Meta Chief Executive Mark Zuckerberg said it was attempting to restore free expression on its platforms. The pivot comes as Zuckerberg looks to build ties with the incoming Trump administration. Photo: Brendan Smialowski/Agence France-Presse/Getty Image Mark Zuckerberg built up Facebook’s content-policing efforts in the wake of Donald Trump’s first presidential election. Now the Meta Platforms chief executive is reversing course as he embraces a second Trump presidency. Meta is ending fact-checking and removing restrictions on speech across Facebook and Instagram, Zuckerberg said in a video Tuesday, a move he described as an attempt to restore free expression on its platforms. “We’re going to get back to our roots and focus on reducing mistakes, simplifying our policies and restoring free expression on our platforms,” Zuckerberg said in the video. He said Meta is getting rid of fact-checkers and, starting in the U.S., replacing them with a so-called Community Notes system similar to Elon Musk’s on the X platform, in which users flag posts they think need more context.

The Switzerland market closed on a strong note on Tuesday with stocks shrugging off early weakness and gaining in strength as the day progressed. Data showing a slowdown in consumer price inflation aided sentiment. The benchmark SMI ended with a gain of 139.64 points or 1.19% at 11,830.77. Logitech International and Roche Holdings both closed stronger by 2.7%. Lonza Group climbed about 2.3%. Swiss Re, Novartis, Straumann Holding, Swatch Group, Sonova, Nestle, Richemont and Julius Baer gained 1 to 1.7%. Alcon, Swisscom, Lindt & Spruengli, VAT Group, Zurich Insurance Group and Partners Group also closed on firm note. Schindler Ps closed down 1.19%. Holcim, Kuehne + Nagel, Sika, Geberit, Adecco and ABB also ended weak. Data from the Federal Statistical Office said Switzerland's consumer price inflation slowed marginally at the end of the year, rising 0.6% on a yearly basis in December, following a 0.7% rise in the previous month. Prices for housing and energy grew 3.4% annually, and those for recreation and culture climbed by 1.1%. On the other hand, costs for food and non-alcoholic beverages decreased 0.9% from last year, and transport charges were 1.9% cheaper. The average annual inflation amounted to 1.1% in 2024, the agency said. On a monthly basis, consumer prices dropped at a stable rate of 0.1% in December, in line with expectations. This was the fourth successive fall in a row.

Europe
European stocks closed mostly higher on Tuesday despite struggling a bit early on in the session, as investors digested a slew of regional economic data and continued to bet on more monetary easing by central banks in the first quarter of 2025. The pan European Stoxx 600 gained 0.32%. Germany's DAX and France's CAC 40 climbed 0.62% and 0.59%, respectively. The U.K.'s FTSE 100 edged down 0.05%, while Switzerland's SMI closed stronger by 1.19%. Among other markets in Europe, Belgium, Finland, Greece, Ireland, Netherlands, Norway, Poland and Sweden closed higher. Austria, Denmark, Portugal, Russia and Turkiye ended weak, while Iceland and Spain closed flat. In the UK market, Next gained 3.75% after the company reported strong Christmas sales and raised its profit guidance for 2025. JD Sports Fashion and IAG gained 3.6% and 2.7%, respectively. BP climbed nearly 2%. Halma, Shell, Rolls-Royce Holdings, Pearson, Auto Trader Group, Unilever, Coca-Cola HBC and Centrica gained 1 to 1.6%. Taylor Wimpey, WPP and Persimmon ended lower by 4 to 4.5%. Natwest Group closed down 3.5% and Barclays drifted down 2.6%. Schrodders, Pershing Square Holdings, Experian, Howden Joinery, Sainsbury (J), Standard Chartered, Barratt Redrow, BT Group and Glencore also declined sharply. In the German market, Daimler Truck Holding, Sartorius, Beiersdorf and Porsche gained 2.5 to 4.3%. Adidas, Munich RE, Rheinmetall, Hannover Rueck, Merck, Infineon, SAP and Qiagen climbed 1.4 to 1.8%. Deutsche Boerse, Commerzbank and Deutsche Bank also closed notably higher. Puma closed nearly 2.5% down. Siemens Energy, Zalando, Continental, Vonovia and BMW lost 1 to 2%.

United States
Stocks moved higher early in the session on Tuesday but pulled back sharply over the course of the trading day. The major averages all moved to the downside on the day, with the tech-heavy Nasdaq leading the way lower. The major averages climbed off their worst levels going into the close but remained firmly in the red. The Nasdaq tumbled 375.30 points or 1.9 percent to 19,489.68, the S&P 500 slumped 66.35 points or 1.1 percent to 5,909.03 and the Dow fell 178.20 points or 0.4 percent to 42,528.36. The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark ten-year note surging to its highest closing level in eight months. The Institute for Supply Management released a report showing its reading on U.S. service sector activity increased by more than expected in the month of December. The ISM said its services PMI climbed to 54.1 in December from 52.1 in November, with a reading above 50 indicating growth. Economists had expected the index to rise to 53.3. The report also said the prices index surged to 64.4 in December from 58.2 in November, climbing above 60 for the first time since January 2024. The sharp increase by the index has led to worries services inflation will remain sticky. A separate report released by the Labor Department showed job openings in the U.S. unexpectedly increased in the month of November. Bill Adams, Chief Economist for Comerica Bank, said the data 'bolster the view that the Fed will cut rates slower this year than expected before the election.' The weakness on Wall Street also came amid a slump by shares of Nvidia (NVDA), with the AI darling and market leader plunging by 6.2 percent after reaching a record intraday high. Shares of Tesla (TSLA) also tumbled by 4.0 percent after Bank of America downgraded its rating on the electric vehicle maker's stock to Neutral from Buy.

Asia
The stock markets in East Asia and Australia are once again showing a mixed trend in the middle of the week. While the political tensions between Washington and Beijing are once again weighing on the Chinese stock exchanges, Sydney is on the rise thanks to hopes of an interest rate cut. The stock exchange in Seoul is also up significantly, supported by gains in the share price of heavyweight Samsung Electronics. The Tokyo stock exchange reacted to the negative cues from Wall Street with slight losses.

Bonds
In the U.S. bond market, treasuries moved notably lower, extending the downward move seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.5 basis points to an eight-month closing high of 4.683 percent.

Analysis
UBS raises BE Semiconductor to Buy (Neutral) – Target EUR 159 (111.70)
ING lowers Air France-KLM target to EUR 8 (9.50) – Hold
Citi raises Lufthansa to Buy (Sell)/Target EUR 8.50 (5.50) – Trader

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