Kremlin Says Ukraine Should Withdraw Troops From Donbas, And A Putin-Trump Call Expected Soon

Political

Russia-Ukraine Conflict

Summary:

The Kremlin said on Monday that Ukraine should withdraw its troops from the part of Donbas that it still controls if it wanted peace, and that if Kyiv did not strike a deal then it would lose yet more territory.

Putin and Trump spoke on Sunday ahead of Trump's meeting in Miami with Ukrainian President Volodymyr Zelenskiy. Kremlin spokesman Dmitry Peskov said another call was planned very soon.

Peskov refused to comment on the idea of a free economic zone in Donbas or on the future of the Zaporizhzhia nuclear power plant, which is controlled by Russia, saying that the Kremlin felt it was inappropriate.

When asked about Kremlin aide Yuri Ushakov's remarks about the decision that Kyiv needed to take on Donbas, Peskov said that Ukraine should withdraw its troops from the parts they still controlled.

"We are talking about the withdrawal of the regime's armed forces from the Donbas," Peskov said. When asked it that applied to the Zaporizhzhia and Kherson regions too, he refused to discuss details.

Russia currently controls a fifth of Ukraine, including Crimea which it annexed in 2014, about 90% of Donbas, 75% of Zaporizhzhia and Kherson regions, and slivers of the Kharkiv, Sumy, Mykolaiv and Dnipropetrovsk regions, according to Russian estimates.

Russia claims Donbas, Zaporizhzhia and Kherson as part of Russia, though most countries consider the regions to be part of Ukraine.

Peskov said no call between Putin and Zelenskiy was being discussed.

Peskov paraphrased Trump's remarks that Ukraine could lose more territory to Russia over coming months unless Kyiv struck a deal.

Source: Reuters

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Gerik

Economic

A measured return to global humanitarian leadership

The United States has pledged $2 billion in humanitarian aid to the United Nations, marking a notable shift after a year of sharp foreign aid cuts under the Trump administration. The announcement, made by a State Department official on December 29, signals a partial revival of U.S. engagement with global relief efforts, as international agencies struggle to meet rising humanitarian needs amid falling donations.

Although details on the allocation of the new funding were not disclosed, the pledge is seen as an attempt to mitigate the financial shock created by earlier reductions in U.S. contributions. In 2025, the U.S. had dramatically slashed its humanitarian aid, contributing only $3.38 billion to the UN a steep decline from $14.1 billion in 2024 and a record $17.2 billion in 2022. The 2025 total represented just 14.8% of global contributions, significantly down from previous years where the U.S. led global aid efforts.

A UN in crisis: record needs, shrinking support

The funding shortfall has had a direct impact on the United Nations’ operational capacity. Earlier in December, the UN announced its 2026 global aid appeal, requesting $23 billion to support 87 million people worldwide. This figure is nearly half of the $47 billion sought in 2025, a clear reflection of dwindling donor confidence and the pressure on international budgets.

Western donors such as Germany have also scaled back humanitarian aid this year, opting instead to prioritize military and defense spending amid rising geopolitical tensions. This trend has created a vacuum in humanitarian financing at a time when crises from Gaza to Sudan to Afghanistan have only deepened.

Palestinian crisis highlights urgent need for aid

The funding crunch is already being felt in places like Gaza, where images of children queuing at charity kitchens underline the scale of human suffering. With food insecurity worsening and healthcare systems on the brink, humanitarian actors are stretched beyond capacity. The new U.S. pledge, though modest compared to past commitments, could provide short-term relief to areas facing imminent famine and displacement.

Observers note that the $2 billion announcement may also serve strategic and diplomatic purposes. After being criticized for retreating from its global responsibilities, the Trump administration faces mounting international pressure to restore aid commitments, especially in light of China’s expanding influence in global development finance. Re-engagement via UN mechanisms allows Washington to reassert moral leadership without deep entanglements.

However, it remains unclear whether the pledge is a one-off gesture or the start of a broader re-engagement strategy. Without transparency on fund disbursement and prioritization, skepticism remains over the actual impact on crisis zones.

While the $2 billion pledge offers some hope to humanitarian organizations and crisis-affected populations, it falls short of reversing the overall trend of declining donor support. The scale of global need continues to rise, yet funding commitments are increasingly uncertain. The U.S.’s partial return could encourage other donors to follow suit, but unless sustained and expanded, it may prove symbolic rather than transformational.

Source: Reuters

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Gerik

Political

A movement born from revolt now turns inward

The National Citizen Party (NCP), formed in the aftermath of mass protests that ousted long-serving Prime Minister Sheikh Hasina in 2024, was once heralded as the symbol of a new political dawn in Bangladesh. Largely driven by Gen-Z activists, the party positioned itself as a centrist alternative to the entrenched political duopoly of Hasina’s Awami League and the Bangladesh Nationalist Party (BNP). However, a recent decision to ally with Jamaat-e-Islami a controversial Islamist party has sparked an internal crisis that may derail NCP’s credibility and long-term prospects.

At least 30 senior leaders have publicly denounced the alliance, and some including prominent member and UK-based doctor Tasnim Jara have resigned, seeking to run as independents. The backlash highlights deep ideological fissures within the fledgling party, just six weeks before the national election scheduled for February 12, 2026.

The controversial alliance: pragmatism or betrayal?

NCP chief Nahid Islam, only 27 years old, defended the deal with Jamaat as a necessary response to escalating violence. He pointed to the recent assassination of Sharif Osman Hadi, a key figure in the 2024 uprising and NCP candidate, as a turning point. Hadi was fatally shot earlier in December while campaigning, and his murder was seen by party leaders as a sign that authoritarian forces may still be at work to undermine the electoral process.

Nahid argued that the alliance was made "for the sake of greater unity," to prevent what he called an effort by "the dictatorship we overthrew" to sabotage the upcoming vote. Still, critics inside and outside the party view the move as a major ideological compromise. Jamaat, which had been banned from elections since 2013 for its incompatibility with the secular constitution, was only recently allowed to rejoin politics under Nobel laureate Muhammad Yunus’s interim government.

Ideological erosion and the price of survival

Analysts suggest the alliance may help Jamaat more than the NCP. Asif Shahan of Dhaka University warned that Jamaat would benefit from the liberal front provided by NCP, while the latter risks losing its centrist identity. “If you go with Jamaat, it will help Jamaat, not you,” he said. “Your centrist idea and ideology already poorly defined will simply vanish.”

This concern is echoed by H.M. Nazmul Alam, who observed that youth-led political movements tend to fail not merely because of electoral defeats but due to loss of internal cohesion and moral clarity. The NCP’s rapid shift from street activism to alliance politics may have been premature, especially given its still-developing policy positions on issues such as women’s rights and minority protection.

Electoral reality and the weight of inexperience

Before the Jamaat deal, NCP was trailing far behind the BNP and Jamaat in opinion polls. The NCP’s lack of funding, limited grassroots structure, and unclear ideological stance left it vulnerable to political marginalization. Nahid Islam admitted that the party remained “weak” and under-resourced a fact that likely influenced the decision to seek electoral leverage through coalition-building.

But while such pragmatism may be understandable in an environment of electoral urgency, it has alienated the very demographic that fueled the party’s rise: young, reform-minded voters demanding a break from past politics. For many, Jamaat’s history including its opposition to secularism and allegations of violence is incompatible with the NCP’s vision of progressive change.

Wider implications for South Asia’s youth politics

The unraveling of the NCP also serves as a cautionary tale for youth-led political movements across South Asia. In neighboring Nepal, a similar uprising led to the fall of the government, and fresh elections are expected in March. The Bangladeshi case underscores the difficulty of converting protest energy into sustainable political infrastructure without compromising ideals.

While the NCP once offered a blueprint for youth-led transformation, its alliance with Jamaat may shift that narrative to one of co-optation and ideological surrender. Unless the party can reconcile internal divisions and reaffirm its foundational principles, its chances of surviving beyond the February vote appear dim.

A crossroads for Gen-Z politics in Bangladesh

The NCP’s crisis reflects the broader tension between idealism and political realism. By aligning with Jamaat, the party hoped to protect its electoral viability but may have fatally damaged its moral core in the process. As internal defections mount and criticism intensifies, the NCP’s future hangs in the balance.

Whether the party can regain momentum or fade into the ranks of political footnotes will depend not only on election results but also on its ability to reaffirm its commitment to a new political culture one untainted by the compromises of the past.

Source: Reuters

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Justin

Political

Economic

The latest update on the operational status of the Shah Alam Light Rail Transit Line (formerly LRT3), owned by Prasarana Malaysia Bhd (Prasarana), is expected to be announced next month.

Shah Alam Line operations head Mohd Ariffin Idris said the LRT3 project is currently undergoing fault-free running (FFR) tests for each train.

"We have 22 trains for the Shah Alam Line. Each train must undergo this test and is monitored by the Land Public Transport Agency (Apad).

"(So far,) three trains have reached the required distance, but they need to be re-evaluated as Apad will reassess the criteria that have been implemented," he told reporters at a media engagement session with Selangor journalists organised by Prasarana here on Monday.

On Dec 10, Prasarana confirmed that the Shah Alam Line would not commence operations this year due to the need to resolve system stability and software issues that were still detected during the testing and commissioning (T&C) phase.

Prasarana group president and chief executive officer Amir Hamdan said the opening of the line would only be announced after all technical components, including the signalling system, train software and overall network integration, are confirmed to be operating stably in accordance with Apad standards.

Meanwhile, Mohd Ariffin said Prasarana is prepared to offer its expertise to the Selangor government, which is considering expanding rail services through the "Kita Selangor Rail Line" project.

He said Prasarana has a strong foundation and extensive experience in the rail industry, noting that LRT operators in Indonesia have also utilised its services.

"Prasarana has more than 30 years of high-level expertise in public transport, and its personnel possess specialised skills that should not be wasted.

"For Selangor's planning, Malaysia already has the experts. I am confident [that] Prasarana is ready to work together to realise this development plan," he said when asked whether the company is willing to collaborate on the project.

Source: Theedgemarkets

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Glendon

Political

China launched its most extensive war games around Taiwan on Monday to showcase Beijing's ability to cut off the island from outside support in a conflict, testing Taipei's resolve to defend itself and its arsenal of U.S.-made weapons.

The Eastern Theatre Command said it had deployed troops, warships, fighter jets and artillery for its "Justice Mission 2025" exercises to encircle the democratically governed island, conduct live fire and simulated strikes on land and sea targets, and drills to blockade Taiwan's main ports.

The live-firing exercises will continue on Tuesday across a record seven zones designated by China's Maritime Safety Administration, making the drills the largest to date by total coverage and in areas closer to Taiwan than previous exercises. The military had initially said artillery firing would be confined to five zones.

DRILLS FORCE FLIGHT CANCELLATIONS

Taiwan's Defence Ministry said there was also an extra zone for a two-hour drill on Monday morning, which took place without a Chinese announcement in the eastern waters of the island.

The Transport Ministry said more than 100,000 passengers on scheduled international flights will be affected by Tuesday's drills, while around 80 domestic flights are set to be cancelled.

China's sixth major round of war games since 2022, after then-U.S. House Speaker Nancy Pelosi visited the democratically governed island, follows stronger rhetoric promoting Beijing's territorial claims in response to Japanese Prime Minister Sanae Takaichi suggesting a hypothetical Chinese attack on Taiwan could trigger a military response from Tokyo.

Taiwan rejects China's claimed sovereignty, maintaining that only its people can decide the island's future.

"Our armed forces operate on the principle of preparing for the worst and must take every possible scenario into account," Hsieh Jih-sheng, deputy chief of the general staff for intelligence at Taiwan's defence ministry, told reporters, when asked about Tuesday's drills.

"Conducting live-fire exercises around the Taiwan Strait ... would not only constitute military pressure on us, but could also pose more complex challenges and impacts for the international community and neighbouring countries."

'STRONG MESSAGE ON EXTERNAL INTERFERENCE'

The exercises began 11 days after the U.S. announced $11.1 billion in arms sales to Taiwan, the largest ever weapons package for the island, drawing a protest from China's defence ministry and warnings the military would "take forceful measures" in response.

"They (China) are sending a strong message on external interference," said Chieh Chung, a researcher at Taiwan's Institute for National Defence and Security Research, pointing to how China had "completely cut off" air and sea links with Japan for three zones to Taiwan's north.

Analysts say Beijing's drills increasingly blur the line between routine military training exercises and what could be stage-setting for an attack, a strategy intended to give the U.S. and its allies minimal warning of an assault.

The Chinese military also released a video depicting automated humanoid robots, microdrones and weaponised robotic dogs attacking the island, futuristic technology China has never showcased before.

Fu Zhengyuan, a researcher at the Chinese military's Academy of Military Science, told state media the exercises were justified by concerns over increasing interoperability between Taiwanese and U.S. combat systems, which he said raises the risk of a direct clash between the two superpowers.

Taiwan's government condemned the drills, while its defence ministry posted a video on Facebook showcasing various weapons, including U.S.-made HIMARS rocket systems, a highly mobile artillery system with a range of about 300 km (186 miles) that could hit coastal targets in China's southern province of Fujian, on the other side of the Taiwan Strait, in the event of a conflict.

The island's coast guard said it had deployed large ships to face off against Chinese coast guard vessels near its waters and was coordinating with the military to minimise the drills' impact on maritime routes and fishing grounds.

RAPID RESPONSE

Taiwan's defence ministry said 89 Chinese military aircraft, 14 military vessels and 14 coast guard boats had been operating around the island on Monday, while four additional warships were also spotted in the Western Pacific.

Authorities said some of the Chinese vessels were engaged in stand-offs with Taiwanese ships near the island's contiguous zone, defined as 24 nautical miles offshore.

The ministry said Taiwan's military was on high alert and poised to carry out "rapid-response exercises", designed to move troops swiftly in case the drills turn into an attack.

Taiwan stock markets were unaffected by the drills, closing up 0.9%.

"I think these drills are just meant to scare us," said Lin Wei-ming, a 31-year-old teacher based in the capital, Taipei. "Similar drills have happened before ... the political side of things can only be handled by Taiwan's current government and how they choose to respond."

SEALING OFF PORT CITIES

The Chinese military released a series of propaganda posters along with a graphic depicting four locations across the island with targets locking on, following the drill announcement.

China's state broadcaster said the exercises would focus on sealing off Taiwan's vital deep-water Port of Keelung to the island's north and Kaohsiung to Taiwan's south, the island's largest port city.

The first poster appeared to show the armada of civilian ships China is mobilising to help in an attack on Taiwan, vessels with ramps and open decks that could be used to carry out an amphibious assault.

Source: Reuters

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Warren Takunda

Economic

It’s been a rollercoaster of a year for U.S. trade policy.

President Donald Trump launched a barrage of new tariffs in 2025, plunging the U.S. into trade wars with nearly every country in the world. Volley after volley of threats and steeper import taxes often arrived erratically — with Trump claiming that such levies needed to be immediately imposed to close trade imbalances and take back wealth that was “stolen” from the U.S.

But the president also turned to tariffs amid personal grudges, or in response to political critics. And the whiplash of on-again, off-again duties — and responding retaliation — fueled widespread uncertainty for businesses and consumers alike, all while households continue to face rising prices.

Here’s a summary of how Trump’s biggest trade actions unfolded over the last year, broken down by key months.

January-March

In his first few months back in office, Trump focuses his new tariffs on America’s three biggest trading partners: Canada, Mexico and China. On-again, off-again levies and responding retaliation begin to bubble up.

Worldwide, the U.S. also heightens import taxes on steel and aluminum to 25% — expanding Trump’s previously-imposed 2018 import taxes.

April

Trump’s trade wars escalate to new heights in April. The president unveils sweeping “Liberation Day” tariffs on almost every country in the world — sending the stock market tumbling. And more turbulence follows after he tells investors that it’s a “great time to buy” mere hours before postponing dozens of steeper import taxes.

China is the exception. Washington and Beijing trade more and more sky high, tit-for-tat levies — reaching 145% and 125%, respectively.

Separately, Trump’s 25% auto tariffs begin, plunging the industry into uncertainty and bringing more retaliation from trading partners like Canada.

May-July

The Trump administration spends much of the summer boasting about trade “framework” deals with countries like China, the U.K. and Vietnam. But his administration sends letters to dozens of other nations promising that heightened levies are on the way — and notably escalates trade wars with Brazil and India.

Otherwise, Trump continues to expand sector-specific tariffs, hiking steel and aluminum taxes to a punishing 50%.

Meanwhile, a key legal challenge over Trump’s tariffs gains traction. A federal court blocks Trump from imposing some of his most sweeping levies under an emergency-powers law — but an appeals court temporarily halts the order, allowing tariff collections to continue as the case wends through court.

August

Heightened U.S. tariffs on more than 60 countries and the European Union kick in. After several delays, most of these rates span from April’s “Liberation Day” — but separately, Trump hikes import taxes on Canada to 35%.

Punishing 50% levies on goods from Brazil and India also take effect, along with a new 50% rate on most imported copper worldwide. And low-value imports coming into the U.S. lose their duty-free status with the end of the “de minimis” rule.

Separately, the U.S. extends its trade truce with China. And a U.S. appeals court rules that Trump went too far when he declared national emergencies to justify his tariffs — but doesn’t strike them down entirely, allowing the administration to take its case to the Supreme Court.

September-December

The Trump administration officially takes its tariff fight to the Supreme Court. In initial oral arguments, the justices appear skeptical about the president’s authority to impose such sweeping levies.

Meanwhile, Trump continues to promise more sectoral tariffs — and 25% levies on kitchen cabinets and other furniture take effect. But other threats get delayed. Amid rising price pressures, the president also lowers or scraps a few previous tariffs, notably for goods like beef and fruit. He also suggests that Americans will receive a $2,000 dividend from new tariff revenue — but details remain very scarce.

Source: AP

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Warren Takunda

Economic

Gains for sterling through year-end coincide with positive investor sentiment in global financial markets, which are typically supportive of the UK currency.

With little by way of data or events to trouble traders, the benign market backdrop can remain in place to offer continued support to pound sterling.

"We do not expect meaningful shifts in sentiment between Christmas and New Year’s, and most rebalancing-related flows and price moves appear to have already occurred," says Geoff Yu, EMEA Macro Strategist at Bank of New York Mellon.

With stocks ending the year on a high, those currency pairs that do well when investors are confident are set to stay well supported.

"Stock markets in both the U.S. and Europe are well on track to end the year at record highs after the S&P500 climbed 0.75% over Christmas and European stock market futures indicate a positive opening today," says Gustav Helgesson, an analyst at SEB Research.

The pound-to-euro exchange rate (GBP/EUR) rose to a two-month high of 1.1482 on December 25, before paring the advance to 1.1465 at the time of writing Monday.

Pound Sterling Holds Firm Near the Highs_1

Above: GBP/EUR at daily intervals.

GBP/EUR had fallen steadily throughout 2025 as investors worried about the UK's economic trajectory, with data showing a material slowdown into the much-hyped November 26 budget.

But with the budget behind us, anxieties have lifted with economic surveys indicating a revival in business confidence. This, combined with the stock market rally, has helped the GBP recover from its November lows.

The pound to dollar exchange rate (GBP/USD) rose to a high of 1.3533 last week, a four-month high, and has since consolidated those gains, easing back to 1.3488.

Pound Sterling Holds Firm Near the Highs_2

Above: GBP/USD at daily intervals.

As with GBP/EUR, the path of least resistance for GBP/USD is higher, particularly as the big dollar softens.

"USD has room to fall as long as broader risk-on sentiment stays intact," says Christopher Wong, FX Strategist at OCBC.

The consensus expects the U.S. dollar to remain under pressure in 2026 as the U.S. economy continues to cool and the Federal Reserve responds by lowering interest rates.

"For 2026, we continue to expect USD to trade moderately softer as Fed easing erodes carry advantage while US exceptionalism fades," says Wong.