Amazon is investing an additional $4 billion in Anthropic, doubling its investment in the artificial-intelligence startup as it aims to compete in the AI arms race. Amazon is a minority owner of San Francisco-based Anthropic, which describes itself as an AI safety and research company. Amazon’s investment in Anthropic since last year will total $8 billion. Amazon, Microsoft, Google and other tech giants have been pouring money into AI startups as they look for the next version of OpenAI’s ChatGPT. Tech companies are racing to produce and commercialize generative AI, systems that have humanlike abilities to communicate and create content. The AI boom has reshaped the tech industry in recent years and companies that don’t invest in the technology could get left behind. Google agreed last year to invest up to $2 billion in Anthropic. Elon Musk’s xAI has told investors it raised $5 billion in a funding round, valuing the AI startup at $50 billion, The Wall Street Journal reported this week. Nearly $30 billion was invested in generative AI companies last year, according to research firm PitchBook.

Swiss stocks closed on a bright note on Friday, in line with markets across Europe, as weak manufacturing and services sector data from major European countries such as the U.K., Germany and France raised hopes that central banks will cut interest rates further to help revive growth. The benchmark SMI ended higher by 124.91 points or 1.08% at 11,716.50. The index touched a low of 11,605.35 and a high of 11,759.62. Partners Group, SIG Group, Sonova, Straumann Holding, Sandoz Group and Novartis gained 2.3 to 3%. Geberit closed nearly 2% up. Novartis gained 2.3%. The company has purchased US-based biotechnology company Kate Therapeutics in a deal worth up to $1.1 billion. Kate Therapeutics is focused on developing gene therapies for neuromuscular disease. The acquisition is expected to bolster Novartis' efforts to advance gene therapies for patients. VAT Group climbed 1.78%. Julius Baer, Roche Holding, Schindler Ps, ABB, Logitech International, Holcim, Sika, Alcon and Lindt & Spruengli closed higher by 1 to 1.3%. Swiss Life Holdings, Swiss Re, Swisscom, Richemont, Kuehne + Nagel and UBS Group also ended on a firm note. Sjares of Pierer Mobility zoomed nearly 16% on reports that Mark Mateschitz, who holds a substantial interest in energy drink company Red Bull, is looking to acquire a stake in the Switzerland-listed motorcycle manufacturer and its KTM subsidiary unit. However, Pierer Mobility denied the media reports, saying there are no talks regarding such a transaction.

Europe
European stocks closed on a firm note on Friday as some weak economic data raised expectations that the central banks will reduce interest rates further to boost growth. In addition to digesting regional economic data, investors continued to follow the developments on the geopolitical front. Bank stocks ended notably lower, while real estate and retail stocks are finding support. Data showing an increase in consumer confidence aided sentiment in the UK market, where the benchmark FTSE 100 is gaining nearly 0.8%. The GfK Consumer Confidence Index in the United Kingdom increased by 3 points to -18 in November 2024, marking its first improvement in three months. The pan European Stoxx 600 climbed 1.18%. The U.K.'s FTSE 100 gained 1.38%, Germany's DAX and France's CAC 40 closed up 0.92% and 0.58%, respectively, while Switzerland's SMI advanced 1.08%. Among other markets in Europe, Belgium, Denmark, Finland, Netherlands, Poland, Portugal, Russia, Sweden and Turkiye closed with sharp to moderate gains. Austria, Greece, Ireland, Norway and Spain ended modestly higher, while Iceland closed weak. In the UK market, Diploma climbed about 5.8%. Spirax Group, Hikma Pharmaceuticals, AstraZeneca, Melrose Industries, British Land, Unilever, National Grid, Rightmove and Relx gained 3 to 4.3%. Vistry Group, Sainsbury (J), Segro, Land Securities, Barratt Redrow, Experian, Auto Trader Group, Weir Group, Unite Group and GSK also moved up sharply. Games Workshop Group Plc shares soared 17.5% on hopes the company's strong results will help get the stock into the FTSE 100 index. Natwest Group closed nearly 2.5% down. Barclays Group, Standard Chartered and Lloyds Banking Group ended down 1 to 2.1%, while HSBC Holdings settled modestly lower.

United States
Extending the upward move seen over the course of Thursday's session, stocks saw continued strength during trading on Friday. The Dow led the way higher once again, reaching a new record closing high. The major averages all ended the day in positive territory, with the Dow jumping 426.16 points or 1.0 percent to 44,296.51. The S&P 500 also climbed 20.63 points or 0.4 percent to 5,969.34, while the Nasdaq rose 31.23 points or 0.2 percent to 19,003.65. With the continued upward move, the major averages posted strong gains for the week, partly offsetting the sharp pullback seen last week. For the week, the Dow surged by 2.0 percent, while the Nasdaq and the S&P 500 both shot up by 1.7 percent. Stocks rallied in reaction to President-elect Donald Trump's decisive victory early this month but gave back ground the following week before rebounding in recent sessions. The advance by the markets came despite a pullback by shares of Nvidia (NVDA), as the AI darling tumbled by 3.2 percent. Nvidia fluctuated before ending Thursday's session up by 0.5 percent after reporting better than expected third quarter earnings and revenues. Overall trading appeared somewhat subdued, however, as traders looked ahead to the release of key U.S. economic data next week, including readings on consumer price inflation preferred by the Federal Reserve. Among individual stocks, shares of Gap (GAP) surged after the apparel retailer reported better than expected third quarter earnings and raised its full-year guidance. Meanwhile, shares of Intuit (INTU) came under pressure after the financial software company reported better than expected fiscal first quarter results but provided disappointing guidance for the current quarter. In U.S. economic news, revised data released by the University of Michigan showed consumer sentiment in the U.S. improved less than previously estimated in the month of November.

Asia
The majority of stock markets in East Asia and Australia posted gains on Monday. However, the Chinese stock markets fell slightly. In Tokyo, the Nikkei index rose significantly by 1.5 per cent to 38,844 points. Export stocks are in demand. Mitsubishi Chemical Group rose by 3.2 per cent and Isuzu Motors by 3.5 per cent. Tokyo Electron advanced by 4.0 per cent.

Bonds
In the U.S. bond market, treasuries saw modest strength after moving lower over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.2 basis points to 4.410 percent.

Analysis
Deutsche Bank raises Julius Baer target to CHF 66 (60) – Buy
Citi raises Alstom target to 26 (22) EUR/Buy – Trader
HSBC lowers Ströer target to 68 (79) EUR/buy – Trader

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