloudy, with a high near 80°F. Light and variable wind becoming east around 5 mph in the afternoon.

Top News
Mexican President warns that if Mr. Trump's tariffs are implemented, it will lead to retaliatory measures.
Mexican President Claudia Sheinbaum stated on the 26th that if Donald Trump, the next US President, imposes a 25% tariff on products from Mexico and Canada, Mexico will also take retaliatory measures if implemented. Sheinbaum stated, "Threats and tariffs cannot address the issues of illegal immigration and drug use in the United States."
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Trudeau, the Prime Minister of Canada, is prepared to respond to concerns about Mr. Trump's border issues.

Analysts suggest that if Mr. Trump's tariff proposal is imposed, the price of automobiles may increase by $3,000.
If the United States imposes a 25% tariff on imports from Mexico and Canada, there is a possibility that the average vehicle price could increase by $3,000 (approximately 0.46 million yen). Analysts at Wolf Research pointed this out. It is estimated that the increase in price due to tariffs will have a negative impact on consumer demand, causing the annual number of automobile sales in the United States to decrease by approximately 1 million units, which translates to about a 6% decrease.
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Trade wars involving retaliatory tariffs are 'a loss for all,' according to ECB Vice President

Breaking News: President Biden: 'Israel and Hezbollah have reached a ceasefire agreement.'
'Israel and Hezbollah have reached a ceasefire agreement.' 'The ceasefire will begin at 4:00 a.m. local time and last for 60 days.'
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Israel accepts ceasefire with Hezbollah, ending fighting in Lebanon.
New York Crude Oil and Gold Futures Market Overview (26th): Crude oil continues to decline.

FOMC Meeting Minutes: Market perception aligns with the Federal Reserve; reaction is limited.
The meeting minutes of the FOMC held this month have been released, revealing widespread support for gradual interest rate cuts by FOMC members. It is deemed appropriate to transition gradually to a more neutral policy stance over time if data evolves largely as expected, such as inflation persistently falling to 2% and the economy maintaining conditions close to full employment. The content is broadly as expected and aligns with current market perceptions of the Federal Reserve, leading to a limited market reaction.

NEC's next chairman, Mr. Hasset, is the leading candidate for the Trump administration's close associate.
According to advisors and close aides to Donald Trump, the next President of the United States Republican Party, Mr. Kevin Hassett, who has served as his advisor for many years, is being considered the top candidate for the next chairman of the National Economic Council (NEC). Several sources familiar with the matter revealed. Mr. Hasset chaired the Council of Economic Advisers (CEA) in the first term of the Trump administration.

Dell saw increased revenue and profit in the third quarter, with revenue up 10% to $24.3 billion, operating profit up 12% to $1.66 billion, and EPS at $1.58.
$Dell Technologies (DELL.US)$In the third quarter of fiscal year 2025 (August 3 - November 1), performance showed increased revenue and operating profit. Revenue reached $24.3 billion, up 9.5% from the same period last year. Operating profit increased by 12.2% to $1.68 billion. Operating margin improved to 6.8%. Earnings per share (EPS, diluted) were $1.58 (compared to $1.36 in the same period last year).

Today's stock price news - Sumitomo Corporation considers acquiring the supermarket holding company under Seven & i Holdings.
Stock price news: $Sumitomo (8053.JP)$、 $Seven & i Holdings (3382.JP)$、 $Sumitomo Mitsui Financial Group (8316.JP)$、 $Toyota Motor (7203.JP)$etc