Trump's Davos Trip Off to Shaky Start Amid Global Tensions

Japan's electricity demand is set to climb 5.3% over the next decade, a surge fueled primarily by the immense power needs of new data centers and semiconductor factories.

According to the latest forecast from the Organisation for Cross-regional Coordination of Transmission Operators, Japan (OCCTO), the nation's grid monitor, power consumption will reach 846.13 billion kilowatt-hours (kWh) in fiscal year 2035. This marks a notable increase from the estimated 803.37 billion kWh for fiscal year 2025.

This growth projection is slightly more conservative than the 5.8% increase forecasted a year ago. OCCTO noted that the adjustment reflects construction delays, design changes, and other logistical issues at data centers, which have pushed back their operational start dates and the timeline for reaching full power consumption.

Industrial Growth Outpaces Household Decline

The rise in electricity use is not uniform across the economy. A clear divergence is emerging between the industrial and residential sectors.

• Industrial Demand: Expected to jump by 18.3% over the ten-year period, driven by high-tech manufacturing and digital infrastructure.

• Household Consumption: Forecast to fall by 5.7%, a trend attributed to Japan's shrinking population and gains in energy efficiency.

These figures represent minor revisions from last year's outlook, which had predicted a 19.2% increase in industrial demand and a 5.4% decline in household use.

The Tech Sector's Massive Power Appetite

The core driver of Japan's rising energy needs is the tech industry's expansion. Electricity demand specifically from new data centers and semiconductor plants is expected to grow by 56.8 billion kWh by fiscal 2035.

This updated figure highlights the accelerating power requirements of the digital economy, surpassing last year's forecast, which projected a 51.4 billion kWh increase by fiscal 2034.

OCCTO compiles its 10-year electricity demand outlook annually, based on comprehensive surveys conducted with Japan's 10 major electric utility companies.

U.S. and Russian officials, including special envoy Steve Witkoff and Jared Kushner, at a meeting in Moscow on December 2, 2025.

U.S. special envoy Steve Witkoff has confirmed that peace negotiations over the war in Ukraine have advanced to the critical stage of discussing "land deals," with a meeting scheduled this week with Russian President Vladimir Putin.

Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Witkoff stated that significant progress has been made over the past six to eight weeks. He expressed optimism that a resolution to the nearly four-year conflict could be approaching.

High-Stakes Meeting Requested by the Kremlin

According to Witkoff, he and President Donald Trump's son-in-law, Jared Kushner, will meet with Ukrainian officials on Wednesday evening before holding talks with top Russian officials.

"And then we'll be seeing the Russians, Jared and I, sometime on Thursday evening," Witkoff said, confirming that President Putin would be present at the meeting. He noted that the Kremlin had initiated the request for the high-level discussions.

These talks are centered on a U.S.-led 20-point peace plan, which Witkoff says is bringing both sides closer to an agreement. "We're bringing everyone closer... hopefully we'll have something good to announce soon," he added.

The '800 lb Elephant': Negotiating Territory

The central focus of the negotiations is now on territorial arrangements, which Witkoff described as the most challenging part of any potential deal.

"[It's based on] our 20-point peace plan, and we're massaging it and harmonizing it, and I think we're down to land deals now — that's been the 800 lb elephant in the room," he explained. "I think we have some very, very good ideas around that, and hopefully we'll be able to make some progress there."

When asked directly if he believed Putin would agree to a deal, Witkoff's response was a confident "I do."

Overcoming Obstacles to a Final Agreement

The current diplomatic push follows multiple failed attempts to secure a lasting ceasefire. The ongoing conflict has resulted in hundreds of thousands of military and civilian casualties. Analysts suggest that pressure from the United States and President Trump's impatience with the war have been key factors in bringing both Russia and Ukraine back to the negotiating table.

Historically, major obstacles to a peace agreement have included:

• Russia's demand that Ukraine cede its eastern Donbas region.

• Ukraine's insistence on receiving security guarantees from Western partners to prevent future invasions.

Source: Euronews

French far-right leader Marine Le Pen softened her tone while answering judges' questions during her appeal trial in Paris on Tuesday and Wednesday, but denied wrongdoing, after being barred from public office over a conviction for misusing EU funds.

Le Pen, the longtime leader of the far-right National Rally (RN), is facing a crucial appeal trial that will determine whether she can run in the 2027 presidential election, after she was given last year a five-year ban from running for public office, effective immediately.

Le Pen and others were found guilty of misappropriating more than 4 million euros ($4.7 million) of EU funds. Judges said that between 2004 and 2016, they had used funds earmarked for work at the European Parliament to pay staff who were actually working for the party.

Answering judge Michele Agi's questions, Le Pen stuck to addressing legal arguments, in contrast with her previous approach of challenging the legitimacy of the charges. But in substance, her defence appeared to remain the same, as she denied the existence of a system within the RN to misuse EU funds.

"I formally contest the idea that there was a kind of system," Le Pen told the court on Tuesday.

She also partly put the blame on her father, the late Jean-Marie Le Pen, saying that until 2014 he was the one really in charge. Known for his xenophobic, antisemitic and racist stance, the founder of the RN, formerly the Front National, died last year at 96.

"The way things were functioning wasn't ideal -- I'm aware of that," she said. "But all those people were working."

The trial is expected to last until February 12.

A ruling is expected before the summer, meaning Le Pen's hopes of running in 2027 remain alive if her five-year ban is revoked or drastically curtailed.

If she cannot run, her protege, 30-year-old RN party president Jordan Bardella, is expected to step in.

Source: Reuters

On Wednesday, GBP/USD remained stable at 1.3436. The British pound was supported by a sell-off in the US dollar following increased trade tensions between the US and Europe over Greenland.

US President Donald Trump has threatened to impose tariffs on imports from the UK, Denmark, Norway, Finland, France, Germany, and the Netherlands if these countries do not agree to transfer control of Greenland to the US. In response, investors began pulling back from American assets, including the dollar, and reallocating funds into European currencies and gold.

While recent UK labour market data showed weakness, with unemployment rates near five-year highs and the largest drop in payrolls since November 2020, there are some positive developments. These include a reduction in layoffs, stabilisation in job vacancies and unemployment, and a slowdown in wage growth that aligns with the Bank of England's inflation target.

This backdrop sets the stage for further interest rate cuts by the Bank of England. The central bank's baseline scenario suggests a final reduction to 3.50% in April, with market expectations for one more cut by mid-year and a 60% probability of a second cut by December.

Technical Analysis

On the H4 GBP/USD chart, the market is forming a broad consolidation range around the 1.3455 level. Today, we expect the range to extend to 1.3395. A correction to 1.3450 is likely, followed by a continuation of the downward trend toward 1.3326, with a potential drop to 1.3220. This scenario is supported by the MACD indicator, with its signal line above zero and pointing downward.

On the H1 chart, the market is consolidating around 1.3450, with a potential decline towards 1.3400. If this level breaks, the downward trend could extend to 1.3326. The Stochastic oscillator confirms this bearish outlook, as its signal line remains below the 50 level and continues pointing downward.

Conclusion

GBP/USD growth is closely linked to the weakening US dollar, primarily driven by geopolitical tensions and shifting market sentiment. The UK's labour market data and the BoE's expected rate cuts further support the pound's position. Technically, GBPUSD may continue its downward correction in the near term, with key support levels at 1.3395 and 1.3326.

Source: ACTIONFOREX

President Donald Trump's move to fire Federal Reserve Governor Lisa Cook has escalated into a high-stakes legal battle, challenging the boundaries of presidential authority over the U.S. central bank. Cook is the first sitting Fed policymaker to be targeted for removal by a president, placing her at the center of a historic power struggle.

This is not the first time Cook has found herself in a pioneering or embattled position. The daughter of a nursing professor and a hospital chaplain, she was one of the first Black students to desegregate schools in her hometown of Milledgeville, Georgia. She has spoken in interviews about the physical scars she still carries from beatings during that period.

Her academic journey was equally groundbreaking. After studying philosophy at Spelman College, she became the first graduate of the historically Black women's institution to win a Marshall Scholarship, which sent her to Oxford University. According to her own accounts, she was convinced to pursue a career in economics by a British economist during a hike up Mount Kilimanjaro in Tanzania.

Cook later earned her PhD in economics from the University of California, Berkeley. One of her dissertation advisers was Barry Eichengreen, an expert on the risks of political interference in central bank policy.

The Legal Showdown at the Supreme Court

The conflict began when President Trump announced on social media that he was firing Cook, citing alleged false statements or "gross negligence" related to her mortgage application paperwork. Cook has denied these allegations as baseless and filed a lawsuit to block her dismissal.

After a lower court sided with Cook, Trump’s administration appealed the decision. The case is now under consideration by the U.S. Supreme Court, with a hearing scheduled for Wednesday.

Eichengreen defended his former student in an interview with economist Paul Krugman last August. "I know Lisa to be careful and ethical," he said. "She's also one of the strongest people I know... I think we have a very strong individual on the other side of this controversy."

From Academia to a Contentious Fed Confirmation

Before joining the Fed, Cook built a distinguished academic and policy career. She taught at Harvard University and was a research fellow at Stanford University's Hoover Institution before becoming an economics professor at Michigan State University in 2005. Her research has often focused on how racial disparities, anti-Black violence, and gender inequality negatively impact innovation and economic growth.

Her public service includes roles as an adviser on the Obama-Biden and Biden-Harris transition teams and as a senior economist at the White House's Council of Economic Advisers from 2011 to 2012.

When President Joe Biden nominated Cook to the Fed's Board of Governors in 2022, her confirmation process was long and divisive. Republican lawmakers accused her of being soft on inflation, and she faced what she described as "anonymous and untrue attacks" on her work. She was confirmed as the first Black woman to serve as a U.S. central banker only after Vice President Kamala Harris cast the tie-breaking 51st vote in an evenly split Senate.

Cook's Policy Focus: Inflation, Rates, and AI

As a Fed governor, Cook has participated in key monetary policy decisions. She voted with her colleagues to raise interest rates throughout 2022 and 2023 to combat rising inflation. However, she also supported the central bank's three rate cuts last year, which were aimed at protecting the labor market from softening. This policy stance contrasts with President Trump's repeated criticisms of the Fed for not implementing larger rate cuts.

In her public remarks, Cook has frequently addressed the economic impact of artificial intelligence, a technology the Trump administration also views as critical for prosperity. She argues that AI has the potential to boost productivity and lower inflation, but cautions that the timing of these benefits is uncertain and they may not be distributed evenly across the workforce.