Rubio Defends Maduro Raid, Faces Senate Scrutiny

Remarks of Officials

Political

Summary:

Secretary Rubio defended the Venezuela intervention to a skeptical Senate, facing intense debate over war powers and trust.

Secretary of State Marco Rubio faced intense questioning from the Senate on Wednesday, making his first public appearance before lawmakers since the dramatic U.S. raid that captured Venezuelan President Nicolas Maduro earlier this month.

Addressing a packed hearing room, Rubio argued that Venezuela's new leadership is already pivoting toward a closer relationship with the United States. The Trump administration is currently working with Delcy Rodriguez, a former Maduro ally who assumed the role of interim president following his arrest. However, the White House has made it clear that further military action remains an option if her government fails to meet U.S. demands.

Secretary of State Marco Rubio, pictured here on December 15, 2025, defended the Trump administration's Venezuela policy before the Senate.

Rubio, himself a former Florida senator, described communications with the new Venezuelan leaders as "very respectful and productive." He expressed confidence that the U.S. could quickly re-establish a diplomatic presence in the country, framing the new dynamic as a historic opportunity.

"For the first time in 20 years, we are having serious conversations about eroding and eliminating the Iranian presence, the Chinese influence, the Russian presence as well," Rubio stated. "In fact, I will tell you that there are many elements there in Venezuela that welcome a return to establishing relations with the United States on multiple fronts."

Later on Wednesday, Rubio was scheduled to meet with Venezuelan opposition leader Maria Corina Machado, sparking questions about whether the Trump administration might seek to install her as Maduro's permanent replacement.

Justifying the Intervention

Rubio laid out the administration's case for removing Maduro, arguing that Venezuela had become a strategic threat to the United States. He presented a stark picture of the situation prior to the raid, citing several key factors:

• Hostile Foreign Influence: The country had become a base of operations for U.S. adversaries, including China, Russia, and Iran.

• Regional Instability: Maduro's alleged cooperation with drug traffickers was destabilizing the region and directly impacting the U.S.

"It was an untenable situation and it had to be addressed," Rubio declared. He added that the U.S. has established a short-term mechanism to sell Venezuelan oil, with the ultimate goal of fostering a "friendly, stable, prosperous Venezuela" that holds free and fair elections.

Tensions Boil Over in Congress

Despite Rubio's assurances, the administration's actions have triggered significant pushback on Capitol Hill. Lawmakers from both parties have voiced frustration over a pattern of poor communication regarding major foreign policy decisions, including the Maduro raid and cuts to foreign aid programs.

Committee Chairman Jim Risch, a Republican, noted the "confusion over how it will be done" but praised Rubio for explaining the administration's plans. However, the underlying tension was palpable, especially following a recent, high-stakes legislative battle.

The War Powers Showdown

Just two weeks ago, Senate Republicans narrowly defeated a resolution that would have required President Trump to seek congressional authorization before taking further military action in Venezuela. The vote was so close that Vice President JD Vance had to be called in to break a tie.

The resolution initially seemed poised to pass after five Republicans sided with Democrats to advance it—a rare rebuke of President Trump. In response, Trump publicly attacked the five defectors, while he and Rubio launched an intense lobbying effort to flip their votes.

They successfully persuaded two senators, Josh Hawley of Missouri and Todd Young of Indiana, to change their positions by promising that Rubio would testify before the committee and insisting no U.S. troops were in Venezuela.

A Breach of Trust

The close vote reflects a growing anxiety in Congress over presidential war powers and a desire to reclaim constitutional authority over military deployments.

Members of Congress, including some of Trump's fellow Republicans, accused Rubio of misleading them. They claimed he had insisted the administration was not planning a leadership change in Venezuela just days before the raid. Adding to the frustration were reports that oil company executives were briefed on the operation before lawmakers were.

Democratic Senator Chris Coons of Delaware voiced a common fear, warning of the risk of being drawn into another protracted conflict. "You and I both know a long and painful history of wars that began and seemed to be resolved and then opened up into excruciating, expensive years-long conflict," he said.

These concerns are amplified by other recent statements from President Trump, who said this month that the U.S. will run Venezuela for years, told Iranian protestors that "help is on the way," and threatened military action to take Greenland.

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Forex

Commodity

Sterling retreats after reaching strongest level since 2021

Sterling slipped roughly 0.5% on the day, easing back from its strongest level since 2021. The pullback came as the United States (US) dollar staged a modest recovery after a sharp selloff that had pushed it to multi-year lows.

The British pound's retreat follows a period of significant strength against the greenback. Currency markets remain volatile as traders assess the implications of US policy unpredictability and concerns over Federal Reserve (Fed) independence.

Despite the intraday decline, sterling remains well supported by multi-year levels. The currency has benefited from broader dollar weakness, with the dollar index sliding to a four-year low after falling more than 9% in 2025.

Forex trading remains highly active as traders navigate elevated volatility across major currency pairs. The euro briefly broke above $1.20 for the first time since 2021, whilst the yen strengthened on intervention speculation before the dollar's modest rebound.

FTSE 100 edges higher on mixed trading

The FTSE 100 closed marginally firmer, with gains in miners and energy stocks offsetting declines in defensive sectors. Health care and consumer staples names came under pressure as investors rotated into more cyclical areas.

The blue-chip index underperformed more tech-heavy European peers. ASML's surge to a record high on strong orders dragged European technology stocks higher, whilst Louis Vuitton Moet Hennessy (LVMH) slid sharply on weaker sales figures.

Mining stocks benefited from gold's push towards $5300 an ounce. The precious metal hit fresh record highs above $5260 as the weaker dollar propelled demand for non-dollar assets, supporting commodity trading activity.

Energy names also contributed to the index's modest advance. Oil prices held steady as traders weighed global demand concerns against supply dynamics, providing support for the sector.

Stock-specific moves dominate UK market

Marston's shares tumbled as much as 16% despite delivering a solid festive trading update. Analysts pointed to softer-than-expected trends versus peers and a strong run-up in the share price beforehand as reasons for the selloff.

The pub operator's decline contrasted with strength elsewhere in the consumer sector. Stock-specific factors dominated trading across UK equities, with company updates driving individual share price movements more than broader market trends.

Life Science REIT jumped 19% after agreeing to a takeover by British Land at roughly a 21% premium. The deal lifted sentiment across parts of the real estate sector, demonstrating continued appetite for M&A activity.

Mobico surged 12% on progress in German rail contract negotiations. PayPoint, Mears and Mears also rose on reassuring trading updates and contract wins, highlighting the importance of company-specific catalysts.

Dollar hovers near three-year lows

The US dollar remained under pressure near three-year lows after a heavy selloff. President Trump brushed off concerns about currency weakness, encouraging traders to press bearish US dollar positions.

The dollar index fell to a four-year low, weighed down by concerns over US policy unpredictability and signals that Washington may tolerate a weaker currency. The greenback has declined more than 9% in 2025 as confidence in the currency erodes.

Currency volatility stayed elevated across major pairs. The euro's break above $1.20 marked its strongest level since 2021, whilst sterling reached similar multi-year highs before retreating.

US Treasury yields were little changed ahead of the Federal Reserve (Fed) decision, where no move is expected. Markets remain focused on Fed commentary for signals about the central bank's independence and future policy direction.

Gold pushes towards $5300 on dollar weakness

Gold surged to fresh record highs above $5260 an ounce, with prices pushing towards the $5300 level. The precious metal benefited from the weaker dollar and rising demand for non-dollar assets.

The rally in gold trading reflects investor concerns about currency stability and geopolitical uncertainty. Gold has traditionally served as a hedge during periods of dollar weakness and policy unpredictability.

The move higher comes as central banks remain in focus. Australian inflation data pushed markets to price a greater than 70% chance of a Reserve Bank of Australia (RBA) rate hike next week.

US equities closed at record highs ahead of mega-cap earnings releases, shrugging off the turbulence in currency markets. Asian markets traded mixed, with Hong Kong equities rallying strongly despite elevated forex volatility.

European markets driven by earnings

ASML surged to a record on strong order numbers, lifting European technology stocks. The Dutch semiconductor equipment maker's performance contrasted sharply with weakness in luxury goods, where LVMH slid on softer sales figures.

The divergence between sectors highlighted the stock-specific nature of recent trading. Company fundamentals and earnings updates drove individual share price movements more than broader market factors.

European indices outperformed the FTSE 100, benefiting from greater exposure to technology names. The tech-heavy nature of continental bourses provided support as semiconductor stocks rallied on optimism about order trends.

UK markets face a busy period ahead with further trading updates expected. Investors remain focused on company-specific news flow rather than macro themes, with share trading activity concentrated in names delivering concrete catalysts.

Source:ig

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Daniel Carter

Economic

Mozambique's central bank extended its longest rate-cutting cycle, lowering its benchmark to a record low, while signaling that there is limited scope for further easing.

The Banco de Moçambique reduced the rate, known by its Portuguese acronym Mimo, by 25 basis points to 9.25%, Governor Rogério Zandamela said in a briefing in Maputo, the capital, on Wednesday. While inflation will remain in single-digits for the medium term, risks including severe floods and trade tensions meant the end of the cutting cycle that started two years ago is approaching, he added.

The government is in talks with the International Monetary Fund for a loan package after President Daniel Chapo's administration decided to prematurely end a previous deal in favor of a new one. That will likely require currency depreciation and a better-balanced budget.

Mozambique's economy has been battered by repeated shocks in recent years. The gas-rich nation's output slumped to the lowest since 2020 after post-election unrest last year all but halted activity for months.

The government is also fighting an Islamic State-backed insurgency in the northeastern Cabo Delgado province that's delayed a $20 billion natural gas export project for years.

The nation, frequently hit by weather-related disasters such as tropical cyclones, is currently facing severe flooding in the center and south not seen in more than a quarter century. Parts of cities and towns have been completely submerged this month.

At least 137 people have died since the rainy season began in October, about 240,000 hectares of crops has been lost and sections of the main highway linking Maputo to the rest of the country has been destroyed, according to the authorities. More-than 5,000 kilometers (3100 miles) of roads have been impacted, rendering large areas inaccessible.

Source: Bloomberg Europe

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King Ten

Remarks of Officials

Economic

Energy

Political

Commodity

Mexico's state-owned oil firm, Pemex, has canceled a planned oil shipment to Cuba in a move widely seen as a response to pressure from the United States. The decision follows President Donald Trump's declaration that "zero" oil should reach the island and recent reports that Washington is pursuing regime change in Havana.

Sheinbaum Acknowledges Shipment Cancellation

During a press conference on Tuesday, Mexican President Claudia Sheinbaum addressed reports about the canceled Pemex shipment, which was scheduled for January. Without explicitly denying the cancellation, she framed the action as a "sovereign decision" made by the state oil company at a time it "deemed necessary."

Mexican President Claudia Sheinbaum addresses the media, explaining that the decision regarding oil shipments was a sovereign one made by the state oil firm.

Washington's 'Zero Oil' Stance Triggers Policy Shift

The policy shift comes after Reuters reported last week that the Mexican government was reviewing its oil sales to Cuba, fearing potential U.S. reprisals. Washington has maintained a full trade embargo against Cuba for decades and intensified its stance by blockading Venezuelan oil shipments to the island late last year. That blockade was imposed shortly after U.S. forces captured Venezuelan President Nicolas Maduro on drug charges.

The disruption of Venezuelan supply elevated Mexico to the position of Cuba's main petroleum provider, accounting for around 44% of its crude imports. However, President Trump’s recent insistence that "zero" money or oil should be sent to the island forced Mexico to reevaluate its trade policy.

When asked about a potential mediating role between the U.S. and Cuba, Sheinbaum stated that Mexico would only act if requested by both nations, though she affirmed her country's commitment to promoting dialogue.

Reports of U.S. Regime Change Plans

Mexico’s diplomatic efforts may face significant headwinds. According to The Wall Street Journal, Washington is actively planning for regime change in Cuba before the end of the year.

The report suggests that U.S. officials are seeking "Cuban government insiders who can help cut a deal to push out the Communist regime." The strategy allegedly uses the capture of Venezuela's Maduro as a "blueprint" for toppling the Cuban state.

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

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Adam

Commodity

Gold and silver prices are strongly higher, with gold leading the way this time, powering to an all-time high of $5,345.00, basis April Comex futures. The precious metals are supported by safe-haven demand as the U.S. dollar wobbles on the foreign exchange market ahead of the conclusion of the Federal Reserve’s FOMC meeting this afternoon. April gold was last up $181.60 at $5,303.00. March silver prices were up $6.668 at $112.60.

CME Group is raising margins on Comex silver futures after prices surged to a record high this week. Margins will rise to 11% of so-called notional from the current 9% for non-heightened risk profile, the exchange said in a statement on Tuesday. The heightened risk profile margins will be raised to 12.1% from the current 9.9%, it said. Platinum and palladium futures’ margin also will be hiked. The change takes effect from Wednesday’s close and follows a “normal review of market volatility to ensure adequate collateral coverage,” the CME said.

Trump says U.S. dollar weakness is good for U.S. business. The U.S. dollar index on Tuesday hit a four-year low and suffered its steepest one-day drop since last year’s tariff rollout after President Trump said on Tuesday afternoon he didn’t think the currency had weakened excessively. “This may very well be the beginning of the next leg lower in the dollar, and many may not be prepared for it,” said Stephen Jen, a former Morgan Stanley currency analyst, and as reported by Bloomberg. “There has been a generation of currency analysts accustomed to dealing with a strong dollar and a strong U.S. economy, and unable to process the scenario of a weakening dollar and a strong U.S. economy.” The U.S. dollar’s recent decline is great for U.S. businesses, Trump told reporters in Iowa. While that’s in line with previous commentary from U.S. officials, his remarks moved currency markets late Tuesday, partly because they appeared to validate the steep decline in the greenback in recent sessions. Gold rallied to another record high overnight, at $5,345.00 an ounce, basis April Comex futures, supported in part by the slumping U.S. dollar index.

FOMC decision day; likely no change in U.S. rates. The Federal Reserve’s two-day Open Market Committee (FOMC) meeting that began Tuesday morning ends early this afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is widely expected to keep U.S. interest rates unchanged. However, the FOMC statement and Powell’s remarks at his press conference will be closely parsed by the marketplace for any clues regarding the trajectory of monetary policy in the coming months, including Fed officials’ comments on inflation.

Amazon cutting 16,000 more jobs… Amazon.com Inc. announced plans to terminate about 16,000 corporate employees, “ratcheting up efforts to streamline bureaucracy amid rising competition over artificial intelligence,” reported Bloomberg. The company will offer U.S.-based employees 90 days to search for a new role internally, as well as severance and other transition support, Beth Galetti, senior vice president of people experience and technology at Amazon, said Wednesday in a blog post. “We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Galetti said. The job cuts were announced a few months after the company said it was cutting 14,000 jobs. Combined, the total number of terminations echoes the rolling layoffs Amazon instituted in late 2022 and early 2023 that ultimately eliminated about 27,000 people, the Bloomberg report said.

The key outside markets today see crude oil prices up a bit and trading around $62.75 a barrel. The U.S. dollar index is slightly weaker and the U.S. 10-year Treasury note yield is presently 4.24%.

Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.

Gold price powers to record high; FOMC on deck_1

Technically, April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $5,000.00. First resistance is seen at the record high of $5,345.00 and then at $5,400.00. First support is seen at the overnight low of $5,193.60 and then at $5,100.00. Wyckoff's Market Rating: 10.0.

Gold price powers to record high; FOMC on deck_2

March silver futures bulls have the strong chart advantage and their next upside price objective is closing prices above solid technical resistance at $125.00. The next downside price objective for the bears is closing prices below solid support at $100.00. First resistance is seen at the overnight high of $116.165 and then at the record high of $117.70. Next support is seen at $110.00 and then at $107.50. Wyckoff's Market Rating: 9.5.

Source: kitco

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Devin

Economic

US Treasury Secretary Scott Bessent told CNBC Sara Eisen this morning that "the US always has a strong dollar policy".

This statement comes after President Trump's apparent 'comfort' last night with the dollar declining...

When asked if he was worried about losses in the dollar, Trump told reporters in Iowa on Tuesday: "No, I think it's great."

Bessent then dropped two more tapebombs...

While stating that "WE DON'T COMMENT ON INTERVENTION SPECULATION"...

Bessent then confirmed that "US IS 'ABSOLUTELY NOT' INTERVENING IN DOLLAR-YEN NOW"

This prompted yen weakness, retracing some of the post 'rate check' rally...

...and dollar strength...

This move comes minutes after Goldman Sachs Delta-One desk head warned: Near-term, feels dangerous to press dollar downside given how extreme the moves have been.

Source: Zero Hedge

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King Ten

Data Interpretation

Remarks of Officials

Economic

Germany has downgraded its economic growth forecasts for 2026 and 2027, citing ongoing global trade uncertainty and a slower-than-expected rollout of domestic economic and fiscal policies.

The government now anticipates GDP growth of 1.0% in 2026, a reduction from the previous forecast of 1.3%. The projection for 2027 has also been trimmed from 1.4% to 1.3%.

German Economy Minister Katherina Reiche explained the revision on Wednesday, stating that "the larger economic and fiscal-policy measures that had been expected have not materialized quite as quickly and not to the extent that we had assumed."

Despite the downgrade, these figures represent an improvement over the 0.2% expansion recorded in 2025, which itself followed two consecutive years of economic contraction. The economy ministry's annual report noted that a "cyclical recovery is being supported by stronger domestic momentum, while external headwinds are easing somewhat."

Fiscal Stimulus Lagging Behind Expectations

A key pillar of Germany's growth strategy, a landmark €500 billion ($600 billion) special fund for infrastructure, is facing implementation delays. Although the national parliament approved the fund in March, only €24 billion had been invested by the end of the year, reflecting the slow pace of decision-making within Germany's federal system.

Despite the slow start, the government projects that fiscal policy measures will contribute significantly to the economy, accounting for approximately two-thirds of a percentage point of GDP growth in 2026.

However, economists and business groups have warned that this fiscal package alone is insufficient to secure long-term growth. They are calling for more comprehensive structural reforms to bolster the economy's foundation.

Persistent Headwinds for Trade and Consumption

While government spending is expected to drive growth, other areas of the economy show signs of weakness.

Private consumption is forecast to grow by only 0.8% in 2026, a notable slowdown from the 1.4% growth seen in 2025. This projection assumes the household savings rate will remain unchanged at around 10.5%.

On the trade front, Germany continues to face challenges. The economic report highlights that U.S. tariff increases from last year are still weighing on the global economy. Combined with weaker demand from key export markets outside of Europe, this will likely cause Germany to lose further global market share.

After declining for three consecutive years, exports are expected to see a modest recovery with 0.8% growth.

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