Fed Rate Decision, Trade Talks With US May Shape India Markets This Week

Deeper Contraction Reflects Economic Headwinds

Exports Decline Under U.S. Tariff Pressure

Residential Investment Crumbles Amid Regulatory Shifts

Macroeconomic Context: A Nation at Crossroads

Source: AP

Rescuers free an injured woman found under debris of a building hit by a Russian air strike, amid Russia's attack on Ukraine, in the frontline town Orikhiv in Zaporizhzhia region, Ukraine, in this handout picture released Dec. 7 by the press service of the State Emergency Service of Ukraine in Zaporizhzhia. Reuters-Yonhap

Russia unleashed a major missile and drone barrage on Ukraine overnight into Saturday, after U.S. and Ukrainian officials said they'll meet on Saturday for a third day of talks aimed at ending the nearly 4-year-old war.

Following talks that made progress on a security framework for postwar Ukraine, the two sides also offered the sober assessment that any "real progress toward any agreement" ultimately will depend "on Russia's readiness to show serious commitment to long-term peace."

The statement from U.S. special envoy Steve Witkoff, Trump's son-in-law Jared Kushner as well as Ukrainian negotiators Rustem Umerov and Andriy Hnatov came after they met for a second day in Florida on Friday. They offered only broad brushstrokes about the progress they say has been made as Trump pushes Kyiv and Moscow to agree to a U.S.-mediated proposal to end the war.

Russia used 653 drones and 51 missiles in the wide-reaching overnight attack on Ukraine, which triggered air raid alerts across the country and came as Ukraine marked Armed Forces Day, the country's air force said Saturday morning.

Ukrainian forces shot down and neutralized 585 drones and 30 missiles, the air force said, adding that 29 locations were struck.

At least eight people were wounded in the attacks, Ukrainian Minister of Internal Affairs Ihor Klymenko said.

Among these, at least three people were wounded in the Kyiv region, according to local officials. Drone sightings were reported as far west as Ukraine's Lviv region.

Russia carried out a "massive missile-drone attack" on power stations and other energy infrastructure in several Ukrainian regions, Ukraine's national energy operator, Ukrenergo, wrote on Telegram.

Ukraine's Zaporizhzhia nuclear power plant temporarily lost all off-site power overnight, the International Atomic Energy Agency said Saturday, citing its Director General Rafael Mariano Grossi.

The plant is in an area that has been under Russian control since early in Moscow's invasion of Ukraine and is not in service, but it needs reliable power to cool its six shut-down reactors and spent fuel, to avoid any catastrophic nuclear incidents.

Ukrainian President Volodymyr Zelenskyy said that energy facilities were the main targets of the attacks, also noting that a drone strike had "burned down" the train station in the city of Fastiv, located in the Kyiv region.

Russia's Ministry of Defense said its air defenses had shot down 116 Ukrainian drones over Russian territory overnight into Saturday.

Russian Telegram news channel Astra said Ukraine struck Russia's Ryazan Oil Refinery, sharing footage appearing to show a fire breaking out and plumes of smoke rising above the refinery. The Associated Press could not independently verify the video.

The General Staff of the Ukrainian Armed Forces later said Ukrainian forces had struck the refinery. Ryazan regional Gov. Pavel Malkov said a residential building had been damaged in a drone attack and that drone debris had fallen on the grounds of an "industrial facility," but did not mention the refinery.

Months of Ukrainian long-range drone strikes on Russian refineries have aimed to deprive Moscow of the oil export revenue it needs to pursue the war. Meanwhile, Kyiv and its western allies say Russia is trying to cripple the Ukrainian power grid and deny civilians access to heat, light and running water for a fourth consecutive winter, in what Ukrainian officials call "weaponizing" the cold.

The latest round of attacks came as U.S. President Donald Trump's advisers and Ukrainian officials said they'll meet for a third day of talks on Saturday, after making progress on finding agreement on a security framework for postwar Ukraine.

Following Friday's talks, the two sides also offered the sober assessment that any "real progress toward any agreement" ultimately will depend "on Russia's readiness to show serious commitment to long-term peace."

Source: Koreatimes

Another 165 pupils and staff are thought to be in captivity [FILE: November 23, 2025]

Authorities in Nigeria said Sunday that they have secured the release of 100 schoolchildren who were kidnapped from a Catholic school last month.

The Christian Association of Nigeria (CAN) said 315 pupils and staff were abducted by gunmen on November 21 from St. Mary's co-educational boarding school in the north-central Niger state.

Fifty students were able to escape in the following hours.

The fate of another 165 students and school staff, who are believed to still be in captivity, remains unclear.

Twelve teachers and 303 children were kidnapped from St: Mary's in Papiri, Niger state [FILE: November 23, 2025]Image: Ifeanyi Immanuel Bakwenye/AFP

What do we know about the 100 children who have been released?

The 100 schoolchildren who were released have arrived in the capital Abuja, a UN source told the AFP news agency. They will be handed over to local officials in Niger state on Monday, the source added.

Presidential spokesman Sunday Dare confirmed to AFP that the schoolchildren have been released.

Local media, including broadcaster Channels Television, also reported that 100 children had been released.

It was unclear whether the release was the result of military force or negotiations. It is also not known which group is responsible.

Niger state authorities as well as the CAN have said they have not been formally notified of the children's release. Nigeria's government has also not officially commented.

Spate of kidnappings shine spotlight on insecurity in Nigeria's north

For years, Nigeria has been fighting an Islamist insurgency in the northeast of the country, while gangs of so-called "bandits" carry out abductions and ransack villages in the northwest.

The country is still scarred by the 2014 kidnapping of nearly 300 schoolgirls by Boko Haram militants. Some of the former students, most of whom were between the ages of 16 and 18 at the time, are still missing.

But a recent surge in abductions since last month has again highlighted the West African nation's poor security situation. Last week, Mohammed Badaru Abubakar resigned as defense minister as authorities look to respond.

In November, 25 Muslim schoolgirls were kidnapped in the state of northwestern Kebi, as were 38 Christian worshipers and their pastor in Kogi state, in the North Central region.

In a separate incident in Sokoto state in the northeast, a bride and 10 of her bridesmaids were abducted from a village.

The kidnappings have coincided with US President Donald Trump ramping up the pressure on Nigeria over the alleged mass killings of Christians.

Trump has said a Christian "genocide" is unfolding in Nigeria and has threatened military action unless the government addresses the situation.

Nigeria's government has rejected Trump's claims.

Source: DW

Salaries are picking up in the UK after months of near-stagnation, according to a survey that's closely watched by the Bank of England policymakers.

The Recruitment & Employment Confederation and KPMG said starting pay for permanent staff rose at the fastest pace in five months in November, as firms stepped up efforts to attract talent in areas facing skill shortages.

The numbers could fuel worries about sticky price pressures ahead of an interest-rate decision from the BOE later this month.

At the same time, the survey also contained some signs of labor market easing. Hiring continued to fall, albeit at a softer rate, and the number of candidates looking for work surged.

The report echoes the BOE's Decision Maker Panel, painting a picture of stubborn wage inflation despite a rapid deterioration in employment. Policymakers often cite the REC survey as an early warning signal of labor-market pressures before they surface in official data.

A pick-up in pay growth could provide ammunition to the monetary policy committee's most hawkish members — such as Catherine Mann or Megan Greene — who fear that a loosening labor market won't bring down wage pressures, forcing companies to keep raising prices instead.

The BOE's DMP showed companies expect to increase wages by 3.8% over the next year, the highest since April and above the Bank's 3-3.5% comfort levels. Expectations possibly reflect a 4.1% increase in the minimum wage due to take effect in April, a figure that was widely expected before Reeves confirmed it ahead of her Nov. 26 fiscal statement.

While the UK central bank is expected, on balance, to reduce interest rates at its next meeting on Dec. 18, the path forward is even less clear. BOE policymakers are increasingly divided over how to balance weak growth and rising unemployment with the risk that inflation will settle above their 2% target.

The labor market has deteriorated this year as firms cut jobs to cope with Labour's increase in payroll taxes. Speculation of more fiscal pain ahead of Reeves' budget on Nov. 26 added to the hiring slowdown, the REC report showed.

With no new employment taxes unveiled in the fiscal plan, however, conditions may begin to steady.

"Pre-budget nerves knocked temporary recruitment back just a little in November after a growing October, but the overall picture was still relatively benign by comparison to the last year," Neil Carberry, chief executive at REC, said. "We can see signs of the market stabilizing."

Source: Bloomberg Europe

An employee holds U.S. dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. REUTERS/Willy Kurniawan

The U.S. dollar steadied on Monday after two weeks of selling, ahead of a week crammed with central bank meetings and headlined by the U.S. Federal Reserve, where an interest rate cut is all but priced in but a divided committee makes for a wild card.

Besides Wednesday's Fed decision, central bank policy meetings are also due in Australia, Brazil, Canada and Switzerland, though no moves are expected outside of the Fed.

The euro , which has been trading in a reasonably tight range since June, hovered at $1.1644. The yen , which has found a footing after sliding through November, traded at 155.28 a dollar.

Analysts expect a "hawkish cut", where the language of the statement, median forecasts and Chair Jerome Powell's press conference point to a higher bar on further rate reduction.

That could support the dollar if it pushes investors to dial back expectations for two or three rate cuts next year.

"We expect to see some dissents, potentially from both hawkish and dovish members," said BNY's head of markets macro strategy Bob Savage in a note to clients.

The Australian dollar traded just below last week's two-and-a-half-month high at $0.6640, taking a breather after having rallied through 200-day and 50-day moving averages in recent weeks as markets swung away from expecting rate cuts.

The Reserve Bank of Australia meets on Tuesday after a run of hot data on inflation, economic growth and household spending. Futures implying the next move will be up and possibly as soon as May, leaving the focus on the post-meeting statement and media conference.

"We expect the RBA to be on an extended hold, with the cash rate to remain at its current level of 3.60%," said analysts at ANZ in a note last week, where they revised previous expectations for a cut.

A similar dynamic in Canada had the loonie surging to a 10-week high on Friday following strong labour data. The Bank of Canada is widely expected to leave its interest rate on hold on Wednesday and a hike is fully priced by December 2026.

The currency was marginally weaker at C$1.3829 early on Monday.

The New Zealand dollar idled at $0.5779, while the Swiss franc edged 0.1% lower to 0.8045 per U.S. dollar.

Subdued inflation is seen keeping Switzerland's policy interest rate at 0% for a while.

Sterling was pinned near its 200-day moving average at $1.3324, while China's yuan was taking a breather at 7.068 a dollar in offshore trade.

A hold is widely expected in Brazil, where the policy rate is at 15%, with a possible nod towards a cut next quarter.

Source: Reuters

Nissan Motor is hoping its smallest vehicle can help spark a big recovery, with its latest minicar selling well and giving it a headstart against Chinese competition at home, while President Donald Trump is encouraging the introduction of such cars in the vital U.S. market.

The struggling Japanese carmaker announced on Monday it had received more than 20,000 orders for the latest generation of its Roox kei minicar, the first model it launched after unveiling a radical restructuring plan in May. The vehicle will serve to counter a move by China's BYD into the popular category in Japan and strengthens Nissan's ability to expand in the US.

"The number of orders is very strong and positive," Nissan Chief Marketing Manager Keiko Kondo said, as the company reported orders that opened in mid-September had reached 22,000 by Dec. 1. According to data from the Japan Light Motor Vehicle and Motorcycle Association, Roox sales numbered 7,741 in November, up 43% from October and 41% from the same month last year.

Kei minicars are a Japanese category of vehicle that meets certain size and engine standards. It accounts for more than 30% of domestic sales, as the cars cope well with Japan's narrow roads and incur lower taxes, making them more affordable than larger ones. Prices for the new Roox start from around 1.6 million yen ($10,300).

The cars have appealing safety features, with the fourth-generation Roox boasting a wide-angle camera that eliminates blind spots.

Yuki Tanaka, chief product specialist at Nissan, said, "You've probably had a moment of panic when you come out of an alley onto the street and can't see clearly to the left or right. The camera helps with that."

Nissan is also aiming to attract female drivers with small kids, offering plenty of storage for a smartphone, tissue box and other items around the front seats of the Roox, and easy access and space created to the rear to care for a child in the back seat.

As part of the Re:Nissan restructuring efforts to improve development efficiency and reduce production costs, the latest Roox was developed with alliance partner Mitsubishi Motors. Shinichiro Irie, program design director at Nissan, explained that around 70% of its parts were the same as Mitsubishi's Delica Mini, its sister model. The companies have given them different exteriors, interior designs and functions.

Both are preparing to take on BYD's kei minicar, due to launch in the Japanese market around next summer. The Racco, unveiled at the Japan Mobility Show in October, is BYD's first model designated exclusively for an overseas market, but the Chinese automaker has yet to disclose prices, battery capacity or range.

Nissan's Tanaka said that while BYD's entry would increase competition, "the growing awareness of EVs in Japan has a positive side which helps expand the [EV] market." Nissan also has the Sakura kei electric car in its lineup and is launching a new Leaf EV, the world's first mass-produced electric vehicle.

Trump created an unexpected opportunity for Japan's kei cars last week. Speaking at the White House, he said he had seen them on his recent trip to Japan, South Korea and Malaysia.

"They have a very small car ... They're very small and they're really cute, and I said 'How would that do in this country?'"

The president added, "But you're not allowed to build them and I've authorized the (transportation) secretary to immediately approve the production of those cars." He stated the names of "Honda, [and] some of the Japanese companies" as major players.

While U.S. demand remains uncertain, introducing kei cars could expand the market and give added momentum to production cooperation between Japanese automakers there.

Nissan President and CEO Ivan Espinosa said in an interview with Nikkei Asia last month, "We are talking about how we can collaborate in the U.S. Is there any opportunity for joint product development or for powertrain development?" Mitsubishi President and CEO Takao Kato also stated he was considering manufacturing vehicles in the U.S. with Nissan and Honda Motor. They are all major kei minicar makers in Japan.

Source: Asia_Nikkei