Economy - Daily Politics

Donald Trump has announced plans to sharply reduce US tariffs on Indian goods from 50% to 18%, a move closely linked to India’s ongoing purchases of discounted Russian oil. The decision marks a significant shift in US trade policy, combining economic diplomacy with geopolitical considerations around global energy markets.

India has become one of the largest buyers of Russian crude since Western sanctions were imposed following the war in Ukraine. By refining Russian oil and exporting fuel products to global markets, including the United States, India has increasingly contributed to stabilising energy supplies while benefiting from lower input costs. US officials ...

Australia's central bank, the Reserve Bank of Australia (RBA), faces one of its most crucial monetary policy decisions in years, amid heated debate over whether to implement another interest rate increase. Critics argue that the bank has already "failed the inflation test of economic leadership," having kept rates too low for too long, which allowed inflationary pressures to become more entrenched.

This policy stance, analysts warn, now puts the RBA in a delicate position: increase rates more aggressively now or risk a more severe economic adjustment later. The central bank is trying to balance the need to curb inflation, which remains ...

The gold and silver markets experienced a significant downturn, with prices falling sharply as financial markets reassessed key drivers behind the recent record-breaking rally. The sell-off appears linked to two major factors: a shift in U.S. monetary policy expectations and a potential bubble in speculative demand.

The primary catalyst was the expected nomination of Kevin Warsh as the next Federal Reserve Chair. Markets interpreted this selection as signaling a move toward a potentially more hawkish monetary stance focused on inflation control and balance sheet reduction. This shift boosted the U.S. dollar and raised bond yields, which in turn diminished the appeal ...

The anticipated nomination of Kevin Warsh to chair the Federal Reserve is one of the most significant economic appointments of the year, with broad implications for monetary policy and market stability. The decision, expected from President Donald Trump, involves a former Fed governor with a complex record at the helm of the world's most influential central bank at a pivotal moment.

Analysts observe that Warsh's policy views offer a nuanced picture. Historically, he has criticised the Fed's expansive post-2008 crisis policies, including its large balance sheet, positioning him as a monetary policy hawk concerned with long-term financial stability and inflation risks. ...

Proposed reforms to the UK's Lifetime ISA system could markedly change its role in retirement planning. The consideration involves removing the option to keep Lifetime ISA funds until age 60, effectively ending its function as a pension-like vehicle. This potential overhaul, part of a wider Treasury review, has raised concerns among savers, providers, and financial experts.

The Lifetime ISA, which provides a 25% government bonus on annual contributions up to £4,000, is popular among younger workers. Its flexibility—allowing penalty-free withdrawals for a first home or after age 60—is a key appeal. Eliminating its retirement purpose would turn it into a solely ...

The expected nomination of Kevin Warsh as the next Federal Reserve Chair by President Donald Trump marks a pivotal moment for US monetary policy. This move represents a direct attempt to influence the central bank's direction, challenging its longstanding independence upheld under outgoing Chair Jerome Powell.

Financial markets reacted swiftly, interpreting Warsh as a credible, market-friendly choice. The US dollar index strengthened, and gold prices fell significantly. This provided crucial, if temporary, support for the dollar, which had been searching for a positive catalyst to halt a recent selloff. Analysts suggest that while this nomination calms immediate fears of a more ...

India and the European Union have concluded negotiations on a landmark free trade agreement (FTA), marking the end of an 18-year negotiation process. The deal aims to leverage the complementary strengths of the two economies—combining India's scale and services with Europe's technology and capital—to foster growth and reduce strategic dependencies in an era where trade is increasingly used as a geopolitical tool.

As explained in an analysis by Greg Simons for RT, the finalised agreement is set to significantly reduce tariffs on a wide range of goods. The EU will slash duties on Indian exports such as textiles, garments, pharmaceuticals, and ...

The US dollar has fallen sharply, reaching its weakest level in four years against a basket of global currencies. This significant decline, which saw the dollar index drop by over 1.3% in a single day, represents the currency's worst daily performance since April 2025.

The immediate catalyst for the accelerated drop was a public statement from President Donald Trump. When asked about the currency's ongoing slide, he responded, "I think it's great," and brushed off concerns, stating the dollar was "doing great." This remark, which surprised markets, signaled a lack of executive branch concern about currency weakness and contributed to immediate ...

In a video analysis, World Affairs In Context (@lenapetrova) examines how turmoil in Japan's massive government bond market is creating systemic risks for global finance. The core issue is the potential unraveling of the "yen carry trade," a decades-old strategy where investors borrow cheap yen to fund investments in higher-yielding assets abroad. This system, described as the world's "financial shock absorber," relied on Japan's persistently low interest rates.

Recent market shocks, including a sharp quarter-point surge in Japanese bond yields in a single session, signal a structural shift. The driver is a changing policy environment in Japan, where rising domestic inflation and ...

According to financial commentary from Sean Foo (@SeanFooGold), the global financial system is under strain, marked by a significant rise in US Treasury yields and strategic shifts by major foreign holders. In recent days, the yield on the 10-year US Treasury note surged from 4.13% to 4.26%, its highest level since September 2025. This spike increases borrowing costs across the US economy, from mortgages to corporate debt, at a time when the nation's annual net interest payments have surpassed $1 trillion.

China is actively reducing its exposure, decreasing its US Treasury holdings by over $6 billion in November to a total ...