Latest News
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Dollar drops on trade war risks as stocks in Asia plummet
U.S. Stock Futures fell on Monday, after President Donald Trump threatened to slap additional tariffs on 8 European nations until Greenland was allowed by the U.S. The?dollar dropped against the safe haven currencies of the Swiss franc and yen. Concerns about the impact of a full-blown trade war between Europe and the U.S. on global growth and demand led to a gold and silver price jump. The holiday on the U.S. equity markets and bond market led to thin trading, which likely contributed to a drop of 0.7% in S&P futures and 1.0% in Nasdaq. EUROSTOXX Futures and DAX Futures both dropped 1.1% on European markets. Japan's Nikkei fell 1.0% and MSCI's broadest Asia-Pacific share index outside Japan dropped 0.1%. Trump has said that if a deal cannot be reached, he will impose an additional 10% on imports of goods from Denmark and Norway. He also plans to increase the amount by 25% if a deal is not reached. France suggested a series of economic countermeasures that had never been tested before to respond to the Greenland?tariff threat. Early August, the EU suspended its tariffs on imports worth 93 billion euro ($108 billion). It also took measures under a new Anti-Coercion instrument that could affect U.S. investments or services. Analysts at Deutsche Bank pointed out that European countries own $8 trillion in U.S. bonds and equities - almost twice the amount of the rest of world. They may consider bringing back some of this money. George Saravelos is the global head of FX Research at Deutsche. He said: "With U.S. net international investment positions at extreme negative extremes,?the mutual dependence of European and U.S. financial market has never been greater." It is the weaponization of capital, rather than trade flows, that would be by far the most disruptive for markets. There will also be a few tense days in Davos, as world leaders gather for the World Economic Forum. This includes a large U.S. delegation led by Trump. DOLLAR NO SAFE HAVEN China will report on Monday that its economy grew by 4.4% year-on-year in the quarter ending December, down from 4.8% in the previous quarter. Bank of Japan will meet on Friday. While no rate hikes are expected, policymakers may signal a tightening of monetary policy as early as April. The domestic political situation is also likely to be complicated by the fact that Prime Minister Takaichi, who is Japanese, is expected to dissolve parliament soon to allow an election to take place in February. Investors will be able to refine their expectations when it comes to the Federal Reserve's next rate cut based on delayed data for core U.S. inflation and consumption. Markets have largely given up on a easing of interest rates before June due to a string of positive economic news. April is currently priced at 65%, indicating no change. The earnings season continues, as more companies join the banks, such as?Netflix', Johnson & Johnson', General Electric, and Intel. The euro rose 0.1% on the currency markets to $1.1613 while sterling clawed back to $1.3387. The dollar dropped 0.2% against the Swiss Franc to 0.7995 francs and 0.3% against the yen, which fell 0.3% to 157.70 yen. The 10-year futures market firmed up 3 ticks as investors sought safety. Gold also gained 1.5%, to $4,664 per ounce. Prices of oil have eased. Oil prices eased. Brent crude oil fell by 0.5%, to $63.84 per barrel. U.S. crude dropped 0.4%, to $59.18 a barrel. ($1 = 0.8611 euro) (Reporting and editing by Shri Navaratnam, Muralikumar Aantharaman).
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Syrah Resources, based in Australia, buys time to complete the Tesla graphite deal
Syrah, an Australian company that supplies graphite to Tesla, announced on Monday that it had agreed to extend a deadline for a third time to resolve a dispute over a supposed breach of the agreement. The 2021 agreement, which will supply?8,000 metric tons of graphite per year for four years, is crucial to Syrah Vidalia's Louisiana operations as well as the company's plan to become the United States' first non-Chinese major supplier of this metal. Tesla, headquartered in Texas, issued the first default notice to Syrah in July 2025. The company claimed that Syrah failed to deliver active anode samples conforming with its Vidalia facility for use in electric-vehicle battery. The U.S. Department of Energy must approve the extension of the deadline. The original deadline of September 16 was extended to November 15, then pushed back to January 16. The Australian miner stated that "While Syrah doesn't accept it is in breach of the offtake contract, the parties have extended to March 16, 2026 the cure date and are working closely together?to cure this alleged default". Vidalia is the only large-scale, vertically integrated anode material manufacturer outside of China. It offers an alternative to the Chinese suppliers that dominate the market. Tesla, headed by Elon Musk, the richest man in the world, retains the right to cancel the deal if the active anode supplied by Syrah fails to meet the technical specifications before February 9. The graphite producer's shares fell 6.6% in the early trading on Monday to A$0.285, their lowest level since the 22nd of December. Meanwhile, the mining sub-index rose 0.6%. (Reporting by Shruti Agarwal in Bengaluru; Editing by Subhranshu Sahu)
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Six dead and 65 missing after massive Karachi fire
On Sunday, firefighter in Karachi looked for over 65 people who were missing after a massive blaze tore through a shopping center in the historic downtown area. The blaze killed six people and reduced parts of the building to rubble. Video footage showed the flames rising out of the building as firefighters battled through the night in order to prevent the fire, which began on Saturday, from spreading into the business district. Firefighters began cooling the smoky rubble after fighting the fire for more than 24 hours. The fire department told Pakistani local TV station Geo News the lack of ventilation caused the mall to fill up with smoke, slowing rescue efforts. According to Dawn News, Sindh Police Chief Javed Alam Odho said to reporters on the scene that it appeared to be caused by a faulty circuit breaker. The fire still simmers because of the layout, construction, and the products in the market, such as the carpets, blankets, and other items made from resins. Karachi Mayor Murtaza Wahab said to reporters at the scene that 65 persons were still missing. Six people were killed, and twenty others injured according to rescue officials. Media reports claim that people shouted slogans criticising Mayor who arrived at the site 23 hours after the protest began. Around the building were hundreds of people, including distraught business owners whose stores had been reduced to ashes. Yasmeen Bao, the shop owner, said: "We have been left high-and-dry,?reduced to 0; 20 years of hardwork, all gone." Fire broke out on Saturday night. Rescue services received a call from a customer at 10:38 pm (1738 GMT), reporting that the ground floor shops of the multi-storey Gul Plaza Shopping Centre were on fire. Hassanul Haseeb Khan, spokesperson for Rescue?1122, said that when they arrived the fire had already spread to the upper levels and the building was almost completely engulfed by flames. Images of the interior of the mall revealed the charred remains and bright orange glow of stores as flames continued rising throughout the building. On Sunday evening, the blackened metal frame and broken air conditioners of the building were strewn along the street. Rescue workers reported that some parts of the building were already collapsing and that it could collapse completely. Reporting by Mohammed Waseem, Ariba Sharif; Writing by Saad Saeed; Editing and proofreading by Tom Hogue, Diane Craft
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Sources: 27 killed in clashes between Colombian guerrilla groups
Military authorities in Colombia reported that at least 27 members of a leftist group were killed in clashes in which they fought a rival faction for control of an area of jungle in southwest Colombia. A military source said that the clashes in El Retorno's rural area, located in the Guaviare department, about 300 km (186 miles), southwest of Bogota. This region is strategically important for the production and trafficking of cocaine. A second source confirmed that the clashes were between a faction of Revolutionary Armed Forces of Colombia led by Nestor Gregorio Vera (also known as Ivan Mordisco) and another led Alexander Diaz Mendoza alias Calarca Cordoba. The two groups were once part of the Central General Staff, but they separated in April 2024 because of internal disagreements. According to two anonymous military sources, the casualties all came from Vera's team. According to two military sources who spoke on condition of anonymity, the deaths were all from Vera's group. Vera's group is still fighting after the government suspended a ceasefire. Both factions rejected the 2016 peace accord that allowed 13,000 FARC members to disarm and rejoin society. The conflict in Colombia, which has lasted for?over 60 years and is primarily funded by illegal mining and drug trafficking, has led to over 450,000 deaths, and millions of people have been displaced. Petro's efforts at peace are currently stuck. (Reporting and editing by Matthew Lewis, Nia Williams and Luis Jaime Acosta)
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Sources: 27 killed in clashes between Colombian guerrilla groups
Military authorities in Colombia reported that at least '27 members of the leftist guerrilla group in Colombia were killed in clashes in which they fought a rival faction for control of an area of jungle in southwestern Colombia. A military source reported that the clashes, the most violent in recent times, took place in the rural area of the municipality of El Retorno in the Guaviare department, about 300 km (186 miles), southwest of Bogota. This region is strategically important for cocaine production and trafficking. A second source confirmed that the clashes were between a 'faction of Colombian Revolutionary Armed forces (FARC), led by Nestor Gregorio Vera - also known as 'his war name Ivan Mordisco - and another, led by Alexander Diaz?"Mendoza alias Calarca Cordoba. (Reporting and editing by Matthew Lewis in Bogota)
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Chile declares a state of catastrophe after wildfires kill 16 and force thousands to flee
Early on Sunday, Chilean President Gabriel Boric declared a state of catastrophe in two areas in the southern part of the country as wildfires forced?least?20,000 people from their homes and killed at least 16 others. CONAF, the Chilean forestry agency, reported that 24 fires were active in Chile as of Sunday morning. The largest of these was located in Nuble?and Bio Bio regions, where the government had declared an emergency. These regions are located about 500 km south of Santiago, the capital. "I have declared a catastrophe in Nuble and Biobio due to the ongoing serious wildfires." Boric stated on X that "all resources are available". Security Minister Luis Cordero informed?reporters Sunday morning that 16 deaths have been confirmed, including 15 in Bio Bio. This brings the total to 16, after the government announced a death on Saturday in Nuble. The fires in these two regions have already consumed almost 8,500 hectares (21,001 acres), putting multiple communities at risk and causing authorities to issue evacuation orders. Senapred, Chile's disaster agency, said that "nearly 20,000" people were evacuated. At least 250 homes had also been destroyed. According to authorities, adverse conditions such as strong winds and high temperatures exacerbated the spread of wildfires and made it difficult for firefighters to control them. Chile's entire south was on extreme heat alerts. Temperatures were expected to reach 38 C (100 F), from Santiago to Bio Bio, between Sunday and Monday. Since the start of the year, Chile and Argentina both experienced extreme heat and temperatures. Devastating wildfires broke out in Argentina's Patagonia this month. Reporting by Alexander Villegas, Santiago; Editing and production by Matthew Lewis
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Chile declares a state of catastrophe after wildfires drive thousands to flee
As wildfires raged in the southern part of the country, the Chilean president Gabriel Boric declared a catastrophe early on Sunday. At least 20,000 people were forced to flee. CONAF, the Chilean forestry agency reports that 24 fires are active in Chile as of Sunday morning. The largest of these is located in Nuble?and Bio Bio where the government has declared an emergency. These regions are located?about 500km south of Santiago. "As a result of the'serious and ongoing wildfires in Nuble and Biobio, I have declared a catastrophe for the two?regions. Boric stated on a X post that "all resources are 'available. The fires in these two regions have burned nearly 8,500 hectares (21,001 acres) so far. This has put multiple communities at risk, and prompted authorities to issue evacuation orders. According to Chile's Senapred Disaster Agency, nearly 20,000 people have been evacuated from their homes and at least 250 of them have been destroyed. Authorities claim that adverse conditions, such as strong winds and high temperature, have exacerbated the difficulty of firefighters in controlling wildfires. Chile's central region is on extreme heat alert, with temperatures reaching up to 38 C (100 F). Since the start of the year, Chile and Argentina have both experienced extreme heat waves. Devastating wildfires broke out in Argentina’s Patagonia this month. Reporting by Alexander Villegas, Santiago; Editing and production by Matthew Lewis
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Kurdish commander asks US to intervene 'forcefully' in Syria clashes
The U.S. must intervene more aggressively to stop a Syrian offensive which has gained key territory from Kurdish militants in the past few days, according to the leader of 'the main kurdish forces. Officials and security sources reported that government troops launched an offensive Saturday in territory controlled by semi-autonomous Kurdish authority for the past decade. They captured towns on both side of the Euphrates as well as the largest oilfield as well as a gas field. Sipan Hamo, commander of the People's Protection Units(YPG), said that a meeting held on Saturday between U.S. envoy Tom Barrack (and Kurdish officials) produced no roadmap for a ceasefire. He denied that 'Syria’s Kurds want to secede from Syria or create an independent country and said they have a future in Syria. Hamo stated that "our greatest hope is for a tangible result, particularly from the United States and the coalition, which means that they will intervene with greater force in existing problems than what they are doing currently." The Syrian army has continued to advance despite an?U.S. The military Central Command has called on them to halt. Hamo stated that Kurdish authorities recognized Washington's need to balance its long-standing alliance with Kurdish troops, which helped defeat the Islamic State of Syria, and its newly found support for Syria’s government under President Ahmed al-Sharaa. The U.S. must offer protection to Kurdish people, given their "concerns" about the changes that are taking place. In the current chaos and situation, the only ones who could offer any guarantees were the United States, or the coalition, he said in a rare interview in Hasakeh, a province still under Kurdish rule. Hamo said, "We believe that Western countries and in particular the United States of America are responsible for all the current events inside Syria." Hamo denied the YPG received support from Iran or Russia while expressing hope that Israel will intervene 'on behalf of Syria’s Kurds. "Of?course, we consider Israel as a powerful country in the region with a unique agenda. Hamo stated that he hoped the same approach taken by other nations in the region to certain minorities living in Syria would be extended to the Kurds. Hamo replied, "ofcourse." When asked if he meant Israel's attitude towards the Druze minorities last summer, when Israel launched air strikes near the presidential palace of Damascus, on the defence ministry and on Syrian troops that were advancing into Druze cities, Hamo responded, "of course." Hamo replied, "of course."
Dollar drops on US tariffs, Wall Street futures fall
U.S. Stock Futures fell on Monday, after President Donald Trump said he would impose?extra tariffs? on eight European countries until the U.S. was allowed to purchase Greenland. This pushed the dollar lower against the yen (a safe haven currency) and the Swiss franc.
The holiday on the U.S. bond and equity markets led to thin trading, which?likely? contributed to a drop of 0.9% in S&P futures and 1.1% in Nasdaq. Nikkei Futures also pointed to a weak start for Asian stocks.
Trump announced that he will impose an additional 10% on imports of goods from Denmark and Norway. He also said that he will impose a 25% surcharge on June 1, if a deal cannot be reached.
France suggested a series of?untested economic countermeasures to respond.
Early August, the EU suspended its tariffs on imports worth 93 billion Euros from the United States for six months. It also took measures under an Anti-Coercion instrument that could affect U.S. investments or services.
Analysts at Deutsche Bank pointed out that European countries own $8 trillion in U.S. bonds, and almost twice as many as the rest the world. They may consider bringing back some of this money.
George Saravelos is the global head of FX Research at Deutsche. He said: "With the U.S. Net International Investment Position at record-negative extremes, there has never been a greater mutual?interdependence between European and U.S. Financial Markets."
"The most disruptive force on the markets would be a weaponization?of capital?rather than trade flow."
There will also be a few tense days in Davos, as world leaders gather for the World Economic Forum. This includes a large U.S. delegation led by Trump.
DOLLAR, NO SAFE HABITAT On Monday, China is expected to announce that its economy grew by 4.4% over the past year, down from 4.8% in the previous quarter. This is due to a slowdown in manufacturing and exports, which is being offset by a weakening of domestic demand.
Bank of Japan will meet on Friday. While no rate hikes are expected, policymakers may tighten up the monetary conditions as early as April.
The Japanese prime minister Sanae Takaichi, who is expected to dissolve the parliament in order to hold elections in February, has added a new wrinkle to domestic politics.
Investors will be able to refine their expectations when it comes to the Federal Reserve's next rate cut by comparing delayed data for November on core U.S. inflation and consumption.
Markets have largely given up on a easing of interest rates before June due to a string of positive economic news. April is priced at 65%, indicating no change.
The earnings season continues, as a diverse group of companies joins the banks, such as Netflix,?Johnson & Johnson', General Electric, and Intel.
The euro has recovered from a dip in the currency market to remain at $1.1605, and sterling clawed back to $1.3381.
The dollar dropped 0.4% against the Swiss Franc, to 0.7985 Swiss francs. And the yen fell 0.3% to 157.71 yen.
The 10-year?futures rose 3 ticks as investors sought safety.
Gold also gained 1.7%, to $4,671 per ounce.
The oil prices fell on concerns about global demand if a trade war between the U.S.A. and Europe were to break out. As a U.S. Navy carrier group is expected to arrive this week in the Persian Gulf, there are still concerns about an American strike against Iran.
Brent crude oil fell by 0.3%, to $63.95 per barrel. U.S. crude dropped 0.5% to $59,16. (Reporting and Editing by Shri Navaratnam.)
(source: Reuters)