Daily US Equity Opening News - US grants TSM annual license to import US kit into China; BIDU AI chip unit files for IPO

TODAY'S AGENDA:

US INDEX FUTURES: ES +0.5%, NQ +0.9%, YM +0.3, RTY +0.6%.
DAY AHEAD: The US Day sees the release of final S&P Global PMI data ahead of next week's ISM releases; the manufacturing and services headlines are expected to be unrevised. October's construction spending figures will also be released. In the afternoon, Baker Hughes will publish its weekly rig count data.
BROKER MOVES: VRT upgraded at Barclays; ASML upgraded at Aletheia Capital. For the full list, click here.
MAJOR MORNING MOVES RECAP: Mag-7, IRWD, BIDU, RH/W/WSM, NIO/LI/XPEV, TSM. To see the full list, click here.

US EQUITY NEWS:

Today's edition recaps equity news stories from 30th December to today.

TECH:

Nvidia (NVDA) - Seeking TSMC (TSM) support to boost H200 chip output after Chinese firms ordered over 2mln units for 2026, exceeding Nvidia’s 700k inventory, Reuters reports, citing sources. Work could start in Q2 2026. Chips may be priced around USD 27k, amid regulatory uncertainty over China shipments. Separately, ByteDance plans to spend about CNY 100bln (around USD 14bln) on Nvidia AI chips in 2026, up from roughly CNY 85bln in 2025, if sales of H200 units in China are allowed, SCMP reports. The company is expanding in-house chip design and memory technology investment to support growing AI and computing demand.
TSMC (TSM) - The US granted Taiwan Semiconductor Manufacturing an annual licence to import US chipmaking equipment to its Nanjing plant in China for 2026, ensuring uninterrupted operations and deliveries, Reuters reports. Similar licences were given to Samsung Electronics (SSNLF) and SK Hynix (HXSCL) after previous exemptions expired on 31st December. DigiTimes suggests that the move signals a shift in the US export control strategy toward selected semiconductor manufacturers operating in China.
Intel (INTC), Samsung (SSNLF) - TSMC (TSM) began volume production of its 2nm process in Q4 2025, becoming the first foundry to offer gate-all-around nanosheet chiplet manufacturing. Intel and Samsung have advanced 2nm development, but yield gaps leave TSMC as the only external supplier at this node, DigiTimes reports.
Samsung (SSNLF) - Begun sampling next-gen DDR5 memory delivering speeds of 7,200Mbps, about 30% faster than current products, DigiTimes reports, with the move intensifying competition with SK Hynix (HXSCL) and China’s CXMT as rivals push higher-performance DRAM. DigiTimes also reports that Samsung plans to start mass production of sixth-generation HBM4 memory chips in 2026 after receiving positive customer validation; the move is part of efforts to regain leadership in the highly competitive AI memory market, where rivals like SK Hynix have gained ground.
Micron (MU), Sandisk (SNDK) - SanDisk and Micron have approached PSMC about capacity cooperation at its new 12-inch Tongluo fab in Taiwan, according to market rumours and company statements cited by DigiTimes. A decision on the facility’s future is expected soon, as interest grows in securing additional memory manufacturing capacity.
DeepSeek, OpenAI - DeepSeek published a paper detailing a more efficient AI training approach as China’s industry seeks to compete with OpenAI despite limited access to Nvidia (NVDA) chips. The framework, Manifold-Constrained Hyper-Connections, aims to improve scalability while cutting computational and energy demands, according to the authors.
GlobalFoundries (GFS) - Wedbush downgraded GlobalFoundries to Neutral from Outperform, cutting its price target to USD 40 (from USD 42). The firm cited an elongated down cycle, weak industrial and auto demand, and delayed catalysts despite longer-term potential for revenue, utilisation and margin improvement.
Uber Technologies (UBER) - Held talks to acquire parking app SpotHero, according to The Information. The discussions suggest potential synergies between ride-hailing and parking, enabling Uber to expand services for customers using their own cars and transitioning to ride-hailing after parking.
Hewlett Packard Enterprise (HPE) - A federal judge set rules allowing a dozen US states to challenge the DoJ’s approval of Hewlett Packard Enterprise’s USD 14bln acquisition of Juniper Networks. A Colorado-led group of attorneys general will probe allegations that the antitrust settlement permitting the merger was politically influenced.

COMMUNICATIONS:

Meta Platforms (META) - Acquiring Chinese-founded AI start-up Manus to boost its AI capabilities. The deal could be worth around USD 2.5bln. Manus is now based in Singapore, and develops autonomous AI agents and will continue operating its service after the acquisition. The acquisition reportedly surprised some Chinese officials, WSJ reports; Manus had distanced itself from its Chinese roots and relocated to Singapore to attract US investment. Officials viewed Manus as showcasing China’s AI strength and feared US access to Chinese-developed technology. Elsewhere, the US Virgin Islands AG sued Meta Platforms and subsidiaries, including Instagram and Facebook Holdings, alleging widespread scam advertising and harms to children; the complaint claims Meta knowingly profited from fraud, projecting about USD 16bln of 2025 revenue from such ads, while failing to adequately protect users.
Warner Bros. Discovery (WBD), Paramount Skydance (PSKY), Netflix (NFLX) - Warner Bros. plans to again reject a takeover bid from Paramount Skydance after amended terms, according to sources cited by Bloomberg. The board will meet next week, but concerns remain as Paramount has not raised its offer, previously deemed inferior to a bid from Netflix.
Netflix (NFLX) - Netflix said “Stranger Things” Season 5 reached 34.5mln views during 22-28th December after Volume 2 dropped, helping deliver its highest-ever Christmas Day viewership. The season’s debut week in November drew 59.6mln views, the platform’s best opening for an English-language title. Elsewhere, Netflix said its Lions-Vikings Christmas Day NFL game averaged 27.5mln US viewers, peaking above 30mln, making it the most-streamed NFL game in US history.
Trump Media (DJT) - Plans to distribute a new digital token to shareholders in partnership with Crypto.com. Each beneficial owner is expected to receive one token per whole DJT share, with periodic rewards including benefits or discounts linked to Truth Social, Truth+ and Truth Predict.
Baidu (BIDU) - Said its AI chip unit Kunlunxin confidentially filed for a Hong Kong listing on 1st January, paving the way for a spin-off, Reuters reports. Sources value Kunlunxin at CNY 21bln (around USD 3bln).

FINANCIALS:

First Brands, Jefferies (JEF) - First Brands Group founder Patrick James said he would likely invoke his Fifth Amendment right if questioned by Jefferies Financial Group, citing a federal criminal investigation. In a 31st December court filing, his lawyers sought to block subpoenas from Jefferies’ Leucadia Asset Management, a major creditor.
US Mortgage Rates - US mortgage rates hit their 2025 low, potentially boosting homebuying momentum after a weak year. The average 30yr fixed rate fell to 6.15% this week from about 7% in January 2025, according to Freddie Mac data, which called the drop an encouraging sign heading into the New Year.
Apollo Global Management (APO) - Plans to sell Coinstar to Arctic Slope Regional, an Alaska Native-owned investment company, according to Bloomberg. As part of the transaction, Coinstar expects to repay its bondholders next month.
KKR & Co. (KKR) - KKR’s bid to take Yomeishu Seizo (2540 JT) private collapsed after the company’s largest shareholder, Yuzawa KK, said it would not sell its stake. Yomeishu terminated exclusive talks, concluding the proposal could not succeed despite granting KKR first negotiating rights a day earlier.
Robinhood (HOOD) - Barclays said Robinhood’s December metrics suggest transaction revenue may slightly miss Q4 estimates, with weaker equities and crypto volumes partly offset by stronger other revenue from prediction markets.

CONSUMER DISCRETIONARY:

Tesla (TSLA) - CEO Musk said it is currently testing the production system for its Cybercab, with the real production ramp scheduled to begin in April. Separately, investor Michael Burry said in a post on X that Tesla is “ridiculously overvalued”; Burry later added that he is not short Tesla shares, despite earlier calling the Co. “ridiculously overvalued.” Tesla published unusually downbeat sales estimates, showing analysts expect 422,850 vehicle deliveries in Q4, down 15% Y/Y (Bloomberg's survey expected 440,907 vehicles, an 11% Y/Y decline), signalling a weaker outlook than many investors had anticipated. Bloomberg notes that while its shares surged in H2 2025 as investors embraced Musk’s optimism on self-driving technology, vehicle sales momentum has lagged; despite record Q3 deliveries, Co. likely sold fewer cars in the final six months than a year earlier, highlighting weaker showroom performance.
China Automakers - Chinese carmakers captured a record 12.8% share of Europe’s electric vehicle market in November, despite EU tariffs, Bloomberg reports. Their presence also expanded in hybrid categories, where Chinese brands exceeded a 13% share across the EU, EFTA countries and the UK, according to Dataforce.
BYD (BYDDY) - Delivered 4.6mln vehicles in 2025, +7.7% Y/Y, meeting its revised FY sales target. The result likely puts BYD ahead of Tesla (TSLA) as the world’s largest EV maker, Bloomberg said.
Autos Tax Deductions - US taxpayers who bought a new car in 2025 may qualify for a new tax deduction on car loan interest if the vehicle was made in the US, the IRS said. Buyers should check the vehicle label or VIN to confirm eligibility under President Trump’s policy.
Nike (NKE) - President and CEO Elliott Hill purchased 16,388 shares on 29th December at an average price of USD 61.10/shr, for a total of USD 1mln.
Lululemon (LULU) - UBS said an annual athletic wear survey suggests US trends remain tough for Lululemon, limiting confidence in a sustained Americas sales recovery in 2026. UBS expects at least a year of investment to restore growth, and maintains its Neutral rating and a USD 206 price target on LULU.
LVMH (LVMUY), Carlyle (CG) - LVMH and Carlyle Group hold stakes in train operators under scrutiny after a fatal head-on collision on 30th December on a railway serving Machu Picchu, Bloomberg reports. The crash killed a train driver and injured dozens on a key tourist route in Peru. Belmond, a luxury hospitality unit of LVMH, blamed a train operator majority-owned by Carlyle for the collision.
Hyatt Hotels (H) - Bernstein says Hyatt revised full-year guidance to about USD 1,160mln EBITDA after the Playa real estate disposal and Hurricane Melissa, a 1.5% cut. Despite this, the firm expects 2026 to be strong, and keeps an Outperform rating and a USD 188 price target on H.
Macau Gaming Revenue - Macau gaming revenue +14.8% Y/Y in December (exp. +18%), signalling a slowdown. Gross gaming revenue reached MOP 20.9bln for the month, about 91% of 2019 pre-pandemic levels, according to the Gaming Inspection and Coordination Bureau.
XPeng (XPEV) - Delivered 37,508 vehicles in December, +2% Y/Y, and total annual deliveries in 2025 reached 429,445 units, +126% Y/Y. For FY25, XPeng delivered 45,008 vehicles in overseas markets, +96% Y/Y.
Nio (NIO) - Delivered 48,135 vehicles in December, a new monthly high, +54.6% Y/Y. Delivered 124,807 vehicles in Q4, reaching a new quarterly record and +71.7% Y/Y. For FY25, total deliveries reached 326,028 vehicles, +46.9% Y/Y.
Li Auto (LI) - Delivered 44,246 vehicles in December and Q4 deliveries 109,194.

CONSUMER STAPLES:

Kraft Heinz (KHC) - Cautious mention in WSJ, which writes that Kraft Heinz is losing market share as premium brands and supermarket copies gain ground, adding that years of cost cutting, underinvestment and internal disruption have weakened Kraft Heinz’s competitive position.

ENERGY:

OPEC - OPEC+ is expected to maintain a planned pause in oil output when it meets this weekend, amid growing signs of global oversupply, according to three delegates cited by Bloomberg. Key members led by Saudi Arabia and Russia will hold a monthly video conference on 4th January to review a decision first made in November to halt further supply increases during Q1. The move follows a period of rapid production revival earlier in the year and reflects concern that additional barrels could worsen market imbalances if demand growth weakens.
Energy Inventories - Weekly API data reportedly showed headline crude stocks drawing by -1.9mln (exp. +0.4mln), gasoline building by +5.9mln (exp. +1.4mln) and distillates building by +5.0mln (exp. +1.8mln). The more widely followed EIA weekly inventory data showed crude stocks drawing by -1.9mln bbls (exp. -0.9mln), distillates building by 5.0mln (exp. +0.2mln), gasoline building by 5.8mln (exp. 1.9mln). Elsewhere, the EIA NatGas storage change for the week saw a smaller than expected draw of 38 BCF (exp. -50 BCF).
Peru State Oil Co. - Peru’s government is considering splitting assets at its struggling state-owned oil company, including a loss-making USD 6bln refinery. President Jeri announced the plan in a decree late on New Year’s Eve, drawing criticism over privatisation risks and prompting calls to remove the finance minister.
Venezuela Output - Venezuela’s Orinoco Belt oil output fell 25% in two weeks to 498,131 barrels a day on 29th December, according to PDVSA data. Production has slowed as US pressure limits exports, forcing the state oil company to shut wells due to storage constraints.
Nigeria Output - Nigeria’s state-owned oil producer plans to develop new oil fields from next year to boost output and reverse years of underinvestment, officials said. Nigerian National Petroleum Co. aims to raise at least USD 30bln by the end of the decade, with major investment decisions expected next year.

INDUSTRIALS:

Defence Contracts - General Dynamics (GD), Northrop Grumman (NOC), Leidos (LDOS), Raytheon (RTX), DRS Network (DRS), HII Mission Technologies (HII), Vertex Aerospace (VVX) and L3Harris Technologies (LHX) won a multiple-award DMEA contract with a USD 25.36bln ceiling for the Advanced Technology Support Programme.
Lockheed Martin (LMT) - Awarded USD 297.49mln cost-plus-incentive-fee contract modification for in-service AEGIS sustainment, baseline 10 system integration and product documentation supporting current AEGIS combat system configurations. Lockheed also received a USD 328.5mln undefinitized Air Force contract action for Sniper, Infrared Search and Track and targeting hardware production supporting Taiwan FMS. Additionally, Lockheed received a USD 142.62mln non-competitive contract modification from the Missile Defense Agency under a UAE Foreign Military Sales case, raising total contract value to USD 876.75mln.
Boeing (BA) - Awarded USD 2.73bln firm-fixed-price Army contract for Apache post-production support services.
Airbus (EADSY) - Air China will buy 60 Airbus A320neo family aircraft in a deal worth USD 9.53bln, according to a Shanghai exchange filing. The state-run carrier will take deliveries from 2028–2032, deepening reliance on Western-made jets amid broader Airbus orders by Chinese airlines.
TransDigm (TDG) - Agreed to acquire Stellant Systems, a portfolio company of Arlington Capital Partners, for about USD 960mln in cash, including tax benefits. CEO Mike Lisman said Stellant’s proprietary, aftermarket-driven products fit TransDigm’s strategy and are expected to create long-term equity value.

MATERIALS:

Precious Metals Trading - CME Group (CME) Wednesday raised margin requirements on precious-metal futures for the second time in a week after sharp price swings. Higher collateral will apply to gold, silver, platinum and palladium contracts, reflecting heightened volatility, with silver experiencing particularly large moves. Changes took effect after Wednesday’s close.
Probe Gold (PROBF), Fresnillo (FNLPF) - ISS and Glass Lewis recommended Probe Gold shareholders vote for Fresnillo’s acquisition, citing fair terms and strong premiums. The deal offers CAD 3.65/shr, valuing Probe at about CAD 780mln, with a 39% premium to its 30th October. Completion is expected in Q1 2026.
Vale (VALE) - PT Vale Indonesia suspended nickel mining after authorities delayed approval of its annual work plan, Bloomberg reports. The JV with Vale SA’s base metals unit and the Indonesian government expects approval soon, and sees no threat to operational sustainability.

UTILITIES:

PG&E (PCG) - Cut residential electric rates about 5% on 1st January, the fourth cut in two years, leaving rates 11% below January 2024 levels. Typical customers pay about USD 20 less monthly; CARE customers see about 6% cuts. It also noted that natural gas rates fell 3%, lowering bills by about USD 1.00.
Orsted (DNNGY) - Orsted filed a court challenge against a lease suspension imposed by President Trump’s administration on its US wind project. The Revolution Wind joint venture with GIP’s Skyborn Renewables lodged a supplemental complaint in the US District Court over an order issued on 22nd December and plans to seek a preliminary injunction, Bloomberg reports.

HEALTHCARE:

Drug Prices - Reuters reports that drugmakers plan to raise US prices on at least 350 branded medicines in 2026, up from over 250 a year earlier, data from 3 Axis Advisors show. The median hike is 4%, despite Trump administration pressure, with Pfizer (PFE), Sanofi (SNY), Novartis (NVS) and GSK (GSK) among companies increasing prices. The median hike is in line with 2025 levels, and the increases do not reflect any rebates to pharmacy benefit managers or other discounts.
Ironwood (IRWD) - Sees FY26 revenue above expected at USD 450-475mln (exp. 319.47mln).

TRADE:

US Furniture Tariffs - President Donald Trump delayed planned tariff increases on upholstered furniture, kitchen cabinets and vanities, slowing the pace of levies as voter frustration over high prices persists. The White House issued a fact sheet on the proclamation late Wednesday.
US-China - China called for a new model of engagement with the US to stabilise relations with the Trump administration while reaffirming its stance on Taiwan. Foreign Minister Wang Yi said China seeks healthy, sustainable ties based on mutual respect but will not compromise on core interests.
China Battery Scrap - China lowered import tariffs on some battery scrap to support its recycling industry, cutting duties on lithium-ion battery black mass to 3% from 6.5%, effective 1st January.
US-China Ags - China bought at least 8mln tons of US soybeans in 2025, according to sources cited by Bloomberg, putting it on track to meet a pledge made two months earlier amid an apparent trade truce with Washington; state-owned buyers continued booking cargoes into late December. Separately, the US Department of Agriculture detailed a USD 12bln aid package for farmers, with rice and cotton growers set to receive the largest payments. While broadly in line with expectations and welcomed by industry groups, many farmers said the support would be insufficient to revive the struggling farm economy. Elsewhere, China imposed quotas on beef imports to protect domestic farmers, hitting major exporters including Brazil, Australia and Argentina, Bloomberg reports. The move signals tighter controls on agricultural imports as authorities seek to support local producers.
US-Mexico - Mexico will reimpose tariffs on several staple foods, including beef, pork and milk, under a decree from President Sheinbaum’s office. The move aims to support domestic producers and highlights a shift away from decades of largely free-trade policies pursued by previous Mexican governments.
US-Africa - The US signed a five-year health agreement with the Ivory Coast valued at more than USD 480mln, bringing the total value of health deals signed in Africa by the Trump administration since leaving the World Health Organization to over USD 16bln, according to a US embassy statement.
EU-China - China’s Ministry of Commerce said the EU’s Carbon Border Adjustment Mechanism is unfair and discriminatory, and warned it would take countermeasures to defend national interests. The comments followed the EU’s publication of legislation and implementation rules for the carbon border levy, which takes effect from 1st January.
US-Italy - The US will cut anti-dumping tariffs on some Italian pasta brands before an investigation concludes in March, Italy’s Foreign Ministry said. Rates set in September fall to 2.3% for La Molisana, about 14% for Garofalo and 9.1% for 11 others, from nearly 92%.
India Steel - India extended tariffs on steel imports for three years with import levies of 11-12% proposed for some products, according to Bloomberg. It was also reported that India imposed anti-dumping duties of USD 60.89-130.66/ton on low-ash met coke imports for six months.

MACRO:

Fed Minutes - The latest minutes showed a finely balanced decision, with most participants backing a cut to 3.50–3.75% due to rising downside risks to employment, while some preferred no change and one favoured a larger move (nine members voted for a 25bps rate cut; Miran voted for a 50bps reduction; Goolsbee, Schmid voted for unchanged). Most judged further cuts likely if inflation declines, but several favoured holding rates steady to assess lagged effects. Inflation was seen above 2%, with tariff-related pressures noted, and risks were judged as being tilted to the upside. Participants noted that labour markets were softening, growth was moderate, and balance-sheet management was focused on maintaining ample reserves. Analysts said the minutes underline a clear split within the Fed, reinforcing a cautious policy outlook. While the majority remain open to further easing, confidence is explicitly conditional on clearer disinflation, particularly given concerns that additional cuts could undermine commitment to the 2% target. The emphasis on a pause to assess lagged effects signals sensitivity to policy transmission risks. Softer labour conditions justify the recent cut, but persistent inflation uncertainty and tariff effects argue against near-term follow-through, leaving policy firmly data-dependent rather than on a preset course. Barclays said the minutes showed support for a December rate cut and further easing if inflation declines, but revealed divisions over the future rate path and timing. The bank writes that the minutes suggest a likely pause at the January meeting while the FOMC assesses the effects of recent cuts, noting that participants remained concerned about inflation, saw the labour market softening, and viewed growth as resilient.
Fed Chair - US President Trump again reiterated criticism of current Fed Chair Powell for cutting rates too slowly, calling him a fool; Trump also repeated claims that Fed HQ renovations cost USD 4.1bln (others have suggested it is around USD 2.5bln), threatening a lawsuit, and saying he would love to fire Powell. Trump is expected to name a successor to Powell early in the New Year, with the candidate list recently narrowed from 12 to four: NEC Director Hassett (Polymarket has him as favourite, at 41%), former Fed Governor Warsh (Polymarket's second favourite, at 32%), Fed Governor Waller (15%) and BlackRock's Rick Rieder (4%). Waller is the only internal candidate. Reports suggest Hassett’s lead has weakened recently. Powell’s chair term expires in May 2026.
Fed Bill Buying - A Federal Reserve survey shows respondents expect reserve management purchases to exceed USD 200bln over 12 months to ease money-market pressures. Policymakers decided at its December confab to begin Treasury bill buying after reserves were judged to have fallen to ample levels.
US Initial Jobless Claims - US initial jobless claims fell unexpectedly to their lowest level since late November, highlighting a weak but stable labour market, while some suggested the decline could be a function of holiday-related volatility in the data. Initial claims for the week ended 27th December dropped by 16k to 199k (exp. 220k); continuing claims eased by 47k to 1.866mln for the week ending 20th December, though they remain higher than a year earlier. Hiring slowed sharply in 2025, unemployment rose to 4.6% in November, and the Federal Reserve remains divided over further rate cuts. (NOTE: December's BLS employment situation report is due for release on 9th January; December's CPI data is due on 13th January).
China PMI - China’s factory activity unexpectedly returned to growth in December, ending eight months of contraction as pre-holiday stockpiling lifted orders; the official manufacturing PMI rose to 50.1 from 49.2 in November, with production rising to 51.7 from 50.0 and new orders to 50.8 from 49.2. The non-manufacturing PMI was at 50.2 after shrinking in November (November was at 49.5), while the composite PMI rose to 50.7 from 49.7. Capital Economics said momentum was likely short-lived amid property weakness and overcapacity. Meanwhile, the RatingDog manufacturing PMI edged up to 50.1 from 49.9; manufacturing expansion was marginal and driven by stronger production and new orders, mainly among larger firms, while employment weakened and export orders stayed below 50; smaller enterprises lagged; services activity remained weak despite improved orders, and retail demand was subdued. Construction rebounded sharply on favourable weather and catch-up demand, suggesting only a temporary boost. President Xi Jinping said China is on track to meet its 2025 economic targets, with growth of about 5%; speaking on New Year’s Eve, Xi cited resilience amid challenges. China announced early public spending plans worth USD 51bln to support consumption and investment next year, moving to shore up demand amid external headwinds; Beijing will front-load CNY 295bln in 2026 for strategic, security and central government investment initiatives.
China Industrial Power - China’s two largest industrial hubs will cut power contract prices in 2026 to support a manufacturing recovery, Bloomberg reports. Jiangsu province will reduce rates by 17% compared with 2025, while Guangdong has cut prices by 5%, according to local trading data cited by China Energy Investment Corp.

GEOPOLITICS:

US-Venezuela: A US drone strike earlier in December targeted an alleged drug trafficking port facility in Venezuela, marking the first known US attack on a land target there. CNN reported (29th December) that the strike destroyed the site without casualties, escalating pressure on Venezuela. This week, the NYT reported that Venezuelan authorities have detained several Americans since the Trump administration launched a military and economic pressure campaign; detentions rose after talks ended, with some prisoners possibly deemed wrongfully held. Seventeen Americans were previously freed before negotiations collapsed.
US-China - The Trump administration sanctioned Chinese-linked companies and oil tankers tied to Venezuela’s oil exports, escalating pressure on the sector. The US Treasury added Corniola Ltd., Aries Global Investment Ltd., Krape Myrtle Co. and Winky International Ltd., along with four vessels, to its sanctions list. Separately, the US State Department said China’s military drills around Taiwan unnecessarily raised tensions and urged Beijing to stop military pressure on the self-ruled island; the comments followed large-scale People’s Liberation Army exercises, after President Trump initially played down concerns.
Russia-Ukraine: Russia accused Ukraine of attempting a long-range drone attack on a presidential residence near Valdai, an allegation Kyiv denied as fabricated. The Kremlin said the claim would harden Russia’s negotiating stance while talks continue and released video footage it said showed a downed Ukrainian drone linked to the alleged strike. President Putin raised the issue with US President Donald Trump at the end of December. Trump said the claim made him angry but acknowledged uncertainty, as European leaders discussed peace efforts. US envoy Steve Witkoff said he held a productive call with European leaders on next steps toward ending Russia’s war in Ukraine after setbacks in peace talks; Witkoff said discussions with Secretary of State Marco Rubio and Jared Kushner focused on advancing the European peace process under President Trump’s efforts.
US-Russia - President Trump shared a New York Post editorial criticising Russian President Putin and urging tougher action on Russia, following a setback in talks. Trump reposted the article on Wednesday without adding a comment, signalling apparent frustration with the Kremlin’s stance.
China-Taiwan - China rejected Western criticism of its largest-ever military drills around Taiwan as the exercises appeared to wind down. The Chinese embassy in London said Taiwan was an internal matter after the UK warned the two-day drills, including rocket launches, raised cross-strait tensions and escalation risks.
China-LatAm - China signalled it will maintain and expand its presence in Latin America, rejecting US efforts to curb Beijing’s influence in the region, WSJ reports. The stance comes as the Trump administration vows to reassert US dominance in the Western Hemisphere and limit non-regional competitors.
Saudi-UAE - The latest flare-up between Saudi Arabia and the UAE over Yemen caused only a temporary blip in crude prices, with little lasting impact on oil markets. Saudi Arabia said it intercepted an unauthorised UAE-linked weapons shipment bound for southern Yemen and carried out an airstrike on Mukalla, while the UAE denied arming separatists and said it would withdraw remaining forces.
India-Russia - At least three tankers carrying nearly 2.2mln bbls of Russian Urals are sailing to Reliance Industries’ Jamnagar refinery after a brief buying pause linked to US scrutiny. The oil will be processed for domestic fuel use, according to Kpler.