EU leaders will loan 90 billion euros to Ukraine, but fail to agree to use frozen Russian assets
BRUSSELS, Dec 18 - European Union leaders decided on Friday to borrow cash to loan 90 billion euros ($105 billion) to Ukraine to fund its defence against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an unprecedented plan to finance Kyiv with Russian sovereign cash. The leaders also gave the European Commission a mandate to keep working on a so-called reparations loan based on Russian immobilised assets but that option proved unworkable for now, above all due to resistance from Belgium, where the bulk of the assets is held. Today we approved a decision to provide 90 billion euros to Ukraine," EU summit chairman Antonio Costa told a press conference early on Friday morning after hours of talks among the leaders in Brussels. "As a matter of urgency, we will provide a loan backed by the European Union budget The idea of EU borrowing initially seemed unworkable as it requires unanimity and Hungary's Russia-friendly Prime Minister Viktor Orban had opposed it. But Hungary, Slovakia and the Czech Republic agreed to let the scheme go ahead as long as it did not impact them financially. The EU leaders said Russian assets, totalling 210 billion euros in the EU, will remain frozen until Moscow pays war reparations to Ukraine. If Moscow ever takes such a step, Ukraine could then use the money to pay back the loan. "This is good news for Ukraine and bad news for Russia and this was our intention," German Chancellor Friedrich Merz said. The stakes for finding money for Kyiv were high because without the EU's financial help, Ukraine would run out of money in the second quarter of next year and most likely lose the war to Russia, which the EU fears would bring closer the threat of Russian aggression against the bloc. The decision follows hours of discussions among leaders on the technical details of an unprecedented loan based on the frozen Russian assets, which turned out to be too complex or politically demanding to resolve at this stage. The main difficulty was providing Belgium, where 185 billion euros of the total Russian assets in Europe are held, with sufficient guarantees against financial and legal risks from potential Russian retaliation for the release of the money to Ukraine.#BinanceAlphaAlert #TrumpTariffs #BTCVSGOLD #USJobsData #BinanceAlphaAlert
Wall Street opens higher on tech rebound, Nike slumps
Dec 19 - Wall Street's main indexes opened higher on Friday, as technology stocks extended their rebound from an early-week selloff, while Nike tumbled after weak China sales weighed on its quarterly results. The Dow Jones Industrial Average (.DJI), opens new tab rose 87.38 points, or 0.21%, to 48,051.77. The S&P 500 (.SPX), opens new tab rose 20.66 points, or 0.33%, to 6,795.42, and the Nasdaq Composite (.IXIC), opens new tab rose 105.27 points, or 0.51%, to 23,111.63.
LONDON, Dec 19 - Central banks in big economies are signalling a change of stance as the Bank of Japan raised interest rates to a 30-year high on Friday. A day earlier the European Central Bank all but confirmed it was done with monetary easing and the Bank of England cut rates in a narrow vote as dissenters cautioned about price pressures Now all eyes are on how dovish the incoming next Federal Reserve will manage to be after some of the U.S. central bank's policymakers warned the world's biggest economy might already be running too hot. The Swiss National Bank left its policy interest rate unchanged at 0% on December 11, the lowest among developed-market central banks, and said the recent agreement to reduce U.S. tariffs on Swiss goods had improved the economic outlook. Even though Swiss inflation is at zero as the strong safe-haven franc lowers import costs, the bar for bringing rates into negative territory is high, and economists expect price growth to recover mildly next year and the SNB to stay on hold throughout 2026. The Bank of Canada held its key rate at 2.25% last week, after 225 basis points of easing this cycle. Governor Tiff Macklem said the economy was proving resilient to U.S. trade measures. The BOC is expected to keep rates on hold until 2027, after government spending and robust oil exports lifted third-quarter growth to 2.6% and the labour market Sweden's Riksbank also expects previous monetary easing to begin lifting growth and with year-on-year inflation running just above its 2% target, it held rates at 1.75% on December 18 and analysts anticipate it will hike again in late 2026. With unemployment stuck at a nine-year high, turning hawkish will be a tough choice for new Reserve Bank of New Zealand boss Anna Breman. With a string of punchy rate cuts having helped propel inflation to the top end of the central bank's target range, however, money markets see New Zealand's cash rate nearing 3% by December 2026 from 2.25% currently The European Central Bank has been firmly on hold at 2% since June and its latest pause on Thursday also came with upgrades to growth and inflation forecasts#USNonFarmPayrollReport #BTCVSGOLD #USJobsData #WriteToEarnUpgrade #CPIWatch