Economy - Daily Politics

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 ...

According to a report from the YouTube channel World Affairs In Context (@lenapetrova), European Union member states are holding emergency talks about a severe escalation in the transatlantic trade dispute, centring on U.S. demands regarding Greenland. The situation was triggered by President Donald Trump’s announcement of a 10% tariff on goods from eight European countries, a measure he has explicitly tied to his stated goal of a “complete and total purchase of Greenland” for the United States.

In response, EU ambassadors convened in Brussels to discuss a coordinated reaction. Among the options on the table is reviving a previously suspended plan ...

US President Donald Trump's renewed tariff threats, partly linked to strategic interests in Greenland, have heightened market volatility and introduced fresh uncertainty into the global economic outlook. The prospect of escalating trade restrictions has directly weighed on investor sentiment, with markets pricing in increased geopolitical risk and the potential for retaliatory measures from trading partners, particularly the European Union.

This policy unpredictability has raised concerns over its impact on global growth, with analysts noting a dampening effect on risk assets as businesses and investors brace for potential economic fallout. The situation underscores the challenges of separating trade and geopolitics, with the ...

China recorded its largest-ever trade surplus in 2025, reaching approximately $1.19 trillion, as export growth outpaced imports despite continued trade tensions with the United States. The figure marked a sharp increase on the previous year and underscored the resilience of China’s export-driven model even as tariffs and technology restrictions remained in place.

Exports grew by more than 5% year on year, while imports were broadly flat. Although shipments from China to the United States fell by around 20% over the year, exporters redirected goods to other markets, including parts of Asia, Europe and the Global South. This shift helped offset losses ...

Gold is increasingly being treated as a strategic safe haven by central banks, particularly across the BRICS group, as governments reassess their exposure to the US dollar and Western financial systems. According to analysis shared by Inside China Business, this shift reflects a long-term effort to diversify reserves amid inflation pressures, sanctions risk and geopolitical fragmentation.

BRICS countries account for a significant share of global gold production, with China and Russia among the world’s largest miners. Other members and partner states, including South Africa, Brazil, Kazakhstan and Uzbekistan, further reinforce the bloc’s role in the global gold supply. Despite this domestic ...

The Scottish government has unveiled its Scottish Budget 2026, setting out tax and spending plans that prioritise modest tax cuts for the lowest earners while acknowledging significant constraints on public finances.

Finance secretary Shona Robison confirmed changes to Scotland’s income tax system aimed at easing cost-of-living pressures for those on lower incomes. The move reflects the SNP government’s commitment to a progressive tax approach using devolved powers, while maintaining higher rates for better-paid workers.

Alongside the tax measures, the budget highlights ongoing pressure on public spending. Funding for key areas such as health, education and local government is set against rising costs, ...

Renewed criticism of the Federal Reserve by Donald Trump has drawn warnings from leading banks and renewed debate over the independence of the US central bank, a cornerstone of financial market stability.

Trump has publicly questioned interest rate decisions and the leadership of the Federal Reserve, intensifying political pressure on the institution as it navigates inflation risks, slowing growth and uncertainty over future rate cuts. His comments have placed Fed chair Jerome Powell under increased scrutiny at a time when monetary policy signals are closely watched by markets.

Major financial institutions, including JPMorgan Chase, have warned that sustained political attacks on the ...

US inflation appears to be picking up again, with economists closely watching the next Consumer Price Index (CPI) release after concerns that earlier data understated price pressures. The November inflation report showed signs of cooling, but those figures were affected by data collection problems linked to the federal government shutdown.

During the shutdown, the Bureau of Labor Statistics was unable to gather a full set of price data, relying instead on assumptions and partial information. Economists say this likely pushed reported inflation lower than underlying conditions justified, creating a misleading snapshot that is now expected to correct.

Core CPI, which excludes food ...

Russia’s economy is entering a period of weaker growth as declining oil prices and ongoing international pressure reduce export revenues and strain public finances. Energy income remains central to the country’s budget, but lower global prices have narrowed fiscal room and increased reliance on state support measures.

Economic analysts and intelligence assessments suggest that while the economy has avoided a sharp collapse, growth momentum has slowed markedly. High military spending and sanctions-related constraints have redirected resources away from civilian sectors, contributing to stagnation in investment and productivity.

Officials in Russia have highlighted resilience in domestic industry and trade with non-Western partners, but ...