EU Warns of Possible Action After the US Bars Five Europeans Accused of Censorship

Economic

Summary:

The European Commission warned it could retaliate against “unjustified measures” after the United States barred five Europeans, including former EU commissioner Thierry Breton, accusing them of pressuring U.S. tech firms to censor American viewpoints, a move the EU and France condemned as interference in Europe’s digital sovereignty.

The European Union’s executive on Wednesday warned that it would take action against any “unjustified measures” after the U.S. State Department barred five Europeans it accuses of pressuring U.S. technology firms to censor or suppress American viewpoints.

The Europeans were characterized by U.S. Secretary of State Marco Rubio as “radical” activists and “weaponized” nongovernmental organizations. They include the former EU commissioner responsible for supervising social media rules, Thierry Breton.

Breton, a businessman and former French finance minister, clashed last year on social media with tech billionaire Elon Musk over broadcasting an online interview with Donald Trump in the months leading up to the U.S. election.

The European Commission, the EU’s powerful executive branch and which supervises tech regulation in Europe, said that it “strongly condemns the U.S. decision to impose travel restrictions” and that it has requested clarification about the move. French President Emmanuel Macron also condemned it.

“If needed, we will respond swiftly and decisively to defend our regulatory autonomy against unjustified measures,” the commission said in a statement, without elaborating.

Rubio wrote in an X post on Tuesday that “for far too long, ideologues in Europe have led organized efforts to coerce American platforms to punish American viewpoints they oppose.”

“The Trump Administration will no longer tolerate these egregious acts of extraterritorial censorship,” he posted.

The European Commission countered that “the EU is an open, rules-based single market, with the sovereign right to regulate economic activity in line with our democratic values and international commitments.”

“Our digital rules ensure a safe, fair, and level playing field for all companies, applied fairly and without discrimination,” it said.

Macron said that the visa restrictions “amount to intimidation and coercion aimed at undermining European digital sovereignty,” he posted on X.

Macron said that the EU’s digital rules were adopted by “a democratic and sovereign process” involving all member countries and the European Parliament. He said that the rules “ensure fair competition among platforms, without targeting any third country.”

He underlined that “the rules governing the European Union’s digital space are not meant to be determined outside Europe.”

Breton and the group of Europeans fell afoul of a new visa policy announced in May to restrict the entry of foreigners deemed responsible for censorship of protected speech in the United States.

The four others are: Imran Ahmed, chief executive of the Centre for Countering Digital Hate; Josephine Ballon and Anna-Lena von Hodenberg, leaders of HateAid, a German organization; and Clare Melford, who runs the Global Disinformation Index.

Rubio said the five had advanced foreign government censorship campaigns against Americans and U.S. companies, which he said created “potentially serious adverse foreign policy consequences” for the United States.

The action to bar them from the U.S. is part of a Trump administration campaign against foreign influence over online speech, using immigration law rather than platform regulations or penalties.

In a post on X on Tuesday, Sarah Rogers, the U.S. under secretary of state for public diplomacy, called Breton the “mastermind” behind the EU’s Digital Services Act, which imposes a set of strict requirements designed to keep internet users safe online. This includes flagging harmful or illegal content like hate speech.

Breton responded on X by noting that all 27 EU member countries voted for the Digital Services Act in 2022. “To our American friends: ‘Censorship isn’t where you think it is,’” he wrote.

Source: AP

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Adam

Stocks

Global shares steadied near record highs on Wednesday, capping a year of brisk artificial intelligence-driven gains, while commodities, such as gold and silver, extended their bullish run to new all-time highs as 2025 draws to a close.

Overnight on Wall Street, the S&P 500 notched a closing record as the elusive Santa Claus rally finally set in. U.S. data showing the economy expanded at a much faster-than-expected clip in the third quarter boosted risk sentiment, but weighed on bonds.

Europe's STOXX 600 index was unchanged in early trade while the UK blue-chip FTSE 100 (.FTSE) fell 0.2%.

Bourses in Amsterdam (.AEX) , Brussels (.BFX), and Paris (.FCHI), will have half-day trading sessions, while those in Germany (.GDAXI), and Milan (.FTMIB) are closed.

Nasdaq futures and S&P 500 futures were also little changed amid thin liquidity.

Gold and silver have been among this week's big movers, as many markets gear up for a shortened trading day ahead of the holidays. Spot gold prices were last unchanged at $4,489.91 per ounce, having scaled a new record high of $4525.86 earlier to bring its gain for this year to 72%. Silver jumped 1.2% to a record $72.27 per ounce, and was set for an annual rise of almost 150%, its best year ever.

Tuesday's data showing the U.S. economy grew at its fastest pace in two years in the third quarter was "exceptional", according to Chris Zaccarelli, chief investment officer for Northlight Asset Management.

"If the economy keeps producing at this level, then there isn't as much need to worry about a slowing economy and concerns may actually flip back to the price-stability constraint," he wrote in a note.

Over at Goldman Sachs, economists are expecting full-year global GDP growth of 2.8% in 2026, slightly higher than 2.5% consensus, and 2.6% in the U.S. against 2% consensus.

"Our 2026 global economic outlook argues for above-consensus growth and falling inflation next year," said the Wall Street bank's chief U.S. economist David Mericle in a note.

A reduced drag from tariffs as well as more tax cuts, easier financial conditions and a bump from the end of the government shutdown is reflected in Goldman's forecast.

ASIAN SHARES HIGHER, TRADERS EYE YEN

Asian stocks also rose earlier, catching a rally on Wall Street, with the broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) up 0.4%. The index is up 26% for the year, its best performance since 2017.

"As equity markets enter the fourth year of a bull market, our underlying market call remains constructive," said Scott Chronert, a U.S. equity strategist at Citi, who is tipping another year of upsides for equities on earnings growth and high valuations.

"Yet, high-performance dispersion within themes, sectors, and market cap is expected."

In the foreign exchange market, the yen gained for a third straight session amid intervention risk from Japanese authorities. The dollar lost 0.3% to 155.83 yen, retreating from the 158 level zone that drew intervention in the past.

The euro was largely steady at $1.18, having rallied 14% this year. Against other major currencies, the dollar was down about 10% this year.

Treasuries rallied this year on the resumption of Fed rate cuts. Two-year Treasury yields were steady at 3.532%, having fallen by 72 basis points this year, while the 10-year yield traded at 4.1589%, down 42 bps for the year.

Oil prices held steady in early trade but were set for a third straight year of declines. Brent crude futures ticked 0.1% higher to $62.45 a barrel, but were down 16% for the year.

Source: reuters

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Glendon

Forex

Economic

China's central bank reaffirmed its supportive monetary policy stance while signalling continued caution towards aggressive stimulus, reinforcing a shift towards securing long-term stability over immediate fixes.

The People's Bank of China (PBOC) reiterated it will guide borrowing costs to continue hovering at a low level, according to a Wednesday statement following its fourth-quarter monetary policy committee meeting. The bank repeated a pledge to step up "cross-cyclical" policies, a phrase suggesting it aims to look beyond short-term volatility and avoid excessive stimulus that could create structural imbalances.

This measured approach comes despite deepening weakness in domestic demand, with retail sales last month expanding at their lowest pace since the crash caused by Covid. Fixed-asset investment is also on track for its first annual decline in data going back to 1998, after a crash made worse by a drought in funding for infrastructure.

The committee said it will "grasp the strength, pace and timing" of policy implementation based on evolving domestic and overseas conditions. The PBOC also reiterated its commitment to maintaining the yuan's basic stability at a reasonable and balanced level to guard against overshooting risks.

The PBOC has adopted a cautious approach this year, frequently disappointing economists who had anticipated more aggressive interest rate cuts. This restraint reflects the central bank's deeper concerns over protecting shrinking bank margins and preserving policy space for future downturns.

While the meeting readout mentioned maintaining "ample" liquidity, the focus on "quality and efficiency" over raw volume suggests that any further easing will be mostly targeted.

The statement didn't mention a reduction in interest rates or reserve requirement ratio, which determines how much cash banks must keep in reserves, while the PBOC pledged to make use of multiple policy tools.

Source: Theedgemarkets

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Adam

Commodity

Gold rose to an all-time high above $4,500 an ounce on escalating tensions in Venezuela and expectations for more US rate cuts. Silver and platinum also advanced to records.

Spot gold climbed nearly 1%, building on three consecutive days of gains. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the metal’s haven appeal. Traders are also betting the Federal Reserve will follow three straight interest-rate cuts by lowering the cost of borrowing again next year, which would be a tailwind for non-yielding precious metals.

Gold Climbs Above $4,500 in Historic Rally for Precious Metals_1

Gold has gained more than 70% this year and silver has risen by 150%; both are on track for their best annual performance since 1979. The rally in precious metals has been underpinned by elevated central-bank purchases and inflows into exchange-traded funds. Total holdings in gold-backed ETFs have risen every month this year except May, according to World Gold Council data.

US President Donald Trump’s aggressive moves to reshape global trade — as well as his threats to the Fed’s independence — added fuel to the bull run earlier this year. Investors have also been spurred in part by the so-called debasement trade — a retreat from sovereign bonds and the currencies they are denominated in over fears their value will erode over time due to ballooning debt levels.

“The dominant drivers for both gold and silver right now are the combination of sustained physical demand and renewed sensitivity to macro risk,” said John Feeney, business development manager at Guardian Vaults, a Sydney-based bullion dealer. “We’re seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth.”

Underscoring this demand, gold bounced back quickly after a retreat from its previous peak of $4,381 an ounce in October, when the rally was seen as overheated. It is now positioned to carry these gains into next year. Goldman Sachs Group Inc. is among several banks to predict prices will keep rising in 2026, issuing a base-case scenario of $4,900 an ounce with risks to the upside.

Heavy ETF buying has also been a major driver of the latest surge. Holdings in State Street Corp.’s SPDR Gold Trust, the biggest precious-metals ETF, have risen by more than a fifth this year. Traders are also watching developments in Venezuela, where Trump has warned President Nicolás Maduro not to challenge the US and vowed to keep oil seized from a supertanker.

Silver — which traded above $70 an ounce for the first time on Tuesday — advanced as much as 1.8% to set a record of $72.70. The white metal’s rally has been even more spectacular than gold’s, with its most recent advance buoyed by speculative inflows and lingering supply dislocations across major trading hubs following a historic short squeeze in October.

London’s vaults have seen significant inflows since then, but much of the world’s available silver remains in New York as traders await the outcome of a US Commerce Department probe on whether critical minerals imports threaten national security, which could lead to tariffs or trade restrictions on the metal.

“Unlike previous silver rallies driven primarily by leverage, this move is being underwritten by real demand for metal, which is changing how the market behaves around key price thresholds,” said Feeney. “I can’t see an end to the trend just yet.”

Platinum also soared on Wednesday, jumping 4% to advance beyond $2,300 an ounce for the first time since Bloomberg began compiling data in 1987. Buoyed by tight supplies and historically elevated borrowing costs, the metal — used in the automotive and jewelry sectors — rose for a 10th straight session, its longest winning streak since 2017.

It has gained almost 160% this year, the biggest annual increase, according to data compiled by Bloomberg. The latest surge comes as the London market shows signs of tightening, with banks parking metal in the US — similarly to silver — to insure against the risk of tariffs. Platinum is also on course for a third annual deficit this year, due to supply disruptions in major producer South Africa.

Gold Climbs Above $4,500 in Historic Rally for Precious Metals_2

Gold’s 14-day relative strength index topped 81 on Wednesday. Silver, currently near 82, has been at elevated levels for around two weeks. Readings above 70 typically signal overbought conditions and that the metal could be poised for a pullback.

Spot gold rose 0.1% to $4,491 an ounce at 9:15 a.m. in London, having earlier hit a record of $4,525.77. Silver advanced 0.5% to $71.81. Platinum and palladium both gave up earlier gains. The Bloomberg Dollar Spot Index was down 0.2%.

Source: Bloomberg

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Warren Takunda

Economic

Gains for the pound sterling come amidst holiday-thinned trading conditions and a classic Santa rally; with the major economic news releases out of the way, broader sentiment takes control of currency markets.

Gains for stocks and falling market volatility provide just the kind of background conditions that the pound tends to benefit from when the data calendars fall silent.

"Ginding up: Santa Claus is in town," says Neil Wilson, UK Investor Strategist at Saxo Markets. "On Wall St, as the S&P 500 rose for a third day with a sea of green across the board."

The UK's FTSE 100 hasn't been left behind either, steadily rising back towards record highs. The pound has a 'high beta' to stock market performance, says Kamal Sharma, currency strategist at Bank of America:

"GBP's sensitivity to world equity market has risen... about 35% of the currency's fluctuation can be explained by changes to the equity index"

📈 In response to the benign market conditions, the pound to euro exchange rate has risen to 1.1565, its highest level in two months, as we predicted in Monday's Week Ahead Forecast.

"We remain bullish on the GBP overall as there is scope for positioning there to improve amidst softening USD sentiment, removal of any lingering budget or political risk premia," says a note from TD Securities.

Above: GBP/EUR has met its 1.1460 objective where it will be tested by resistance. However, the short-term setup remains constructive.

📈 The pound to dollar exchange rate has risen to 1.3515, its highest level since September.

"Sterling ripped past $1.35 to hit its strongest level in three months versus the US dollar. The pound is also near its strongest in two months against the euro as sentiment seems towards the UK currency improves following the Budget. Broad dollar weakness is playing the starring role here, though," says Wilson.

Above: GBP/USD is now overbought following a strong rally. The RSI is above 70, indicating that a consolidation or a pullback is due owing to FX's mean-reverting tendencies.

However, some seasoned traders we follow think the Santa rally has run its course.

The Santa rally is a phenomenon that happens perennially, where stocks rise into year-end, usually without any notable trigger.

January can often see the move reverse, so we would encourage those with impending currency transfers to consider current levels in the context of returning volatility in the new year.

"I feel the 'Santa Rally' is now done and dusted. I don't know what the Market does from here until Jan 5th, but I do know that it's never wise to be a greedy little monkey that doesn't give thanks," says Le Shrub, the widely followed substack of a veteran fund management trader.

Source: Poundsterlinglive

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Winkelmann

Political

Economic

Abu Dhabi clean energy company Masdar has signed an agreement with Malaysia to develop the company's largest floating solar plant, as expands in South-east Asia.

The $208 million project at the Chereh Dam in the state of Pahang will span 3.84 million square metres and have a capacity of 200 megawatts, to provide affordable power to more than 100,000 homes, Masdar said on Tuesday in a statement.

The Chereh plant, Masdar's first foray into Malaysia, will be developed under a consortium with the country's Citaglobal and Tiza Global, the Abu Dhabi company said. It will be Masdar's largest such development in South-east Asia, surpassing its similar project in Indonesia, it added. The power purchase agreement for the deal was signed by state-owned Tenaga Nasional.

The development is the first project of the 10-gigawatt renewable energy strategy signed between Masdar and the Malaysian Investment Development Authority in 2023.

"Our largest floating solar development globally … reaffirms Masdar's expertise in floating solar and our position as a trusted partner across the region," Masdar chief executive Mohamed Al Ramahi said.

Masdar, jointly owned by Taqa, Adnoc and Mubadala, has developed projects in more than 40 countries with a combined capacity of more than 51GW. The company's global ambition is to reach 100GW of renewable capacity by 2030.

Its entry into Malaysia follows similar moves in Asia this year. In April, Masdar signed agreements to develop power plants, including what was then South-east Asia's biggest floating solar plant, in Indonesia. In January, it said it will be building renewable energy projects with a capacity of 1GW in the Philippines.

These developments complement Masdar's global portfolio. In October, the company completed its acquisition of a 49.99 per cent stake in a $432 million portfolio of four operational solar photovoltaic plants from Endesa in Spain, expanding its presence in Europe.

Closer to home, Masdar in August said the $1.1 billion Al Sadawi solar project in Saudi Arabia, being developed by a consortium with China's GD Power and Korea Electric Power Corporation, had reached financial close.

Masdar has also taken a 50 per cent stake in East Anglia Three, the world's second-largest offshore wind project, off the coast of eastern England, and has teamed up with entities in Azerbaijan, Kazakhstan and Uzbekistan for renewable energy developments in those Central Asian nations. Last week, Masdar completed its first battery energy storage system project in the UK.

The Malaysian project is expected to boost the country's renewable capacity under its energy transition strategy, said Mohamad Zakaria, executive chairman and president of Citaglobal.

"This collaboration gives us confidence that the Chereh floating solar project will be … strengthening Malaysia's energy security and long-term economic resilience," he said.

Masdar's work is aiding global goals to adopt more cleaner energy sources. Although renewable energy is expanding rapidly, it is not growing fast enough to meet targets set for 2030, the International Renewable Energy Agency said last year.

Capacity needs to grow by at least 16.4 per cent annually until 2030 to achieve the tripling target pledged at the Cop28 climate conference in Dubai, the Abu Dhabi-based agency said in a report.

Source: THENATIONALNEWS

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Adam

Commodity

Oil held gains from the past five session as escalating geopolitical tensions provide some price support to a market headed for oversupply.

Brent futures (BZ=F) traded above $62 a barrel in thin Christmas Eve trading, up about 6% since closing at the lowest level in almost five years early last week, as the US ramps up pressure on Venezuela.

The global benchmark is still on track for its biggest annual decline since 2020, with virtually all of the world’s major oil traders foreseeing a glut next year after producers in and outside OPEC+ increased supplies. But concerns about disruptions — especially from OPEC+ members Russia and Venezuela — have helped keep a floor under prices.

The US was still in pursuit of a third oil tanker off the coast of Venezuela, though nearly half a dozen tankers laden with crude have departed from the South American nation’s coast since Washington intensified efforts to curb oil revenues that help sustain Nicolás Maduro’s regime.

Meanwhile, Russian crude is building up at sea, with the volume jumping 48% since the end of August. The US actions against Venezuela may be raising concerns among shippers and buyers of Russian barrels, who worry their cargoes could also be targeted.

Oil Steadies as Global Tensions Help Offset Oversupply Outlook_1

In the US, an industry report showed crude stockpiles increased by 2.4 million barrels last week, with storage of gasoline and distillate both rising. Official data is set to be released on Dec. 29, rather than Wednesday, after President Donald Trump declared a federal holiday. Trading will cease early on Wednesday and markets will be closed on Thursday.

“Geopolitical premiums have yet to be digested with pretty much all the bullish factors laid out on the table,” said Gao Jian, a Shandong-based analyst at Qisheng Futures Co., referring to a flurry of tensions from Venezuela to Russia. Still, upside could be limited as the glut is expected to intensify early next year, he added.