Latest News
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The Russian budget deficit in 2025 was 2.6% of the GDP, which is the highest level since 2020
The Finance Ministry announced on Monday that Russia had a budgetary deficit of 5.6 trillion roubles, or 2.6% of GDP, by 2025. This is the largest deficit in terms of percentage of GDP since 2020 and in roubles since 2006. In 2024, Russia's fiscal deficit was equal to 1.7% of its GDP. The?government increased the deficit target in 2025 from the initial?1.2 trillion Rubbles or 0.5% GDP due to the shrinking energy revenue and a strong Rouble. Budget revenues were 37.28 trillion rubles, down 7.5% on the original target. This was due to the 24% drop in oil and gas revenue, which reached its lowest level since 2020 despite the corporate profit and income tax increases. Budget spending, at 42.93 trillion rubles, was up 6.8% from 2024, and 3.5% more than the original?budget plan. Analysts doubt that the government will be able to meet its target, despite the fact that the government has raised the value added tax in order to keep the deficit this year at 1.6% of GDP.
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Italian fashion great Valentino dead at 93
His foundation announced that Valentino Garavani, the Italian designer of fashion, died on Monday. Valentino, who is usually only known by his first name, was 93 years old and had Retired in 2008 Valentino, the founder of his eponymous label, was a pioneer in haute couture, who built a successful business empire, and also introduced to fashion a new color, the so-called "Valentino Red". The foundation posted on Instagram that "Valentino passed away today in a?his Roman home, surrounded by his loved ones." It added that the funeral would take place at 11am (1000 GMT) on Friday in Rome. Valentino, along with Giorgio Armani, Karl Lagerfeld and other great designers of an era when fashion was not a globalized industry dominated by marketing executives and accountants but rather a highly commercialized one. Lagerfeld The year 2019 has seen the death of many people. Armani Died in September. (Written by Alvise Armillini, edited by Gavin Jones).
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Ghana's mining reforms could choke off investment, warns industry body
Ghana's main mining industry group said that changes in the country's tax and royalties terms could deter investment, and slow?output. Last week, it was reported that Africa's largest gold producer planned to cancel long-term mining investments stability agreements and double royalty payments under sweeping reforms. These changes will result in the termination of the?stability agreement with Newmont, AngloGold Ashanti, and Gold Fields. The mining regulator stated that the change was intended to increase state revenue and crackdown on companies abusing their licenses. The draft bill, which is expected to be presented to the parliament in March, proposes a royalty rate of 9%, rising to 12% when gold reaches $4,500 an ounce or more, about double the current range of 3% to 5%. Fear of Stalemated Projects, Lost Jobs In a statement released on Monday, the Chamber of Mines - which represents the 'big mining companies' - said that they supported the principle of a sliding scale royalty system, which would allow the government to earn more when gold prices are higher. It warned, however, that the current proposal could push Ghana up the global effective taxes curve and potentially cause projects to be halted or jobs to be lost. "We understand why a sliding scale is used, but it must be structured in a way that the government can secure sustainable revenues?while industry continues to grow and reinvest," said Chief Executive Kenneth Ashigbey. The current proposal fails to strike this balance. The chamber did not offer a "counterproposal". The Minerals Commission and the Lands and Natural Resources Ministry of Ghana did not respond immediately to comments. The chamber of commerce said that Ghana's large scale miners pay a 3% growth levy and a flat 3-5% royalty rate. Both are levied based on gross revenue, not profit, and include a 35% corporation income tax, an 8% dividends tax and a 10% state-free carried interest. It said that stability and development agreements need to be improved, but not repealed outright. The chamber welcomed the ongoing consultations between Ghana's Lands and Natural Resources Minister and stressed that a competitive, predictable fiscal regime is essential to sustaining investment. Maxwell Akalaare Adombila, Robbie Corey Boulet and Susan Fenton edited the report.
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Gold and silver record highs amid Greenland dispute
Gold and silver reached record highs on Monday as investors fled to safety following the warnings from U.S. president Donald Trump about extra tariffs being imposed on certain European countries over a dispute regarding Greenland. By 12:05 pm, spot gold had risen 1.7% to $4672.49 per ounce. After reaching a record high of $4,689.39, ET (1705 GMT) was reached. U.S. Gold Futures for February Delivery increased 1.8% to $4677.70 per ounce. Trump threatened several European Allies on Saturday with an escalating series of tariffs unless the U.S. was allowed to "buy Greenland", intensifying a dispute about Denmark's vast Arctic Island. "When institutional or policy risks resurface the markets tend to'react quickly by reallocating towards safe-haven investments, with gold emerging once again as the preferred option," said XS.com senior analyst Linh Tran. Dollar fell after Trump's latest threats to raise tariffs prompted investors to seek out safe-haven currencies like gold, yen (Japan) and Swiss Franc. This was part of a broader risk-averse movement across all markets. Gold is more likely to do well in times of geopolitical or economic uncertainty and when interest rates are low. It has gained over 64% since 2025, and more than 8% in the first half of this year. Michelle Bowman, Vice Chair of the Federal Reserve for Supervision, said that the U.S. Central Bank should be prepared to lower interest rates if necessary due to a fragile and potentially weakening job market. The markets expect the Fed will hold rates at its meeting on January 27-28, but they are pricing in two 25 basis point rate cuts this year. Spot silver, which had previously reached a record-high of $94.61, has risen 5% to $94.41 per ounce. Since the beginning of the year, silver has increased by more than 32%. Citi Research analysts said they remain "tactically bullish" on precious metals. They set price targets for gold of $5,000 per ounce and silver at $100 per ounce in the next three month, citing the geopolitical tensions likely to continue to be high. Palladium increased 1.1%, to $1,819.99, while spot platinum rose 1.5%, to $2,362.65 per ounce.
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Source: Canada could send a small contingent of troops into Greenland
A source familiar with the situation said that Canada was considering sending a small contingent of troops to Greenland in order to take part in NATO exercises. The first to report the news were CBC News and Globe and Mail. Source: Military officials have "presented" plans for the operation to government, and are "awaiting a decision by Prime Minister Mark Carney," said the source. The source requested anonymity due to the sensitive nature of the issue. Carney's office declined to comment. Carney is challenged by the threats of U.S. president Donald Trump to annex Canada. He wants to be on Trump's side, but also show solidarity with European allies. Carney, who spoke to reporters on Sunday in Doha, said: "We are concerned about this escalated situation. To be clear, we will always support the sovereignty and territorial integrity of countries, regardless of their geographical location." Last week, a small number of European countries sent military personnel to Greenland. Germany, France and Sweden have all said that they will be sending military personnel to start preparations for large drills in the second half of this year. Bill Berkrot edited the report by David Ljunggren.
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Gold and silver record highs amid Greenland dispute
Gold and silver reached record highs on Monday as a result of a flight for safety following the warnings from U.S. president?Donald Trump about extra tariffs being imposed on certain European countries over a dispute?over Greenland. By 10:08 am, spot gold had risen 1.6% to $4.669.69 per ounce. After reaching a record high of $4,689.39 at 1508 GMT ET (Eastern Time), spot gold jumped 1.6% to $4,669.69 an ounce. U.S. Gold Futures for February Delivery increased 1.7% to $4.675 an ounce. Trump threatened several European Allies on Saturday with an escalating series of tariffs unless the U.S. was allowed to "buy Greenland", intensifying a dispute about Denmark's vast Arctic Island. "When institutional or policy risks resurface the markets tend to'react quickly by reallocating towards safe-haven investments, with gold emerging once again as the preferred option," said XS.com senior analyst Linh Tran. The dollar and stock markets fell after Trump's latest threats to raise tariffs prompted investors to flock towards'safe-haven' gold, Japanese yen, and Swiss francs in a risk-averse movement?across all markets. When interest rates are low and geopolitical or economic uncertainty is present, gold tends to perform well. It has gained over 64% since 2025, and more than 8% in the first half of this year. Michelle Bowman, Vice Chair of the Federal Reserve for Supervision, said that the U.S. Central Bank should be prepared to lower interest rates if necessary due to the fragile state of the job market. The markets expect the Fed to keep rates on hold at its meeting in January 27-28, but they are pricing in two rate cuts of 25 basis points or more this year. Silver spot also rose 4.4%, to $93.93 per ounce. This is after it reached a record high price of $94.10. Since the beginning of the year, silver has increased by more than 31%. Citi Research analysts remain tactically bullish, setting price targets for precious metals of $5,000 per ounce for Gold and $100 for Silver in the next 3 months. They cite geopolitical tensions likely to remain elevated in the short term. Palladium increased 1.2%, to $1,820.50, while spot platinum rose 2%, to $2,374.85 per ounce.
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INTERVIEW: Saudi private sector to play a larger role in Vision 2030, Minister says at Davos
Economy Minister Faisal Al-Ibrahim said Saudi Arabia will hand over the scope of some Vision 2030 Projects to the private sector, as it adjusts timetables to avoid economic "overheating". Ibrahim stated in an interview conducted in Davos in Switzerland that the government was "agile" when managing its ambitious pipeline of development projects. He said some projects were rescoping, but maintained momentum in its Vision 2030 goals for economic transformation. Ibrahim stated on Monday that the private sector was ready and eager to participate. He added: "Recently some whole scopes of project were given to private sector with regulatory support and guidelines." The top oil exporter in the world is already more than half way through its Vision 2030 plan. This plan calls for government investments of hundreds of billions?of dollars to reduce its dependence on hydrocarbon revenues by investing in tourism and other sectors. Saudi Arabia is grappling with economic challenges and logistical limitations. This has led to delays and recalibrations in some of the landmark projects, such as NEOM - a futuristic desert city by the Red Sea. In?October, it was reported that the Kingdom is planning to divert its $925 billion sovereign fund from being focused on mega-projects in real estate. Saudi Arabia has heavily tapped the debt markets over the past few years, as oil prices, which are its main source of income have fallen below the levels needed to fund the program. Ibrahim said that the changes to 'the timeliness and scope of project were driven by multiple factors including inflation, import pressures, and economic overheating. He said that he did not want to "overheat" the economy. "We are very transparent." Ibrahim stated that he would not hesitate to say we had to delay, reschedule, or shift a project. If you believe that the project, "the brick and mortar"... is Vision 2030 then that could be a problem. The project exists to achieve a specific outcome. According to the Saudi budget for this year, 2026 marks the beginning of a “third phase” of Vision 2030,?signaling a shift from launching reforms in economics to maximising impact. Saudi Arabia’s non-oil sector now accounts for more than a fifth of its real GDP, and will continue to grow as the country strives to lessen its dependence on oil revenues. He said that the percentage of non-oil activity dependent on oil flow?has already fallen from approximately 90% to about 70% with the aim of driving this figure even lower. He said that most non-oil industries have experienced a steady growth rate of between 5-10% per year over the last five years. The ministry is expecting both the overall growth and non-oil to be strong, with a range of 4-5%, for the next three. Saudi Arabia is now focusing on hosting major international sporting events. The 2027 AFC Asian Cup and 2030 World Expo are the top priorities. Ibrahim stated that the organizers are studying Qatar's "successful 2022 World Cup tournament model, and consulting with Qatari officials. He said that the Qataris had been very helpful. (Reporting and writing by Samia Nakhoul and Dmitry Zhdannikov, Hadeel al Sayeghl, Editing by Alexander Smith).
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Workers of Peru's state-owned oil company go on strike for three days over the privatization plan
Petroperu workers in Peru launched a 72 hour strike on Monday to protest the plan to privatize a part of the firm. The company claimed that operations were normal and the government declared the walkout illegal. Jose Luis Saavedra is the general secretary of the union of administrative workers. He said that at least 30% of their 2,200 unionized employees had taken part in the strike on Monday. Saavedra said by phone that "the speed at which the government wants privatize Petroperu" is shocking. Petroperu, however, said that its facilities were all operating normally. It also guaranteed that fuel supplies would not be disrupted. The?company said that Peru's Labor Ministry had ruled that the strike?call was "inadmissible" though this decision is subject to a 3-day review. The ministry didn't immediately respond to an inquiry for comment. The strike is a response to the aforementioned. Plan approved by late December Jose Jeri, President of the Republic, has announced his intention to revamp the financially distressed company. The plan aims to attract investment in key assets. Economy Minister Denisse miralles stated last week that 'first management contracts could be signed with private firms as early as June. Petroperu has a massive debt after receiving up to $5.3 Billion in government aid between 2022 and 2024. A part of its financial burden is due to its new Talara refining plant, a $6 billion project which commenced operations in 2023. The investment agency of the government has stated that the refinery is among the assets. Private investment is possible Or offered as a compromise. (Reporting and editing by Aida Peaez-Fernandez, Sarah Morland).
Leaders of the G7 strive for unity in face of escalating conflicts in Ukraine and Middle East
Leaders of the Group of Seven nations started their annual meetings on Monday. War in Ukraine and the Middle East have added to the global economic uncertainty. The host Canada is trying to avoid a confrontation with U.S. president Donald Trump.
G7 leaders, including the European Union and representatives from Britain, Canada France Germany Italy Japan, the United States, and Canada are meeting in Kananaskis, a resort in the Canadian Rockies, until Tuesday.
The summit in Canada, with the escalating conflict between Israel and Iran, is seen as an important moment to restore some unity among democratic powers.
Canada has given up on any attempt to adopt a comprehensive communiqué to avoid a repeat from a summit held in Quebec last year, where Trump had instructed the U.S. delegation to withdraw their approval of the final document after they left.
Leaders prepared a number of draft documents, which were seen by us. These included one that called for the de-escalation in the Israel-Iran Conflict and others on migration, artificial Intelligence and critical mineral supply chain. According to sources familiar with the documents, none of the drafts have been approved by US officials.
"I think there is a consensus on de-escalation." Keir starmer, British Prime Minister told reporters that it was important to get everyone on the same page and be clear as to how this could be achieved.
The first five-months of Trump's second tenure have thrown Trump's foreign policy into disarray, raised concerns about his close ties with Russia, and led to tariffs against U.S. allies.
The focus of Monday's talks will be the economy, trade agreements, and China.
The temporary rise in oil prices that has occurred since Israel began its strikes against Iran on 12 June complicates efforts to reach an agreement on lowering the G7 price limit on Russian oil, even if Trump decides to opt out. On Monday, oil prices dropped on reports that Iran was seeking a ceasefire.
Diplomatic sources say they are hoping to encourage restraint, and a return of diplomacy.
"We are one." "Nobody wants Iran to get a nuke and everyone wants the discussions and negotiations restarted," France's president Emmanuel Macron said to reporters in Greenland, Sunday before he left for Canada.
Washington has the ability to restart talks with Israel, he said.
Trump said that many meetings and calls were being held to broker peace.
RUSSIAN ELEPHANT INSIDE THE ROOM
Trump, highlighting the unease of some Washington's allies on Saturday, spoke with Russian President Vladimir Putin. He suggested that Putin could play a mediatory role between Israel and Iran.
Macron rejected the idea. He argued that Moscow couldn't be a negotiator, because it started an illegal conflict against Ukraine.
A European diplomat stated that Trump's suggestion demonstrated the fact that the U.S. was still thinking about Russia, even though it had been kicked out in 2014 for annexing Crimea.
"In the U.S.'s eyes, there is no condemnation of Ukraine; no peace with Russia; and even now credit for its role in mediating Iran. The diplomat stated that this G7 will be tough for Europeans.
The summit will be held on Tuesday. Both the NATO Secretary General Mark Rutte and Ukraine's president Volodymyr Zelenskiy will attend. The European officials said that they were hoping to use this meeting and the NATO summit next week to convince Trump to take a more aggressive stance against Putin.
Macron stated that the G7's goal should be to bring us back together, to achieve a ceasefire in Ukraine, which would lead to a robust, lasting peace. It is also important to see if President Trump will impose much stronger sanctions against Russia. (Suzanne Plunket contributed additional reporting; Caroline Stauffer, Paul Simao, and Rod Nickel edited the article).
(source: Reuters)