Zelenskiy to Hold High-Stakes Talks on Land, Security With Trump

Israeli Prime Minister Benjamin Netanyahu speaks during a joint press conference with Cypriot President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis (not pictured) after a trilateral meeting at the Citadel of David Hotel, in Jerusalem, December 22, 2025. ABIR SULTAN/Pool via REUTERS

Dec 26 (Reuters) - Israel became the first country to formally recognise the self-declared Republic of Somaliland as an independent and sovereign state on Friday -- a decision that could reshape regional dynamics and test Somalia's longstanding opposition to its secession.

Prime Minister Benjamin Netanyahu said Israel would seek immediate cooperation with Somaliland in agriculture, health, technology and the economy. In a statement he congratulated Somaliland's president, Abdirahman Mohamed Abdullahi, praised his leadership and invited him to visit Israel.

Netanyahu said the declaration "is in the spirit of the Abraham Accords, signed at the initiative of President Trump."

The 2020 accords were brokered by Trump's first administration and included Israel formalising diplomatic relations with the United Arab Emirates and Bahrain, with other countries joining later.

Netanyahu, Foreign Minister Gideon Saar and Somaliland's president signed a joint declaration of mutual recognition, the Israeli statement said.

Abdullahi said in a statement that Somaliland would join the Abraham Accords, calling it a step toward regional and global peace. He said Somaliland was committed to building partnerships, boosting mutual prosperity and promoting stability across the Middle East and Africa.

Egypt meanwhile said Foreign Minister Badr Abdelatty held phone calls on Friday with his counterparts from Somalia, Turkey and Djibouti to discuss what they described as dangerous developments in the Horn of Africa following Israel's announcement.

The ministers condemned Israel's recognition of Somaliland, reaffirmed their full support for Somalia's unity and territorial integrity, and warned that recognising breakaway regions poses a threat to international peace and security, Egypt's foreign ministry said.

Somaliland has enjoyed effective autonomy - and relative peace and stability - since 1991 when Somalia descended into civil war, but the breakaway region has failed to receive recognition from any other country.

Over the years, Somalia has rallied international actors against any country recognising Somaliland.

The former British protectorate hopes that recognition by Israel will encourage other nations to follow suit, increasing its diplomatic heft and access to international markets.

In March, Somalia and its breakaway region of Somaliland also denied receiving any proposal from the United States or Israel to resettle Palestinians from Gaza, with Mogadishu saying it categorically rejected any such move.

Reporting by Maayan Lubell and George Obulutsa and Abdi Sheikh in Mogadishu, and Hatem Maher in Egypt; Writing by Tala Ramadan; Editing by Louise Heavens and Howard Goller

Source: Reuters

Target Corp. shares rose on Friday after the Financial Times reported that an activist investor built up a stake in the big-box retailer, citing people it didn't identify.

Toms Capital Investment Management has made a significant investment in Target, the FT said, without disclosing further details.

Target shares jumped as much as 6.7% on Friday. The stock is headed for an annual decline of about 25% following a difficult year in which the company lost market share and sales slumped.

In response to a request for comment, Target said it maintains "regular dialogue with the investment community" and its top priority is "getting back to growth." The company said its plan to improve its merchandise, shopping experience and technology "will drive the business forward and deliver sustained, long-term value for shareholders."

Source: Bloomberg Europe

A Bloomberg gauge of the dollar headed for its worst week since June and Treasuries rose as traders looked to data due early next month to confirm expectations for further Federal Reserve interest-rate cuts in 2026.

With trading subdued because of holidays this week and markets in the UK closed Friday, investors' attention has largely turned to major economic reports out of the US expected in the first few weeks of January. The December jobs report and consumer inflation readings, in particular, will help chart the Fed's next steps after officials reduced borrowing costs this month for the third straight meeting to support growth.

The Bloomberg Dollar Spot Index edged lower on Friday and is down about 0.8% this week. It has declined around 8% this year, which would be its steepest annual drop since 2017. The measure is also set for its lowest close since September. Risk-sensitive currencies like the Australian dollar and Norway's krone led gains against the greenback on the week among major peers.

"Liquidity was thin this week, and that didn't help the dollar, which was already in a relatively weak position," said Andrew Hazlett, a foreign-exchange trader at Monex Inc. "Looking ahead, our focus is going to be on inflation numbers as guidance for the Fed's next cut."

The greenback's decline has coincided with gains in Treasuries, with US 10-year yields falling about three basis points this week to 4.12%, within the range of the past couple of weeks. Traders see about a 90% probability that the Fed will stay put next month. But they're betting on another quarter-point cut by mid-year, and one more several months later.

US unemployment data released this month showed the jobless rate rising to its highest since 2021, while data on consumer inflation showed lower-than-expected readings.

Traders have bolstered expectations for a weaker US currency for five days in a row, with a key options gauge now at the most bearish on the greenback in more than three months.

Source: Bloomberg Europe

The White House will unveil new details on President Donald Trump's planned East Wing ballroom during a hearing early next month, according to a federal commission tasked with reviewing the project.

The new ballroom, which Trump has said would cost $400 million and would dwarf the adjacent White House building, has been challenged in court by preservationists, while Democratic lawmakers have called it an abuse of power and are investigating which donors are supporting it.

The National Capital Planning Commission, chartered by Congress to manage planning for Washington-area federal lands, said on its website that the White House will provide an "information presentation" on plans to rebuild the East Wing during a commission meeting on January 8.

The White House did not immediately respond to a request for comment.

The commission, chaired by a White House aide and onetime personal lawyer to Trump, Will Scharf, has declined to review the demolition of the former East Wing, preparation activities at the site, or potential effects to historic properties, in what would mark the biggest change to the historic property in decades.

The National Trust for Historic Preservation, a nonprofit organization chartered by Congress, is suing to halt the construction, arguing that the proposed 90,000 square foot (8,360 square meter) ballroom would dwarf the rest of the White House, at 55,000 square feet.

The judge in the case earlier this month declined to issue a temporary restraining order against work on the project, noting among other things that the size, scale and other specifications had not been finalized. Another hearing is scheduled for next month.

The president, a one-time real estate developer, has taken a hands-on role in what he has described as sprucing up the White House and the U.S. capital city ahead of celebrations next year marking the Declaration of Independence's 250th anniversary.

He has also proposed a new grand arch near Washington, while decorating the Oval Office extensively in gold leaf and installing plaques there offering his personal take on his predecessors' legacies.

The former East Wing was largely demolished in October, with comparatively little public notice or consultation.

In a recent notice posted online, the planning commission said a formal review taking place this coming spring will consider topics including lines of sight, public space and landscapes. Members of the public will be allowed to submit comments or testify during the review, it said.

Source: Investing

Ukrainian President Volodymyr Zelensky will meet with US President Donald Trump on Sunday in Mar-a-Lago to talk peace with Russia, Zelensky's top officials have confirmed. Ukraine is touting that a deal is close - and yet outside observers might easily note that huge hurdles remain.

Zelensky also stated on Telegram that "Many things can be decided before the new year." And yet he is still rejecting Russia's main sticking point - the demand to control the entirety of the Donbas region under any final peace settlement. Moscow also wants international legal recognition (and so, from Washington) of the eastern territories as being part of the Russian Federation.

via Associated Press

Some level of progress must have been made in negotiations over the draft - at least from the US point of view - given that Trump said previously he would only meet Zelensky if he felt a deal was close.

Zelensky said Friday morning, "We are not losing a single day. We have agreed on a meeting at the highest level — with President Trump in the near future. A lot can be decided before the New Year."

At the same time, Kremlin spokesperson Dmitry Peskov said Russia had received and reviewed information shared by Russian negotiator Kirill Dmitriev following his recent talks with the Witkoff-Kushner delegation in Miami. Crucially the latest talks included top negotiators from both Russia and Ukraine directly engaging.

A senior US official characterized the talks involving envoys Rustem Umerov and Kirill Dmitriev as "positive and constructive."

"We've gone as far as possible with the Russians and the Ukrainians. We've made more progress in the last two weeks than the last year. We want to push the ball into the goal. We're heading in the right direction," the official was quoted in Axios as saying.

Another point of contention between Moscow and Kiev is expected to be the strong security guarantees for Ukraine backed by the West. Zelensky has been pushing that they are akin to NATO's Article 5 - but it's unlikely the Kremlin would go for anything approaching this language.

Breakthrough on the territory issue? Not likely from Russia's point of view, given that what Zelensky is proposing still sounds like a temporary solution, and not the kind of full, legal, and permanent recognition the Kremlin seeks. Russia has emphasized many times it won't contemplate a merely temporary truce.

"The U.S. and Europe will provide Ukraine with security guarantees. If Russia invades Ukraine there will be a military response and sanctions will be reinstated," Zelensky told reporters earlier this week.

As for the still open question of territorial concessions, Zelensky has maintained that if land is given up, then this must be decided by the Ukrainian people in a popular referendum. But of course, the country still hasn't had a single parliamentary or presidential vote since the war began, so it's hard to see how such a referendum would actually happen anytime soon.

Source: Zero Hedge

The National People's Power (NPP) party led by Sri Lankan President Anura Kumara Dissanayake has received much publicity for its anti-corruption drive since it came to power just over a year ago. The regime has focused on systemic reforms, seeking to tackle structural and institutional problems.

The NPP's reforms range from digital transformation to public sector restructuring to reducing government excesses and waste. The administration's agenda resonates with a public weary of inflation, corruption and poor governance.

State institutions have been captured by political elites, entrenching fraud, waste and bribery and contributing to Sri Lanka's economic crisis. The Rajapaksa family — prominent in Sri Lankan politics for many years — appointed their allies to high-ranking roles in the government and state-controlled companies. Global factors such as the COVID-19 pandemic and Russia's invasion of Ukraine aggravated the crisis.

The NPP is seeking to maintain its legitimacy through its anti-corruption efforts and dismantling of public waste. The government has removed some benefits given to former heads of state, such as allowances, personal staff and numerous vehicles. The NPP has launched investigations against bureaucrats, former MPs, and members of the judiciary, the police and the private sector. These efforts ground the country's economic recovery in anti-corruption reforms. They are also part of a broader effort to shift political culture from elite patronage to greater accountability.

Sri Lanka has a legacy of launching but not concluding investigations, particularly against individuals connected to top politicians. But several high-profile arrests occurred in 2025, notably former Sri Lankan president Ranil Wickremesinghe's arrest for allegedly misusing public funds in August. Academic Thiruni Kelegama argues that Wickremesinghe's arrest showcased that accountability now extends to the entire political class. Yet his arrest has brought polarised reactions from the public. Some applauded the move as heralding the end of elite impunity, while others said that the charges against him were minor.

The government's efforts to tackle corruption will likely be met with resistance from the old guard. Wickremesinghe's arrest triggered a display of unity from politicians across different parties, with many coming together at a press conference bearing the slogan 'Let's defeat the constitutional dictatorship'.

In November 2023, the Sri Lankan Supreme Court stated that many key figures, including former presidents Gotabaya Rajapaksa and Mahinda Rajapaksa and former finance minister Basil Rajapaksa were responsible for the 2022 economic crisis. But the ruling was seen as tokenistic since its only punishment was paying the legal fees of the case's petitioners.

The Wickremesinghe government had created the pathway for the incumbent government's anti-corruption agenda. The Wickremesinghe administration introduced the Anti-Corruption Act No. 9 of 2023 and revised the National Audit Act No. 19 of 2018. Progress was made on the Regulation of Election Expenditure Act No. 3 of 2023, which the NPP has continued. The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) also started work on the National Action Plan for Anti-Corruption 2025–2029.

The amended Anti-Corruption Act No. 9 of 2023 has widened CIABOC's scope, enabling a more comprehensive approach to tackling corruption. This allows investigations into a broader range of offences, including money laundering, private sector bribery and trading in influence.

The NPP has continued the Extended Fund Facility program with the International Monetary Fund (IMF), though it pledged to revisit the deal during the 2024 election campaign. The government decided to stick to the IMF deal since renegotiation might have slowed the country's economic recovery, which is connected to the debt restructuring process.

While the Wickremesinghe government was criticised for austerity measures implemented through the IMF program, the NPP's continuation of this program has been received differently by the public. This is connected to the erosion of the old guard and opposition politicians' legitimacy, particularly after the 2022 Aragalaya protest movement. The NPP has enjoyed public support as a new political contender thanks to its moral high ground, despite lacking economic or administrative experience.

The incumbent government complemented existing anti-corruption legal frameworks by introducing the Proceeds of Crime Act No. 5 of 2025 to allow for the recovery of proceeds through forfeiture, freezing and disposal. Writer Asoka S Seneviratne argues that this act is revolutionary since it paves the way to introduce the Proceeds of Crime Recovery and Management Authority. But Seneviratne has noted that considerable resources and time will be required to fully operationalise this law.

To better tackle corruption and bribery, the CIABOC, together with the UNDP and the Japanese government, launched a case-file tracking system in October 2025. This system serves as a digital platform that increases workflow efficiency, improves case management and allows for timely investigations. The system seeks to increase the commission's capability to meet its institutional mandate.

While the NPP has initiated digitalisation only in a few sectors, the incorporation of such tools advances the digital transformation and state modernisation agenda articulated in its Digital Policy for Sri Lanka document.

The NPP has displayed more political will to tackle corruption than previous administrations. There is a public perception that the government is executing, at least partly, on its anti-corruption agenda. But other crucial issues such as underfunding, weak legal enforcement and limited mandates still need to be addressed to make state institutions more resilient and independent.

Roshni Kapur is PhD Candidate at the University of Ghent specialising in caste and land conflicts.

Source: East Asia Forum