Pakistan's Prime Minister Shehbaz Sharif discussed the country's economy with UAE President Sheikh Mohamed bin Zayed Al-Nahyan during a meeting in Rahim Yar Khan. The UAE president agreed to extend a $2 billion loan payment deadline, which was due in January. Sharif also requested investment in key projects and the UAE committed to investing in Pakistan due to their strong brotherly relations. To reduce electricity prices, the government will approach the IMF as part of its National Economic Transformation Plan 2024-29. The Prime Minister highlighted a notable increase in textile exports and plans to discuss further export opportunities with the Indonesian president during his visit later this month. He also emphasized Pakistan's robust relationship with Malaysia and expressed commitment to strengthening it.
https://www.brecorder.com/news/40341625/uae-rolls-over-2bn-debt-pm-tells-cabinetSingapore and Malaysia have launched a joint economic zone project aimed at boosting trade and investment between the two nations. The initiative, which will be established on both sides of the border, is expected to create 20,000 skilled jobs within five years by attracting 50 projects. To facilitate this, policies such as tax breaks, grants, and easier regulations will be implemented, while automated immigration lanes and paperless clearance for goods will be introduced at the border. Singapore's Prime Minister Lawrence Wong and Malaysia's Prime Minister Anwar Ibrahim have expressed optimism about the project, with Wong noting that it is a "commonsense approach to liberalisation of trade and investment" between the neighbours.
https://www.brecorder.com/news/40341615/malaysia-singapore-launch-sez-to-boost-investmentThe global financial markets are experiencing a mixed reaction to recent news. The luxury sector is reacting strongly to the potential imposition of tariffs on high-end goods such as Birkin bags and Gucci shoes, with some analysts warning that this could have a negative impact on consumer spending. Meanwhile, the US dollar has weakened against its Canadian counterpart after Prime Minister Justin Trudeau announced he would step down as leader of his party, sparking concerns about the future of trade relations between the two countries. In contrast, the Seoul stock market rose 1.9 percent despite ongoing political uncertainty, while Tokyo's Nikkei 225 fell 1.5 percent due to a decline in Nippon Steel's shares after its proposed purchase of US Steel was blocked by President Joe Biden.
https://www.montanarightnow.com/national_news/us-european-markets-mostly-rise-as-trump-tariff-plans-in-question/article_d966df49-5e75-511f-a907-65c204b2f5df.htmlUS-China relations are likely to deteriorate under President-elect Donald Trump's return to office, despite both sides acknowledging that conflict would be detrimental and divert attention from domestic issues. In his second term, Trump plans to impose new tariffs on Chinese goods in an attempt to pressure China into a revised economic agreement. This move could lead to a managed decoupling of the US-China relationship, increasing the risk of global economic disruption and crisis.
https://www.scmp.com/opinion/china-opinion/article/3293836/trump-will-put-us-and-china-back-collision-course?module=top_story&pgtype=sectionThe US has been grappling with the negative impacts of tariffs imposed by President Donald Trump during his first term, which have led to increased costs for consumers and a decline in international trade. This protectionist approach is not unique to Trump, as previous presidents such as George W. Bush, Barack Obama, and Joe Biden have also implemented protectionist policies. Despite the overall benefits of free trade, it has been under attack due to concerns about job losses and unfair competition from countries like China. The US steel industry has been particularly affected by tariffs, with some companies benefiting while others struggle to compete. The use of automation in industries such as agriculture has also raised concerns about job displacement. China's protectionist policies have contributed to the decline of free trade, and its impact on global markets is a topic of ongoing debate. Populist arguments against free trade often focus on the perceived negative effects on domestic jobs, but experts argue that these claims are often exaggerated or based on flawed assumptions.
https://reason.com/podcast/2025/01/08/douglas-irwin-why-trumps-tariff-plans-are-dangerous/The global economy is facing concerns that US President-elect Donald Trump's tariff plan will lead to inflation, particularly if interest rates are forced to stay elevated due to higher consumer prices. This has led to a sell-off in bond markets worldwide and caused the yield on 30-year UK Treasury Gilts to reach its highest level since 1998. The eurozone inflation rate accelerated to 2.4% in December, making it difficult for the European Central Bank to cut interest rates to boost sluggish growth. Meanwhile, US services data showed a mixed picture, with the dollar rising against major rivals after initially falling back from earlier gains. Asian stocks closed higher due to speculation that Trump's tariff plans may be scaled back, following reports that his aides are considering applying tariffs only in certain critical sectors.
https://www.khaleejtimes.com/business/markets/inflation-concerns-pull-rug-out-from-wall-street-rallyThe US-led task force is targeting Russian officials and oligarchs with sanctions to isolate Russia internationally and pressure President Vladimir Putin to end his invasion. The effort focuses on those who have violated economic countermeasures imposed by the US and its allies, including export restrictions.
https://www.upi.com/Top_News/US/2025/01/08/DOJ-seize-sanctioned-oligarch-condos/6841736320053/Brazil, under President Luiz Inacio Lula da Silva, aims to strengthen cooperation between countries of the "Global South" during its presidency of BRICS. The group has expanded to include Iran, Egypt, Ethiopia and the UAE as full members. One objective is to develop alternative payment systems for trade among member nations, a move that drew criticism from US President-elect Donald Trump who threatened tariffs if they undermined the US dollar.
https://www.ndtv.com/world-news/brazil-announces-indonesia-entry-into-brics-7415947Malaysia and Singapore are strengthening their economic ties with the signing of several agreements, including the Johor-Singapore Special Economic Zone (JS-SEZ), which aims to enhance trade and talent development between the two nations. The JS-SEZ is one of six memoranda of understanding and a letter of intent signed by Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lee Hsien Loong, who are also celebrating 60 years of diplomatic relations this year. Bilateral trade between the two countries reached US$78.59 billion from January to November 2024, a 6.7% increase over the same period in 2023, making them each other's second-largest trading partners.