Death Toll In Pakistan Mall Fire Hits 55: Karachi Govt

Political

Economic

Summary:

The death toll from a mall fire in Pakistan's biggest city rose to at least 55 people, a Karachi government official told AFP on Thursday.

Rescuers search through rubble at Gul Plaza in Karachi, Pakistan, Jan. 21. EPA-Yonhap

The death toll from a mall fire in Pakistan's biggest city rose to at least 55 people, a Karachi government official told AFP on Thursday.

"A total of 55 bodies have been recovered since Saturday night" when the fire erupted, said Javed Nabi Khoso, deputy commissioner of Karachi's south district.

Relatives of those still missing have criticised the slow operation at the three-storey Gul Plaza, where rescuers are scouring the wreckage for human remains.

More than 50 families have given DNA samples, provincial health official Summaiya Syed told journalists Wednesday.

"We will hand over the bodies (remains) to the family, once DNA samples are matched," she said outside the Civil Hospital Karachi mortuary.

Fires are common in Karachi's markets and factories, which are known for their poor infrastructure, but a blaze on such a scale is rare.

Faraz Ali, whose father and 26-year-old brother were inside the mall, told AFP he wants "the bodies to be recovered and handed over to their rightful families".

"That is all so that the families may receive something, some comfort, some peace. At least let us see them one last time, in whatever condition they are, so that we may say our final goodbye," the 28-year-old said Wednesday.

A government committee has launched an investigation, but the cause of the inferno was not immediately clear.

Source: Koreatimes

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Alex

Central Bank

Remarks of Officials

Commodity

Daily News

Traders' Opinions

Political

Economic

Gold prices stabilized on Thursday, recovering from a drop of over 1% as market focus shifted to the U.S. Federal Reserve's political independence, offsetting relief from easing geopolitical tensions.

After reaching a record high of $4,887.82 in the previous session, spot gold held steady at $4,836.09 per ounce. U.S. gold futures for February delivery were also flat, trading around $4,838.60 per ounce.

Fed in the Spotlight as Political Pressure Mounts

The key factor preventing a deeper slide in gold prices is the growing concern over the Federal Reserve's autonomy. President Donald Trump’s recent comments have put the central bank's future leadership and policy direction under intense scrutiny.

"The market was reacting after Trump's remarks, but the concerns are still lingering, and that's protecting the downside for both gold and silver, along with concerns surrounding the independence of the Fed," said Soni Kumari, a commodity strategist at ANZ.

Speaking in Davos, Trump mentioned he was close to selecting a new Fed chair and floated the idea of keeping White House economic adviser Kevin Hassett as a Fed Governor. This follows a U.S. Supreme Court hearing regarding Trump's attempt to fire Fed Governor Lisa Cook, where justices appeared to support preserving the central bank's independence in setting monetary policy.

Easing Trade Tensions Cap Gold's Upside

The initial pressure on gold came after President Trump abruptly stepped back from threats to impose tariffs on Denmark over Greenland. The move signaled a potential resolution to a dispute that had risked a major transatlantic conflict, reducing near-term demand for safe-haven assets like gold.

Markets are now looking ahead to upcoming U.S. economic data, including November's Personal Consumption Expenditures (PCE) figures and weekly jobless claims, for further clues on the Fed's next steps. The central bank is widely expected to keep interest rates unchanged at its January meeting, despite calls from Trump for rate cuts.

As a non-yielding asset, gold tends to become more attractive to investors in a low-interest-rate environment.

Long-Term Outlook and Other Precious Metals

Looking further ahead, Goldman Sachs has become more bullish on gold, raising its December 2026 price forecast from $4,900 to $5,400 per ounce. The bank anticipates that central banks in emerging economies will continue to diversify their reserves, projecting average purchases of 60 tons of gold in 2026.

Elsewhere in the precious metals market:

• Spot silver increased by 1.1% to $94.26 an ounce, after hitting a record $95.87 on Tuesday.

• Spot platinum fell 0.4% to $2,472.33 per ounce, down from its recent peak of $2,511.80.

• Palladium saw a gain of 0.6%, rising to $1,850.31.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Tariff Threats Trigger Pushback From European Industry

European business groups have sharply criticized U.S. President Donald Trump’s threat to impose new tariffs on European countries, warning that compliance would amount to economic coercion rather than negotiation. Trump’s proposal to levy 10% tariffs on several EU nations, alongside the UK and Norway, from February 1 has prompted the European Union to freeze its EU–US trade deal, signaling that the bloc is prepared to escalate if necessary.

Industry leaders argue that the tariff threat, tied explicitly to opposition over Greenland, represents a form of political leverage that undermines the rules-based trading system. In their view, responding firmly is essential to deter similar demands in the future.

Anti-Coercion Instrument Moves Into Focus

At the center of the debate is the EU’s Anti-Coercion Instrument, a legal framework that allows the bloc to impose wide-ranging countermeasures when economic pressure is used to force political concessions. Business representatives from Germany and across Europe have called for the instrument to be actively reviewed, even if it remains a measure of last resort.

Volker Treier of the German Chamber of Commerce and Industry emphasized that all EU trade-defense tools should now be assessed, reflecting a growing consensus that Europe must be prepared to act decisively if its economic interests are threatened. This stance reflects a causal logic: failing to respond to coercive trade tactics today increases the likelihood of similar or more aggressive actions in the future.

Greenland Dispute Raises Stakes Beyond Trade

For many European leaders, the issue extends beyond tariffs alone. Greenland’s political status has become symbolic of Europe’s broader sovereignty concerns. Business groups argue that yielding on Greenland-related pressure would weaken the EU’s strategic credibility, encouraging further demands backed by tariff threats.

Bertram Kawlath, head of the German engineering association VDMA, warned that acquiescence would only embolden future actions. He argued that if Europe gives in now, it risks normalizing a precedent where trade policy is used as a tool of political intimidation rather than economic cooperation.

Economic Costs Could Be Substantial

The potential economic impact of new U.S. tariffs is significant. Analysis by the British Chambers of Commerce suggests that a 10% tariff could cost UK businesses £6 billion, rising to £15 billion if rates increase to 25% later in the year as Trump has threatened. German manufacturers, already facing high levies on steel and aluminum exports, could see more than half of their machinery exports affected.

This relationship is causal rather than correlational. Tariffs directly raise costs, reduce competitiveness and suppress trade volumes, particularly in sectors with thin margins and complex supply chains. Business leaders argue that these effects would ripple across transatlantic investment and employment.

Europe’s Leverage Lies in Interdependence

Despite the risks, analysts note that Europe is not without leverage. European countries hold substantial investments in U.S. assets, and transatlantic trade remains deeply interdependent. Deutsche Bank analysts have highlighted that this financial exposure could strengthen Europe’s negotiating position if countermeasures are considered.

UK business leaders have echoed this view, pointing to the scale of mutual investment between the two economies. Rather than a one-sided dependency, the relationship is characterized by mutual exposure, suggesting that escalation would impose costs on both sides.

Balancing Retaliation and De-Escalation

While calls for retaliation are growing louder, most business leaders stress that escalation should not be automatic. The prevailing view is that Europe should remain open to dialogue while making clear that it will not accept tariff threats as a negotiating tactic.

The core message from European industry is one of resolve rather than confrontation. By preparing credible countermeasures while continuing diplomatic engagement, the EU aims to deter coercion without closing the door to compromise. Whether this balance can be maintained will depend on how Washington proceeds in the coming weeks.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Olivia Brooks

Stocks

Economic

European stocks rose strongly Thursday after U.S. President Donald Trump said he will not proceed with the imposition of tariffs on European countries for Greenland, and that he had reached a framework deal on the Danish territory.

At 03:05 ET (08:05 GMT), the DAX index in Germany gained 1.2%, the CAC 40 in France soared 1.3% and the FTSE 100 in the U.K. rose 0.7%.

Trump rows back on tariffs threat

In remarks on Wednesday at the World Economic Forum in Davos, Switzerland, Trump ruled out using military force after weeks of refusing to do so, and in a social media post said he would no longer be imposing tariffs that he had threatened to put into effect on February 1.

The U.S. president added that he and NATO Secretary General Mark Rutte had "formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region" during talks at the Swiss resort.

Regional stock markets had dropped sharply at the start of the week after Trump threatened escalating tariffs on several European countries unless the U.S. is allowed to purchase Greenland, an autonomous Danish territory.

That said, the strength of the traditional alliance between the European Union and the U.S. is now very uncertain, as indicated by ECB President Christine Lagarde walking out of a dinner during a speech by U.S. Commerce Secretary Howard Lutnick on Wednesday.

The European economy needs a "deep review" to face "the dawn of a new international order", Lagarde said earlier Wednesday.

U.S. inflation data in spotlight

There is little in the way of major economic data on the European slate Thursday, but there are a number of important U.S. economic numbers for investors to focus on.

The weekly initial jobless claims release will provide hints about the strength of the labor market, while the latest iteration of third quarter gross domestic product should show economic strength.

However, the most widely-watched figure could well be core PCE inflation for November–the Federal Reserve's favorite gauge of price rises–as investors search for clues over the likely path of U.S. interest rates this year.

Primark sales fell during Xmas period

In the European corporate sector, Associated British Foods (LON:ABF) confirmed that underlying sales at its Primark clothing business declined over the Christmas trading period, in line with the estimates published alongside its profit warning earlier this month.

Bankinter (BME:BKT) reported a 14.4% rise in net profit to a record €1.09 billion in 2025, with the Spanish bank helped by robust growth in off-balance-sheet funds and fee income that offset a decline in net interest income amid falling interest rates.

Swiss healthcare company Galenica (SIX:GALE) said its 2025 sales rose 5.5% to the highest level in its history, with all business segments contributing to growth and the company confirming its EBIT guidance of a 10-12% increase for the year.

Huber + Suhner (SIX:HUBN) said its full-year order intake was up almost 14% from a year earlier, but the Swiss connectivity components maker added that net sales slipped 3.3% amid the strengthening Swiss franc.

Crude steady after U.S. stocks build

Oil prices traded in tight ranges Thursday as the threat of tariffs over Greenland eased, but a build in U.S. crude inventories weighed.

Brent futures dropped 0.3% to $65.02 a barrel and U.S. West Texas Intermediate crude futures fell 0.2% to $60.49 a barrel.

The American Petroleum Institute said U.S. crude inventories rose by just over 3 million barrels in the week ended Jan. 16, after jumping over 5 million barrels in the week before.

Gasoline stocks climbed by 6.21 million barrels, pointing to softer demand, while distillate inventories, which include diesel and heating oil, fell by 33,000 barrels.

The Energy Information Administration is due to reveal official U.S. crude stocks later in the session, a day later due to a U.S. federal holiday on Monday.

Source: Investing

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

AI Demand Reshapes Energy Market Expectations

The rapid expansion of artificial intelligence is transforming global electricity demand, particularly through energy-intensive data centers. This surge has altered investor sentiment in an otherwise stagnant renewables sector, injecting new optimism that long-term demand growth could restore cash flows. At the same time, it has revived interest in fossil fuels, especially gas, as a stopgap solution to keep power systems stable during the transition.

This relationship is primarily causal. AI infrastructure directly increases electricity consumption, forcing energy systems to respond quickly. In the absence of sufficient grid capacity and storage, fossil fuels become a near-term necessity rather than a strategic preference.

Renewables Scale Faster Than Any Alternative

According to the International Energy Agency, global electricity generation from renewables is expected to rise by 60% by 2030, accounting for 45% of total output. In Europe, renewables already supplied almost 50% of power in 2024, supported by a deep pipeline of solar and onshore and offshore wind projects awaiting grid connection.

Crucially, cost dynamics have shifted decisively. Renewable energy prices have fallen by more than 90% globally, and in 2024, 91% of newly built renewable projects were cheaper than fossil fuel alternatives. This cost advantage is structural, not cyclical, and establishes a clear causal pathway toward renewables dominance once integration barriers are addressed.

Integration, Not Generation, Is the Bottleneck

Despite abundant renewable capacity, Europe faces a critical challenge: integrating variable supply into power markets. Grid congestion, insufficient transmission infrastructure and limited storage capacity suppress price signals and undermine investment returns. This creates downward pressure on electricity prices during peak renewable output, weakening project economics and raising fiscal burdens for governments.

Here, the relationship is again causal. Poor integration directly distorts market pricing, which discourages private investment and slows the pace of decarbonisation despite strong generation potential.

Fossil Fuels As A Transitional Crutch

With AI demand rising faster than grid upgrades, gas has re-emerged as a transition fuel. Analysts note that renewables alone cannot yet provide the stable, round-the-clock power required by data centers. Gas plants can ramp production quickly, making them indispensable under current system constraints.

This reliance is not driven by long-term competitiveness but by system rigidity. Fossil fuels benefit from correlation with AI demand growth today, but they are not the fundamental driver of future energy economics. Wood Mackenzie expects gas to remain part of Europe’s energy mix as far out as 2060, largely because governments must prioritize reliability while cleaner infrastructure catches up.

Storage Economics Remain Unresolved

Energy storage is widely viewed as the key to unlocking renewables at scale. Battery costs have fallen by 90% in less than 15 years, and new chemistries promise longer-duration storage. However, utilization remains uncertain. Long-duration batteries may be used infrequently, depending heavily on weather patterns, which weakens the investment case.

There is also a price compression risk. As more batteries enter the system, arbitrage opportunities narrow because more participants buy electricity at low prices and sell at high prices simultaneously. This creates a correlation between storage expansion and margin compression, complicating private investment decisions.

AI As An Enabler Of The Energy Transition

Beyond consuming power, AI may also transform how energy systems operate. Advanced data analytics can improve grid planning, optimize project design and enhance real-time operations, reducing fuel use and extending asset lifetimes. This creates a reinforcing feedback loop: cheaper renewables drive electrification, electrification increases demand for storage and grid intelligence, and those upgrades further lower clean energy costs.

The European Commission refers to this as the “twin potential” of energy for AI and AI for energy. The bloc’s forthcoming roadmap aims to accelerate digitalisation and AI adoption across the energy system while improving reliability and efficiency, rather than rolling back climate policy to accommodate data-center demand.

Why Renewables Are The Long-Term Winner

Fossil fuels currently benefit from AI-driven urgency, but their role is defensive rather than strategic. Renewables, by contrast, gain from structural cost declines, policy alignment and AI-enabled efficiency gains. While gas and other fossil fuels provide short-term stability, they do not address the core challenge of scaling affordable, resilient energy systems.

In that sense, AI is not delaying the clean transition but compressing it. The immediate response relies on existing fossil infrastructure, but the long-term equilibrium clearly favors renewables as integration improves, storage matures and AI itself becomes a tool for optimizing the energy system.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Nathaniel Wright

Central Bank

Remarks of Officials

Stocks

Bond

Data Interpretation

Daily News

Political

Economic

Forex

The Japanese government is holding to a cautiously optimistic view of the economy, according to its latest monthly report, even as it warns of significant downside risks from U.S. trade policies and domestic political uncertainty.

In its January assessment, the Cabinet Office confirmed its view that the economy is on a path of moderate recovery. However, officials highlighted potential disruptions from American trade policy, particularly for Japan's vital auto industry, and stressed the need to monitor financial market movements.

A Mixed Picture from Key Economic Data

While the headline assessment remains steady, a closer look at the data reveals a complex economic environment.

Consumption Holds Firm as Trade Balance Improves

Private consumption, which constitutes over half of Japan's economy, continues to be a source of strength. The government's report described consumption as "picking up" for the fifth consecutive month.

The only major revision in the assessment concerned the trade and services balance, which was upgraded from being "in deficit" to "roughly balanced," signaling an improvement in the country's trade position.

Inflation Outlook Clouded by a Weaker Yen

On the price front, the report noted that the rise in food costs, a primary driver of inflation, has slowed. The government will continue to watch for signs that this slowdown in price increases is sustainable.

However, the yen's sharp depreciation since October has introduced a new layer of uncertainty. A weaker currency raises the cost of imports, creating cost-push price pressures that could challenge the Bank of Japan's projections for moderating inflation.

Navigating a Recent Contraction and BOJ Policy

Japan's economy contracted at an annualized rate of 2.3% in the third quarter, marking the first time it has shrunk in six quarters. The downturn was attributed to a drop in exports, which suffered from the impact of higher tariffs.

Meanwhile, the Bank of Japan (BOJ) is widely expected to hold interest rates steady at its policy meeting this week. This follows a decision last month to raise its benchmark rate to 0.75%, a 30-year high.

Election Jitters Add to Economic Uncertainty

New political developments have injected further volatility into the economic outlook. On Monday, Prime Minister Sanae Takaichi called a snap parliamentary election for February 8 to seek a mandate for her proposed economic policies.

Her platform has sparked concern among investors, featuring proposals for:

• Increased government spending

• A two-year suspension of the consumption tax on food

The announcement triggered a broad selloff in Japanese bonds, stocks, and the currency. Markets are reacting to fears that these policies could further strain Japan's already challenged public finances.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Ukadike Micheal

Daily News

Stocks

Political

Remarks of Officials

Danish Prime Minister Mette Frederiksen has signaled a willingness to discuss the U.S. "Golden Dome" missile defense plan with Washington, a major development in the ongoing strategic negotiations over Greenland and Arctic security.

Danish Prime Minister Mette Frederiksen addresses the media regarding U.S. proposals for Greenland.

In a statement on Thursday, Frederiksen described discussions on Arctic security between U.S. President Donald Trump and NATO Secretary General Mark Rutte at the World Economic Forum in Davos as "good and natural."

Trump Announces "Framework" Deal

The Danish response follows President Trump's announcement on Wednesday that he had secured a "framework" deal concerning Greenland. According to Trump, the agreement includes U.S. and European access to the territory's mineral rights and collaboration on the Golden Dome initiative.

This marks a strategic shift for the U.S. president, who has previously pushed for outright control of the self-governing Danish territory and had not ruled out using military force to achieve his objectives.

Sovereignty Remains Non-Negotiable

While opening the door to negotiations, Prime Minister Frederiksen drew a clear line, emphasizing that Denmark's sovereignty is not up for debate. She confirmed that she had spoken with NATO's Rutte before and after his meeting with Trump, stating the military alliance is "fully aware" of Copenhagen's stance.

"We can negotiate on everything political; security, investments, economy. But we cannot negotiate on our sovereignty," Frederiksen stated. "I have been informed that this has not been the case either."

She added, "The Kingdom of Denmark wishes to continue to engage in a constructive dialogue with allies on how we can strengthen security in the Arctic, including the US's Golden Dome, provided that this is done with respect for our territorial integrity."

Understanding the Golden Dome System

First revealed in May of last year, the Golden Dome is a proposed multi-billion dollar missile defense shield designed to protect the U.S. from all missile attacks. It is often compared to Israel's "Iron Dome" system.

In an interview with CNBC's Joe Kernen, Trump confirmed Greenland's role in the plan. "They're going to be involved in the Golden Dome, and they're going to be involved in mineral rights, and so are we," he said, adding that the deal would last "forever."

Tariffs Halted as Talks Progress

In a related move, President Trump announced on Truth Social that he would suspend planned tariffs against eight European countries that had opposed his earlier plans to acquire Greenland.

"Additional discussions are being held concerning The Golden Dome as it pertains to Greenland," Trump wrote shortly before his CNBC interview. "Further information will be made available as discussions progress."

The update provided an immediate boost to stock markets, with further gains anticipated globally on Thursday following the de-escalation of trade tensions.

Risk Warnings and Disclaimers

Add to Favorites