U.S. Signals Harder Line on Venezuela as Trump Moves to Retain Seized Oil and Tankers

AI Momentum from Wall Street Carries Over to Asia

Australia Extends Winning Streak, Japan Mixed

Korea Gains on Shipbuilding Optimism, but Small Caps Slip

Hong Kong and China See IPO Frenzy Amid Modest Gains

Singapore Inflation Eyed as Regional Risk Factor

AI Surge Rekindles Market Optimism, but Macro Risks Linger

Source: CNBC

Ayanangshu Lahiri and his bandmates were about to rush to a clothing store after a sudden change in the dress code for their performance just hours before the show. Then he recalled an Instagram post raving about Slikk, a startup that delivers clothes in less than an hour.

Slikk saved the day for the band. But ever since that first purchase in September, Lahiri, a drummer and creative director at an advertising agency in the southern Indian city of Bengaluru, has not looked anyplace else for daily wear.

"It is not that I need clothes in an hour every time," Lahiri said, "But why wait for a few days for delivery when you can get things almost instantly?"

Urban Indians like Lahiri have become hooked on quick deliveries in the last three years, with couriers from Blinkit, Swiggy and Zepto turning up at their doorsteps with groceries in 10 minutes. Their love for speed is fueling a barrage of startups that are applying the same model to everything from fashion and to household help, with industry executives saying quick turnarounds could become the order of the day in India's fiercely competitive digital services market.

Nearly 70 quick delivery and on-demand home services startups have launched since the start of 2024, raising $1.9 billion, estimates data company Tracxn, with grocer Zepto alone bagging $1.8 billion. But early investments by global funds like General Catalyst, Glade Brook Capital, Bain Capital, Accel, Lightspeed and Nexus Venture Partners into fashion startups such as Slikk and Zilo, food delivery specialist Swish and home services companies like Snabbit and Pronto signal the race to offer convenience is heating up.

"More people are playing the convenience game because instant services have become table stakes. ... Consumers are used to not planning ahead," said Shivakumar Ramaswami, founder of investment bank Indigoedge. "The demand for such services will only grow as younger people enter the workforce and move to urban centers."

According to Akshay Gulati, cofounder and CEO of Slikk, which received an investment of $10 million in May, two months after raising $3.2 million, "Quick commerce is the new norm."

"Any online marketplace in India is built on three principles -- pricing, selection and service -- and you need to win on two fronts to build conviction with customers," Gulati said. "Our differentiators are services and supply -- a very curated supply and delivering it very fast."

The spate of investments brings to mind the heady days of e-commerce a decade ago, when the likes of Tiger Global Management and Naspers poured funding into online marketplace Flipkart, while Alibaba and SoftBank bankrolled Snapdeal. The mammoth fundraising by these companies, to the tune of billions of dollars, and their rapid expansion triggered a further wave of investments in sectoral startups specializing in fashion, furniture, accessories and baby care.

But as private funding became erratic amid intensifying competition, many such startups folded or were bought by larger competitors. Snapdeal, meanwhile, is a shadow of its former self after a failed attempt at merging with Flipkart. Some executives fear a similar story may play out with the current wave of convenience-focused startups.

"The question about the sector-focused startups is whether they will survive as independent entities or will eventually get folded into some of the big guys," said Rutvik Doshi, managing director and general partner at venture capital firm Athera. "There will be consolidation, definitely."

Those questions are growing louder as established players make a belated entry into the field and incumbents expand into new categories. Both Amazon and Flipkart, for instance, started quick deliveries of groceries in mid and late 2024, respectively. Flipkart's fashion arm, Myntra, and listed lifestyle company Nykaa began deliveries within a couple of hours in late 2024.

Similarly, Swiggy, Blinkit and Zepto have expanded beyond groceries into electronics, apparel and food, while home services firm Urban Company, which went public earlier this year, has offered on-demand household help since March.

"The next wave of online commerce will be driven by time-bound services," said Karan Taurani, executive vice president at brokerage firm Elara Capital. "Companies that don't have such offerings may end up losing market share."

Securing a bigger slice of that market will require a generous infusion of growth capital. Swiggy, which raised $1.4 billion in an initial public offering in November 2024, mopped up another $1.2 billion in a share sale earlier this month. Eternal, the parent company of Blinkit, raised nearly $1 billion late last year, on top of a $1.3 billion IPO in 2021.

But growth capital is scarce for unlisted companies, although emerging startups that have raised from global funds or their Indian affiliates have a better chance, given their easier access to a bigger capital pool.

Founders admit that their businesses will end up guzzling money, at least in the early days.

"Any major disruption, be it e-commerce, ride hailing, food delivery or quick commerce, would not have been possible without high-quality venture capital that allows for up-front investment in category creation and habit formation," said Aayush Agarwal, CEO of Lightspeed- and Nexus-backed Snabbit, which in 2025 has raised $55 million in three rounds. "Beyond a certain threshold, additional capital requirement is a factor of competitive intensity. ... With a listed competitor in the mix, we need to be better capitalized than if we were building this category alone."

Investment banker Ramaswami sees no letup in investor interest. "Investors are willing to fund [cash] burn because once habit is formed, the lifetime value [of consumers] will be high," he said.

Source: Asia_Nikkei

Indonesia said it has resolved all substantive issues in trade talks with the US and is on course to ink an agreement in late January, removing a major source of uncertainty for Southeast Asia's biggest economy.

Both countries have aligned on the "crucial issues" in their draft agreement, protecting the mutual interests of both parties, Coordinating Minister for Economic Affairs Airlangga Hartarto said in an online presentation on Tuesday, after meeting with US Trade Representative Jamieson Greer in Washington.

The trade agreement will be signed by both President Prabowo Subianto and President Donald Trump, with the Indonesian leader expected to travel to the US at the end of January.

The US agreed to exempt tariffs on certain Indonesian products including palm oil, coffee and tea, said Hartarto, Indonesia's lead negotiator. The US will also gain access to Indonesia's critical minerals, he said.

Under a framework announced in July, Indonesia was to eliminate tariffs on over 99% of US goods and remove non-tariff barriers, in exchange for the US reducing tariffs on Indonesian products from a threatened 32% to 19%. Indonesia also agreed to purchase roughly $19 billion in American products, including 50 Boeing Co. jets and agricultural goods.

Since then, negotiations hit sticking points over US demands that could limit Indonesia's autonomy in engaging in strategic trade and investment agreements with other countries. Of particular concern was the potential impact on the critical mineral and energy sector, and commerce with China and Russia.

Trump Demands on Mining, China Snarl US-Indonesia Trade Deal (1)

"No Indonesian policies are restricted by this agreement," Hartarto said, when asked about the US demands. The trade agreement between Indonesia and the US "is commercial and strategic in nature and benefits the economic interests of both countries equally," he said.

Source: Bloomberg Europe

The billionaire Cheng family have put a luxury London hotel up for sale as they grapple with liquidity challenges at debt laden Hong Kong property group New World Development Co.

The family, led by tycoon Henry Cheng, has appointed advisers to offer the Rosewood Hotel in London's Holborn district for sale, people with knowledge of the plan said, asking not to be identified as the plan is private.

New World has attempted to sell a raft of assets after plunging Hong Kong real estate values pushed up the group's relative indebtedness. The Cheng family has sought a partner to match a capital injection and the company last month proposed a bond swap that would trim about $1.2 billion from its debt pile.

A spokesperson at Rosewood Hotel Group declined to comment on ownership matters, but said its brands are not up for sale and all its properties remain fully operational as usual. Chow Tai Fook Enterprises, the private investment arm of the Cheng family, didn't respond to a request for comment.

The proposed sale is part of a wider program of Rosewood disposals being targeted by the family, Bloomberg News has previously reported. The Rosewood operation, led by Henry Cheng's daughter Sonia, is owned by the family's Chow Tai Fook Enterprises Ltd vehicle.

The group has 58 Rosewood properties around the world, according to its website. The Rosewood London, as the Holborn location is known, was the first hotel operated under the brand to open in the UK capital.

A second outpost, the Chancery Rosewood, was launched at the site of the former US embassy on Grosvenor Square in Mayfair earlier this year. That project was overseen by Qatari Diar, the developer owned by Qatar's sovereign wealth fund.

Deals for London hotels rose 42% in the three months through September, according to data compiled by broker Savills Plc. Robust demand has pushed values higher, the broker's data show.

Source: Bloomberg Europe

UK businesses ended 2025 feeling more upbeat about the economy's prospects after they were spared much of the tax pain at last month's budget.

Lloyds, a bank, said on Tuesday its business barometer rose five points to a net balance of 47%. It measures the difference between firms that are optimistic versus those that are pessimistic.

While it was only the highest reading since October, it was up on levels seen just before Chancellor of the Exchequer Rachel Reeves' budget. It was also 10 points higher than at the start of the year and optimism over the wider economy hit a four-month peak.

The figures add to evidence from the PMIs suggesting that business confidence bounced back after Reeves unveiled her fiscal plans. She announced £26 billion ($34.9 billion) of tax rises at her Nov. 26 budget but businesses avoided a repeat of her first budget when they were hit hard by higher payroll taxes. Instead households will face the worst pain from her second budget, though much of it is backloaded.

The renewed sense of optimism comes despite figures on Monday confirming that the economy slowed sharply in the second half of the year.

While the UK was the joint-fastest among the Group of Seven economies in the first half of the year, growth eased to 0.1% in the third quarter. Forecasters have also warned the economy could contract in the final three months of the year after monthly figures showed falls in output in September and October, when speculation mounted over tax rises.

"The uplift in business confidence is driven by an 11-point increase in optimism in the wider economy," said Hann-Ju Ho, senior economist at Lloyds Commercial Banking. "Confidence changed most in the construction sector which saw a big boost in December, to the highest level this year."

Private sector economists expect UK growth to slow next year to 1.1%, down from a predicted 1.4% for 2025. Reeves has vowed to "beat" forecasts that point to pedestrian levels of growth in the coming years.

While Lloyds' gauge tracking expectations for businesses' own price increases eased to levels seen at the start of the year, wage growth predictions remained steady. Some 18% of firms expect pay to rise by 4% or more over the next 12 months.

Source: Bloomberg Europe

Despite limited data, the Fed cut interest rates by 25 basis points in December, as expected. However, a pause in rate cuts is expected in January.

With the Fed's expectation of keeping interest rates stable at 3.5%-3.75% priced in at 80%, there is speculation about whether it will make a surprise move.

While statements from FED members on this issue are closely followed, the latest statement came from FED Board Member Stephen Miran.

Speaking to Bloomberg TV, Miran said that the data obtained in the last few months is consistent with his global outlook and that he does not expect a recession in the near term.

"If policies are not adjusted, the risk of a recession could increase. However, I don't foresee a recession in the near future."

Miran reiterated that the Fed should continue cutting interest rates, but stated that he has not yet decided whether he will vote for a 25 basis point cut or a larger 50 basis point cut at the next policy meeting.

"I think it is important that we continue to steadily lower the policy interest rate."

Miran also stated that recent data should steer the Fed towards a more dovish path, noting that inflation is getting closer to the Fed's 2% target. He added that the latest data supports the view that interest rate cuts should continue.

Miran, who joined the Fed in the middle of the year, has expressed dissenting views at every FOMC meeting he has attended, advocating for larger interest rate cuts each time. Regarding the January 2026 meeting, Miran stated that the interest rate decision would depend on various factors and that he was awaiting data delayed due to the government shutdown.

Miran also spoke about his term of office. At this point, Miran said, "If no one is appointed to replace me by January 31st, I assume I will continue in my position."

Stephen Miran was appointed by US President Donald Trump to complete the remaining few months of Adriana Kugler's 14-year term on the board, following Kugler's unexpected resignation in August.

His term ends on January 31, but Miran can remain in office until his successor is confirmed by the Senate.

Source: CryptoSlate