World Major News Roundup – December 7, 2025

From Ukraine Peace to Post-War Gaza Order, African Upheaval, and Asian Economies

Key Takeaways for Today (Quick Overview First)

• On the Ukraine war, a U.S.-mediated peace plan is said to be “one step away,” while Russia is demanding “radical revisions,” leaving both sides still tugging hard in opposite directions.
• In the Gaza war, the U.S.-led ceasefire and reconstruction plan “Phase 2” has entered its final stage of negotiation, and Prime Minister Netanyahu will meet President Trump later this month to discuss it.
• In Syria, about 3 million people have returned within one year of the regime’s collapse, but there are growing concerns that returns will slow as international support declines.
• In West Africa, an attempted coup in Benin and the release of 100 kidnapped children in Nigeria highlight how security instability and humanitarian crises are unfolding at the same time.
• Hong Kong’s Legislative Council election saw the second-lowest turnout in history. Anger over a recent major fire and political discontent have overlapped, making the distance between citizens and politics even more visible.
• A new survey shows that European corporate leaders now “prefer to invest in the U.S. rather than Europe,” making the shift in investment capital even clearer.
• Visits to China by the German foreign minister and President Macron’s comments on “tariffs targeting Chinese trade surpluses” signal an increasingly tough European stance on trade with China.
• In Japan, GDP for July–September was revised downward to an annualized –2.3%, and real wages have fallen for 10 consecutive months—headwinds for households continue.
• Global stock markets were generally firm, but ahead of the U.S. Fed’s upcoming rate-cut decision, price swings in commodities such as gold and oil stood out.

This article is written especially with the following readers in mind,
so it is structured to be directly useful:

• Business professionals and investors who use international news in their work
• People involved in policy-making
• University and high school students and teachers studying or teaching international relations and economics

For example, it’s meant to be used as:

• Material for “managers at export-focused mid-sized manufacturers” to read the outlook for FX and the European economy
• A source of ideas for “financial professionals engaged in ESG or impact investing” considering how to view reconstruction demand in the Middle East, Syria, and Africa
• Fresh concrete examples that “civics or world history teachers” can bring directly into the classroom

We’ll break things down with economic and social impacts in mind so that it can be easily turned into handouts or slides.

1. Ukraine Peace Talks: Between “Very Close” and “Still Difficult”

1-1 U.S.-Mediated Peace Plan Said to Be “In the Last 10 Meters”

Keith Kellogg, the U.S. special envoy, described the peace plan to end the Ukraine war as being in the “last 10 meters” and “really close,” signaling his view that an agreement is within reach. He said the main remaining issues are:

• The final status of the Donbas region (Donetsk and Luhansk)
• The fate of the Zaporizhzhia nuclear power plant currently occupied by Russia

Russia continues to insist on control over the entire Donbas region, while Ukraine remains cautious about any territorial concessions, maintaining that:

• “It would be illegal to cede territory without legitimate processes such as a referendum.”

1-2 President Zelenskiy: “Constructive but Not Easy”

President Zelenskiy, for his part, said that talks with President Trump’s envoys Steve Witkoff and Jared Kushner were “constructive, but not easy.”

In other words:

• The U.S. wants a deal that can show “visible results” quickly.
• Ukraine and Europe place greater weight on a framework that will protect security and sovereignty over the long term.
• Russia wants to entrench control over its current occupied territories as much as possible.

These three different sets of interests are colliding at the negotiation table.

1-3 Impact on the Economy and Markets: Energy and Risk Assets

Markets are highly sensitive to the question: “Are we really getting closer to a ceasefire?”

Russia is currently believed to exercise effective control over about 19% of Ukrainian territory, and the longer the war drags on, the more prolonged the impact on:

• Grain prices (wheat, corn, etc.)
• Energy prices (natural gas and oil)
• Construction and infrastructure-related stocks tied to reconstruction demand

If a ceasefire and step-by-step peace process is achieved heading into 2026:

• European companies may gain opportunities to participate in “reconstruction business.”
• Japanese firms may find room to take part in projects in infrastructure, power generation, railways, housing, and more.
• Globally, a reduction in risk premia could support higher equity prices and more stable resource prices.

On the other hand, depending on how far Ukraine’s sovereignty is protected:

• Some argue that “a short-term ceasefire might be reached, but medium- to long-term geopolitical risk will remain.”

From an investment perspective, caution is warranted.

1-4 Social Impact: Exhaustion and the Struggle Over the “Quality of Peace”

Kellogg suggested that the four-year-long war may have left more than 2 million dead or wounded on both sides combined.

Within Ukraine:

• Families who have lost loved ones
• Internally displaced people who lost their homes and jobs
• Soldiers returning from the front with PTSD

—people at every level of society have been deeply scarred.

Amid this:

“We want the war to end as soon as possible, but won’t an unfair peace simply invite the next war?”

This kind of dilemma is spreading.

For example, imagine a hypothetical case of an IT engineer from near Kharkiv who fled to Poland and continues to develop software remotely for European clients, all the while living with the fear that “my hometown might end up becoming Russian territory.” Cases like this are far from rare.

Peace negotiations are not just diplomatic events; they profoundly shape people’s everyday lives and long-term plans. It’s important to keep that in mind when we follow the news.

2. Post-War Order in Gaza and Syrian Refugees: Between “Return” and “Declining Support”

2-1 The Future of “Phase 2” of the Gaza War Plan

Israeli Prime Minister Benjamin Netanyahu has said that “Phase 2” of the U.S.-led plan to end the Gaza war is approaching, and revealed plans to meet President Trump later this month.

Key elements of the plan include:

• Continued phased ceasefire in Gaza
• Disarmament of Hamas and “demilitarization” of Gaza
• Whether to deploy a multinational security force
• Reconstruction assistance and rebuilding of governance

The biggest question is who will be responsible for Gaza’s security and administration.

Germany has signaled a positive stance toward reconstruction support, but is waiting to see the final terms of any agreement between Israel and the U.S.

2-2 Syria’s Reality in “Year One After the War”

Meanwhile in Syria, one year after the Assad regime’s collapse, the UNHCR (UN refugee agency) says around 3 million people have returned.

Breakdown:

• About 1.2 million refugees returning from neighboring countries
• About 1.9 million internally displaced people returning to their home areas

However, only about 30% of the needed humanitarian aid funding has been disbursed this year, and reconstruction of medical facilities and infrastructure is lagging badly.

With global ODA (official development assistance) falling and resources being diverted to newer conflicts and disasters, Syria is increasingly being seen as “no longer an emergency,” and donor fatigue is becoming acute.

2-3 Economic Impact: Middle East Reconstruction and Energy

Reconstruction in Gaza and Syria will require:

• Social infrastructure such as housing, schools, and hospitals
• Basic infrastructure like power grids, water systems, and roads
• Clearance of landmines and unexploded ordnance

All this is expected to need hundreds of billions to over a trillion dollars over the long term.

As a result:

• Construction equipment, cement, steel, and renewable energy sectors
• Japanese and European engineering firms with strong infrastructure capability
• International development finance institutions (the World Bank, regional development banks)

may all see medium- to long-term business opportunities expand. At the same time, bargaining among advanced economies over who will shoulder the financial burden is likely to intensify.

Furthermore, tension among Gaza, Israel, and Iran is still affecting oil markets. Investors view the situation largely as:

• “Move closer to a ceasefire → downside pressure on oil prices”
• “Talks break down → renewed upside pressure on oil prices”

2-4 Social Impact: Return Is Not the “Goal,” But the “Starting Line”

In Syria, around 40% of hospitals are not functioning adequately, and there are reports that power cuts are making it difficult to keep vaccines refrigerated.

Consider a hypothetical example of a family that returned from Lebanon to the outskirts of Damascus:

• There is no pediatrician nearby for their child
• The school building is still standing, but there are not enough teachers
• Their home, damaged by bombing, is too costly to repair

They may feel:

“Life in the refugee camp was tough, but even after coming back, we still can’t rebuild our lives.”

For Japan and the international community, the question is no longer just “how many people have returned,” but “how do we support the lives they lead after returning?” That is the challenge of this next phase.

3. Rising Tensions in West Africa: Attempted Coup in Benin and Kidnappings in Nigeria

3-1 Benin Sees Its First Major Coup Attempt

In Benin, West Africa, a faction of the military briefly occupied the state broadcaster and announced the dissolution of the government and suspension of the constitution in an attempted coup. The attempt was reportedly put down by loyal forces within hours, and 14 people were arrested.

Underlying factors are believed to include:

• Insurgent activities in northern border areas
• Dissatisfaction over the treatment of soldiers and lack of support for fallen servicemembers’ families
• Criticism of power concentration around term extensions and the creation of an upper house

In other words, a buildup of political and social dissatisfaction.

3-2 Nigeria: 100 Kidnapped Children Released

In neighboring Nigeria, local media reported that 100 children abducted from a boarding school in Niger State in the north-central part of the country in November have been released.

Since the infamous “Chibok schoolgirls kidnapping” more than ten years ago, attacks targeting schools have continued, resulting in:

• Difficulty continuing education
• Worsening security in rural areas
• Growing anxiety about the future among young people

—a vicious cycle.

3-3 Economic Impact: Supply Chains and Risk Premiums

Benin and Nigeria are linked to the global economy, including Japan, through:

• Oil and natural gas
• Agricultural exports like cocoa and cashews
• Ports that serve as gateways for trade to neighboring countries

When security risks rise:

• Foreign firms may postpone or scale back new investments.
• Insurance premiums (political risk insurance, cargo insurance, etc.) increase.
• Supply chains are diversified, shifting procurement to other regions.

For example, if a Japanese food company uses cashew nuts sourced from Benin, it may face a decision such as:

“Should we sign long-term contracts that price in political risk, or partially shift to sourcing from other countries?”

3-4 Social Impact: Damage to Education and Democracy

If abductions targeting schools continue:

• Parents may become unwilling to send their children to school.
• It becomes harder to attract and retain teachers.
• Entire communities are enveloped by fear and mistrust.

Over the long term, such trends can have severe repercussions.

The attempted coup in a country like Benin, which has until now been seen as relatively stable, can also be viewed as a symbol of democratic backsliding across West Africa more broadly. The response of ECOWAS (Economic Community of West African States) and the African Union will be a key test of the future regional order.

4. Hong Kong, European Corporates, and the Japanese Economy: Global Flows of “Money and Everyday Life”

4-1 Hong Kong Legislative Council Election: Second-Lowest Turnout

In Hong Kong, an election for the “patriots-only” Legislative Council was held, with voter turnout at 31.9%, the second-lowest in history after 2021.

Just before the election, a major fire in public housing killed more than 150 people. Poor external wall netting and inadequate evacuation routes were highlighted, fuelling public anger heading into the vote.

Authorities:

• Arrested people for social media posts calling for an election boycott
• Removed flowers and messages left in remembrance of victims
• Warned foreign media over their coverage

reinforcing the sense of tightening political control.

Economically, while Hong Kong remains an international financial center, there are concerns that in the medium to long term:

• Some foreign financial institutions and startups are shifting their bases to Singapore and elsewhere.
• Younger generations are leaving Hong Kong, raising concerns over future talent shortages.

These factors cast a shadow over its competitiveness.

4-2 European CEOs “Prefer to Invest in the U.S. Rather Than Europe”

A survey by the European Round Table for Industry (ERT), whose members include more than 60 major European firms, found:

• 38% of CEOs said they have reduced or postponed investment in Europe.
• Only 8% said they intend to increase investment in Europe.
• On the other hand, 45% said they plan to increase investment in the U.S.

Reasons cited include:

• High energy prices and regulatory burdens
• Weak ecosystems in digital and AI fields
• Concerns over geopolitical risk

Capital is clearly shifting from Europe to the United States.

Complicating this picture are:

• The German foreign minister’s visit to China, calling for less dependence on China and fair competition conditions.
• President Macron’s statement that he does “not rule out tariffs” on China’s trade surplus.

European companies are increasingly forced to “earn money in the U.S. while carefully recalibrating relations with China”—a delicate balancing act.

For example, a German auto parts manufacturer might:

• Continue to maintain large production bases in China, while
• Locating new R&D investments and EV plants in North America.

Such moves to diversify political risk while rebuilding supply chains are likely to spread further.

4-3 Japan: Downward GDP Revision and Persistent Negative Real Wages

In Japan, revised figures show that GDP for July–September 2025 contracted at an annualized rate of –2.3%, a downgrade from the preliminary figure of –1.8%. Slower growth in capital expenditure is cited as a key factor.

Real wages in October were down 0.7% year-on-year, marking a 10th consecutive month of decline. Nominal wages rose 2.6%, but that was not enough to keep up with inflation of 3.4%, meaning households’ purchasing power continues to erode.

• Household consumption in October fell about 3% from a year earlier, the first such decline in two years.
• The Bank of Japan is expected to place heavy weight on wage trends as it decides whether to raise rates at its meeting this month.

The impact on monetary policy and FX markets is drawing attention.

For instance:

• Even dual-income households may cut back on dining out and leisure due to “price-hike fatigue.”
• Small and medium-sized firms may be squeezed by rising labor costs and higher import costs due to a weaker yen.

If such conditions persist, weak domestic demand could become entrenched, ultimately undermining corporate investment appetite.

5. Global Finance and Investment Flows: Entry into Saudi Arabia and Global Markets

5-1 U.S. Asset Manager Guggenheim Looks Seriously at Saudi Arabia

U.S. asset management firm Guggenheim Investments (AUM: about $357 billion) has:

• Already established a base in Dubai,
• Been working to obtain a license in Abu Dhabi, and
• Announced it is “actively considering” opening an office in Saudi Arabia.

The firm has indicated it will focus particularly on infrastructure and transportation as investment themes.

This reflects:

• Massive public investment in Saudi Arabia (mega-city projects, renewables, railways, etc.), and
• The expansion of investment activities by Gulf sovereign wealth funds.

For Japanese institutional investors, this is increasingly raising the question:

“How should we gain access to infrastructure bonds and funds in the Gulf region?”

5-2 Global Equities, FX, and Commodities

According to data from the London Stock Exchange Group (LSEG), the latest moves in major stock indices show:

• U.S. S&P 500: +0.19%
• Nasdaq Composite: +0.31%
• Dow Jones Industrial Average: +0.22%
• Germany’s DAX: +0.61%
• UK’s FTSE 100: –0.45%
• Japan’s Nikkei 225: –0.25%

In short, U.S. and German stocks were firm, while UK and Japanese stocks were somewhat softer.

In commodities:

• Gold futures: around $4,197 per ounce (slightly lower)
• Brent crude: about $63.8 per barrel (slightly higher)

Gold is under pressure as geopolitical risk is perceived to be easing somewhat, while oil is trading in a narrow range as markets weigh Middle East developments against expected OPEC+ production curbs.

In FX:

• EUR/USD: around 1.16
• GBP/USD: around 1.33
• USD/JPY: around 156

With expectations that the Fed will soon begin cutting rates, the broader trend is one of a “slightly weaker dollar.”

5-3 Concrete Points for Investors and Companies

From a practical standpoint, the following framework is useful:

• Short term (up to a few months)

  • The Fed’s decision on whether to cut rates in December, and the momentum of ceasefire efforts in Ukraine and Gaza, will steer the direction of equities, bonds, and commodities.
  • In Japan, BOJ policy changes represent a source of volatility in both the yen and the bond market.

• Medium term (1–3 years)

  • If reconstruction projects in Ukraine, Syria, and Gaza really get underway, that should benefit infrastructure, construction, and renewable-energy sectors.
  • As European firms shift investment toward the U.S., markets may increasingly see a pattern of “resilient U.S. growth and innovation vs. slower European growth.”

• Long term (3+ years)

  • Decarbonization and infrastructure investments in Gulf states (Saudi Arabia, UAE, etc.) may turn the region into a new hub for global capital flows.
  • Political changes in Hong Kong and shifts in European policy toward China may redraw the map of Asian finance and trade.

For those managing mutual funds or corporate pension assets, key questions include:

“How much exposure should we maintain to regions with high geopolitical risk?”
“In regions undergoing reconstruction or transition, which asset classes—equities, bonds, infrastructure funds—are the best way to gain exposure?”

It will become increasingly important to incorporate today’s news into portfolio strategy from these perspectives.

6. What Should We Take Away from Today’s News? (Summary)

Finally, let’s summarize what today’s major news means for each of us, adding a bit of emotional perspective as well.

1. How to end a war must be discussed together with “how people can rebuild their lives.”

   • News from Ukraine, Gaza, and Syria is not just about ceasefire lines; we also need to ask, “What kind of lives will people be able to regain after they return?”

2. Political instability gradually feeds through into living costs and job prospects.

   • The attempted coup in Benin and kidnappings in Nigeria may feel distant, but through supply chains and investment risk, they affect food prices and corporate activities around the world.

3. Even in mature regions like Hong Kong, Europe, and Japan, “democracy, growth, and quality of life” are all under strain.

   • Low voter turnout in Hong Kong, capital outflows from Europe, and stagnant real wages in Japan—all share a common challenge: how to restore balance among institutions, the economy, and everyday life.

4. Capital is “honest” and flows where there is both risk and growth.

   • Massive investments in the Gulf, inflows into U.S. equities, and asset managers pushing into Saudi Arabia all clearly signal where markets see growth potential.

5. What individuals can do:

   • Avoid consuming information one-dimensionally; build a habit of reading news across three layers: “people’s lives,” “business and markets,” and “politics and institutions.”
   • Pull the news into your own context and ask, “How does this affect me and my work or studies?”

For example:

• Teachers can use today’s news from Benin and Hong Kong as case studies when teaching “crises of democracy” or “citizen participation.”
• Corporate planning professionals can connect trends in Ukraine reconstruction and Gulf investments to reviews of their company’s overseas strategy and ESG policies.

It’s been a long read, but the world on December 7, 2025 seems to have been a day where:

“Preparing to end wars” and “figuring out how to build the postwar world”

were happening simultaneously.

Reference Links (Mainly English Articles)

• US envoy says Ukraine peace deal is close but Moscow says it wants radical changes – Reuters
• Zelenskiy says Ukraine’s peace talks with US constructive but not easy – Reuters
• Israel’s Netanyahu to discuss second phase of Gaza plan with Trump later this month – Reuters
• Syrian refugee returns set to slow as donor support fades – Reuters
• Benin government says armed forces foil coup attempt – Reuters
• Nigerian government secures release of 100 kidnapped schoolchildren – Reuters
• Hong Kong election turnout focus amid anger over deadly fire – Reuters
• European CEOs downbeat on Europe, favour US investment, survey shows – Reuters
• German foreign minister heads to Beijing as Berlin toughens China stance – Reuters
• Japan’s October real wages fall for 10th month despite upbeat nominal pay – Reuters
• Global Market Data – Reuters / LSEG
• Asset manager Guggenheim plans Saudi presence as part of Gulf investment push – Reuters