FINANCIAL TIMES
-Government borrowing costs for Italy and Spain have dropped to a 16-year low relative to Germany, with the extra yield on 10-year Italian debt narrowing to within 0.7 percentage points of German Bunds. Similarly, strong economic growth has reduced Spain's 10-year spread with Germany to under 0.5 percentage points, the lowest since before the Eurozone crisis. Ales Koutny of Vanguard noted a convergence in investor perceptions between peripheral nations and those previously viewed as safer such as France or Belgium.
-Ukraine's President Volodymyr Zelensky will meet Donald Trump at Trump's Mar-a-Lago resort in Florida over the weekend. This meeting follows weeks of diplomacy regarding a US peace proposal involving a 28-point plan created with Russian officials. Zelensky mentioned a broad agenda for their discussions, aimed at finalizing aspects of the peace plan. However, Trump emphasized that Zelensky's 20-point plan requires his approval to proceed, expressing cautious optimism about the meeting and indicating future discussions with Russian President Vladimir Putin.
-Saudi Arabia has attacked the UAE-backed Southern Transitional Council (STC) in Yemen, highlighting growing tensions between Saudi Arabia and the UAE. The STC expressed serious concern over the strikes targeting its elite forces in Hadhramawt province. This military action follows the STC's offensive to seize control of Hadhramaut, which is crucial to Saudi interests due to its wealth and strategic significance. Analysts suggest that the STC's aggression was likely supported by the UAE. The situation reflects the deteriorating relationship between the two Gulf nations, who have been at odds over regional conflicts.
-On the evening of Christmas Day, residents of Jabo, a Muslim village in the state of Sokoto, Nigeria, reported seeing a small aircraft followed by a loud explosion and a fireball. This incident was part of a US military operation targeting ISIS in Northwest Nigeria, described by President Trump as a successful strike. While the US claimed multiple ISIS members were killed, Jabo residents expressed surprise, noting that no injuries occurred and that the munitions landed in empty fields. Major General Samaila Uba confirmed the Nigerian military's collaboration with the US, emphasizing that the strike was based on credible intelligence and planning.
-China's industrial profits fell 13.1% in November, marking the fastest drop in over a year, as reported by the National Bureau of Statistics. This decline contrasts sharply with a smaller 5.5% decrease in October and reduces year-to-date profit growth to just 0.1% over the previous year, down from 1.9% earlier in the year. The economy continues to grapple with challenges such as industrial overcapacity, weak consumer confidence, and ongoing deflationary pressures, compounded by a struggling property sector now in crisis for five years. Despite improvements in high-tech manufacturing exports and a temporary easing in the US-China trade tensions, the data underscores the difficulty for policymakers in restoring confidence among businesses and consumers.
-Thailand and Cambodia have agreed to a ceasefire effective from noon Saturday after renewed border conflicts resulted in numerous casualties and significant displacement. Both nations pledged to refrain from troop movements and provocative actions, allowing current troop levels to remain. Thailand will return 18 captured Cambodian soldiers as part of the agreement. On Thursday, US Secretary of State Marco Rubio communicated with Cambodian Prime Minister Hun Manet, emphasizing the commitment to peace and the implementation of the ‘Trump brokered’ Kuala Lumpur Peace Accords.
-Data center developers are increasingly relying on aircraft derived jet engines and fossil fuel generators due to supply chain shortages and lengthy grid connection delays, which hinder the adoption of cleaner energy options. With wait times extending to seven years for grid access, on-site energy solutions like aeroderivative turbines and diesel generators have seen rising demand. These technologies enable data centers to power AI operations independently of the grid. GE Vernova is providing aeroderivative turbines to Crusoe, aimed at generating nearly 1 gigawatt of power for major clients such OpenAI and Oracle.
NEW YORK TIMES
-Richard Grenell, president of the Kennedy Center for the Performing Arts, has sent a letter threatening litigation against musician Chuck Redd for canceling an annual Christmas Eve jazz concert. Redd canceled the concert in protest of the center's new name, the Trump-Kennedy Center, following a board vote by members appointed by President Trump. Grenell accused Redd of using "sad bullying tactics" in his protest against the name change, which Redd has hosted for nearly two decades.
-The California High-Speed Rail Authority has dropped its lawsuit against the Trump administration over the termination of $4B in federal grants for the state's high-speed rail project, opting instead to pursue private investment. Attorney General Rob Bonta of California filed a notice of dismissal on Tuesday, ending the federal lawsuit that the state had brought in July in the Eastern District of California. The Transportation Department said a compliance review found that California had failed to meet federal grant requirements, citing costly changes to contracts, lowered ridership forecasts and missed deadlines.
-Russia launched heavy missile and drone attacks, coinciding with Ukrainian President Zelensky's planned meeting with President Trump to discuss peace. Zelensky criticized Russia's willingness for peace, stating that their continued military actions reveal their true intentions to prolong the conflict and amplify Ukraine's suffering.
-Residents of Wang Fuk Court estate had repeatedly expressed concerns to Hong Kong officials regarding a renovation project they deemed hazardous. They alleged that the government-sanctioned repairs on the aging towers involved overpriced, substandard work using flammable materials due to corrupt influences. Complaints targeted the owners' board and construction firms, hinting at political collusion. Despite inspections and notices issued to contractors, authorities provided inconsistent responses, with one official downplaying the fire risk associated with the renovation.
-A ship carrying nearly 40 researchers from four continents has embarked from New Zealand to study Antarctica's rapidly melting glaciers. The expedition, which will last a month, emphasizes the challenging conditions of the frozen continent, where harsh weather limits daily research activities. Despite these difficulties, the allure of Antarctica lies in uncovering its complex, alien environment.
-Australia's recent decision to ban children under 16 from using social media has sparked global discussions among parents about similar measures in their own countries. In Australia, surveys indicate strong parental support for the new rules, even as teenagers are exploring VPNs to circumvent them. Several countries are considering similar actions; Malaysia plans to implement restrictions starting in 2026, while Denmark is set to block users under 15 next year, allowing parental consent for children as young as 13. In the USA, various states have enacted laws aimed at limiting children's access to social media with parental consent requirements.
-Some 50% of Myanmar’s population lives in poverty according to the UNDP. Foreign investment has drastically decreased, leaving cities like Yangon marked by incomplete construction projects. The military junta, in an effort to gain legitimacy and lift international sanctions, announced three election rounds from December to January. However, the elections, the first since the 2021 coup, are widely regarded as a façade, especially after the disbandment of the National League for Democracy and the continued imprisonment of its leaders, including Aung San Suu Kyi. Voting is also restricted in over half the country due to ongoing armed resistance against the junta, which has resorted to bombing civilians in response.
NEW YORK POST
-Thursday's strikes against ISIS targets in Nigeria indicate a heightened American commitment to combat jihadist growth in Africa. ISIS has established a significant presence in northeastern Nigeria and the tri-border region of Mali, Niger, and Burkina Faso. In the eastern regions, including Somalia, Mozambique, and the Democratic Republic of Congo, ISIS poses a severe threat, with previous US special forces operations aimed at counterterrorism. Successful operations rely on local cooperation, as demonstrated by the recent coordination with Nigerian authorities. Nigeria's government has faced challenges in safeguarding Christians and addressing the threats posed by Boko Haram and ISIS. Counterterrorism strategies in Africa must also address the risks presented by Al Qaeda's various affiliates across the continent.
-Americans have been cutting their end-of-year charitable donations due to economic challenges such as high living costs, inflation, and rising unemployment, as indicated by an AP-NORC poll. Approximately half of the related respondents have already decreased their charity contributions for 2025, with only 24% planning to donate before the year's end. December is critical for charities, with nearly one-third of annual giving occurring in this month. Despite varied causes to support, lower-income households are particularly affected, limiting their ability to contribute. Many families, like that of Oakley Graham from Missouri, report tightening their budgets significantly.