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Airlines Still Avoid Iran, Iraq Airspace Despite Reopening - Trump Assures Tehran No Strikes Imminent

Zero Hedge -

Airlines Still Avoid Iran, Iraq Airspace Despite Reopening - Trump Assures Tehran No Strikes Imminent

Overnight, the world was on edge watching for potential signs of a new US military strike on Iran. This sense of anticipation was only heightened when Iran issued a nationwide "NOTAM" - or "notice to all airmen" - for its airspace which lasted nearly five hours.

All flights were banned except ones to and from Tehran which had been issued special permission. This was coupled with online rumors of fighter jets being heard over neighboring Iraqi airspace, but no new attack materialized. Late in the evening, President Trump also made known his reasons for holding off on any new strikes. Iranian officials say Trump informed Iran he does not intend to attack.

As we reported, Trump told his national security team that "he would want any U.S. military action in Iran to deliver a swift and decisive blow to the regime and not spark a sustained war that dragged on for weeks or months."

"If he does something, he wants it to be definitive," one of the people familiar with the discussions said.

He had also earlier cited that he's been told that Iran is not killing anymore people in the streets - which Tehran leaders said were rioting and killing police in some cases. Further Trump said there are no further plans to execute protesters:

US President Donald Trump has welcomed “good news” in Iran after posting a message on social media suggesting an Iranian protester would no longer face the death penalty as earlier reported by various human rights organizations.

Trump wrote that an “Iranian protester will no longer be sentenced to death after President Trump’s warnings”. In response to the report, he added: “This is good news. Hopefully, it will continue.”

Whether the protester in question was really set to be executed is unclear, given the Western MSM sourcing for this and other claims:

Despite Trump indicating there will be no imminent strike on Iran, and with Iranian authorities now saying the streets are calm and police and security services are in complete control again, there's still concern that this is a ploy by the administration. 

Security has been heavy on Iran's streets in the last 48 hours:

“There is big military presence on the streets of the capital and elsewhere,” the resident said, describing widespread checkpoints, police stops and the presence of the Islamic Revolutionary Guard Corps (IRGC).

After all, just prior to the start of the June war, the Iranians were lulled into thinking that they were entering new good-faith negotiations with Washington, and then suddenly a surprise Israeli-US attack ensued and their nuclear facilities were taken out.

As for regional airspace, commercial aviation (out of Europe) is still not taking any chances, even though airspace over the Islamic Republic has reopened

European airlines are continuing to avoid flying over Iran, despite Tehran having reopened its airspace following an earlier closure of nearly five hours, according to reports.

Airlines were also avoiding flying over neighboring Iraq, Reuters news agency reported, citing information on flight tracking ⁠websites.

British Airways, Wizz Air, Lufthansa and TUI were among the airlines flying alternative routes in a bid to mitigate risks in the region, amid fears of potential US military action against Iran.

"We avoid Iraqi and Iranian airspaces, therefore some westbound flights from Dubai and Abu Dhabi airports will have to make [refuelling and crew change] stops in Larnaca, Cyprus or Thessaloniki, ‌Greece," a Wizz Air spokesperson was quoted as saying.

Trump has long proven his ability to catch the world, and Washington's rivals and enemies, by shock and surprise - so it's still anyone's guess what might happen in the coming days and weeks.

Tyler Durden Thu, 01/15/2026 - 10:20

Trump Invokes Section 232 To Seek Foreign Supplies Of Processed Critical Minerals, Avoids Tariffs For Now

Zero Hedge -

Trump Invokes Section 232 To Seek Foreign Supplies Of Processed Critical Minerals, Avoids Tariffs For Now

President Trump said on Wednesday he had opted against imposing tariffs on rare earths, lithium and other critical minerals - for now - and instead ordered his administration to seek supplies from international trading partners. 

By invoking Section 232 not to slap immediate tariffs, but to renegotiate how the US imports processed critical minerals, the White House defers a decision on duties that could further roil the US economy, especially while the Supreme Court is still deliberating the legality of Trump's tariffs (and just punted on the ruling for a second time).

Trump ordered US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to "enter into negotiations with trading partners to adjust the imports of (critical minerals) so that such imports will not threaten to impair the national security of the United States."

In acknowledging the country is far from being self-reliant for its critical minerals needs, though, it may rankle the domestic mining sector according to Reuters.

As DA Sails noted on X, the decision "matters because the real bottleneck isn’t mining…it’s refining and downstream processing. That’s where the U.S. is most exposed." As such, the goal of the decision is to "work with allies to set more stable trade terms (including price floors), reduce reliance on non-market suppliers, and rebuild domestic capacity."

The negotiations, Trump said, should promote the use of price floors for critical minerals, a step long sought by Western miners and policymakers. G7 finance ministers and those from other major economies like Australia met in Washington earlier this week to discuss such a step, for example.

And if Greer and Lutnick's negotiations are not successful, Trump said he would consider setting minimum import prices for critical minerals or "may take other measures," without elaborating.

As Reuters notes, Trump is essentially agreeing to a recommendation by Lutnick, who last April launched a national security review under Section 232 of the Trade Expansion Act of 1962 and in October submitted his findings to the president.

Lutnick's report found that the U.S. is "too reliant on foreign sources" of critical minerals, lacks access to a secure supply chain, and is experiencing "unsustainable price volatility" for the materials, with all those factors fueling a "significant national security vulnerability that could be exploited by foreign actors."

It was not immediately clear why Trump waited until this month to act on Lutnick's report.

It is well known that China is a top global producer of more than half of the 54 minerals considered critical by the U.S. Geological Survey, for example, and has been curtailing exports in the past year amid its trade dispute with Washington. The country is also a major refiner of critical minerals.

"Mining a mineral domestically does not safeguard the national security of the United States if the United States remains dependent on a foreign country for the processing of that mineral," Trump said in the order.

Following news that US held off from imposing import tariffs on critical minerals, silver and other metals retreated from record highs as investors took profits following a blistering rally in the space.

 

Tyler Durden Thu, 01/15/2026 - 09:40

Trump To Meet With Venezuelan Opposition Leader Machado

Zero Hedge -

Trump To Meet With Venezuelan Opposition Leader Machado

Authored by Joseph Lord via The Epoch Times,

U.S. President Donald Trump will meet with Venezuelan opposition leader María Corina Machado at the White House today (Jan. 15).

“She’s a very nice woman,” Trump told Reuters in a Jan. 14 interview. “I think we’re just going to talk basics.”

The United States said in 2024 that then-Venezuelan leader Nicolás Maduro lost the presidential election to Machado’s party. Machado was going to run against Maduro in the 2024 election, but the regime disqualified her. She went into hiding and was succeeded by Edmundo González.

Machado said in July 2024 that González won the disputed election with 70 percent of the vote and declared him president-elect. Her party said the results showing Maduro won were fraudulent. Then-U.S. Secretary of State Antony Blinken agreed.

“Given the overwhelming evidence, it is clear to the United States and, most importantly, to the Venezuelan people that Edmundo González Urrutia won the most votes in Venezuela’s July 28 [2024] presidential election,” Blinken said in a statement at the time.

Trump’s meeting with Machado comes in the wake of an unprecedented raid in which U.S. forces captured Maduro from the capital city of Caracas.

The nation’s presidential website still identifies Maduro as “Venezuelan president”—referring to Delcy Rodriguez as “acting president”—and calls for Maduro’s release. Rodriguez has made similar calls for her predecessor’s release.

Rodriguez, alongside many members of Maduro’s inner circle, remains in charge of day-to-day government operations.

Maduro is currently facing narcoterrorism charges and a litany of other charges in U.S. federal court and could face life imprisonment if convicted. He denies the charges.

In this courtroom sketch, ousted Venezuelan leader Nicolás Maduro attends his arraignment to face U.S. federal charges, including narcoterrorism, conspiracy, drug trafficking, money laundering, and others, at the Daniel Patrick Moynihan U.S. Courthouse in Manhattan on Jan. 5, 2026. Jane Rosenberg/Reuters

Trump said on Jan. 14 that he had a “great conversation” with Rodríguez, the first direct communication between the two since Maduro was ousted.

“We had a call, a long call. We discussed a lot of things,” Trump told reporters. “And I think we’re getting along very well with Venezuela.”

Venezuela's deputy leader and oil minister, Delcy Rodriguez, addresses the media in Caracas, Venezuela, on March 10, 2025. Leonardo Fernandez Viloria/Reuters

Rodriguez has begun releasing political prisoners jailed under the previous regime, and says that these mass releases will continue.

Trump has previously questioned Machado’s credibility or authority to lead the nation.

Just hours after Maduro’s capture, Trump said “it would be very tough” for Machado to be the leader.

“She doesn’t have the support within or the respect within the country,” Trump said at the time.

“She’s a very nice woman, but she doesn’t have the respect.”

Machado’s whereabouts had largely been unknown since early 2025, when she went into hiding after being briefly detained in Caracas.

Machado won last year’s Nobel Peace Prize and has offered to share the prize with Trump, a move that has been rejected by the Nobel Institute.

Tyler Durden Thu, 01/15/2026 - 09:20

What Is "America First"?

Zero Hedge -

What Is "America First"?

LIVE NOW:

************************

What does “America First” actually mean in 2026?

Once a unifying MAGA slogan, the phrase has increasingly become a fault line, splitting conservatives largely along foreign policy lines. The divide is particularly stark on the question of American support for Israel and was widened by the recent ousting of Venezuelan president Nicholas Maduro.

The Right is torn over whether “America First” means restraint abroad with a hyper focus on domestic policy or moral assertiveness on the world stage coupled with strong-arming weaker countries in the name of our “national interests”.

At 2pm ET today, ZeroHedge partnering with the legendary Judge Napolitano to host a debate on this very question.

The debate will feature libertarian commentator Dave Smith and conservative filmmaker Dinesh D'Souza, moderated by former judge and constitutional analyst Andrew Napolitano. Topics will include Venezuela, Israel, isolationism vs interventionism, and notable intra-conservative feuds like Carlson-Levin.

Smith and D'Souza's respective reactions to the Absolute Resolve action by the U.S. military in Venezuela exemplifies the schism. While D'Souza celebrated the operation in its immediate aftermath...

...Smith was cautious to hoist the Mission Accomplished banner.

Be sure to tune in on the ZeroHedge homepage and X account or on Judge Napolitano’s Judging Freedom YouTube channel.

See you at 2pm ET.

Tyler Durden Thu, 01/15/2026 - 09:05

Watch: This Is Just Absolutely Insane

Zero Hedge -

Watch: This Is Just Absolutely Insane

Authored by Steve Watson via Modernity.news,

In an incredible Senate hearing meant to address the dangers of abortion pills sold online without proper oversight, a Democratic witness turned the spotlight on herself by refusing to acknowledge that only women can get pregnant.

Dr. Nisha Verma, an OB-GYN tapped by Democrats, evaded direct questions from Republicans, prioritizing “identities” over scientific fact. This exchange highlights how insane woke ideology has infiltrated even medical testimony, undermining protections for women and enabling potential abuse through lax regulations on chemical abortions.

The hearing exposed real risks, like men coercing women into abortions by easily obtaining pills online—no in-person checks required. Yet Verma couldn’t—or wouldn’t—affirm basic truths, leaving observers questioning how such “experts” hold medical licenses in the first place.

The Senate Health, Education, Labor and Pensions Committee convened on Wednesday to examine the safety of mifepristone, the abortion pill increasingly distributed via mail and telehealth.

Republicans highlighted cases of coercion, including one where a male physician forced pills on his girlfriend after she refused a spiked drink. Senators also shared stories of abusive partners exploiting online access to these drugs, with one staffer nearly ordering pills under a male name like “Michael” to prove the point.

But it was an unbelievable exchange between Senator Josh Hawley and Dr. Nisha Verma that garnered all the attention. Verma serves as a senior advisor to Physicians for Reproductive Health, an organization advocating for abortion access. She’s a board-certified OB-GYN and abortion provider who has testified before Congress previously.

According to her profile, Verma is also a medical school professor, but her reluctance to address straightforward biology raises serious doubts about her adherence to evidence-based medicine. It’s a stark example of ideology trumping science.

The fireworks started when Sen. Ashley Moody (R-FL) pressed Verma on the risks of men obtaining abortion pills to harm women. “Can men get pregnant?” Moody asked.

Verma responded, “I treat people with many identities.”

Unsatisfied, Hawley (R-MO) took over, repeatedly seeking clarity. “Can men get pregnant?” Hawley demanded.

“I’m not sure what the goal of the question is,” Verma replied.

Hawley clarified: “The goal is to establish a biological reality. Can men get pregnant?”

Verma doubled down: “I take care of people with many identities.”

Hawley persisted: “Can men get pregnant?”

“Again, as I’m saying-” Verma began, before Hawley interjected: “You said science and evidence should control. Can men get pregnant? You’re a doctor, I think.”

“Science and evidence should guide medicine,” Verma said.

Hawley pushed: “Do science and evidence tell us that men can get pregnant?”

“I think yes-no questions like this are a political tool,” Verma answered, calling Hawley’s line of questioning “polarizing.”

Hawley fired back: “It is not polarizing to say that women are a biological reality and should be treated and protected as such; that is truth.”

He later added that it “is deeply corrosive to science, to public trust and yes, to constitutional protections for women as women” not to acknowledge that only biological females can get pregnant.

This isn’t the first time leftist witnesses have twisted biology in abortion hearings.

But Verma’s evasions stand out as particularly egregious.

Episodes like this underscore the left’s detachment from reality, where protecting women from exploitation takes a backseat to appeasing radical activists. Biological facts aren’t negotiable—they’re essential to safeguarding freedom and common sense. If we let ideology override science, we risk more than just hearings; we risk the very foundations of truth in our society.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Thu, 01/15/2026 - 08:50

Initial Jobless Claims Plunge Back Near Record (56 Year) Lows

Zero Hedge -

Initial Jobless Claims Plunge Back Near Record (56 Year) Lows

Once again, weekly jobless claims data shows no signs of pain the labor market with the number of Americans filing for jobless benefits for the first time dropping back below the Maginot Line of 200k (198k - below all estimates)...

Source: Bloomberg

Interestingly, the unadjusted data surged higher (330k) as its seasonal pattern continues.

New York saw the largest drop in initial claims last week (and Texas the biggest increase)...

Source: Bloomberg

The 'adjusted' claims data is back near its lowest levels since 1969...

Source: Bloomberg

Continuing jobless claims remains below its crucial 1.9 million Americans level...

Source: Bloomberg

Interestingly, despite the overall decline, we are seeing a resurgence on continuing claims in the 'Deep Tristate' region...

Source: Bloomberg

So, all in all, the 'no hire, no fire' economy continues with GDP growth forecasts holding exceptionally strong.

Tyler Durden Thu, 01/15/2026 - 08:40

Futures Jump As Blowout TSMC Earnings Reboot Tech Trade

Zero Hedge -

Futures Jump As Blowout TSMC Earnings Reboot Tech Trade

US equity futures are higher led by Tech stocks which bounced back on Thursday after chipmaker TSMC revived confidence in the durability of artificial-intelligence demand, as signalling a strong outlook with $56BN in CapEx spending in 2026 (a 25% increase), restoring confidence in global AI growth and sending Europe's ASML to a record high. Silver dropped for the first time in 5 days from a record high as the US held off from attacking Iran and refrained from imposing import tariffs on critical minerals. As os 8:00am ET, S&P 500 futures were 0.4% higher with Nasdaq 100 contracts +0.7%. Pre-market, Mag 7 are all higher led by NVDA (+1.4%), AMZN (+0.7%), TSLA (+0.5%) and MSFT (+0.5%).Goldman Sachs and Morgan Stanley are also higher after reporting solid Q4 earnings. Bond yields are unchanged; The US dollar is 7bps higher. Commodities are mostly lower: oil fell 4.4%; silver is down 2.0%; metals are mostly lower today. Situation in Iran is closely watched, as an Iran official pledged not to execute protesters. Trump said he has no plan to fire Powell in a RTRS article. Today's US economic calendar includes January Empire manufacturing and Philadelphia Fed business outlook, November import/export prices, and weekly jobless claims (8:30am) and November TIC flows (4pm).

In premarket trading, Nvidia leads Mag 7 stocks after TSMC’s stellar outlook. All Mag 7 stocks are higher (Nvidia +1%, Amazon +0.7%, Tesla +0.4%, Alphabet +0.5%, Microsoft +0.4%, Meta Platforms +0.3%, Apple is little changed)

  • Applied Materials (AMAT) rises 7% as Barclays upgrades to overweight. The chip-tool maker is also getting a boost after TSMC set a bullish capital spending target, signaling strong demand for AI chips.
  • Chip equipment stocks lead gains in the semiconductor sector after TSMC set its 2026 capital spending target above investor expectations, signaling confidence in the AI boom.
  • Bitmine Immersion Technologies (BMNR) rises 1.1% after investing $200 million in Beast Industries, a content creation company founded by YouTube creator MrBeast.
  • BlackRock (BLK) gains 1.9% after the asset manager reported adjusted EPS and net inflows that came in above the average analyst estimates.
  • Calavo Growers (CVGW) rises 14% after Mission Produce agreed to buy the avocado producer for $27 per share in cash and stock, at enterprise value of about $430 million. Mission Produce (AVO) -6%.
  • Morgan Stanley (MS) rises 1.3% after posting quarterly results.
  • Penumbra (PEN) rises 11% as Boston Scientific agreed to buy the company in a cash and stock deal that values Penumbra at $374/share.
  • Talen Energy Corp. (TLN) gains 10% after signed agreements to acquire three natural gas power plants from Energy Capital Partners for $3.45 billion.

In corporate news, Amazon is challenging Saks’ bid to fund its bankruptcy with financing that would provide the retailer with fresh cash, saying it would harm Amazon and other unsecured creditors. Paramount Skydance named a new CFO as it continues to fight for control of Warner Bros. Elon Musk’s xAI is disabling the ability for people to use Grok to create sexualized images of real people, following widespread criticism.

After a week filled with geopolitical tensions and Trump wild cards, the AI story is back and boosting stocks. TSMC’s big beat and huge capex forecast, is fueling optimism that the AI boom has plenty of room to run.  The AI-bellwether said it would lift capital spending by at least a quarter to as much as $56 billion in 2026 and forecast faster-than-expected revenue growth. Here is a summary of the blowout results and guidance that TSMC just reported:

  • Net Profit 505.7bln (exp. 467bln),
  • Revenue 1.046tln (exp. 868.46bln),
  • CapEx USD 40.9bln (exp. USD 40-42bln).
  • Q4 gross margin 62.3% (exp. 60.6%), +3.3ppts Y/Y.
  • Q4 revenue from high performance computing +4% Q/Q.
  • Q4 revenue from smartphones +11% Q/Q.
  • Q4 revenue from IoT +14% Q/Q.
  • Guides Q1 Revenue between USD 34.6-35.8bln (exp. 33.2bln),
  • Guides Gross Margin between 63-65% (exp. 59.6%),
  • Sees Operating Margin between 54-56% (exp. 50%),
  • 2026 CapEx to come in between 52-56bln (prev. 40.9bln in 2025)
  • Capex is to be higher in the next three years. Cost of tools are becoming more expensive. Long term gross margins of 56% and higher is achievable. In 2026 there are uncertainties from tariffs.
  • Will be prudent in business planning. Robust AI-related demand. Increasing AI model adoption. 2026 sales to grow by close to 30% in USD terms. Preparing to increase capacity to support customers.
  • Customers are providing strong signals and reaching out directly to request capacity. Firms have been showing TSMC that AI is a significant help to their businesses. Announces plans to expand its fabrication facilities in Arizona. Co. is worried about electricity in Taiwan. Co. informed that Silicon from TSMC is a bottleneck with the Co. aiming to deal with the bottle neck first and foremost. Reduced their 6 and 8 inch wafer capacity to optimise resources.

Chip-equipment makers led gains within the sector. ASML Holding NV, which counts TSMC as its biggest customer, jumped more than 5% in Amsterdam. TSMC suppliers Applied Materials Inc. and Lam Research Corp. rose more than 7% in premarket trading. AI heavyweights such as Nvidia Corp. and Alphabet Inc. also advanced, though the gains were more muted.

TSMC’s “approach to guidance suggests further upside to consensus estimates and supports a constructive outlook,” said Gary Tan, a portfolio manager at Allspring Global Investments.

The renewed optimism around AI follows weeks of steady rotation away from mega-cap technology stocks and toward a broader set of companies leveraged to improving growth prospects. The trend saw the S&P 500 post its first back-to-back losses on Wednesday even though a majority of its members advanced.  The rotation trade sweeping through equities is highlighted in a Goldman Sachs survey. “Technology remains the top pick, though its lead has narrowed compared to last year — mirroring the decline in enthusiasm for the US market,” strategist Guillaume Jaisson wrote.

Elsewhere, in tech news, OpenAI signed a $10 billion deal with Cerebras for computing power, with ambitions to make ChatGPT the fastest platform in the world. Alibaba showcased plans to link flagship services and build Qwen into a one-stop AI platform. Today’s Tech Watch looks at how soaring prices for memory and storage are causing headaches for customers.

In other assets, oil was down for the first time in six days as Trump indicated he’s holding off on any attack on Iran for now, a statement that also put the rally in gold on pause. Silver dropped after the US refrained from imposing tariffs on critical minerals. But it did levy a 25% tariff on imports of certain advanced semiconductors, a key step in allowing Nvidia to ship Taiwan-made H200 AI processors to China.

In geopolitics, China banned cybersecurity products from American and Israeli firms, including Palo Alto Networks and Fortinet. Trump told Reuters he sees Ukraine’s leader Volodymyr Zelenskiy as the main obstacle to an agreement to end the war Russia launched four years ago. And Germany will take the lead of European nations sending military personnel to Greenland. Trump also told Reuters that he doesn’t plan to fire Powell despite the DoJ probe. 

European stocks are mostly positive with a TSMC-led surge in ASML shares lifting the Euro Sstoxx 50 higher by 0.5%. CAC 40 lags with the luxury sector weighed down by Richemont’s margin concerns. Here are some of the biggest movers on Thursday:

  • VAT Group hares gain as much as 18%, the most since April, as preliminary net sales for the full year show an earlier upswing than analysts had previously expected.
  • ASML shares soar as much as 7.7% to a record high, after its key customer Taiwan Semiconductor Manufacturing Co. gave a stronger-than-anticipated outlook for 2026.
  • Schroders shares gain as much as 8.9%, hitting their highest level since August 2023, after the asset management group said annual adjusted operating profit will come in ahead of expectations.
  • Swedbank shares jump as much as 6.7% to a record high after the US Department of Justice closed a yearslong investigation without imposing penalties.
  • Ashmore Group shares rally as much as 17% after the emerging markets-focused asset manager reported the first monthly net inflows since 2021.
  • Richemont shares reverse earlier gains to slide as much as 3.4%, as worries over margins at the Swiss owner of Cartier and Van Cleef overshadow a robust sales report.
  • Repsol shares drop as much as 7%, the most since April, after the Spanish oil company released a trading statement that analysts view as mixed, with a miss on upstream production.
  • OMV shares drop as much as 2.9% after the Austrian oil and gas company reported fourth-quarter production that missed estimates.
  • Dunelm shares slide as much as 18%, the most since March 2020, after the homeware retailer reported softer-than-expected results and downgraded first-half pretax profit guidance.
  • Taylor Wimpey shares fall as much as 5.2%, the most in three months, as the UK homebuilder guides that margins will be lower in 2026 than in 2025.

Asian stocks were slightly lower, with declines in some of last year’s big AI winners pulling down the regional benchmark. The MSCI Asia Pacific Index fell 0.2% as markets consolidated after three straight sessions of gains. Japan’s Advantest and Tokyo Electron lost more than 3% each. Trip.com’s shares were another big drag, plunging more than 20% in Hong Kong after Chinese regulators said the online travel agency was being investigated over alleged antitrust conduct. Despite Thursday’s weakness, the MSCI Asia gauge is firmly on course for a fourth striaght week of gains, which would mark the longest streak since May 2025. Meanwhile, Chinese stocks on the mainland fell for a third straight day amid efforts by regulators to rein in potential froth in the market. Beijing on Wednesday tightened rules on margin financing, signaling unease over the pace of a rally that has added $1.2 trillion in value over the past month alone. Here Are the Most Notable Asian Movers

  • Alibaba’s shares drop as much as 3.5% in Hong Kong, as investors book gains following a much-anticipated product event Thursday on its AI offerings.
  • Treasury Wine Estates Ltd. shares fell the most in a month after reports that an American distributor may sell its operations raised the prospect of further disruption to the company’s already struggling US business.
  • Merdeka Battery Materials and Trimegah Bangun Persada lead a rise in Indonesian nickel miner stocks as the governnment is likely to issue quotas for between 250 million and 260 million tons of nickel ore this year, implying lower production for the year.
  • Shift Inc. shares plunge as much as 10% to the lowest since Sept. 2024 after the Japanese IT services company announced its first quarter earnings with possible profit declines ahead.
  • Toho shares climb as much as 7.3%, the most since July 16, after the Japanese film and TV company announced its third quarter earnings and appeared bullish about its upcoming movie releases.
  • Toyota Industries Corp. shares rise as much as 6.8% to ¥19,255, higher than the revised tender offer price of ¥18,800 from the Toyota group

In FX, the yen was able to claw back losses versus the dollar after a report that the BOJ is increasingly focused on the weak currency. Bloomberg Dollar Index is flat. The pound is down despite a beat for monthly UK GDP.

In rates, treasuries hold small losses amid similar price action in European government bonds as US stock futures climb. Front-end tenors lead gilts selloff after UK GDP beat estimates, curbing wagers on BOE rate cuts. US session includes weekly jobless claims data and five scheduled Fed speakers. US yields are 2bp-3bp cheaper with belly leading losses, flattening 5s30s spread by 1.2bp; 10-year at 4.15% is near session high, 2bp cheaper on the day, with UK front-end yields higher by 4bps. IG dollar new-issue slate includes five names so far; seven borrowers priced a combined $12.65 billion Wednesday, led by JPMorgan with a three-part, $6 billion offering. Issuers paid negative concessions on deals that were 5.6 times oversubscribed. US, German and UK 10-year yields are higher by 1-2 basis points. UK curve has bear-flattened post-GDP.

In commodities, spot gold and silver are lower but off worst levels following a slide during APAC hours. Crude futures fall after US President Donald Trump signaled he may refrain from attacking Iran for now. Bitcoin is down 0.8%. 

Today's US economic calendar includes January Empire manufacturing and Philadelphia Fed business outlook, November import/export prices, and weekly jobless claims (8:30am) and November TIC flows (4pm). Scheduled Fed speakers include Goolsbee (8:30am), Bostic (8:35am), Barr (9:15am), Barkin (12:40pm) and Schmid (1:30pm).

Market Snapshot

  • S&P 500 mini +0.4%,
  • Nasdaq 100 mini +0.7%
  • Russell 2000 mini +0.2%
  • Stoxx Europe 600 +0.3%
  • DAX little changed, CAC 40 -0.3%
  • 10-year Treasury yield +1 basis point at 4.14%
  • VIX -0.5 points at 16.22
  • Bloomberg Dollar Index little changed at 1210.7
  • euro little changed at $1.1638
  • WTI crude -4.5% at $59.24/barrel

Top Overnight News

  • Oil fell for the first time in six days after Donald Trump signaled he may hold off on attacking Iran for now after being reassured that Tehran would stop killing people involved in protests. BBG
  • U.S. President Donald Trump said on Wednesday he has no plans to fire Jerome Powell despite a Justice Department criminal investigation into the Federal Reserve chair, but it was "too early" to say what he would ultimately do. RTRS
  • Volodymyr Zelenskiy is the main obstacle to an agreement to end Ukraine’s war with Russia, Trump claimed, telling Reuters that Vladimir Putin is “ready to make a deal.” BBG
  • Nasdaq futures swung to a gain (NDX futs +85 bps pre mkt) after TSMC renewed confidence in AI demand, earmarking as much as $56 billion in capital spending for 2026. ASML’s shares rallied to a record on its client’s upbeat outlook. BBG
  • The US is intensifying pressure on Mexico to allow US military forces to conduct joint operations to dismantle fentanyl labs inside the country. NYT
  • Coinbase Global Inc. has pulled its support for the current version of the market-structure bill due for markup in the Senate Banking Committee on Thursday. Coinbase's CEO Brian Armstrong cited "too many issues" with the bill, including a defacto ban on tokenized equities and DeFi prohibitions. BBG
  • China’s central bank rolled out targeted easing measures to bolster support for sectors deemed strategic by Beijing, as policymakers seek to ensure a strong start to the year. The PBOC will cut rates on its structural policy tools by 0.25 percentage point, lowering the rate on one-year relending facilities to 1.25%. WSJ
  • Leaders of Japan's main opposition Constitutional Democratic Party of Japan and the lay Buddhist organization-backed Komeito agreed on Thursday to establish a new party bringing together "centrist forces" to fight a snap parliamentary election in February. Nikkei
  • Hedge funds are betting the yen may slide to 165 a dollar before authorities intervene, with traders using options to position for a weakening currency. BBG
  • BofA card spending, week to January 10th: +4.6% Y/Y (prev. 1.7%). Strong growth across most categories, partially due to favorable base effects.

Trade/Tariffs

  • Japanese Finance Minister aims to make progress in selecting projects as part of Japan and US bound investment package if PM Takaichi meets with US President Trump. Fiscal reform is impossible with economic growth. said next years financial budgets reliance on debt is at a sustainable pace.
  • Canada and China sign a trade cooperation MOU. Both sides committed to resolving outstanding agricultural trade issues by maintaining open channels of communication.
  • Indian Trade Secretary on the India-EU trade deal negotiation said some agricultural items remain off the table.
  • Indian Trade Secretary said a deal with the EU is very close but there's still room for further negotiations to solve various issues.
  • China's Foreign Minister said they are ready to strengthen cooperation and trust with Canada.
  • China is said to be drafting purchase rules for NVIDIA's (NVDA) H200 chips, Nikkei reported, as an attempt to balance its desire to foster domestic chip development with Chinese tech firms.
  • Taiwan’s government said Taiwan and the US have previously held multiple discussions and reached consensus on preferential tariff treatment for semiconductors and related products under Section 232. Taiwan’s government said Taiwan will subsequently schedule a separate meeting with the Office of the U.S. Trade Representative to sign the Taiwan–US trade agreement documents.
  • The White House said President Trump imposed a 25% tariff on certain advanced computing chips, such as NVIDIA (NVDA) H200 and AMD (AMD) MI325X chips. Depending on the outcome of negotiations, President Trump may consider alternative remedies in the future, including minimum import prices for specific types of critical minerals. The Secretary and the trade representative should consider price floors for trade in critical minerals and other trade-restricting measures. The US chip tariff will not apply to chips imported for US technology supply.
  • The White House said that in the near future, US President Trump may impose broader tariffs on semiconductor imports and their derivative products.
  • US President Trump ordered the Commerce Dept. and USTR to negotiate agreements with foreign suppliers to reduce US reliance on imported processed critical minerals, citing national security risks. Negotiators have 180 days to secure binding or enforceable agreements.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks traded mostly in the green, outperforming their US counterparts, though the Nikkei lagged the region. ASX 200 continued its trend higher as mining and materials names advanced, supported by fresh ATHs in metals and news that Rio Tinto and BHP are collaborating on iron ore extraction in the Pilbara. Nikkei 225 underperformed, slipping back below 54,000 as reports that opposition parties CDP and Komeito have begun talks to form a new party weighed on sentiment. KOSPI traded comfortably in the green, extending to new ATHs and nearing 4,750, whilst the BoK kept rates steady as expected in a unanimous decision. Hang Seng and Shanghai Comp saw mixed trade, with the Hang Seng hovering just below ATHs near 27,380 while the Shanghai Composite oscillated around the unchanged mark as Chinese markets struggled for traction.

Top Asian News

  • Earthquake of magnitude 5.5 in the Hokkaido region in Japan, EMSC reported.

European equities (STOXX 600 +0.4%) opened mixed to higher. AEX (+1%) outperforms, lifted by strong gains in ASML (+5.5%) following robust TSMC earnings & guidance, which showed a 35% jump in Q4 profit. European sectors are mixed. Tech (+1.7%) leads, driven by strength in ASML (+5.5%), while Financial Services (+1.2%) are boosted by post-earning strength in Partners (+6.2%). Consumer Products initially boosted by gains in Richemont (-2.2%), but the Co. has since slipped into negative territory. Q3 earnings were strong, but Richemont did highlight that rising material costs continuing to weigh on margins.

Top European News

  • BoE Credit Conditions Survey: Demand for secured lending for remortgaging was unchanged in Q4, and was expected to increase in Q1. Within the overall figure, demand for credit card lending increased in Q4, and was expected to be unchanged in Q1. Demand for corporate lending in Q1 was expected to be unchanged for small, medium-sized, and large businesses.
  • ECB's de Guindos said "it is very important for all of us that the principle of central bank independence is also applied to the Federal Reserve.".

Central Banks

  • US President Trump said no plans to remove Fed Chair Powell.
  • US President Trump rejects criticism from Senate Republicans of the Justice Department probe of Fed chair Jerome Powell and said “they should be loyal.”; speaks highly of Kevin Hassett and Kevin Warsh.
  • BoJ is reportedly likely to keep rates steady in January; some officials are said to be concerned over the economic impact of a weak JPY, Bloomberg reported. If the JPY continues to weaken, then the pace of future rate hikes could be accelerated. But, policy will remain on hold in January. Possible that the negative aspects such as a further JPY depreciation and the impact on personal consumption, will become a point of concern.
  • BoJ Governor Ueda said mechanism under which wages and prices rise moderately in tandem likely to be sustained. BoJ is expected to keep raising interest rates if targets are met.
  • ECB's Kazaks said policy rates are optimally positioned as inflation trends improve. Warns that inflation and growth risks are balanced and emphasises the need for vigilance.
  • PBoC cuts the one-year relending facility rate to 1.25% (prev. 1.50%), to increase tech innovation quotas by CNY 400bln to CNY 1.2tln. Central Bank to boost relending quotas to power tech innovation. Pledges continued liquidity support via open market tools. Overnight rates will be guided to hover near policy rates. Will maintain ample liquidity to support bond issuance. Will flexibly conduct government bond operation going forward. Lowers minimum down payment for commercial property loans to 30% to boost market inventory clearance. No intention to use currency depreciation for trade advantage. Will guide expectation and prevent overshooting in CNY risk.
  • China's PBoC Deputy Governor announces plans to release a series of monetary and financial measures.
  • Bank of Korea keeps Base Rate unchanged at 2.50%, as expected. Removes "potential rate cut" reference from the statement.
  • BoK Governor Rhee said the Government is to make an announcement on the US trade deal and the FX market later in the day.
  • BoK Governor Rhee said rate decision was unanimous, need to remain cautious on FX volatility. 5 members see a 'high chance' of a hold in the next 3 months, 1 sees a cut in the near-term. Addressing FX volatility requires immediate steps as well as structural reforms. A weak KRW is not likely to trigger any financial crisis and have ample amounts of USDs.

FX

  • DXY is flat and trades within a very thin 99.08-23 range; currently just above its 50 DMA at 99.02. Focus overnight has been on geopols, whereby President Trump said Iran has “no plan” to execute protestors. Back in the US, Trump said he has no plans to remove Fed Chair Powell, whilst also speaking highly of the prospective new Fed Chairs Hassett and Warsh.
  • GBP currently trades flat, within a 1.3423-1.3446 range; the peak for today is a handful of pips short of its 21 DMA at 1.3452. Some strength was seen in Cable following the region’s GDP series, which topped expectations and has Q4 GDP on track to surpass the BoE's forecast of no growth. Pantheon Macroeconomics said it expects UK growth to improve to 0.4% Q/Q in Q1 as Budget uncertainty fades, seasonality lifts the New Year, and September’s cyber-attack volatility limits spare capacity, keeping the MPC cautious.
  • JPY is flat this morning, but subject to volatility, after Bloomberg reported that the BoJ is likely to keep rates steady in January; some officials are said to be concerned over the economic impact of a weak JPY. The piece added that if the JPY continues to weaken, then the pace of future rate hikes could be accelerated. But, policy will remain on hold in January. This spurred immediate pressure in USD/JPY, falling from 158.68 to 158.33.
  • China's FX regulator will formulate a basket of policy measures to promote cross-border financing.

Fixed Income

  • A contained start for fixed benchmarks. Haven allure that was helping on Wednesday has been removed by the updates around Iran (see Commodities for details).
  • That aside, newsflow has been a little light and largely focused on nation-specifics rather than broader macro drivers; though, TSMC earnings are the exception, again, see the feed for details.
  • USTs have spent the morning in a narrow 112-11 to 112-17+ band, Bunds in equally slim 128.23 to 128.46 confines with both benchmarks flat overall. However, a modest bullish bias is beginning to emerge, more so for EGBs than USTs, potentially as the morning's supply from Spain has now passed and was well received, digestion of the Ukraine-Russia-US situation and/or the pulling back of crude benchmarks weighing on yields. Though, the latter narrative is clouded by the gains in European gas.
  • Gilts opened marginally softer and then slipped a few ticks further to a 92.67 base despite the firmer lead from EGBs. UK debt weighed on by strong GDP data for November, a series that has the Q4 trend tracking above the BoE's estimate of no growth for the period. However, this pressure proved shortlived with Gilts grinding higher and the marginal outperformer, posting upside of just over 10 ticks.
  • Spain sold EUR 5.86bln vs exp. EUR 5-6bln 2.35% 2029 Bono & 3.50% 2041, 1.45% 2071 Bonds.

Commodities

  • Crude benchmarks are on the back foot and remain near lows of USD 58.99/bbl and USD 63.46/bbl for WTI and Brent after some of the pressure was let out of the US-Iran situation. A move driven in late US hours by President Trump saying he had been told that the killing within Iran was stopping. However, we then saw some reports of explosions in Tehran, an update that sparked a short-lived spike of c. USD 0.50/bbl, before paring amid some uncertainty around the validity of that report.
  • As discussed earlier in the week, gas benchmarks remain bid with gains of nearly a EUR/Mwh at a EUR 33/MWh peak for Dutch TTF. Drivers for the space include any potential impact to Iranian flows to Turkey, the above Ukraine situation escalating and the continued cold spell in Europe.
  • Precious metals are broadly in the red this morning, following on from the subdued action seen overnight. Negative action this morning due to some unwinding of recent geopolitical risk premia after US President Trump said that he had been told the killing in Iran is stopping and that there is no plan for executions. As a reminder, the President had repeatedly threatened action against the Iranian regime, if they killed protestors. As it stands spot gold trades at the lower end of a USD 4,580.98-4,632.45/oz range.
  • Base metals are also following precious peers lower; 3M LME Copper trades just above the USD 13k/t mark, in a USD 12,914-13,216.35/t range – downside which also follows the negative sentiment seen across the Chinese equities space.
  • US Ambassador announces plan to work with Belgium on a USD 50bln LNG deal.
  • The US is said to be considering private contractors to safeguard oil in Venezuela, CNN reported citing sources.
  • US President Trump said it would be better for Venezuela to remain in OPEC but is unsure if this would be beneficial to the US.

Geopolitics: Ukraine 

  • US President Trump said Ukrainian President Zelensky is to blame for the current stalemate in Russia–Ukraine negotiations, adding that Russian President Putin is “ready to make a deal.”.

Geopolitics: Middle East

  • "Flight restrictions in Iran lift, without explanation," AP reported.
  • UN Security Council plans to meet with Iran at 15:00 EST / 20:00 GMT on Thursday, AFP reported.
  • Iran has extended its airspace closure NOTAM until 03:30 UTC (~2 hours from now).
  • US President Trump said Iran's government could fall due to unrest but "any regime can fail".
  • US President Trump has told his National Security team that any US military action in Iran to be swift and decisive, NBC News reported citing sources; adds that a sustained war is undesirable. Trump's advisors have so far not been able to guarantee a quick collapse of Iran's regime.
  • NOTAM over Iran has expired, according to reported.
  • Iran's Foreign Minister Araghchi said there have been many threats by US President Trump and others but we are in control, hopes tensions do not reach a high level; no plans to carry out executions against protestors. Not ready to give up our legitimate right to the peaceful use of nuclear technology.
  • Iran issues NOTAM to close all airspace, according to reported; "NOTAM is valid for a little more than 2 hours"; closes airspace to all flights except international flights to Iran with prior permission.
  • “All the signals are that a US attack [against Iran] is imminent, but that is also how this administration behaves to keep everyone on their toes. Unpredictability is part of the strategy,” Reuters reported, citing a Western military official.
  • The X account which flagged the initial explosions in Tehran said they have deleted the post "as the source appears to be a bit flimsy, though reporting on any potential action is going to be difficult due to the ongoing internet blackout across Iran".
  • US President Trump has made it clear to the National Security team his goals for any US military action in Iran, NBC news reported.
  • Maersk (MAERSKB DC) MECL service returns to trans-Suez route; following improved stability in the Red Sea, enabling more efficient transit times while maintaining safety as the top priority.

Geopolitics: Other

  • Colombia President Petro is to meet with US President Trump on February 3rd.
  • US President Trump posted "had a very good call with the Interim President of Venezuela, Delcy Rodríguez. We are making tremendous progress, as we help Venezuela stabilize and recover.". "Many topics were discussed, including Oil, Minerals, Trade and, of course, National Security.".
  • The US Senate votes 51-50 in favour to allow US President Trump to act on Venezuela military action without Congressional approval; VP Vance casting the deciding vote.
  • Chinese officials have reached out to counterparts in Venezuela and the US to seek assurances regarding their loans to Venezuela, Bloomberg reported citing people familiar with the matter.

US Event Calendar

  • 8:30 am: United States Jan Empire Manufacturing, est. 1, prior -3.9
  • 8:30 am: United States Jan Philadelphia Fed Business Outlook, est. -1.35, prior -10.2, revised -8.8
  • 8:30 am: United States Jan 10 Initial Jobless Claims, est. 215k, prior 208k
  • 8:30 am: United States Jan 3 Continuing Claims, est. 1897k, prior 1914k
  • 8:30 am: United States Fed’s Goolsbee Speaks on CNBC
  • 8:35 am: United States Fed’s Bostic Delivers Remarks at Metro Atlanta Chamber
  • 9:15 am: United States Fed’s Barr in Penal Discussion on Stablecoins
  • 12:40 pm: United States Fed’s Tom Barkin Speaks on Virginia Economic Outlook
  • 4:00 pm: United States Nov Total Net TIC Flows, prior -37.3b

DB's Jim Reid concludes the overnight wrap

Markets faced a growing array of geopolitical risks yesterday, with oil prices seeing large swings as investors focused on the latest developments in Iran. At one point, Brent crude even reached its highest intraday level since September as speculation about a US intervention gathered pace, at $66.82/bbl, but this morning it’s fallen back to $64.24/bbl after Trump suggested he’d hold off an attack for now. That also led to huge swings in precious metals, with yesterday seeing new records for gold (+0.87% to $4,627/oz) and silver (+7.14% to $93.16/oz), before they also came down this morning after Trump held off on imposing tariffs on critical minerals. Otherwise, the main equity story was a slide for tech stocks, with the Mag 7 (-1.56%) pushing down the S&P 500 (-0.53%). But despite all that, there was still a lot of resilience among equities more broadly, as most of the S&P’s constituents still advanced, pushing the equal-weighted index (+0.40%) to a record high, alongside a new record for Europe’s STOXX 600 (+0.18%). So, for now at least, most equities have been unfazed by the geopolitical developments.

In terms of those various market drivers, Iran was the main story yesterday as oil prices reacted to different headlines. The initial surge was caused by a Reuters report, which said that some personnel had been advised to leave the US military’s Al Udeid Air Base in Qatar. That was significant because the base previously saw an Iranian missile attack last June, so the story added to fears that some sort of escalation might take place imminently. However, Trump later downplayed the magnitude of tensions, saying “we’ve been told that the killing in Iran is stopping — it’s stopped… And there’s no plan for executions”. So that was taken as a signal that the US might hold off on a potential military response, with Brent falling by $3 in just over half an hour before partially recovering. There’s clearly lingering caution, not least given the unexpected timing of US strikes on Iran in June 2025, and at $64.24 this morning Brent crude is still clearly above its lows below $60/bbl last week, but Trump’s comments had a clear impact. Bear in mind as well that Iran is a more significant oil producer than Venezuela, producing 4% of the world’s total in 2023, so developments there have the potential for wider spillovers in the oil market.

In the meantime, there were fresh headlines on Greenland, as Trump posted that “The United States needs Greenland for the purpose of National Security.” That came ahead of a meeting between Vice President JD Vance and Secretary of State Marco Rubio with the foreign ministers of Denmark and Greenland. After the meeting, the sides agreed to set up working groups to see if a way forward could be found, but Denmark’s foreign minister said that they “still have a fundamental disagreement” with the US, adding that demands that would violate Denmark and Greenland’s sovereignty were “totally unacceptable”.

Whilst the geopolitical developments had a big impact in commodity markets, there wasn’t much direct effect on bond and equity markets. Admittedly, the S&P 500 was down -0.53% yesterday, but that was because of a slump for tech stocks, with the Magnificent 7 down -1.56%, in contrast to most of the S&P’s constituents which rose yesterday, with 318 moving higher. So we saw more of the rotation pattern at play since the start of the year, with the small-cap Russell 2000 (+0.70%) hitting a new record as it outperformed the S&P 500 for the ninth session in a row. Indeed, the Russell 2000 is now up +6.84% YTD, in contrast to a -1.49% decline for the Mag-7. Otherwise, there was ongoing weakness among US banks, with the KBW Bank index (-0.70%) down for a 4th consecutive session, which came as Wells Fargo (-4.31%), Citigroup (-3.89%) and Bank of America (-2.06%) all fell back after their latest earnings reports.

In the meantime, it was a very strong session for US Treasuries, with the 2yr yield (-2.3bps) falling to 3.51%, whilst the 10yr yield (-4.7bps) posted its biggest decline in almost two months, down to 4.13%. That came as investors priced in more rate cuts ahead, with futures now pricing in 54bps of cuts by the December meeting, up +1.8bps on the day. Interestingly, that was despite some hawkish comments from Fed officials, with Minneapolis Fed Kashkari expressing concern on inflation in an NYT interview, saying that it was “entirely plausible that we are sitting here well above our target for two to three more years”, and “Then we’re looking at seven or eight years of elevated inflation. That’s very concerning to me.” On similar lines, Atlanta Fed President Bostic also said that “The inflation challenge has not been won yet”. But Philadelphia President Paulson said that she saw “inflation moderating, the labor market stabilizing and growth coming in around 2% this year”, and that if that happened, “some modest further adjustments to the funds rate would likely be appropriate later in the year”.

In Asia, the main news yesterday came from Japan, where it looks increasingly as though Prime Minister Takaichi is going to call a snap election. That hasn’t been officially confirmed, but Hirofumi Yoshimura, who is the leader of the Japan Innovation Party, said that Takaichi had told colleagues that she’d be dissolving the lower house soon after it reconvenes on Jan 23. Nevertheless, Japanese assets had already reacted to the speculation, and this morning the 10yr yield has come off of its post-1999 high the previous day, down -1.7bps to 2.15%. That’s also despite BoJ Governor Ueda’s comments which reiterated that rates would keep rising if its outlook were realised. Otherwise in Asia, several equity indices are down this morning, including the Nikkei (-0.82%), the Hang Seng (-0.48%), the Shanghai Comp (-0.46%) and the CSI 300 (-0.07%). However, in South Korea, the KOSPI (+1.38%) has continued to outperform, on track for another record high this morning. Looking forward, US equity futures are basically steady, with those on the S&P 500 up +0.01%.

Earlier in Europe, markets had put in a relatively stronger performance, with both the STOXX 600 (+0.18%) and the FTSE 100 (+0.46%) moving up to new records. However, the DAX (-0.53%) was a relative underperformer, ending a run of 11 consecutive daily gains. Meanwhile for bonds, there was also a rally across the continent, with yields on 10yr bunds (-3.3bps), OATs (-3.1bps) and BTPs (-2.9bps) all moving lower. UK gilts were a particular outperformer, with the 10yr yield (-5.8bps) falling to its lowest since December 2024, at 4.34%.

Finally yesterday, we also had a few US data releases that were delayed by the government shutdown. First, the November retail sales were a bit stronger than expected at +0.6% (vs. +0.5% expected). Then for PPI inflation, the headline measure was running at +0.2% as expected in November, with the year-on-year measure at +3.0%. And existing home sales came in at an annualised rate of 4.35m in December (vs. 4.22m expected), which was their fastest pace since early 2023. Otherwise, the Atlanta Fed’s latest GDPNow update is now estimating Q4 GDP growth at an annualised pace of +5.3%, up from +5.1% before.

Looking at the day ahead, data releases include the UK GDP and Euro Area industrial production for November. Then in the US, we’ll get the weekly initial jobless claims, the Empire State manufacturing survey for January, and the Philadelphia Fed’s business outlook for January. From central banks, the ECB will publish their Economic Bulletin, we’ll hear from ECB Vice President de Guindos, the ECB’s Panetta, and the Fed’s Bostic, Barr, Barkin and Schmid. Finally, earnings releases include Goldman Sachs, Morgan Stanley, and BlackRock.

Tyler Durden Thu, 01/15/2026 - 08:30

Oil, Precious Metals Tumble After Report Signaling No Imminent Action Against Iran

Zero Hedge -

Oil, Precious Metals Tumble After Report Signaling No Imminent Action Against Iran

With traders across the globe refreshing their X accounts every 3 seconds, expecting to see news of imminent "kinetic action" in Iran, what they got instead was a report from NBC which indicated that military action is far from certain, and at best could take days before it is launched.

According to the report which cites multiple anonymous sources - including a U.S. official, two people familiar with the discussions and a person close to the White House - Trump has told his national security team that "he would want any U.S. military action in Iran to deliver a swift and decisive blow to the regime and not spark a sustained war that dragged on for weeks or months."

“If he does something, he wants it to be definitive,” one of the people familiar with the discussions said.

The punchline: Trump’s advisers have so far not been able to guarantee to him that the regime would quickly collapse after an American military strike, and there is concern that the U.S. may not have all the assets in the region it would need to guard against what administration officials expect would be an aggressive Iranian response.

Indeed, earlier today we showed that US aircraft carriers - so critical in supporting any type of operation against Iran - are days away from reaching the gulf, which means that any full-blown assault would likely have to be delayed. 

It also means that as we suggested earlier, the current dynamics "could lead Trump to approve a more limited U.S. military offensive in Iran, at least initially, while reserving options to escalate — if he decides to take any military action at all," said the U.S. official and one of the people familiar with the discussions.

They also said that it is a fast-evolving situation and that as of Wednesday afternoon no decisions had been made. During a visit to Detroit on Tuesday, Trump told protesting Iranians that “help is on its way” and called the situation in the country “fragile.”

Meanwhile, the question of what happens to the power vacuum in Iran has also reared its head, and in a separate report, Trump told Reuters on Wednesday that while Iranian opposition figure Reza Pahlavi "seems very nice", he expressed uncertainty over whether Pahlavi would be able to muster support within Iran to eventually take over.

In other words the CIA does not have a ready plan for who will step in to fill the power vacuum once the current regime is forced out. 

Trump has repeatedly threatened to intervene in support of protesters in Iran, where thousands of people have been reported killed in a crackdown on the unrest against clerical rule. But he was reluctant on Wednesday to lend his full support to Pahlavi, the son of the late shah of Iran, who was ousted from power in 1979.

"He seems very nice, but I don't know how he'd play within his own country," Trump said. "And we really aren't up to that point yet.

"I don't know whether or not his country would accept his leadership, and certainly if they would, that would be fine with me."

Trump's comments went further in questioning Pahlavi's ability to lead Iran after saying last week that he had no plans to meet with him.

Trump also said it is possible the government in Tehran could fall due to the protests but that in truth "any regime can fail."

"Whether or not it falls or not, it's going to be an interesting period of time," he said.

Trump's comments to Reuters and the NBC report have effectively eliminated the probability of an imminent action, and as a result crude oil, which was rising again on geopolitical fears, tumbled with WTI set to dip below $60 after trading above it all day...

... while silver plunged as much as $6, from $92 to $86, in seconds as stop loss selling kicked in, in a preview of how painful the unwind of the current historic rally will eventually be.

 

Tyler Durden Thu, 01/15/2026 - 08:24

TSMC's Bullish AI Outlook Prompts Goldman To Say 'Anyone Hoping For A Pullback Will Get Disappointed'

Zero Hedge -

TSMC's Bullish AI Outlook Prompts Goldman To Say 'Anyone Hoping For A Pullback Will Get Disappointed'

Europe's semiconductor stocks moved higher on Thursday, with ASML Holdings surging to a record high after Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 35% jump in fourth-quarter profit and signaled plans to boost capital spending by nearly 40% this year.

TSMC, a supplier to tech giants including Nvidia and Apple, raised its 2026 capex guidance to $52 billion to $56 billion, up from a previous estimate of $40 billion. Management also indicated that the three-year investment plan will be significantly higher, reducing the likelihood of a near-term pullback in spending.

"Our business in the fourth quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, Senior VP and CFO of TSMC. "Moving into first quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies."

It reported a net profit of $16 billion for the October-December quarter, a 35% surge from a year earlier, exceeding analysts' average estimates.

"We expect our business to be supported by continuous strong demand for our leading-edge process technologies," Huang said. He said spending would be "significantly higher" in the next three years.

An analyst asked TSMC chairman and CEO C. C. Wei about the risk that the AI investment cycle is a bubble. Wei replied, "I'm also very nervous about it, you bet ... AI is real. Not only real, but it's also starting to grow into our daily life."

Earlier, Goldman analyst Sean Johnstone told clients, "Anyone hoping for a pullback is going to be disappointed."

Johnstone continued:

SEMICAP/AI POSTIVE as TSMC has been seen as major bottleneck for AI given how cautious mgt have been and now its raised capex ABOVE the bulls expectations. There was lots of debate in on the name in esp. around capex its guided well above both sellside and buyside at $52-56bn and saying the 3 year will be significantly higher. For 2026 sellside was $45-46bn, Buyside $47-52bn hoping the 2026 initial guidance range would include a $50bn. Anyone hoping for a pullback is going to be disappointed.

Q4 beat on GM at 62.3% street just over 60%, and operating profit at 54% (Street 51%). Guides Q1 above: 1Q rev +4% q/q or +38% y/y (Q1 guide is top end of bulls plus its guided FY at 30% - bulls expected TSMC to guide to 25% and walk it up over the year. The 5 year CAGR of 25%); GM further expands q/q to 63-65% driven by higher UTR and cost efficiencies, OM 54-55%. Overseas fab expansion would be the dilute from 2h26 by 2-3ppt. Capex FY25 was$40.9bn…. Note VAT an underweight for many saw orders beat this morning and GIR expect to see MSD u/g to cons, real risk of a squeeze

MORE +VE PRESS:SK Hynix is speeding up new fab operations to meet surging DRAM memory chip demand, Reuters reports, citing CEO Sungsoo Ryu. OpenAI's first AI chip, Titan, will launch by end-2026, media report. Co-developed with Broadcom, it will be made on TSMC's 3nm mfg process. Titan II, the next-gen chip, will use TSMC's A16 process. OpenAI has tapped Samsung's 2nm Exynos chip for its AI earbuds, 'Sweetpea'. Intel is reported evaluating price hike for its server CPU following AMD who raised CPU including Ryzen 9000 earlier more pressure on PC names

Software remained under pressure yesterday and today TSMC numbers likely to exacerbate the software vs. Semis vs. trade already -15% ytd. Plus sentiment not helped with Claude Cowork

In markets, the Taiwan Stock Exchange closed up 80 bps at 30,941. TSMC's earnings provided a bullish start for European chip stocks, notably ASML, and US chip companies, which moved higher in premarket trading. TSM shares in New York are up 6%.

This is certainly not the earnings report AI bubble bears were hoping for, as Goldman analysts echoed one another, saying that anyone hoping for a pullback is unlikely to get it.

Tyler Durden Thu, 01/15/2026 - 08:10

Witkoff Announces Start Of 2nd Phase Of Gaza Peace Plan

Zero Hedge -

Witkoff Announces Start Of 2nd Phase Of Gaza Peace Plan

Authored by Ryan Morgan via The Epoch Times (emphasis ours),

Presidential peace envoy Steve Witkoff, on Jan. 14, announced the start of the second phase of President Donald Trump’s Gaza peace plan.

Displaced Palestinians walk through floodwaters following heavy rains in Gaza City on Dec. 15, 2025. Omar al-Qattaa/AFP via Getty Images

In an X post on Wednesday, Witkoff said the second phase will move Gaza from an initial cease-fire into a period that will see the demilitarization of Hamas and the establishment of a technocratic governance model.

He said the second phase will also see the start of reconstruction for the war-torn territory.

The Gaza peace plan began in October, and the overall strategy is supposed to proceed in three phases and achieve the 20-point plan Trump laid out in September.

Phase Two establishes a transitional technocratic Palestinian administration in Gaza, the National Committee for the Administration of Gaza (NCAG), and begins the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel,” Witkoff wrote.

It remains unclear who will comprise Gaza’s interim government. Trump has repeatedly described this government as the Gaza “Board of Peace” and said he will chair the body.

Trump’s 20-point plan includes an offer of amnesty for Hamas members who willingly lay down their arms, as well as an offer of safe passage for Hamas members seeking to leave the territory.

The scope of Gaza’s reconstruction is also unclear.

In October, a representative for the United Nations’ Development Programme shared an estimate that Gaza had sustained around $70 billion in damages over the course of more than two years of conflict.

The first phase of the deal was supposed to include the release of all Israeli hostages, living and dead, held by Hamas.

Thus far, Hamas has returned the remains of 27 out of 28 deceased hostages.

Witkoff warned that Hamas must return the remains of the last person.

“The United States expects Hamas to comply fully with its obligations, including the immediate return of the final deceased hostage. Failure to do so will bring serious consequences,” Witkoff wrote.

Israel and Hamas have traded accusations of other cease-fire violations since October.

On Oct.19, the Israeli military accused Hamas of firing on and carrying out an explosive attack on Israeli troops operating in the Rafah area of the Gaza Strip, killing two of their soldiers. Hamas’s armed wing denied knowledge of the attack and said it had lost contact with its forces in Rafah.

On Dec. 13, Israeli forces carried out a lethal airstrike targeting a Hamas commander they said was involved in continuing efforts to procure weapons and undermine the cease-fire. Hamas said civilians were killed in a strike that day, and argued Israeli military’s operations were undermining cease-fire efforts.

This is a developing story and will be updated with additional details.

Tyler Durden Thu, 01/15/2026 - 07:55

US Navy Sailor Sentenced To Nearly 17 Years In Prison For Selling Military Secrets To China

Zero Hedge -

US Navy Sailor Sentenced To Nearly 17 Years In Prison For Selling Military Secrets To China

Authored by Dorothy Li via The Epoch Times (emphasis ours),

A former U.S. Navy sailor who had been found guilty of providing the Chinese communist regime with sensitive U.S. military information in exchange for money was sentenced to 200 months in prison, the Justice Department said on Monday.

The Department of Justice in Washington on Feb. 12, 2025. Madalina Vasiliu/The Epoch Times

Wei Jinchao, also known as Patrick Wei, was arrested on espionage charges in August 2023 after reporting for duty aboard the USS Essex, an amphibious assault ship based in San Diego.

Wei, a naturalized U.S. citizen, was convicted by a federal jury in San Diego of espionage and five other criminal counts, including conspiracy to commit espionage, and unlawful export of, and conspiracy to export, technical data related to defense articles in violation of the Arms Export Control Act and the International Traffic in Arms Regulations, after a five-day trial in August 2025.

Prosecutors had asked the court to sentence Wei to 21 years and 10 months in prison, arguing that his actions jeopardized U.S. national security and betrayed the country that granted him citizenship.

Defendant compromised the U.S. Navy’s entire fleet of amphibious assault ships by sending the Chinese Government thousands of pages of technical information about the fleet’s complex ship systems and how the U.S. Navy operates and maintains those systems,” Assistant U.S. Attorney John Parmley wrote in a government sentencing memorandum filed earlier this month.

“It is a betrayal of America and its people, and it often puts real lives at risk. It also can cost the Government huge amounts of money when it must adjust its military planning, operations, and tactics to account for compromises in informational security.”

In a letter submitted to the court before sentencing, his mother, Wei Mingli, appealed for leniency, recounting the hardships her son faced growing up. She said that he was raised without a father and left home around age 10 to attend boarding school because she had to care for her ailing mother at the time. She portrayed her son as a “devoted Christian” and a kind person who continued to help others, even while in custody.

Patrick Wei’s attorney had sought a much lighter sentence of two years and six months. Wei also wrote a letter to the court expressing remorse for sharing information with an individual he said he once considered a friend.

Now 25 years old, Wei apologized for “wasting taxpayers’ money and eroding people’s trust” in him, and pleaded for “love and mercy” in determining the sentence.

Yes, I screwed up,” he wrote. “If you could find in yourself to be able to show me some love and mercy in your Honorable conclusion, I would, without fear of contradiction, pay it forward and help others for the rest of my life.”

Details

According to the indictment, Wei was recruited through social media by a Chinese intelligence officer posing as a naval enthusiast affiliated with China Shipbuilding Industry Corporation, a state-owned giant shipbuilder, in February 2022.

About a week later, Wei confided in a friend in the U.S. Navy that the Chinese officer had offered him $500 for daily information on which ships were docked at the San Diego base. Wei told his friend that he was “no idiot” and that what he was being asked to do was commit espionage.

At the time, Wei was a petty officer and worked as a machinist’s mate, which gave him access to sensitive national defense information, including data on U.S. Navy ships and their weapons, according to court documents.

Prosecutors said that, starting in March 2022, Wei sent the Chinese intelligence officer multiple photos and videos of the Essex, along with information about the ship’s defensive weapon systems.

In May 2022, the Chinese officer sent him money and congratulated him on becoming a naturalized U.S. citizen.

In June 2022, Wei provided 30 technical and mechanical manuals containing export-control warnings and details of various operational systems aboard the Essex and similar U.S. Navy vessels, including power, steering, aircraft, and deck elevators, as well as damage and casualty control.

In return for transmitting these documents, Wei received $5,000. The Chinese officer informed Wei that 10 of the manuals he provided had not been seen before and were “proved useful,” according to his indictment.

During that same month, the Chinese officer specifically requested that Wei provide information about the number and training of U.S. Marines participating in an international maritime warfare exercise, as well as photographs of military equipment. Wei complied by sending several images of military hardware.

In August 2022, Wei received $1,200 from the Chinese intelligence officer after passing along another 26 documents detailing the power structures and operations of the Essex and similar vessels, which contained data subject to export controls and information classified as “critical technology” by the U.S. Navy.

Wei continued to transmit other sensitive data to the officer throughout 2023, including information about the layout and location of weapons systems, repairs to the Essex, and mechanical vulnerabilities of similar vessels. The officer instructed Wei to keep their relationship discreet and to destroy any evidence that could reveal their activities.

In the press release announcing the sentence against Wei, Assistant Attorney General for National Security John Eisenberg said: “Wei swore loyalty to the United States when he joined the Navy and reaffirmed that oath when he became a citizen. He then accepted the solemn responsibility of protecting this Nation’s secrets when the United States entrusted him with sensitive Navy information.

“He made a mockery of these commitments when he chose to endanger our Nation and our servicemembers by selling U.S. military secrets to a Chinese intelligence officer for personal profit. Today’s sentence reflects our commitment to ensuring those who sell our Nation’s secrets pay a very high price for their betrayal.”

Roman Rozhavsky, assistant director of the FBI’s counterintelligence division, said the sentencing served as “a reminder that those who choose to put personal gain above their oath and the safety of our nation will be brought to justice.”

FBI Director Kash Patel also pledged to collaborate with other agencies to defend the United States against foreign intelligence threats.

If you betray the United States, endanger our warfighters, and put personal profit over your oath, you will be found, you will be exposed, and you will pay a heavy price,” Patel wrote on X.

On the same day Wei was arrested, another U.S. Navy sailor, Zhao Wenheng, who was based out of Naval Base Ventura County in California, was also taken into custody. Zhao, also found guilty of selling military secrets to China, was sentenced to 27 months in prison in January 2024.

Frank Fang and Eva Fu contributed to this report. 

Tyler Durden Thu, 01/15/2026 - 07:15

Are Deportations Making Affordability A Winning Issue For The GOP?

Zero Hedge -

Are Deportations Making Affordability A Winning Issue For The GOP?

Democrats entered 2026 confident they could make “affordability” the rallying cry that would win back suburban voters and propel them back into the majority. But an inconvenient political twist has upended that plan: Donald Trump is the one actually delivering on affordability - and doing it in ways his opponents are almost certain to despise.

The foundation of this shift is the administration’s aggressive crackdown on immigration. ICE deportations under Trump have sharply reduced the number of illegal migrants in the country - which, according to the White House - is easing the enormous housing demand that exploded under Joe Biden thanks to his open borders policies. 

In short, rents and home prices in many major metro areas are becoming more affordable. Though we would of course note that correlation is not necessarily causation.

According to new estimates from Brookings Institution economists, more immigrants left the United States than entered last year - the first time that’s happened in at least five decades. Net migration fell by between 10,000 and 295,000 in 2025, driven by everything from a near-closure of the southern border to tightened visa limits, new fees, and the suspension of nearly all refugee programs. 

Economists and industry experts say the housing impact is already being felt. 

For example, in San Antonio, developers built aggressively in 2025, expecting another surge of migrant renters. That didn’t happen, so landlords began slashing prices to fill new units. Kevin Lynn, founder of U.S. Tech Workers and a long-time critic of large-scale visa programs, called it basic economics. “When you crack down on immigration, legal and illegal, housing costs naturally drop,” he told Breitbart, describing the decline as a textbook case of supply and demand.

Lynn pointed to Lancaster County, Pennsylvania - a community once labeled “the refugee capital of America.” There, he said, newly renovated apartments are now being advertised with three months of free rent because demand from immigrants has vanished. “This is what happens when you take the immigrants out of the equation,” Lynn said.

It’s a stark reversal from the years under Joe Biden, when roughly 14 million legal and illegal migrants entered the country, coinciding with surging rents and home prices that outpaced wage growth. Now that the pressure is easing, the administration has an answer ready for Democrats hoping to campaign on “affordability.” Trump’s team is framing border enforcement not only as a public-safety measure but as a direct economic benefit for working households.

“Rents are down. You know the story that the Biden administration doesn’t want to talk about: The mass unfettered immigration that pushed up rents, especially for working Americans,” Treasury Secretary Scott Bessent said last month. “The connection between illegal immigration and skyrocketing housing costs is as clear as day.” 

The White House clearly believes this narrative could neutralize one of the Democrats’ key talking points heading into the midterms. 

Falling rents, rising wages, and higher labor participation are giving younger voters something they’ve struggled to find for years: a sense of stability. Lower immigration is also contributing to reduced crime and drug deaths, further tying economic security to Trump’s immigration policies.

And then there’s the One Big Beautiful Bill Act, which the administration believes will play a huge role in giving Americans the relief they’ve been craving. The legislation aims to lock in lower individual and corporate tax rates, expand full business expensing, and let voters see more of their paychecks. The administration describes it as a direct strike on the cost-of-living crisis.

Other key provisions include higher SALT deduction caps for homeowners, no tax on tips and overtime, and a modest expansion of charitable deductions. Seniors will also see new tax breaks on Social Security income. Buyers of U.S.-made vehicles would get fresh incentives. Each piece will show that while Democrats talk the talk on “affordability” the GOP walks the walk.

Democrats built their midterm plans around the assumption that they could own the affordability issue. Trump is instead redefining it on his terms: fewer migrants competing for jobs and housing, stronger wages, cheaper rents, and more disposable income. Republicans hope that by the time voters head to the polls, “affordability” may no longer be a Democratic talking point. And it might just work.

Tyler Durden Thu, 01/15/2026 - 06:45

President To Sign Bill Allowing Return Of Whole Milk In Schools

Zero Hedge -

President To Sign Bill Allowing Return Of Whole Milk In Schools

Authored by Aaron Gifford via The Epoch Times (emphasis ours),

President Donald Trump will sign the Whole Milk for Healthy Kids Act on Wednesday, overhauling previous U.S. Department of Agriculture guidelines that required milk served in school cafeterias to be fat-free or low-fat.

President Donald Trump speaks as Secretary of Health and Human Services Robert F. Kennedy Jr. looks on during a Make America Healthy Again Commission Event in the White House on May 22, 2025. Jim Watson/AFP via Getty Images

Now, schools have the freedom to serve whole milk, flavored or unflavored, as well as organic milk.

The Senate passed the bill unanimously in November; it easily cleared the House a month later. It was sent to Trump on Jan. 6.

A 2 p.m. signing ceremony is planned in which the president will reverse an Obama-era policy that banned whole milk in public schools, White House officials confirmed to NTD, sister media outlet of The Epoch Times.

This is common sense and great news for America’s children, dairy farmers, and parents who deserve choice, not big government mandates. President Trump is delivering on his commitment to Make America Healthy Again,” said Taylor Rogers, a White House spokeswoman.

The legislation also stipulates that schools must provide milk substitutes to students with dietary restrictions upon presentation of a letter from a parent or licensed physician.

Additionally, liquid milk no longer counts toward the 10 percent maximum allowance of saturated fat calories.

Rep. John Mannion (D-N.Y.), who sponsored the House bill, previously said this legislation goes a long way in helping U.S. dairy farmers while also providing students the diets they need to “thrive in the classroom.”

As a teacher for almost 30 years, I saw firsthand how proper nutrition supports student success,” said Mannion, whose district contains many dairy farms.

A 2012 federal law prohibited school cafeterias from serving whole milk, which led to a significant decline in student milk consumption in the past decade, according to Mannion’s Dec. 15 news release.

In the two years between 2014 and 2016 alone, schools served 213 million fewer half pints of milk despite rising public school enrollment.

Mannion also said children over the age of 4 are not getting the recommended daily dairy as outlined by federal dietary guidelines aimed at promoting stronger bone health, lower blood pressure, and reduced risks of Type 2 diabetes and cardiovascular disease.

By contrast, the Physicians Committee for Responsible Medicine, a nonprofit agency represented by about 17,000 physicians, has criticized this legislation, saying that more saturated fats are unhealthy options for children.

Instead, the committee said, Congress should push soy milk as a healthier source of protein, and alternative healthy calcium sources such as nuts, kale, broccoli, and fortified orange juice.

In a related action last week, the federal departments of agriculture and health and human services unveiled a new “upside-down” food pyramid that reduces the recommended amount of grains and healthy fats and oils while increasing the amount of meats and vegetables.

Those guidelines, which will be updated every five years, also provide a stronger stance against sugar and alcohol consumption while promoting unprocessed or lesser-processed foods with saturated fats like yogurt, cheese, and whole milk.

Previous guidelines contained more sweeping generalizations against all types of saturated fats, federal officials said.

“These guidelines replace corporate-driven assumptions with common-sense goals and gold-standard scientific integrity,” Agriculture Secretary Brooke Rollins said on Jan. 7.

Tyler Durden Thu, 01/15/2026 - 06:15

Senators Want To Ban Chinese Students From Government Labs

Zero Hedge -

Senators Want To Ban Chinese Students From Government Labs

Eleven US senators wrote to Energy Secretary Chris Wright on Tuesday seeking to ban Chinese nationals from US national labs - contending that their access undermines the United States' position in the artificial intelligence (AI) race. 

The Department of Energy building in Washington on Nov. 13, 2023. Madalina Vasiliu/The Epoch Times

The DOE notably oversees 17 national laboratories and funds research to advance various technologies, including energy, environmental, nuclear, and others. In November, President Donald Trump ordered the DOE to launch 'Genesis Mission,' with a goal of coordinating a national effort to accelerate AI innovation "comparable in urgency and ambition to the Manhattan Project."

In their letter, the Senators expressed concern over the thousands of Chinese nationals who have access to these national lab sites, which contain sensitive information and technology. In FY2024, around 3,200 Chinese nationals were approved for such access, which the lawmakers noted does not include lawful permanent residents of the United States, "which means there are likely hundreds, perhaps thousands, more individual Chinese citizens working in our labs," they wrote.

"Continuing to give access to the cutting-edge work performed at these laboratories to Chinese nationals who will turn everything they know over to the [Chinese Communist Party] directly undermines the purpose of Genesis Mission," reads the letter, which was co-signed by Sens. Tom Cotton (R-Ark.), Mike Lee (R-Utah), James Risch (R-Idaho), Jim Justice (R-W.Va.), John Cornyn (R-Texas), John Barrasso (R-Wyo.), James Lankford (R-Okla.), Dave McCormick (R-Pa.), Jerry Moran (R-Kan.), Todd Young (R-Ind.), and Ted Budd (R-N.C.).

The Senators recommend that the department implement a policy to prohibit access by Chinese nationals to national laboratory sites, information, and technology. 

As the Epoch Times notes further, underpinning the espionage concern is the fact that Beijing has passed laws to require all Chinese citizens to assist in the state’s intelligence efforts, as well as the regime’s practice of transnational repression.

Human rights organization Freedom House ranks the Chinese regime among the worst transnational repressors, using tactics such as threatening family members residing in China in order to coerce overseas Chinese to participate in state operations.

The lawmakers cite such coercion as one reason that even proper vetting of these scientists is “not a sufficient safeguard.”

Additionally, the volume of individuals outpaces the department’s capacity to vet them, and China has made efforts to obfuscate links to the Chinese Communist Party (CCP), the lawmakers said.

The best way to protect Genesis Mission, and the rest of the important work done throughout the labs, is to put an end to Chinese national scientists and researchers working at them,” the letter reads.

The request comes on the heels of a December House report that found the Energy Department funded research in AI, quantum, and other advanced technologies with defense applications, conducted in partnership with Chinese researchers and institutes, citing more than 4,000 research papers published between June 2023 and June 2025.

The report found that 2,000 Chinese nationals worked at national laboratories as of 2025. The lawmakers behind the report said they had interviewed department executives and found their rationale “naive.”

“Multiple DOE executives ... defended [the Chinese nationals’] continued presence ... by claiming, in effect, that we want them in our labs so they can see how advanced we are—and go back to China telling their colleagues, thus giving up on beating the United States,” the report reads.

The House Select Committee on the CCP has also published reports that show funding for Chinese defense research through grants from other government agencies, including the Pentagon.

The Department of Energy did not respond to an inquiry from The Epoch Times by the time of publication.

Tyler Durden Thu, 01/15/2026 - 05:45

Tyrants

Zero Hedge -

Tyrants

Authored by Lars Møller via American Thinker,

History is replete with revolutionary figures who transformed society through “vision”, “vanity”, and “violence” - a vicious triad covering the strategy of being ideologically uncompromising, outmaneuvering rivals, and eliminating political opposition, respectively.

From Wikimedia Commons: Execution of Louis XVI (Charles Monnet, 1794)

Maximilien Robespierre and Vladimir Lenin stand out as architects of radical political transformation. Bridging the cultural divide, their leadership styles and psychological profiles show striking similarities. Both men were pedantic ideologues driven by an unshakable belief in their own moral and intellectual superiority.

A comprehensive personality profiling of Robespierre and Lenin requires an analytical framework that transcends ideological taxonomy and historical contingency. While both men operated under conditions of revolutionary crisis, their responses to this strain were neither inevitable nor merely situational. Rather, the extremes of savagery that they authorized, rationalized, and sustained reflect enduring psychological structures that shaped their political conduct. Revolutionary atrocity, in this sense, is best understood, not as an accidental excess of upheaval but as an expressive manifestation of personality under pressure.

At the center of both profiles lies a distinctive form of narcissism, albeit one that diverges from popular caricature. Neither Robespierre nor Lenin cultivated flamboyance or sensual excess. Instead, they embodied a restrained and severe narcissism, grounded in ascetic discipline and intellectual or moral exclusivity. This “austere narcissism” is particularly insidious, as it disguises grandiosity beneath the rhetoric of sacrifice and historical necessity. Both men perceived themselves as uniquely attuned to the demands of history, endowed with a clarity unavailable to others. This conviction constituted the psychological foundation of their authority and simultaneously foreclosed the possibility of self-doubt.

Robespierre’s personality was organized primarily around moral absolutism. His self-conception as l’Incorruptible was not a mere political posture but a deeply internalized identity. Personal frugality, emotional restraint, and rhetorical solemnity served as symbolic reinforcements of moral superiority. From a psychological standpoint, this configuration suggests a rigid superego structure in which ethical norms were internalized as categorical imperatives rather than negotiable principles. Moral conflict could not be accommodated; it had to be eradicated.

This psychic architecture is indispensable for understanding Robespierre’s embrace of terror during 1793–94. The Law of Suspects, enacted on September 17, 1793, dramatically expanded the definition of counter-revolutionary guilt to include vague categories such as “enemies of liberty” and those lacking “civic virtue”. In practice, this legislation enabled the arrest of tens of thousands on the basis of suspicion alone. The resulting mass incarcerations and executions were not only tactical responses to military threats but also expressions of Robespierre’s moralized worldview. Political ambiguity itself became criminal.

The Revolutionary Tribunal exemplified this moral reductionism. Legal safeguards were progressively dismantled, culminating in the Law of the Great Terror, enacted on June 10, 1794, which eliminated defense counsel and limited verdicts to acquittal or death. The acceleration of executions—over 1,300 in Paris alone within six weeks—reflected not panic but moral certainty. Violence functioned as ethical enforcement. The guillotine, with its mechanical regularity, transformed killing into procedure, allowing Robespierre to experience mass death as impersonal justice rather than cruelty. Psychologically, such depersonalization constitutes a dissociative defense: suffering is abstracted, responsibility displaced, and violence reclassified as virtue.

Robespierre’s increasing hostility towards former allies further reveals the fragility underlying his moral absolutism. The executions of Georges Danton and Camille Desmoulins—longstanding revolutionaries accused of “indulgence”—illustrate how moral rigidity devolved into paranoid purification. Dissent was no longer external but internal. The purges thus served not only political consolidation but also psychic stabilization. Each execution reaffirmed Robespierre’s self-image as guardian of revolutionary purity against an ever-expanding field of corruption.

Lenin’s psychological profile, though equally absolutist, was structured along a different axis. His narcissism was intellectual rather than moral. Lenin did not portray himself as virtuous but as scientifically correct. Authority derived from his conviction that he alone grasped the objective laws of historical development. This intellectual narcissism produced profound disdain for spontaneity, pluralism, and moral hesitation.

Lenin’s approach to violence during and after the October Revolution exemplifies this orientation. The establishment of the Cheka in December 1917 marked the institutionalization of terror as a permanent instrument of governance. Unlike the revolutionary tribunals of 1793, the Cheka operated extrajudicially from the outset. Its remit included summary execution, hostage-taking, and mass repression. Lenin explicitly endorsed these measures. In correspondence from 1918, he called for “merciless mass terror” against class enemies, insisting that hesitation would doom the revolution.

The Red Terror of 1918–22 provides stark illustration. Following the attempted assassination of Lenin in August 1918, the regime launched widespread reprisals. Thousands were executed without trial, often selected, not for actions but for social origin. Former nobles, priests, merchants, and officers were targeted as categories rather than individuals. The mass shootings at Petrograd and Moscow, as well as the use of concentration camps—precursors to the Gulag system—demonstrate how violence was bureaucratized and de-personalized. Psychologically, this categorical annihilation reflects cognitive reductionism: human beings were reduced to structural obstacles to be removed. 

The suppression of the Tambov peasant uprising (1920–22) further illustrates Lenin’s instrumental rationality. When peasants resisted grain requisitioning, the Red Army deployed poison gas, mass deportations, and hostage executions. Lenin personally authorized these measures, framing them as necessary to break “kulak resistance”. The scale and severity of the repression—tens of thousands killed or interned—underscore his willingness to annihilate entire populations in pursuit of economic and ideological objectives. Emotional detachment was not incidental but functional: empathy would have impeded efficiency.

Similarly revealing was the crushing of the Kronstadt rebellion in 1921. The sailors, once celebrated as heroes of the revolution, demanded free elections and an end to Bolshevik repression. Lenin and Trotsky responded with overwhelming force. Thousands were executed or sent to labor camps. The psychological significance lies in the readiness to destroy former allies once they ceased to serve the ideological script. Dissent, regardless of origin, was pathologized as counter-revolution.

Despite stylistic differences, Robespierre and Lenin shared a fundamental incapacity to recognize others as autonomous moral agents. From a developmental psychology perspective, this suggests impaired “mentalization”. Opposition was interpreted, not as disagreement but as moral corruption or structural deviance. Consequently, violence acquired an air of inevitability.

Both leaders also exhibited marked emotional austerity and social withdrawal. Their reluctance to engage in ordinary social life reinforced authority but deepened isolation. Isolation intensified suspicion. Deprived of corrective feedback, both increasingly relied on internal narratives of betrayal. Terror became self-reinforcing: fear confirmed paranoia, paranoia justified repression, and repression entrenched power.

This dynamic accords with established models of authoritarian personality, which emphasize the interplay between dominance and insecurity. Such leaders are not psychologically secure. Their need for absolute control compensates for internal fragility. Power functions as an external stabilizer, imposing order upon both society and the self. 

The handling of failure further illuminates these personalities. Neither Robespierre nor Lenin demonstrated genuine self-criticism. Military setbacks, economic collapse, or popular resistance were invariably attributed to insufficient repression. Violence thus substituted for reflection. Rather than revising assumptions, both escalated coercion. 

The persistence of terror beyond immediate necessity underscores its expressive function. Once institutionalized, violence became ritualized, reaffirming alignment with virtue or history. Each execution symbolized inevitability and correctness. Atrocity communicated omnipotence.

The contrast between Robespierre’s “moralized terror” and Lenin’s “instrumental terror” reflects divergent emotional economies within a shared absolutist framework. Robespierre’s violence was theatrical and ethical; Lenin’s procedural and technical. Yet both converged in their effect: the annihilation of individuality and the normalization of death as a political tool.

Ultimately, the personality profiling of Robespierre and Lenin demonstrates how revolutionary leadership magnifies latent psychological traits. Ideology supplied justification; crisis provided opportunity; personality determined execution. Their atrocities were not historical aberrations but behavioral culminations of rigid cognition, narcissistic self-identification, emotional detachment, and intolerance of uncertainty.

The broader implication is sobering. Extreme political violence need not arise from overt sadism. It often emerges from moral certainty, intellectual arrogance, and the refusal to acknowledge human complexity. Robespierre and Lenin exemplify how revolutionary ideals, when filtered through psychologically brittle leadership, can transmute aspirations of emancipation into systems of terror. Their legacies endure as warnings of what occurs when conviction eclipses conscience and abstraction supplants humanity. 

Without any mitigating self-irony, Robespierre and Lenin embodied an unlimited commitment to ideology, indifferent to the concerns of ordinary people, their lives and freedoms.

Tyler Durden Thu, 01/15/2026 - 05:00

Risk For Thee, Safety For Me: Celebrity Activism

Zero Hedge -

Risk For Thee, Safety For Me: Celebrity Activism

Authored by Christian Vezilj via American Thinker,

Hollywood has mastered the art of moral performance. Award shows have become political stages where actors speak with the confidence of prophets and the certainty of philosophers. But beneath the applause lines and emotional crescendos lies a contradiction that becomes impossible to ignore: the courage they demand from others is courage they themselves will never have to summon.

This contradiction was unmistakable at the recent Golden Globe Awards. The ceremony quickly transformed into a coordinated tribute to Renee Nicole Goode, who was shot and killed by an ICE agent. Mark Ruffalo dedicated his award by saying, “This is for Renee Nicole Goode, who was murdered,” adding, “I don’t know how I can be quiet.” Wanda Sykes echoed the sentiment on the red carpet, declaring, “Of course, this is for the mother who was murdered by an ICE agent, and it’s really sad.” She went further, urging confrontation: “We need to be out there and shut this rogue government down, because it’s just awful what they’re doing to people.”

Celebrities wore coordinated pins reading “BE GOOD” and “ICE OUT,” signaling solidarity and moral urgency. The messaging was unified, emotional, and unmistakably political. The narrative was clear: this was a moment to resist, to rise up, to confront injustice.

But what was equally clear — and far more revealing — was what they chose not to say.

While the Golden Globes stage was filled with speeches about ICE, not a single celebrity mentioned the mass slaughter, imprisonment, and torture taking place in Iran at that very moment - Hundreds of protesters have been killed by the Iranian regime. Thousands have been dragged into prisons. Torture, rape, and forced confessions have been documented by human rights groups. The government has imposed sweeping internet blackouts to hide the brutality from the world. [ZH: regardless of whether this is yet more 'regime change paint by numbers' - it was completely ignored].

And yet, on one of the most visible cultural platforms in America, the silence was absolute.

  • No speeches.
  • No pins.
  • No hashtags.
  • No calls to “shut down” the Iranian government.
  • Nothing.

The contrast is staggering. When the villain is a U.S. agency, outrage is immediate, coordinated, and emotionally charged. When the villain is a foreign authoritarian regime slaughtering its own people, the outrage evaporates. The issue is not the moral weight of the cause. The issue is whether the cause is useful to the narrative they want to tell.

But the hypocrisy runs even deeper. It extends to the way Hollywood reacts to domestic events that do not fit its preferred storyline. When Ashli Babbitt was shot and killed inside the Capitol, there were no celebrity tributes. No emotional speeches. No coordinated pins. No calls for accountability. Instead, the officer who shot her was widely described as a hero. The shooting was framed as necessary, justified, even praiseworthy.

Whether one agrees with either shooting is not the point. The difference in reaction reveals the deeper truth: Hollywood’s activism is not driven by universal moral principles. It is driven by selective outrage, selective empathy, and selective courage.

This brings us to the heart of the matter: the asymmetry of risk. Celebrities routinely encourage ordinary people to “stand up,” “fight back,” or “put your body on the line.” Sykes’s call to “shut this rogue government down” is a perfect example. These are not metaphorical suggestions. They imply confrontation, danger, and the possibility of violence.

Yet the people delivering these messages do so from behind layers of insulation that ordinary Americans do not have. They live in gated communities. They travel with private security. Their homes are protected by surveillance systems, controlled access, and armed guards. They are not wrong for wanting safety — everyone wants safety — but they are wrong for preaching danger for others while choosing safety for themselves.

A working‑class person who confronts ICE or police in the street faces real, immediate, physical danger. A celebrity who posts a hashtag or makes a speech faces none. Their activism is symbolic, not sacrificial. It costs them nothing. And yet they speak as though they are shoulder‑to‑shoulder with the people they are urging into the streets.

This is where the phrase “We’re in it together” collapses. When celebrities use it, they rarely mean shared sacrifice. They mean shared sentiment. They mean shared optics. But they do not mean shared risk. Their version of solidarity is digital, not physical.

The deeper civic insight is this: selective outrage and selective courage are symptoms of a broader cultural problem. We have built a society where moral authority is often claimed by those who bear none of the consequences of their own prescriptions. Hollywood’s activism is not dangerous to Hollywood. It is dangerous to the people they encourage to act on their behalf.

True solidarity requires more than a speech, a pin, or a social media post. It requires standing in the same place, facing the same risks, and sharing the same consequences. Anything less is performance.

And performance, no matter how passionate, is not courage.

Tyler Durden Wed, 01/14/2026 - 22:30

China Blames Trump For Its Staggering $1.2 Trillion Trade Surplus Amid European Howls Of Outrage

Zero Hedge -

China Blames Trump For Its Staggering $1.2 Trillion Trade Surplus Amid European Howls Of Outrage

At the start of December, China stunned the world when it reported that its trade surplus had surpassed a record $1 trillion, with one month still left to go in calendar 2025.

Fast forward to last night when China reported that in December, its trade balance rose from $112 billion in November to a whopping - and the second highest on record - $114.14 billion, matching Bloomberg estimates...

...  exports grew 6.6% YoY in dollar terms, more than double the average forecast from a Bloomberg poll of analysts of 3.1% and greater than November’s growth rate of 5.9%, while imports rose 5.7% in dollars last month on a year earlier, also far outpacing analyst expectations of 0.9% growth and the previous month’s figure of 1.9%.

Adding across, China's full-year trade surplus exceeded $1 trillion for the first time - $1.2 trillion to be precise - blowing away last year’s figure of $993bn despite exports to the US falling 20%, as those to the EU rose 8.4% and to south-east Asia rose 13.4%, where as we show below the bulk of transshipments to the US take place, as Chinese producers diverted shipments to other markets while ultimately still targeting US consumers. 

And since China's record $1 trillion trade surplus hit a month earlier had already outraged its trading partners, who finally called out Beijing (long after Trump did so first) for its mercantilist, imbalanced trade policies, Beijing needed a scapegoat for the even bigger number it reported. It decided to blame the US, the one country that until recently had reportedly "alienated the world" in its pursuit of more balanced Chinese trade.

As the FT reported, "China blamed the US for growing global trade imbalances as the world’s second-biggest economy reported a record full-year trade surplus of $1.2tn for 2025 despite President Donald Trump’s trade war."

Why? Because as we first reported last month, China's gargantuan surplus will further inflame global trading tensions, particularly with the EU where China is indiscriminately dumping cars below cost and singlehandedly putting the entire German auto industry into an early grave; it's not just Europe - all export-focused developing countries are also seething, as they find their exports are simply not competitive with cheap Chinese goods which are being dumped at a furious pace around the globe. 

In a sign of the growing decoupling of direct trade between China and the US, the American share of Chinese exports last year was 11.1% , down from 14.7% in 2024, some of the lowest levels since the 1990s, the FT reports. Of course, that is woefully inaccurate at worse, and at best incomplete, since China has merely redirected its US goods via intermediary countries - i.e., transshipments - such as Vietnam, which has seen imports from China soar to a record high.

And since Vietnam didn't grow an affluent middle class overnight, all that is happening is China is sending its trinkets to Hanoi first, before they are reshipped onward to China, under the guise of Vietnamese exports.

But, as last month, the loudest complaints about China’s surplus are expected from the EU (which said nothing when Trump was complaining loudly over the past decade and now is stuck with a crippled economy which has lost all export vibrancy for ever), yet which is terrified of its own shadow, and still has to follow the US and implement broad-based tariffs. Instead, the bloc has called for Beijing to stimulate domestic demand and reduce its own barriers to manufactured imports, something Beijing - already stuffed to its gills in debt - has shown precisely zero interest in doing, or being able to create organically.

And so, China decided to... blame Trump.

Wang Jun, vice-minister of the General Administration of Customs of China, said on Wednesday that trading partners’ export controls on high-tech products were preventing China from importing more, in not so thinly veiled comments directed at the US. Successive US administrations have imposed stringent curbs on China’s access to high-end semiconductors.

“It should be pointed out that some countries politicize economic and trade issues, using various pretexts to restrict exports of high-tech products to China; otherwise, we would import more,” said Wang, adding: “There is vast room for import growth.”

Actually no, there isn't, because as the upcoming Chinese data dump will reveal, China's domestic economy continues to deteriorate with retail sales and fixed investment at a level that signals flat GDP at best, if not negative. 

Which only leaves a flood of exports to keep China's economy alive. Sure enough, economists have warned that China’s economy is too reliant on manufacturing and exports for growth amid anaemic domestic consumption and a years-long property sector slowdown. 

“China’s staggering trade surplus is simultaneously a symbol of its exporting prowess and the weaknesses in its growth model,” said Eswar Prasad, professor of economics at Cornell University.

One more point: China's staggering trade surplus is a remnant of an era in which nobody dared point out that the neoliberal, mercantilist emperor is dead, until Trump came along. And while Europe laughed at him at first (just like they laughed when he told Germany they are entirely reliant on Russian gas), Brussels has finally figured out that it can do nothing and watch its economy implode from inside while purchasing cheap Chinese trinkets, or it can join the US president in calling out China's trade practice. At which point China's record trade surplus will collapse, with various unpleasant consequences for its economy. As for the US, it is on the right path, but it too needs to plug the gaping loopholes such as record trans-shipments through Vietnam and other Pacific rim countries. Once it does that, only then will Beijing be forced to finally revise its export-led model which is the main reason why the world finds itself in a brutal trade war for the second year running. 

Tyler Durden Wed, 01/14/2026 - 22:00

Analysis: Havana's Playbook Or Conspiracy Theory? Testing Washington's Claim That Cuban Intel Fueled US Protests

Zero Hedge -

Analysis: Havana's Playbook Or Conspiracy Theory? Testing Washington's Claim That Cuban Intel Fueled US Protests

Submitted by The Bureau's Sam Cooper,

In the aftershock of the Trump administration’s special-forces extraction of Venezuelan President Nicolás Maduro, a new report from the Heritage Foundation advances a sweeping, Cold War–inflected thesis: that the real command post for much of Latin America’s authoritarian drift — and a significant driver of American street unrest since 2020 — is Havana.

Its most incendiary claim is also, arguably, the one most relevant to a Trump administration now tightening its focus on leftist heads of state from Mexico City to Bogotá: that Cuba’s communist regime, working through Venezuela and allied networks across Latin America, has sought to weaponize narcotics trafficking while also stoking social unrest inside the United States.

“Venezuela is rightly getting all the attention after the arrest of dictator Nicolas Maduro, but it is important to bear in mind that Cuba’s communist regime is the mastermind of Caracas’s plan to destabilize U.S. streets through narco-trafficking and political unrest,” Heritage senior fellow Mike Gonzalez writes, citing letters from two senior Venezuelan figures now imprisoned in the United States for their roles in “a narco-terrorism conspiracy,” who both portrayed the enterprise as part of a Cuban effort “to dismantle the moral fiber of America from within.”

In Gonzalez’s telling, the allegation is substantiated — though he is drawing heavily on witnesses whose motives, perhaps including bids for clemency, critics could question.

Hugo “El Pollo” Carvajal, a former Venezuelan intelligence chief, and Cliver Alcalá Cordones, a former senior Venezuelan military officer, both separately wrote to President Donald Trump, according to the Heritage report, accusing Cuba’s regime of masterminding narco and political conspiracies emanating from Venezuela.

The conspiracy, wrote Carvajal, “was suggested by the Cuban regime to Chávez in the mid-2000s,” and was “successfully executed with help from FARC, ELN [both Colombian guerilla groups cited in the DOJ’s indictment of Maduro), Cuban operatives, and Hezbollah.”

Gonzalez casts Cuba’s intelligence services as the hemisphere’s enduring “revolutionary operator”: training guerrillas, embedding security cadres inside allied states, and building political infrastructure designed to outlive the era of jungle insurgencies.

Venezuela under Hugo Chávez and Maduro, he argues, became Cuba’s richest proxy — financing Havana with oil, exporting the revolution’s methods, and, serving as a staging ground for narcotics and leftist terror networks that United States officials have cast as direct threats.

Moving to an element that many readers may find as implausible as any narco-conspiracy claim — and backing his argument with intelligence records and open-source material — Gonzalez writes that, “From training Marxist terrorists in the 1960s, to the pro-Hamas mayhem at U.S. universities in 2024 and 2025, to the spread of transnational crime syndicates in U.S. cities, Cuba’s rulers have long plotted America’s demise.”

Heritage can be viewed as an ideologically driven, controversial, strongly conservative-leaning institution, but its work can also carry added signaling value in a Trump-era Washington because it often functions as a personnel and policy pipeline.

CIA Director John Ratcliffe has had ties to Heritage and helped shape Project 2025-era thinking on intelligence reform—linking the report’s framing to currents inside the administration itself.

Heritage’s new Cuban influence report is framed as a 60-year flow chart, structured around a turning point in Havana’s own revolutionary mythology: the Tricontinental Conference.

In 1966, Fidel Castro convened revolutionary movements, party cadres, and aligned delegations from Africa, Asia, and Latin America in Cuba to coordinate what the regime cast as a global campaign against “Yanki imperialism” — and what Gonzalez depicts as a blueprint for exporting upheaval through training, financing, propaganda, and the patient building of transnational networks.

Most readers will seize on the report’s most recent — and most incendiary — contention: that Black Lives Matter and other leftist social-justice groups did not merely ride the wave of outrage after George Floyd died in May 2020, during a police arrest in Minneapolis, but helped accelerate and channel it in ways that, in Heritage’s telling, served a longer-running Cuban strategy of political destabilization.

To support that framing, the report points to what it describes as coordination across the Western Hemisphere — Chile, the United States, and Colombia — from 2019 to 2021.

It contends there is “much evidence of Cuba and Venezuela attempting to destabilize the United States and its allies in the Americas,” and coordinating those efforts through the Foro de São Paulo (the São Paulo Forum), which Heritage depicts as a Marxist convening infrastructure that reactivated in 2019, including a New York gathering attended by aligned activists and representatives of leftist political parties across Latin America.

“From that point on,” Gonzalez writes, countries in the Western Hemisphere “suddenly started experiencing street riots that led to political change.”

Chile and Colombia saw major protests in 2019; protests in Colombia were “repeated and magnified” in 2021. Both, the report says, contributed to electoral outcomes — with the election of Gabriel Boric in Chile and Gustavo Petro in Colombia.

In the United States, Gonzalez writes, the George Floyd riots in 2020 “almost came close to leading to societal overhaul.” He adds that, aside from what he describes as the long-standing relationship between BLM and Maduro — and between BLM and Bolivia’s Evo Morales — Black Lives Matter has “taken parts in Foro conferences,” including one in the Washington, D.C., area on July 17, 2017, where one of the stated goals was to create “strategic links” with groups inside the United States.

To ground that claim, Gonzalez leans heavily on a prior Heritage special report from 2024 that examined what it called an interlocking “ecosystem” of organizations behind pro-Palestinian protests and parts of the Black Lives Matter movement.

In that earlier report, Heritage highlighted the People’s Forum in New York, led by Manolo De Los Santos, portraying him as a Cuba-aligned organizer who helped build movement infrastructure and, according to Heritage, mobilized activists ahead of the April 2024 takeover of Hamilton Hall at Columbia University.

Separately from the new Heritage report, open-source monitoring of the online narrative in the hours following Maduro’s extraction pointed to the same organizing source driving a storyline of “kidnapping,” illegality, and U.S. imperial overreach — including messaging from the People’s Forum and its director, self-acknowledged Marxist Manolo De Los Santos.

Within hours, similar language appeared in statements from prominent U.S. left figures — among them New York City Mayor Zohran Mamdani, who publicly condemned the operation and characterized it as unlawful.

The new Heritage report expands the frame: it argues that the São Paulo Forum has extended its outreach to U.S. groups invited to conferences over the years — naming, among others, Black Lives Matter, Democratic Socialists of America, Code Pink, and the ANSWER Coalition — and portrays these connections as part of a deliberate strategy to create “strategic links” inside the United States.

Some of the report’s most serious allegations rest on contested or difficult-to-verify claims drawn from opinion journalism rather than court records.

One example is a 2025 Washington Examiner column by Heritage report author Gonzalez that cites an unnamed former Venezuelan official claiming that Hugo Chávez personally provided suitcases of cash — the source estimates “at least $20 million” — to a U.S. activist before she went on to co-found Black Lives Matter, describing it as funding meant to export street protests into the United States.

“Chávez ordered his people to hand the suitcases to them — suitcases filled with dollars, at least $20 million,” the defector told him, Gonzalez’s column says, adding that the purported defector “is cooperating with and providing evidence to the U.S. government on other subjects, particularly the close connection between the Cartel de los Soles narco group and the Venezuelan state.”

According to Gonzalez’s column, the defector claimed, “The meeting took place at the Miraflores presidential palace, in a huge suite called the Japanese Suite, where private meetings are held.”

Gonzalez presents that alleged episode as emblematic: the revolution as a transnational political-financial project with paid beneficiaries and operatives in the United States, not merely an ideologically motivated movement.

But the Heritage thesis is not primarily about money.

It is about intelligence tradecraft — and the report’s central claim is that Cuban operatives embed themselves within allied regimes to “coup-proof” leaders by monitoring militaries and securing palaces, often maintaining loyalty to Havana rather than the host nation.

Gonzalez cites a 2024 essay by former Mexican foreign minister Jorge G. Castañeda arguing that thousands of Cubans have been stationed in Venezuela over the years — including security advisers and intelligence agents — to help keep Maduro in power, and that this Cuban presence may have constrained Maduro’s room to maneuver as U.S. pressure intensified.

The report’s historical flow chart then moves into Central America, leaning on Washington’s own record as evidentiary scaffolding.

Gonzalez highlights a 1978 U.S. State Department analysis written a year before the Sandinistas toppled Nicaragua’s dictator Anastasio Somoza. The document, as quoted in the Heritage report, said that “since the FSLN (Sandinista National Liberation Front) was formed in the early 1960s,” the Sandinistas “have looked to Cuba for ideological inspiration, strategic guidance, tactical training, material support, and sanctuary,” and that “throughout the FSLN’s existence, Cuba has been a training site.”

The report argues that Havana’s method then evolved — not away from revolutionary ends, but away from overt insurgency as the primary tactic.

Gonzalez leans on what he presents as the São Paulo Forum’s blueprint “formula” for leftist politicians in the Western Hemisphere: de-emphasize Marxism, run as reformers, win elections — and then, once in office, rewrite the rules. He points to Colombia’s current president, Gustavo Petro, as both a contemporary example and, in the report’s telling, an unusually candid witness to earlier Cuban involvement.

Petro, a former member of the leftist insurgent group M-19, is quoted as saying: “Fidel Castro helped M-19 in many of its Colombian actions and, we should admit it, M-19 troops trained in Cuba.”

Petro — who, in recent weeks, has also shown signs of seeking a détente with Washington, softening some of his fiercest rhetoric — had previously, in what Gonzalez calls a “loose-lipped” moment, “also revealed that Mexico’s new President Claudia Sheinbaum was also a secret M-19 asset,” quoting Petro calling her “a collaborator and militant of M-19 in Mexico.”

From there, Gonzalez lists what he presents as the cascading regional success of Castro’s influence model: “This formula worked in 1998 in Venezuela with the election of Hugo Chavez, the (São Paulo Forum’s) first triumph and a dictator who went on to use his country’s oil wealth to keep Castro’s Cuba afloat.” Lula was elected in Brazil in 2003; Evo Morales in Bolivia in 2005; Rafael Correa in Ecuador and Manuel Zelaya in Honduras in 2006; and Ollanta Humala in Peru in 2011 — “all Marxists,” the report says, who “obscured their ideology and ran as reformists,” and all São Paulo Forum participants.

Taken together, the report advances a unifying thesis: social unrest, street violence, and narco-terror cannot be understood as separate problems. They are instruments — in this view — of an intelligence-led revolutionary strategy refined over six decades, updated for the age of social media and protest politics, and funded for years by Venezuela’s oil.

That thesis also reads as a political finger to the wind — one that seems to match the rhetoric coming from the White House now: that the Trump administration’s Venezuela operation is not the end of a campaign, but the opening move in a broader rollback of Marxist-aligned regimes.

What the report does not do — and cannot do, on its own — is prove a single controlling hand behind every riot, protest, or crime wave in the United States since 2020. It assembles a narrative from history, open sources, and United States government statements, then asks readers to see continuity.

Tyler Durden Wed, 01/14/2026 - 18:30

Liberal Think Tank Urges Democrats To Ditch 'Abolish ICE' Rhetoric Ahead Of Midterms

Zero Hedge -

Liberal Think Tank Urges Democrats To Ditch 'Abolish ICE' Rhetoric Ahead Of Midterms

A center-left think tank is urging Democrats to abandon the "Abolish ICE" rallying cry, warning that the slogan threatens to sabotage any chance at immigration enforcement reform while playing directly into Republican hands.

Demonstrators gather in Minneapolis on January 7, 2026 after an ICE agent shot and killed Renee Nicole Good.

Third Way released a memo on Tuesday responding to a surge of progressive demands to eliminate Immigration and Customs Enforcement (ICE) following the fatal shooting of 37-year-old anti-ICE activist Renee Nicole Good by an ICE agent in Minneapolis after she attempted to run the agent over with her vehicle. 

While the memo acknowledges that many Democrats see the Trump administration's immigration policies as excessive and lawless, it also warns that frustration cannot justify scrapping enforcement altogether. 

The group argues that Democrats need to distinguish between reforming abusive practices and destroying the institution responsible for upholding immigration law.

“Moments like this can and should provoke anger and demands for dramatic action,” the memo explains. “In the wake of Good’s death and a growing number of disturbing immigration enforcement incidents, calls to abolish ICE have once again surged on the left. The impulse is emotional. The slogan is simple. But politically, it is lethal.”

The memo, authored by Sarah Pierce and Lanae Erickson, warns the Democratic Party that calls to abolish ICE “risks squandering one of the clearest opportunities in years to secure meaningful reform of immigration enforcement—while handing Republicans exactly the fight they want.”

The memo insists that “The goal is not to eliminate enforcement. It is to ensure enforcement is lawful, targeted, and worthy of public trust.”

The think tank even drew a direct parallel to the 2020 "defund the police" movement, which became toxic within the Democratic Party and likely cost them some seats in multiple cycles

Democrats have seen this movie before with calls to “defund the police” after lethal, law enforcement abuses that stoked racial tensions. We know how this movie ends.

Calls to abolish ICE follow the same script. It would be a tragedy built upon a tragedy if Democratic overreach allowed the inexcusable killing of Renee Good at the hands of ICE to be used to the advantage of Donald Trump and a Republican Party that is sympathetic to its excesses. Republicans understand this. They have deployed the “Abolish ICE” phrase to their advantage before and will use it as a political lifeline again.

It’s hard to argue that progressive slogans that sound anti-law enforcement don’t cost Democrats politically and shut down space for substantive policy change. And the think tank's argument rests on a pragmatic political calculation based on the most recent national election. Voters responded to what they perceived as weak enforcement under President Biden. 

What Third Way misses is that Trump is following through on his campaign promise to launch the "largest deportation program in American history" if elected. They see an opening for Democrats to stake out the middle ground, focused on accountability and restraint, rather than abolishing the agency.

"The lesson is clear: when the debate sinks into polarizing slogans that read as anti-law or anti-safety, space for practical reform disappears," the memo warns.

But what we’re seeing nationwide reflects a party with no interest in the middle ground. Blue states and cities have declared themselves sanctuaries for illegal immigrants, and local leaders are actively pushing for ICE to leave their jurisdictions, not tone down their activities. 

"Immigration laws are meaningless if they are not enforced," Third Way argues. "And they can be enforced in ways that protect public safety, respect legal norms, and uphold civil liberties. Voters understand this."

While voters get it, Democrats in Washington, D.C., do not.

But not everyone in the party is on board. Rep. Ayanna Pressley (D-Mass.) recently reiterated her position that ICE should be abolished, not reformed.

 Speaking on MSNOW this week, Pressley made it clear she doesn’t believe ICE should exist.

"I will continue to demand an independent and thorough investigation, continue to call on Congress in this moment to use appropriations and the power of the purse to rein in ICE," Pressley said. "Again, I believe it should be abolished. We need public hearings and accountability."

It’s doubtful Democrats will shift toward a more moderate stance on immigration enforcement. Democrats have clearly signaled that their priority is to resist Trump at every turn, not to compromise.

Tyler Durden Wed, 01/14/2026 - 18:10

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