Individual Economists

Meta "Joining Forces" With China-Founded Manus AI In $2 Billion Deal

Zero Hedge -

Meta "Joining Forces" With China-Founded Manus AI In $2 Billion Deal

Mark Zuckerberg has been aggressively repositioning Meta Platforms' focus and spending toward artificial intelligence, particularly to achieve "personal superintelligence" that enhances existing apps like Facebook and Instagram and, of course, boosts revenue. Put simply, the pivot to AI looks like a far better venture than Zuckerberg's absolutely horrendous bet on the metaverse.

A new Wall Street Journal report on Tuesday said that Meta is buying an AI startup with Chinese founders that conducts deep research called Manus. The move is a familiar strategy: if you cannot beat the competition, buy it. Zuckerberg has repeatedly taken this approach this year, including aggressively poaching AI talent across Silicon Valley.

People familiar with the Meta-Manus deal say the acquisition will cost upwards of $2 billion. At the same time, Manus was seeking a new round of fundraising at roughly that valuation when Meta approached with an offer.

In a statement to the Financial Times, Meta said it would "operate and sell the Manus service" while integrating its technology into its own products, such as the Meta AI chatbot.

Meta noted that Manus is one of the "leading autonomous general-purpose agents," with tools capable of performing tasks including market research, coding, and data analysis. Meta could ultimately offer this new AI agent service for as little as $20 per month.

The acquisition stands out as one of the most high-profile deals to date involving a U.S. tech giant purchasing an AI product built within Asia's AI and startup ecosystem. It highlights how AI innovation is no longer confined to Silicon Valley, but is emerging across parts of Asia. The deal also highlights a strategic shift by U.S. tech giants toward acquiring proven AI products and talent overseas, rather than relying solely on in-house development, as the race for AI agents and automation intensifies following China's DeepSeek debut earlier this year.

Manus raised $75 million in a Series B funding round led by U.S. venture firm Benchmark in April. Political scrutiny surrounding the VC firm's funding round with the China-linked startup later prompted Manus to relocate its headquarters to Singapore.

WSJ reported that Manus CEO Xiao Hong will soon report to Meta COO Javier Olivan. The startup employs about 100 staff, primarily in Singapore.

Using publicly available data from the supply chain analysis firm Sayari, Manus is owned by Singapore-registered Butterfly Effect Technology (Butterfly Effect Pte. Ltd.). The founders include Xiao Hong, often called "Red," as CEO and co-founder; Yichao "Peak" Ji as chief scientist and co-founder; and Zhang Tao as co-founder and product partner.

"In this AI wave, Chinese entrepreneurs building open-source large models or AI applications have been iterating the fastest and are highly competitive," Li Chengdong, founder of the Haitun internet think tank, told the FT. He added, "An incredible company and team are being sold to the United States. If China does not value talent and entrepreneurs and does not respect the basic rules of capital, it will ultimately be very hard for the country to win the China-US tech war."

Tyler Durden Tue, 12/30/2025 - 09:00

Case-Shiller: National House Price Index Up 1.4% year-over-year in October

Calculated Risk -

S&P/Case-Shiller released the monthly Home Price Indices for October ("October" is a 3-month average of August, September and October closing prices).

This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index.

From S&P S&P Cotality Case-Shiller Index Records Annual Gain in October 2025
• The S&P Cotality Case-Shiller U.S. National Home Price NSA Index posted a 1.4% annual gain for October, up from a 1.3% rise in the previous month.

• Regional divergence persists as Midwestern and Northeastern markets, led by Chicago (5.8%) and New York (5.0%), outpaced Sun Belt cities like Tampa (–4.2%) and Phoenix (–1.5%).

• Sixteen of 20 markets declined month-over-month in October, signaling broad stagnation as high mortgage rates weigh on affordability and suppress price momentum.
...
“October’s data show the housing market settling into a much slower gear, with the National Composite Index up only about 1.4% year over year – among the weakest performances since mid-2023,” said Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. “This figure is essentially unchanged from September’s 1.3% annual gain and represents less than a third of the 5.1% average home price increase recorded in 2024. National home prices also continue to lag consumer inflation, as October’s CPI is estimated around 3.1% (based on a provisional index the U.S. Treasury announced due to the federal data shutdown) – roughly 1.8 percentage points higher than the latest housing appreciation. In real terms, that gap implies a slight decline in inflation-adjusted home values over the past year.

“Regional performance underscores a striking geographic rotation. Chicago now leads all major markets with a 5.8% annual price gain, followed by New York at 5.0% and Cleveland at 4.1%. These traditionally stable Midwestern and Northeastern metros have sustained solid growth even as broader conditions soften. By contrast, Tampa home prices are down 4.2% year over year – the steepest drop among the 20 cities, marking Tampa’s 12th consecutive month of annual declines. Other former high- flyers in the Sun Belt are similarly struggling: Phoenix (-1.5%), Dallas (-1.5%), and Miami (-1.1%) all remain in negative territory. It’s a stark reversal from the pandemic boom, as the markets that were once ‘pandemic darlings’ are now seeing the sharpest corrections while more traditional metros continue to post modest gains.
...
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 1.4% annual gain for October, up from a 1.3% rise in the previous month. The 10- City Composite showed an annual increase of 1.9%, down from a 2.0% increase in the previous month. The 20-City Composite posted a year-over-year increase of 1.3%, down from a 1.4% increase in the previous month.
...
The pre-seasonally adjusted U.S. National, 10-City Composite, and 20-City Composite Indices continued to report negative month-over-month changes in October, posting a -0.3% drop for the 20- City Composite Index and -0.2% decreases for both the 10-City Composite and U.S. National Indices.

After seasonal adjustment, the U.S. National Index reported a monthly increase of 0.4% and both the 10-City Composite and 20-City Composite Indices posted month-over-month gains of 0.3%. emphasis added
Case-Shiller House Prices Indices Click on graph for larger image.

The first graph shows the nominal seasonally adjusted Composite 10, Composite 20 and National indices (the Composite 20 was started in January 2000).

The Composite 10 index was up 0.3% in October (SA).  The Composite 20 index was up 0.3% (SA) in October.

The National index was up 0.4% (SA) in October.

Case-Shiller House Prices Indices The second graph shows the year-over-year change in all three indices.

The Composite 10 NSA was up 1.9% year-over-year.  The Composite 20 NSA was up 1.3% year-over-year.

The National index NSA was up 1.4% year-over-year.

Annual price changes were close to expectations.  I'll have more later.

Futures Flat, Precious Metals Rebound On Last Full Trading Session Of 2025

Zero Hedge -

Futures Flat, Precious Metals Rebound On Last Full Trading Session Of 2025

Stock struggled to find direction amid a year-end lack of catalysts and the traditional lull in trading in the final trading days of the year. After suffering one of the biggest one-day drops on record, silver and gold regained their footing after sliding from all-time highs. As of 8:15am, the S&P 500 was set to open flat, while Nasdaq futures fractionally in the red after back-to-back losses. In premarket trading, Mag 7 stocks are mixed while US silver and gold stocks are higher as the precious metals rebound from Monday’s drop with gainers including Hecla (HL) +2.4%, Coeur (CDE) +2.8% and Barrick (B) +2.4%. European stocks outperformed as rising metal prices boosted miners, while a gauge of Asian shares nudged lower. In the most notable overnight FX move, China’s onshore yuan strengthened past the key 7-per-dollar level for the first time since 2023. The greenback remained on course for its worst month since August. Treasuries fell across the curve, with the 10-year yield rising three basis points to 4.14%. Today's US economic data calendar includes the weekly ADP employment change (8:15am), the Case-Shiller home price index (9am), December MNI Chicago PMI (9:45am) and the December Dallas Fed services activity (10:30am). The Fed is set to release minutes of the December FOMC meeting at 2 p.m

In premarket trading, Mag 7 stocks were mixed (Tesla +0.7%, Nvidia +0.1%, Alphabet little changed, Microsoft -0.2%, Amazon -0.1%, Meta Platforms -0.2%, Apple -0.2%)

  • Silver and gold mining stocks are higher as the precious metals rebound, with gainers including Hecla (HL) +2.4%, Coeur (CDE) +2.8% and Barrick (B) +2.4%
  • Freeport-McMoRan (FCX) rises 1.9% as copper headed for the longest winning run since 2017 in a December rally powered by the prospect of more stress in the supply chain.
  • OceanFirst Financial (OCFC) slips less than 1% on light trading after agreeing to buy Flushing Financial.
  • T1 Energy Inc. (TE) climbs 5% after the solar equipment manufacturer announced the completion of a $160 million sale of Section 45X production tax credits.

In corporate news, Citigroup expects to post a roughly $1.1 billion after-tax loss on the sale of its remaining business in Russia to Renaissance Capital. And Meta agreed to buy Singapore-based startup Manus, an AI agent that can complete general tasks including screening resumes, creating trip itineraries and analyzing stocks in response to basic instructions. The deal values Manus at more than $2 billion. Tesla published a compilation of analyst estimates for vehicle deliveries to its website, and the averages for the current quarter are more pessimistic than those gathered by Bloomberg.

Global equities are on track for a third straight annual gain in a year when European and Asian stocks trounced the S&P 500. With news flow and trading volumes generally low, investors will focus on the release of minutes from the Federal Reserve’s December meeting for clues about the interest-rate path for 2026. Tuesday also marks the last trading session of the year for many equity markets, including Germany, Japan and South Korea. 

“The overriding theme is that global stock indices have lost momentum into year-end,” wrote Kathleen Brooks, research director at XTB. “There are plenty of reasons for this, including decent returns for 2025, and investors waiting to make big trading decisions until after the Christmas break.”

Still, as Bloomberg notes, investors have reason to be optimistic heading into the new year. MSCI’s gauge for global stocks has climbed an average 1.4% in January over the last 10 years and advanced in six of those instances, Bloomberg data show.

The dollar and Treasury yields are marking time before the 2 p.m. ET release of minutes from the Fed’s December meeting, which saw a third consecutive cut. Amid signs of growing division about where policy heads next, rates may remain on hold until a new chair is in place. Trump teased that he has a preferred candidate to succeed Jerome Powell, but is in no hurry to make an announcement. Wall Street rate strategists, with several notable exceptions, anticipate stable-to-higher Treasury yields in 2026, even with the Fed expected to cut rates as many as three more times.

For another session, precious metals were in focus after trading turned volatile in the last few days. Silver rebounded 5% after tumbling 9% in the previous session. Gold was up 1.5% after losing more than 4%. Among other metals, copper headed for the longest winning streak since 2017 in a rally boosted by the prospect of more stress in the supply chain. Nickel hit the highest since March after top producer Indonesia flagged plans to cut supply.

Meanwhile, President Donald Trump said that he has a preferred candidate to be the next chair of the Federal Reserve, but is in no hurry to make an announcement. He also mused that he might fire Jerome Powell.

In geopolitics, Trump’s campaign to end the war in Ukraine hit fresh problems on Monday when Putin said he would revise Russia’s negotiating position, claiming Ukrainian drones targeted his residence. Zelenskiy dismissed Russia’s allegation as a “new lie” and warned that Moscow could be using it as a pretext to prepare an attack on government buildings in Kyiv. Oil prices are extending Monday’s gains as traders weigh geopolitical tensions from Russia to Venezuela and Iran against concern about a glut. Crude remains on course for a steep annual drop because of worries that global production will eclipse demand after OPEC and its allies ramped up output to try to recapture market share.

In Europe, the Stoxx 600 is up 0.4% and on course for a record close. Mining stocks are outperforming, tracking gains across most of the metals complex. Banks also outperform. Here are some of the biggest movers on Tuesday:

  • Fresnillo shares climb as much as 3.7% after Citigroup Inc. analysts boosted their price target on the company while maintaining a buy rating, to take account of higher silver and gold prices.

Earlier in the session, Asian equities edged lower, snapping a seven-day winning streak, as losses in Taiwan and Japan offset gains in Hong Kong.  The MSCI Asia Pacific index fell 0.1%, with TSMC and Hon Hai Precision Industry Co. among the biggest drags. Tuesday marked the last trading day of the year for several Asian markets, including Japan, South Korea and Thailand.  The Philippines remained closed for a holiday.  Some of the region’s tech shares tracked a selloff in US peers ahead of the year-end. China’s new round of military drills around Taiwan also weighed on investor sentiment.  Meanwhile, it was a busy day for stock market listings in Hong Kong, with some of the debuts trading mostly higher. Insilico Medicine Cayman TopCo, an AI drug discovery startup, jumped as much as 48%.

In FX, the Bloomberg Dollar Spot Index is little changed. The euro is flat with little reaction seen after Spanish harmonized CPI slowed as expected.

In rates, treasuries are trading near session lows as US trading gets under way for the year’s final full session; cash and futures markets plan early closes for Wednesday, when the Bloomberg Treasury index will rebalance at 1 p.m. New York time with a 0.06-year duration extension estimated. Yields are higher by about 2-3bp across tenors, the 10-year near 4.14%, with curve spreads little changed. Bunds are a touch lower while gilts inch higher. Treasuries are headed for a small monthly loss amid signs of US economic resilience, yet still on pace for their best annual performance since 2020 following three Fed interest-rate cuts in response to weakening labor-market conditions. Swap contracts for predicting Fed moves price in low probability of a rate cut for the next policy decision on Jan. 28 but fully price one in by mid-year and two by year-end. 

In commodities, spot silver rises 4% while gold and most base metals are also in the green. WTI crude futures climb 0.4% to $58.30 a barrel. 

US economic data calendar includes weekly ADP employment change (8:15am), October FHFA house price index and S&P Cotality home price gauges (9am), December MNI Chicago PMI (9:45am, several minutes earlier for subscribers) and December Dallas Fed services activity (10:30am). The Fed is set to release minutes of the December FOMC meeting at 2 p.m.; the decision to cut interest rates by a quarter point drew two dissents in favor of no action and one in favor of a bigger reduction.

Market Snapshot

  • S&P 500 mini little changed
  • Nasdaq 100 mini little changed
  • Russell 2000 mini +0.2%
  • Stoxx Europe 600 +0.4%
  • DAX +0.3%
  • CAC 40 +0.3%
  • 10-year Treasury yield +1 basis point at 4.12%
  • VIX +0.3 points at 14.47
  • Bloomberg Dollar Index little changed at 1200.33
  • euro little changed at $1.1774
  • WTI crude +0.5% at $58.35/barrel

Top Overnight News

  • Trump Says US Forces Struck Narcotics Loading Docks in Venezuela: BBG
  • Russia says its negotiating stance on Ukraine will toughen after accusing Kyiv of attack: RTRS
  • China encircles Taiwan in massive military display: RTRS
  • China’s Push to Master the Arctic Opens an Alarming Shortcut to U.S: WSJ
  • Emboldened Activist Investors Are Circling U.S. Banks: WSJ
  • Russia shows off deployment of nuclear-capable Oreshnik missiles in Belarus: RTRS
  • Russia attacks Ukraine's Black Sea ports, damages civilian ship, Kyiv says: RTRS
  • Facing Alawite backlash, Syria’s new leaders take controversial steps to win loyalty: RTRS
  • Silver Jumps in Choppy End to Year for Metals: WSJ
  • Meta Buys AI Startup Manus for More Than $2 Billion: RTRS
  • AI Trade’s Next Leg Is All About Tech’s ‘Pick-and-Shovel’ Stocks: BBG
  • Saudi Ultimatum Deepens Its Rift With Gulf Rival U.A.E.: WSJ
  • Cancer’s Soaring Cost Wrecks Patients’ Finances in a Broken System: BBG
  • Caterpillar’s Surging Stock Is Fueled by AI, Not Yellow Excavators: WSJ
  • NYC Subway Says Goodbye to MetroCard, But Many Riders Already Did: BBG

US Event Calendar

  • 9:00 am: Oct FHFA House Price Index MoM, est. 0.1%, prior 0%
  • 9:00 am: Oct S&P Cotality CS 20-City YoY NSA, est. 1.1%, prior 1.36%
  • 9:00 am: Oct S&P Cotality CS U.S. HPI YoY NSA, prior 1.29%
  • 9:45 am: Dec MNI Chicago PMI, est. 40, prior 36.3
  • 2:00 pm: Dec 10 FOMC Meeting Minutes
Tyler Durden Tue, 12/30/2025 - 08:48

Citizen Journalist Descends On Ohio, Immediately Finds 'First Signs Of Potentially Massive Somali Fraud'

Zero Hedge -

Citizen Journalist Descends On Ohio, Immediately Finds 'First Signs Of Potentially Massive Somali Fraud'

The "Nick Shirley Effect" has begun, with Muckraker founder Anthony Rubin on the ground in Columbus, Ohio, home to the second-largest Somali community in the U.S., investigating daycare centers. This development comes less than a day after Ohio attorney Mehek Cooke said federal investigators are examining allegations that elements within Ohio's Somali community defrauded millions of dollars from the state's Medicaid system.

"The first Somali-affiliated daycare facility that we knocked on after landing in Columbus, Ohio, today did not answer," Rubin wrote on X, alongside a video showing the daycare center, Great Minds Learning Academy.

Rubin continued, "A neighbor across the street told us, 'I've never seen anybody come out of the building or go into the building.'"

On Sunday, Breitbart News published an interview with Ohio attorney Mehek Cooke, who alleges that members of the Somali community in Ohio have defrauded millions of dollars from the state's Medicaid program. She said that authorities at the highest levels are investigating "what is happening in Ohio."

Rubin's on-the-ground reporting comes as tech bros have pitched a grant funding program to "unlock tens of investigative journalists" to cover widespread fraud in Democratic-run states. The idea follows Shirley's investigation into Somali-linked daycare fraud in Minneapolis, which shocked the nation over the weekend with an investigative video that has garnered 125 million views.  

We assess that public sentiment toward DOGE could reverse after the Democratic Party's propaganda machine vilified the effort this year, even as evidence of fraud, waste, and abuse was plainly visible. As on-the-ground reporting expands in corrupt blue states, the scale of the alleged fraud is likely to broaden, increasing the likelihood of a renewed push of DOGE.

Tyler Durden Tue, 12/30/2025 - 08:45

Tesla Publishes Downbeat Wall Street Estimates For Vehicle Sales

Zero Hedge -

Tesla Publishes Downbeat Wall Street Estimates For Vehicle Sales

Tesla has compiled vehicle delivery forecasts from a broad group of Wall Street firms, including Daiwa, DB, Wedbush, Canaccord, Baird, Wolfe, Exane, GS, RBC, Evercore ISI, Barclays, Wells Fargo, Morgan Stanley, UBS, Jefferies, Needham, HSBC, Cantor Fitzgerald, and William Blair. The overall sell-side analyst consensus implies Q4 deliveries of roughly 422,850 vehicles, representing a 15% year-over-year decline and a 10% drop from the Bloomberg-compiled average of 445,061 vehicles.

Source: Bloomberg

The company is on track for a second consecutive annual decline in deliveries, with analysts expecting 1.6 million vehicles in 2025, down more than 8% from last year.

This follows a slow start to the year, driven by factory retooling for the redesigned Model Y, elevated interest rates, dismal demand for EVs, and the end of federal tax credits, as well as manufactured reputational damage from the Democratic Party's propaganda apparatus. This has included billionaire-funded NGOs working with activist groups to target Tesla and Elon Musk, the spread of false or misleading claims, sustained negative media narratives, and, in some cases, militant left-wing groups carrying out arson attacks on Tesla showrooms. These actions followed Elon Musk's involvement with DOGE to uncover fraud, waste, and abuse, an effort that has since gained broader public traction amid the Minneapolis Somali-linked fraud scandal that has shocked the nation.

Here is the full printout of the Tesla-compiled consensus from sell-side analysts:

Tesla shares are up 14% year to date as of Monday's close.

Investor interest has increasingly shifted toward robotics, artificial intelligence, and power grid upgrades. The convergence of these technologies under a single corporate umbrella shows the uniqueness of the Tesla brand, as no other U.S. company currently operates at a comparable scale across those domains.

Tyler Durden Tue, 12/30/2025 - 07:45

Why Did The EU Slide Into Complete Irrelevance?

Zero Hedge -

Why Did The EU Slide Into Complete Irrelevance?

Authored by Mike Shedlock via MishTalk.com,

Hint: It’s structural. Trump has nothing to do with it...

The Creeping Death of the Single Market

Eurointelligence discussed the EU’s Slide Towards Irrelevance

The EU has zero chance to emerge as a geopolitical power like the US or China. Strategic autonomy was only a slogan. It came with no strategy, and most importantly, with no financial commitments. The way EU countries are currently raising military spending, through debt mostly, and without common procurement, will reinforce their dependency on the US and US-dominated financial markets. At no point did the EU have an agreed end-game strategy for Ukraine – something that goes beyond wishful thinking.

But the EU has a few, sadly neglected, assets. It has a customs union, a single market and a single currency. They don’t win wars, but they matter. If the EU had not fallen behind the US in productivity growth, and if it had not given up on 21st technologies, the EU would be a formidable soft power. The threat of being banned from the world’s largest single market would have been a real choke-hold. The purpose of frugal fiscal policies is not to pay homage to a protestant work ethic, but to give financial headroom to act during emergencies.

If you accept, as everybody seems to do, that treaty change is impossible, an intelligent soft power strategy is the only thing that is left. But that would have meant a lowering of ambitions: no Green deal; no anti-tech legislation; the completion of the banking union with the goal to end the bank-sovereign nexus. In particular, it would have meant more integration.The balance between widening and deepening is way off.

For the talking heads that roam our airways and social media, it is cooler to talk about foreign policy. But for the EU it would be better if its leadership took an interest in the work of standard committees. They should not invite Zelensky to their European Council meetings, but the three economics Nobel Laureates, to give a presentation of the importance of technology to economic growth. The creeping death of the single market is the real existential crisis of the EU. It is not Trump.

If the EU wants to acquire hard power, that would have to be preceded by political reforms: treaty change to establish the EU as a federal union, with tax raising and debt issuing powers, money to fund an army, and a politically accountable military command structure. You don’t acquire hard power with people sitting around tables.

The EU’s tragedy is that it abandoned the necessary to seek the impossible.

Treaty Change Impossible

Yes, I do accept that a treaty change is impossible unless and until some currency crisis forces that outcome.

I have been writing about this for years.

The EU is governed by nannycrats with impossible goals and no way to act on them.

The Green Deal is now dead. Trump demand 5 percent military spending when budget constraints are such that 2 percent will be a struggle.

The US strives to innovate. The EU strives to regulate. It wants to regulate AI without knowing what AI is even about.

EC fines X €120 million under the Digital Services Act

Please note that on December 4, the EC fines X €120 million under the Digital Services Act

Deceptive design of X’s ‘blue checkmark’

X’s use of the ‘blue checkmark’ for ‘verified accounts’ deceives users. This violates the DSA obligation for online platforms to prohibit deceptive design practices on their services. On X, anyone can pay to obtain the ‘verified’ status without the company meaningfully verifying who is behind the account, making it difficult for users to judge the authenticity of accounts and content they engage with. This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors. While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place.

Lack of transparency of X’s ads repository

X’s advertisement repository fails to meet the transparency and accessibility requirements of the DSA. Accessible and searchable ad repositories are critical for researchers and civil society to detect scams, hybrid threat campaigns, coordinated information operations and fake advertisements.

X incorporates design features and access barriers, such as excessive delays in processing, which undermine the purpose of ad repositories. X’s ads repository also lacks critical information, such as the content and topic of the advertisement, as well as the legal entity paying for it. This hinders researchers and the public to independently scrutinise any potential risks in online advertising.

Nannycrat Nonsense

Seriously, doesn’t the EU have anything better to do than worry about blue checkmarks on X?

Unfortunately, this kind of nannycrat nonsense is all that the EU can do.

Q: Why?
A: Because, with few exceptions, it takes unanimous or nearly unanimous agreement to do anything.

So the EU launches commissions and studies again and again and again because commissions and studies are the only thing that can be approved.

By treaty, France has veto power over anything agricultural (every nation actually, but France and Italy are at the forefront). Global trade summits fail every year because of single-nation veto power. It useless to even invite the EU because the outcome is known from the beginning.

Germany and other Northern European countries have veto power over budget rules. That won’t change until German banks blow sky high, if then.

In the rare case the EU ever does anything, it’s usually wrong. Green energy, carbon border taxes, and the ridiculous digital services act are good examples.

Spotlight AI

The competition on AI is massive. Globally it’s the US vs China. But within the US there are four key players.

  • OpenAI: OpenAI developed ChatGPT and the GPT models. It is a leader in conversational AI and foundational models.

  • Anthropic: Anthropic is an AI safety and research company. It develops the “Claude” family of large language models. It is known for its constitutional AI framework.

  • xAI: xAI is Elon Musk’s AI venture. It developed the Grok chatbot, with integration with Tesla and robotics.

  • Perplexity AI: Perplexity AI operates an AI-powered search engine. It uses large language models and real-time web search to provide cited answers.

AI Q&A

Q: Where is the EU?
A: The EU is not in the ballpark. It’s not even close to the ballpark.

Instead, EU nannycrats are in a sand playbox 2,000 miles away trying to regulate the damn thing.

France’s big concern is not AI but to protect the family farm.

Protecting Family Farms in France:
  • Combating Unfair Competition: Farmers protest against free-trade deals (like Mercosur) that they argue flood the market with cheaper products, undermining French standards and viability.
  • Rural Livelihoods: Supporting family farms is seen as vital for food security, rural jobs, and maintaining the French countryside’s character. 
  • Economic Support: France relies on EU subsidies, but farmers demand fairer distribution, with new rules pushing for eco-friendly practices while trying to prevent large farms from monopolizing funds.
  • Legal Protections: Laws aim to shield farmers from “abusive” lawsuits by new residents over noise (like roosters) or smells, preserving traditional agricultural practices.
Mercosur Deal Update

Hooray! I am pleased to report that political agreement on Mercosur was reached in December 2024 after 25+ years of talks.

However, ratification hinges on member states.

Yet, on December 19, Politico reported EU delays Mercosur signing as 25-year curse drags on

An eleventh-hour turnaround from Italian Prime Minister Giorgia Meloni upended a self-imposed objective of signing the agreement with the Mercosur countries on Dec. 20 — pushing the decision to mid-January instead, POLITICO first reported.

The delay shows that after two decades of negotiations and countless turn-arounds, the EU-Mercosur pact, designed to create one of the world’s largest free-trade areas between the EU, Brazil, Uruguay, Paraguay and Argentina, continues to be a political minefield in Europe.

“Mercosur plays a central role in our trade agreements,” said European Commission President Ursula von der Leyen on her way into the leaders summit on Thursday morning, adding it was “of enormous importance we get the green light.”

Yet Meloni derailed the carefully laid plan.

Brazil’s President Luiz Inácio Lula da Silva said the Italian leader promised him on a call Thursday that she would support the deal as soon as she secured the backing of Italy’s farmers. Despite heaping pressure on Europeans in recent days, Lula ended up accepting the delay, the diplomats said.

Meloni’s pushback meant there was not enough backing from EU countries for von der Leyen to fly to Brazil this weekend to sign the deal as planned — despite the huge political capital invested on each side in trying to finalize it by the end before Christmas.

Even if Rome and Paris come around, the agreement’s troubles are far from over: The deal must still pass through the European Parliament, where opposition is mounting across the political spectrum.

“It seems certain that it [the Mercosur deal] will be signed in mid-January,” a senior German official told reporters.

The mid-January date is important, the official stressed, to get the agreement ratified before the Parliament has a chance to vote on a resolution to send the deal to the Court of Justice of the EU — which would risk freezing its ratification for up to two years.

Dealing With the EU

Mercosur is the perfect example of what it’s like dealing with the EU. Any country can damn near block any deal for any reason, or no reason at all.

I repeat my congratulations to the UK for escaping this madness. Of course, the UK has not made the best of Brexit, but that is the fault of UK politicians, not the Brexit vote itself.

Regulation and roadblocks are all the EU knows how to do. That’s why Google, Amazon, Microsoft, Tesla, Nvdia, and all the key AI players outside of China are in the US. The EU would regulate them to death before they ever got going.

To repeat: The US strives to innovate. The EU strives to regulate. Deals take 25 years. Knowing that, one would have to be crazy to want back in.

Tyler Durden Tue, 12/30/2025 - 07:20

The World Is Hopeful For A Better 2026

Zero Hedge -

The World Is Hopeful For A Better 2026

Despite ongoing conflicts, uncertainty over what Trump era 2.0 will bring next and the imminent climate catastrophe, global optimism is holding firm for 2026.

As Statista's Anna Fleck details below, according to the latest data from Ipsos, an average of 71 percent of respondents across 30 countries said they felt optimistic that their 2026 will be better than 2025.

This is the same share as last year and 16 percentage points up from 2023, which had the lowest score on record since Ipsos started running the survey.

 The World Is Hopeful for a Better 2026 | Statista

You will find more infographics at Statista

Of course, a global average hides the differences between countries.

For instance, when looking at national breakdown, Indonesia has a high share of people feeling positive about their coming year. Out of the 30 countries polled, it comes out on top, with 90 percent of respondents feeling more optimistic about 2026. This is the same as last year.

At the more cynical end of the spectrum stand France and Japan, with only 41 percent and 44 percent of their respondents, respectively, feeling more positive about the coming year. France saw a nine percentage point drop from last 2024, following a year of political turmoil in 2025. Meanwhile, Japan’s low score is actually a six percentage point increase on its 2024 figure. South Korea and India were the two countries to see the largest gains, with a nine percentage point increase year-on-year.

Optimism has faltered slightly in the United Kingdom, down three percentage points from last year to 58 percent, while 66 percent of U.S. respondents said they felt optimistic about the coming year (-4 p.p.).

Tyler Durden Tue, 12/30/2025 - 06:55

Kazakhstan Crude Production Dips 6% After Black Sea Drone Attack

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Kazakhstan Crude Production Dips 6% After Black Sea Drone Attack

By Charles Kennedy of OilPrice.com,

Following the Ukrainian drone attack that damaged a key export terminal on Russia’s Black Sea at end-November, Kazakhstan’s crude and condensate production has fallen by 6% so far in December compared to the average output in November, an anonymous industry source told Reuters on Monday. 

A Ukrainian attack damaged infrastructure through which the Caspian Pipeline Consortium (CPC) exports most of Kazakhstan’s oil near the Russian port of Novorossiysk on the Black Sea. 

Oil has continued to flow, but at lower rates, while Kazakhstan sought to re-route some exports away from the Black Sea to keep supply relatively steady. 

CPC operates the pipeline from the Caspian coast in northwest Kazakhstan to the Novorossiysk port, which handles 80% of Kazakhstan’s crude exports from giant oilfields operated by international oil firms. 

Affiliates of Chevron and ExxonMobil are also minority shareholders in CPC, with the Russian Federation as its largest shareholder with a 24% stake.

As a result of the damaged infrastructure at the CPC export terminal, crude and gas condensate output from Kazakhstan dropped by 6% between December 1 and 28, down compared to an average of 1.93 million barrels per day (bpd) in November, according to Reuters’ source.  

Production at the giant Tengiz oilfield on the Caspian Sea, operated by a consortium led by Chevron, has also fallen this month. Output dipped by 10% to 719,800 bpd in the period December 1 through December 28, the source told the publication.

Earlier this month, Kazakhstan said it would reroute some of the oil from at its giant Kashagan oilfield toward China. 

In view of urgent repairs at one of three single-point moorings and deferred loadings, Kazakhstan works on rerouting part of its crude exports, Kazakhstan’s Energy Ministry told Reuters nearly three weeks ago. 

Kazakhstan is also diverting more of its westbound exports to the Baku-Tbilisi-Ceyhan (BTC) pipeline to the Turkish Mediterranean coast after the attack, multiple industry sources told Reuters in early December.  

Tyler Durden Tue, 12/30/2025 - 06:30

Europe's Ideological Paralysis Threatens AI Boom

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Europe's Ideological Paralysis Threatens AI Boom

Submitted by Thomas Kolbe

Economic prosperity is created in free markets by innovative companies. Over 50 percent of globally operating AI unicorns are located in the U.S., while Europe plays virtually no role. The race for the next future technology is already decided.

It seems that economic history is repeating itself in these months. On the stock markets, companies in the artificial intelligence and data center sectors are being traded feverishly. Massive capital flows into this technology. Much of it resembles the dot-com boom 25 years ago.

Structurally and regionally, little has changed since then: The U.S. and China are fighting for pole position, while the European Union’s economy remains largely on the sidelines, pushed into a spectator role by EU regulators.

Unicorns as a Measure of Innovation

An interesting measure of the EU’s lag in artificial intelligence is the number of so-called unicorns—private startups valued at at least one billion U.S. dollars before going public. This metric is considered a valid indicator of a region’s innovative capacity—and for the EU, the comparison with the U.S. is catastrophic.

About 1,700 such innovative companies currently operate in the U.S., while the EU has only around 280. The U.S. dominates this market with over 50 percent share, whereas the European economy lags far behind with less than ten percent of the global market.

This economic gap is also reflected in investment volume. Hyperscalers such as Amazon, Microsoft, Alphabet, and Meta invested over $320 billion in AI and corresponding data center infrastructure this year alone. More than 550 new projects—with a focus in Virginia, Texas, and Arizona—are forming the backbone of a new economy.

Data center capacity in the U.S. grew by around 160 percent this year, while Europe’s capacity increased by only about 75 percent, equaling an investment volume of just under €100 billion.

With investments of around $125 billion, China’s economy also lags far behind the American one. An interesting context—especially from the perspective of European, and particularly German, policymakers—is that nuclear power is gaining noticeable momentum in these regions.

Even if green-minded Germany refuses to acknowledge it due to its ideological stance against nuclear energy, the enormous energy demand of new technologies will in the future be covered to a significant extent by the expansion of nuclear power.

Among the few major projects in the European Union are the Brookfield project in Sweden, with an investment volume of around $10 billion, and the Start Campus in Portugal, which could also activate nearly $10 billion in investments.

Crash of Ideologies

Especially in AI, the ideological clash between the U.S. and the EU can be observed in practice and in all its consequences. While the U.S. relies on deregulation and private solutions, removing barriers for intense competition, EU Europe still adheres to the mantra of political global control. Nothing may happen unless Brussels officials have schemed it at their green table in all their wisdom.

The Draghi motto still applies here: Only massive public investments—credit-financed and centrally planned—will, in the view of EU statist planners, help overcome the enormous gap between Europe and the U.S.

In the simulations of the EU Commission’s master plan, now stretched over seven years under Ursula von der Leyen, everything seems surprisingly simple, almost simplified. The EU’s Invest-AI plan intends to borrow around €50 billion in loans and invest them in selected projects in the coming years. This is supposed to trigger private investments of €150 billion, ultimately creating four AI gigafactories.

Welcome to the socialist textbook world of “Habeckonomics”: a system in which state projects like Northvolt repeatedly fail. Yet as long as public guarantees, subsidies, and state-guaranteed purchase prices are in prospect, the small flame of political hope continues flickering in Europe’s lukewarm wind.

As usual, we also observe the typical European jungle of funding programs, subsidies, and steering projects. These include “Horizon Europe,” which is meant to strengthen computing power in science, the RAISE pilot, and the Gen-AI-4-EU initiative, together investing another billion euros in the EU’s digital infrastructure.

The Power of Competition

The ideological clash between the two major economic blocks, the U.S. and the EU, is producing strange effects. While the open capital market in the U.S. lets startups sprout like mushrooms from fertile soil, EU regulation—especially under the Digital Markets Act—has fostered a predatory mentality. That this was likely the Eurocrats’ goal from the start comes as no surprise.

Brussels imposed more than €3.2 billion in competition fines this year, mainly targeting U.S. corporations. Brussels has degenerated into a bureaucratic leviathan—a parasitic glutton absorbing economic energy and generating ossified structures and economic vacuum.

In EU Europe, the motto is: the regulatory framework matters most—and the state takes its cut. That private industry prefers other locations and withdraws capital matters little to Brussels’ extraction experts.

Against the backdrop of Europe’s massive descent into a climate-socialist dystopia, it is surprising that the roots of libertarian economic thinking originate precisely on this continent. Consider the great economist Ludwig von Mises, who repeatedly pointed out that it is the entrepreneur who drives the engine of the market economy through profit-seeking, and that without exception, decentralized processes create prosperity—while state interventions regularly derail it.

Civilization-superior models like the free market sink in the waves of ideological EU infantilism. Its repressive climate socialism promotes the growth of corporatist structures in which politics and subsidized parts of the economy carry out the extraction, eliminating competition.

The rigid adherence to centrally planned control of the new tech industry tragically mirrors the timeline of the dot-com era. What Europe fails to understand is that groundbreaking innovation inevitably triggers an investment boom, often resulting in overinvestment and a stock market crash—but ultimately leaving economically profitable structures permanently woven into the existing economy.

As with companies like Amazon, Google, or Microsoft, Europeans will look back in a few years at these months and examine this intercontinental economic bifurcation through the examples of OpenAI, Gemini, or Perplexity. The energy needed will come from French nuclear reactors and soon also from Polish nuclear power.

Tyler Durden Tue, 12/30/2025 - 05:00

Where Do Microplastics Come From Anyway?

Zero Hedge -

Where Do Microplastics Come From Anyway?

Most people know that plastic pollution is a problem, but microplastics (the tiny fragments shed by everyday products) are much more pervasive than many realize.

Microplastics are defined as plastic particles smaller than 5 mm.

These particles are found everywhere: in oceans, soil, drinking water, food, and even the air we breathe. Yet, the origins of these particles are often invisible to consumers.

Using data from the IUCN, CSIRO, and Elsevier, this graphic, via Visual Capitalist, by Made Visual Daily breaks down what actually makes up these particles and where they come from.

A breakdown of microplastic sources, compiled from multiple environmental studies:

The chart shows that the biggest contributor to microplastics is synthetic textiles, which account for 35% of the total. Tires (28%) and city dust (24%) are also major culprits, followed by road markings (7%) and a grab bag of other sources (6%).

How Do These Microplastics Enter the Environment?

Microplastics enter the environment in two main forms: primary and secondary.

Primary microplastics are released directly into the environment at a microscopic size. These include:

  • Fibers shed from washing synthetic fabrics like polyester, nylon, or acrylic.

  • Rubber dust worn from car and truck tires during normal use.

  • Fragments in city dust from the abrasion of paints, soles, furniture, and building coatings.

  • Plastic pellets (“nurdles”) lost during plastic manufacturing or shipping.

Secondary microplastics, on the other hand, are formed when larger plastic debris—like bags, bottles, or fishing gear—breaks down over time due to sunlight, wave action, and weathering. These degrade into smaller and smaller pieces, eventually becoming microplastics.

Both types are persistent, pervasive, and increasingly found in even the most remote ecosystems. Research shows that even atmospheric currents can transport microplastic particles across continents and oceans.

The Scale of the Problem

Scientists estimate that roughly 21 million tonnes of primary microplastics have accumulated across land and sea environments, with millions of tonnes found in both agricultural soils and ocean waters. To help readers grasp the sheer scale of this invisible pollution, the graphic visualizes this total as an area filled 10 feet (3 meters) deep across a span of 2 miles (3.2 kilometers).

As highlighted in our previous breakdown of the future of the world’s plastic, the accumulation of these invisible pollutants is a growing concern, with long-term impacts still being uncovered.

What Can Be Done?

Solutions will require both technological and behavioral changes. For instance, innovations like microfiber filters in washing machines, and the development of alternative materials for tires and textiles, could help reduce the release of particles at the source.

In the meantime, understanding where microplastics come from is a critical first step. As this breakdown shows, the issue goes far beyond just plastic straws and bags.

Explore more microplastic visualizations like Visualizing The Size of Microplastics on Voronoi, our data storytelling app.

Tyler Durden Tue, 12/30/2025 - 04:15

Ukraine's Zaporozhia Nuclear Plant Could Restart 18 Months After War Ends

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Ukraine's Zaporozhia Nuclear Plant Could Restart 18 Months After War Ends

By Michael Kern of OilPrice.com,

The Zaporizhzhia nuclear power plant in Ukraine, which has been under Russian control since early 2022, could resume operations within a year and a half after a potential end to the war, the head of the plant’s Russian operating company said on Monday. 

“If this (the end of the conflict) happens tomorrow, we will be ready to start up in mid-2027,” Ramil Galiyev, CEO of the Zaporizhzhya NPP Operating Organization, said, as carried by Russia’s state news agency RIA. 

The Zaporizhzhia nuclear plant is not operational and does not produce electricity, but needs power supply from external sources to cool the nuclear material and avoid a nuclear meltdown or disaster.

Zaporizhzhia is Europe’s biggest nuclear power plant in terms of installed capacity of 5.7 gigawatts (GW).

Located in Enerhodar, the nuclear power plant supplied about 20% of Ukraine’s electricity before the war. 

Earlier this year, the International Atomic Energy Agency (IAEA) began a process to help restore external electricity to the power plant, following weeks of diplomatic engagement with both Ukraine and Russia after the facility again lost all access to the national grid.

IAEA Director General Rafael Mariano Grossi announced that work had begun to re-establish off-site power through repairs to the damaged 750 kV Dniprovska and 330 kV Ferosplavna-1 transmission lines.

These lines, located on opposite sides of the front line, are essential for supplying the electricity needed to cool the plant’s six shutdown reactors and spent fuel.

Last week, Russian media claimed that the Trump Administration held talks with Russia over joint management of the Zaporizhzhia nuclear power plant, including the potential to use its power for crypto mining. The discussions, which have not been independently confirmed, were allegedly held without Ukraine’s participation, and likewise proposed resuming electricity supply to Ukraine, Russian newspaper Kommersant reported on Friday.  

Tyler Durden Tue, 12/30/2025 - 03:30

These Are The World's 5 Largest Megacities

Zero Hedge -

These Are The World's 5 Largest Megacities

By 2050, 68% of the global population is projected to live in urban centers, up from 55% today.

The world’s largest megacity, when measured by the combination of satellite imagery and census data, is Guangzhou, China.

Strikingly, the population has boomed by nearly 20-fold in just 50 years driven by China’s rapid economic rise.

This graphic, via Visual Capitalist's Dorothy Neufeld, shows the growth of the world’s megacities, based on data from the European Commission via Our World in Data.

The Rise of the World’s Megacities (1975-2025P)

Below, we show the rise of the top five largest cities worldwide—using satellite imagery and census data—not administrative borders:

Since 1975, the population of Guangzhou has expanded by 40.9 million. It has the equivalent population of the entire country of Canada.

During the 1990s, the city’s population growth accelerated, driven by trade and industrial activity. Located on the Pearl River Delta, north of Hong Kong, it stands as a key port and transportation hub.

Jakarta, Indonesia’s capital and the economic hub of Southeast Asia’s largest economy, has undergone massive expansion. Its population has surged by 29 million over the past five decades, reaching 38.1 million today.

Meanwhile, New Delhi, India has grown 398%, supported by rising incomes and urban migration. By 2030, the city is expected to gain nearly two million more residents, spanning a population of 33.3 million.

To learn more about this topic, check out this graphic on the world’s fastest-growing economies.

Tyler Durden Tue, 12/30/2025 - 02:45

The Beginning Of The End For Europe's Old Security Order

Zero Hedge -

The Beginning Of The End For Europe's Old Security Order

Authored by J.Ricardo Martins via journal-neo.su,

Europe’s long-standing security framework is undergoing profound strain, increasingly overshadowed by economic instruments that shape geopolitical influence.

This analysis examines how geoeconomic logics are reshaping Europe’s strategic posture and challenging the foundations of its traditional security order.

  1. The Unraveling: How Europe Lost Control of Its Own Security Architecture

The photograph of Steve Witkoff with Vladimir Putin in Moscow is not merely another episode in the long chronicle of American informal diplomacy. It is a symbol of something far more consequential: the definitive erosion of the Euro-Atlantic security architecture that has anchored Europe since 1945. Europe now finds itself a spectator to a negotiation that directly concerns its future but in which it has no meaningful voice.

For decades, European leaders assumed that their security environment was guaranteed through three pillars: American military supremacy, NATO cohesion, and a Russia that could be simultaneously contained and marginalised. The war in Ukraine temporarily sustained this illusion. The European Union interpreted Russia’s invasion of Ukraine as validation of the post-1991 Atlantic order, proof that Europe needed more NATO, more American leadership, more defence spending, and more ideological alignment with Washington.

Europe’s tragedy is not that it is being excluded from the negotiations shaping its own future, but that it does not yet fully grasp the depth of its exclusion

But as the conflict entered its later stages, and as new political dynamics emerged in Washington, a deeper reality became visible: Europe’s vision of security was not aligned with America’s long-term strategic trajectory.

Washington seeks to contain China; Europe seeks to contain Russia. Washington looked to the Indo-Pacific; Europe clung to its Eastern frontier. Washington viewed Russia as a potential co-player in global resource extraction, Arctic development, and strategic balancing; Europe continued to frame Russia as a permanent existential enemy.

The result is a form of strategic misalignment, with Europe still operating inside an architecture that Washington no longer fully believes in.

The American Pivot, the European Panic

Donald Trump’s return to the international stage accelerated this divergence dramatically. Trump’s strategic re-imagination of Russia, as an asset rather than an adversary placed Europe in a state of near-panic. His willingness to undermine NATO commitments, his explicit distrust of European leaders, and his understanding of geopolitics as business diplomacy all contribute to Europe’s strategic anxiety.

Trump’s humiliation of Europe is deliberate. By sending Witkoff, an adviser with no diplomatic obligations, to Moscow repeatedly while ignoring Kyiv, Trump signals that the centre of gravity has moved. The peace process will not be mediated through Brussels, Berlin, or Paris; it will be mediated through a Washington–Moscow axis, bypassing European institutions entirely.

Europe’s refusal to speak with Moscow is interpreted in the Kremlin not as principled resistance but as strategic self-sabotage. And Washington, sensing opportunity, is willing to exploit this fracture.

As many analysts warned—both sympathetic and critical—Europe is discovering too late that its security cannot be maintained through moral rhetoric, sanctions, or rearmament without industrial foundations. Europe wants to contain Russia, but it no longer has the political, military, or economic tools to do so.

  1. The Dealmakers: How Trump, Putin, and Business Networks Are Writing Europe Out of Its Own Future

Shadow Diplomacy as the New Geopolitics

Witkoff’s shuttle diplomacy represents a structural shift: diplomacy is no longer the domain of foreign ministries but of political families, corporate intermediaries, and resource-based alliances. This is why Kushner’s presence in Moscow matters profoundly. The December talks were not simply high-level negotiations; they were the emergence of a new system of geopolitical conduct, in which trust between individual power networks outweighs institutional protocols.

The Trump–Putin paradigm is built on three principles: (i) commercial logic over ideological confrontation; (ii) resource extraction as the foundation of geopolitical stability; and (iii) bilateral trust over multilateral institutions.

This is profoundly humiliating for Europe, which traditionally sought legitimacy via multilateralism. For Washington and Moscow, however, Europe’s exclusion is not an oversight but a feature. The old European security architecture depended on Europe’s centrality. The new one does not.

The Economic Heart of the New Architecture

The emerging Washington–Moscow understanding is grounded in four economic pillars:

– Arctic and Northern Sea Route Resource Extraction: Joint participation in Arctic minerals, hydrocarbons, and rare earths is central. The US is far behind Russia in icebreaker capacity and Arctic infrastructure, and cooperation is a pragmatic solution.

– Energy Corridors and Post-War Reconstruction: American investors eye Russian energy as an undervalued frontier market. Simultaneously, reconstruction of Ukraine (potentially funded by frozen Russian assets) creates massive opportunities for US construction and energy firms.

– Reintegrating Russian hydrocarbons into global markets: This is a long-term American objective, both to stabilise global energy prices and to manage China’s growing leverage over Russia.

– Replacing NATO’s military logic with economic interdependence: This is the core of Trump’s thinking: build a Washington–Moscow axis rooted in profitability, thereby reducing the incentive for armed confrontation.

Why Europeans Are Desperate

Because Europe has tied its industrial base to sanctions, decarbonisation, and American military dependency, it is now structurally weaker than both Washington and Moscow in the emerging configuration.

Europe is discovering three painful truths:

– It cannot defend itself without the US. NATO’s European pillars lack ammunition, industrial capacity, and high-end military technology.

– Sanctions have weakened Europe more than Russia. Energy-intensive industries in Germany, Austria, and Italy are relocating to the US. Deindustrialisation is underway in Europe.

– The peace negotiations will not include Europe as a co-author. Europe will receive the final document, but not be invited to shape it.

This is why European strategists are furious: the security architecture that defined the continent is being rewritten over their heads.

  1. After Ukraine: What the New European Security Order Might Look Like

Will NATO survive as Europe’s central pillar?

NATO will not disappear. It remains too deeply institutionalised, too symbolically powerful for Europeans, and too useful for Washington’s basing structures and arms exports. But it will be downgraded, transformed from the core of the European security order into a secondary framework, increasingly dependent on: US political will, a fragmented European defence sector, reduced American enthusiasm for European commitments, and a US–Russia modus vivendi that Europe does not control.

Under a Trump presidency, NATO has become a transactional umbrella, not a strategic alliance. Its credibility will depend entirely on the personal relationship between Trump and Putin—and Europe hates this because it strips the continent of agency.

The Impact of the War and the Coming Peace on Europe’s Architectural Future

The conflict in Ukraine revealed Europe’s structural vulnerabilities: lack of ammunition, lack of production capacity, overreliance on sanctions, and strategic incoherence. The peace will reveal something even more uncomfortable: Europe cannot enforce the consequences of the settlement on its own.

If the US and Russia craft the final settlement, Europe must either accept it or refuse and confront the consequences alone. Neither Paris nor Berlin is prepared for the latter scenario.

Ukraine, tragically, will be the ultimate pressure point. Its sovereignty will be negotiated by outsiders. Europe knows this but cannot alter it.

Can Europe Hold the Architecture Without the US?

The honest answer is no, not in the short or medium term. Europe lacks nuclear deterrence autonomy, military-industrial depth, cohesive political will, strategic consensus, energy security, technological parity with the US, and the capacity to contain Russia without American leadership.

The idea of European strategic autonomy remains aspirational rhetoric. The EU has military instruments, but not a military. It has ambitions, but not the industrial base to sustain them.

The Asian Century and the Decline of Europe

The more Washington and Moscow converge economically, the more Europe’s global relevance declines. The Russia–China axis strengthens, India emerges as a balancing pole, and the BRICS expand their economic and political weight. Europe becomes a peninsula of a Eurasian supercontinent that it does not control, increasingly marginal to global power centres.

Whether Asia can provide stability depends on the trust networks forming between Beijing, Moscow, New Delhi, Riyadh, and Tehran. Europe is not part of those networks.

Conclusion: A Continent in Suspension

Europe’s tragedy is not that it is being excluded from the negotiations shaping its own future, but that it does not yet fully grasp the depth of its exclusion.

The Moscow meetings are not a negotiation between equals; it is a negotiation between systems of power. Trump and Putin understand one another because they speak the language of transactional geopolitics. Europe speaks the language of norms, laws, and bureaucratic procedures—in a world that is no longer governed by them.

A new European security architecture is being drafted, and it is not being drafted in Brussels. It is being drafted in Washington and Moscow.

Europe must confront a stark question: Can a continent that has lost strategic agency recover it before the next geopolitical cycle closes?

Tyler Durden Tue, 12/30/2025 - 02:00

China Condemns Israel's Recognition Of Somaliland As Taiwan Embraces Move

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China Condemns Israel's Recognition Of Somaliland As Taiwan Embraces Move

Via The Cradle

The Chinese Foreign Ministry released a statement on Monday condemning Israel’s recognition of the separatist Republic of Somaliland, after Taiwan became the first state to welcome Tel Aviv's move

China opposes the Israeli recognition of Somaliland as an "independent sovereign state" and the decision to "establish diplomatic relations" with it, said Chinese Foreign Ministry spokesman Lin Jian. "No country should encourage or support other countries’ internal separatist forces for its own selfish interests," he added, while urging the country of Somalia to halt "separatist activities and collusion with external forces."

The spokesman made the comments during a news briefing. "China firmly supports Somalia's sovereignty, unity, and territorial integrity, and opposes any moves that undermine Somali territorial integrity," he went on to say.

A day earlier, Taiwan became the first state to welcome Israel’s recognition of Somaliland. The Taiwanese Foreign Ministry said in a statement that Israel, Taiwan, and Somaliland are "like-minded democratic partners sharing the values of democracy, freedom, and rule of law."

Last week, Israel became the first state to formally recognize Somaliland, which broke away from Somalia in 1991 but had never been recognized by any UN member state. Somali officials slammed the move. 

The Israeli government has been aiming for Somaliland to serve as a potential destination for Palestinians that Tel Aviv aims to forcibly displace from Gaza, according to multiple reports over the past year. 

Somali Prime Minister Hamza Barre said that Israel was “searching for a foothold in the Horn of Africa” and called on it to recognize and accept a Palestinian state instead. 

Somali President Hassan Sheikh Mohamud referred to the move as a "naked invasion" and said it poses a "threat to regional stability."

The Arab League, Gulf Cooperation Council (GCC), African Union, and Organization of Islamic Cooperation (OIC) also strongly rejected the Israeli recognition of Somaliland. Iran's Foreign Ministry called the move "malicious."

China’s rejection of the recognition coincided with a report by Hebrew newspaper Maariv, which claimed that after recognizing Somaliland, Israel is now considering recognizing the UAE-backed Southern Transitional Council (STC) in Yemen, hoping for strategic cooperation on the Red Sea coast against Ansarallah.

The secessionist STC has recently swept across large swathes of central and southern Yemen with the hopes of creating an independent state. According to recent reports, Israel and Taiwan have also been enhancing their relationship.

Taiwanese Foreign Minister Francois Wu recently made a secret visit to Israel, sources told Reuters on 11 December. In October this year, Taiwan's President Lai Ching-te said that Israel serves as a model for the island to strengthen its defenses.

Weeks earlier, Taipei City unveiled the T-Dome system – inspired by Tel Aviv's Iron Dome missile defense system. Taiwan and Israel do not have formal diplomatic relations. Pressure from China, which views Taiwan as one of its provinces, has left Taipei with very few diplomatic ties to other states.

Tyler Durden Mon, 12/29/2025 - 23:25

Lung Cancer? Alarming Study Finds Ultra-Processed Foods Are Even Worse Than Previously Thought

Zero Hedge -

Lung Cancer? Alarming Study Finds Ultra-Processed Foods Are Even Worse Than Previously Thought

A large U.S. cohort study has found that individuals consuming the highest levels of ultra-processed foods face a significantly greater risk of developing lung cancer, even after adjusting for smoking and other factors.

Research published in the journal Thorax analyzed data from more than 101,000 participants in the Prostate, Lung, Colorectal and Ovarian Cancer Screening Trial. Over an average follow-up period of 12 years, researchers identified 1,706 incident cases of lung cancer, including 1,473 cases of non-small cell lung cancer—the slower-growing form—and 233 cases of the more aggressive small cell variant.

Participants in the top quartile of ultra-processed food consumption, adjusted for energy intake, showed a 41% higher risk of lung cancer compared with those in the lowest quartile (hazard ratio 1.41). The associations held for both non-small cell (37% higher risk) and small cell (44% higher risk) subtypes.

Ultra-processed foods typically include items formulated with multiple industrial processes and additives, such as preservatives, emulsifiers and artificial flavors. Examples in the study ranged from ice cream, packaged sauces and confectionery to soft drinks, ready-made burgers, pizza and processed meats. On average, the energy-adjusted ultra-processed food consumption was 2.8 servings per day, with lunch meat contributing 11.1% to total UPF intake, diet or caffeinated soft drinks 7.3%, and decaffeinated soft drinks 6.6%, the study found. UPFs are described as nutritionally poor, with high energy density, low fibre, fewer micronutrients, and excessive sugars, sodium, fats and additives.

Examples: 

  • Sugar-sweetened beverages
  • Processed meats
  • Packaged snack cakes & pastries
  • Instant noodles & boxed meals
  • Frozen prepared pizzas & entrées
  • Sugary breakfast cereals
  • Flavored/sweetened dairy products
  • Reconstituted meat products
  • Packaged refined breads & buns
  • Processed cheese products

The findings build on prior evidence linking ultra-processed foods to a range of adverse health outcomes, including cardiovascular disease, type 2 diabetes and reduced life expectancy. In the U.S. and Britain, such foods comprise more than half of daily caloric intake for many individuals.

You can’t say from this study that UPFs cause cancer as it’s observational, so we’re looking at associations, not direct effects. But it does strengthen the case for looking more closely at the food environment many people are living in, where UPFs are cheap, convenient, and heavily marketed, making them a go-to for many,” Rob Hobson, author of Unprocess Your Family Life, told The Independent.

“That might mean cooking more from scratch where possible, adding in more whole foods like vegetables, beans and grains, or just becoming more aware of how often UPFs show up in your day,” Hobson added. “It’s not about being perfect, it’s about balance and understanding how your food choices could be supporting or undermining your long-term health.”

Tyler Durden Mon, 12/29/2025 - 23:00

Your Mind Can Bend Time - Here's How

Zero Hedge -

Your Mind Can Bend Time - Here's How

Authored by Makai Allbert via The Epoch Times (emphasis ours),

A minute is always a minute, except when it isn’t.

This idea was put to the test in a 2023 Harvard study. Researchers induced minor bruising on participants’ forearms and then had them sit in rooms where the clocks ran at normal speed, half-speed, or double-speed.

Illustration by The Epoch Times/Shutterstock

Crucially, the actual elapsed time was identical across all conditions—28 minutes—but the clocks ticked at different rates.

The results surprised the researchers. Wounds healed faster when people thought more time had passed, and slower when they thought less time had passed. “Personally, I didn’t think it would work,” lead author Peter Aungle told The Epoch Times. “And then it did work!”

A century ago, Albert Einstein demonstrated that time is relative—not fixed. He explained the idea with a simple, humorous example: “Put your hand on a hot stove for a minute, and it seems like an hour. Sit with a pretty girl for an hour, and it seems like a minute. That’s relativity.”

Now, psychologists and neuroscientists are finding that our sense of time is not only inherently subjective but also highly malleable.

We can’t stop the clock, but by understanding how we perceive time, we can make minutes feel longer, heal faster, and even expand our memories.

How the Mind Affects Reality

The Harvard healing experiment is a pivotal piece of evidence that mind and body are not only connected, but may be one and the same. “We weren’t really manipulating time itself. We were manipulating expectations,” Aungle said.

If they [people] think more time has passed, they expect more healing—and those expectations can shape the body.

Illustration by The Epoch Times.

Most people think of mind-body effects only in terms of emotion, he added. Yet, “psychology is embedded in everything the body does. I would argue the mind influences every physiological outcome to some degree.”

Expectations are not the only time bender. While believing time has sped up aids healing, high-arousal negative emotions, such as fear, significantly dilate our perception of time, making it feel slower.

In one study, participants watched frightening clips from “The Shining” or “Scream.” Afterward, a blue circle was presented in the center of the computer screen. Participants perceived that the circle lasted longer after watching frightening movies than after watching neutral or sad films.

Sylvie Droit-Volet, the lead researcher of the study, told The Epoch Times that subjective expansion is likely because “fear accelerates the internal clock, making time seem to pass more quickly and prompting action”—the fight or flight response.

Because the internal clock is ticking faster, measuring more units of time per second, the external world appears to move in slow motion. The time dilation allows the brain to process information with higher resolution during life-threatening situations.

Slowing Time

We can also make time feel longer in positive ways, such as by seeking out moments of awe.

A 2012 study published in Psychological Science found that feeling awe, whether from a story or a memory, makes time feel more abundant.

Awe acts as a reset button for the brain. It brings people intensely into the present moment. According to the “extended-now theory,” focusing on the present moment elongates time perception because we are not mentally rushing toward the future. By filling the present with vastness, awe offsets the feeling that time is slipping away, making life feel more satisfying.

The study also found that people who felt awe were less impatient, more willing to help others, and preferred experiences over material products.

We can also slow our perception of time through the practice of savoring.

Savoring is putting a highlighter pen on our experiences,” psychologist Tamar Chansky told The Epoch Times. Savoring does not require extra duration, but rather a shift in attention.

For the time-starved, Chansky suggested taking “two more bites” of an experience—whether tasting coffee or looking out a window—to engage the brain’s awareness. This simple act creates “invisible, little expanders” within our finite days. It is a way of feeding the spirit without requiring a restructuring of one’s schedule, she said.

We could rush through a whole day so easily ... and we might feel somewhat or even very productive at the end of the day, but we might not feel good. So finding these little pockets ... helps us to feel that expansion within.”

Chansky’s insight aligns with research findings that training attention, such as through meditation, can change how we perceive time.

Experienced meditators feel time passes more slowly during meditation and in their daily lives than people who do not meditate.

Being in nature also slows our experience of time.

In one study, participants overestimated the duration of a walk by nearly two minutes when it took place in nature, whereas their estimates were accurate for urban walks. Nature exposure increases mindfulness and reduces stress, states that are theoretically linked to a slowing of the internal clock. If you need to “buy” yourself a little time, you can find it in the wild. “Time grows on trees,” the study concluded.

Memories and Time

Why do childhood summers feel endless while adult years appear to fly by? The answer lies in how our brains process novelty. Our brains measure time based on how many new memories are created.

When we encounter unexpected stimuli, our brains process more information, leading to a subjective expansion of that duration. In experiments where a low-probability stimulus—called an oddball—appears in a stream of repetitive standard stimuli, the oddball, or novelty, is consistently judged to last longer.

Illustration by The Epoch Times.

“The more unique, meaningful, or changing experiences we have, the longer the stretch of time feels in memory,” Marc Wittmann, a research fellow at the Institute for Frontier Areas of Psychology and Mental Health in Germany, said. On the other hand, routine compresses time in memory by halting the recording of details it already knows. When neurons fire repeatedly in response to the same stimulus, their response diminishes; they become efficient but record less data.

Therefore, to stretch your subjective life, introduce variation.

“A fulfilled and varied life is a long life,” Wittmann told The Epoch Times. This effect is not about simply filling a schedule with busyness—it is about “deep emotional resonance with the world.” A hundred days of routine collapse into a single memory unit in the brain; a week of travel or new experiences remains distinct and expansive.

Wittmann’s recent research adds a nuance: cognitive capacity also plays a role. As we age, the perception that the last decade flew by is partly due to cognitive decline, which affects our ability to encode complex memories. However, this effect is moderate. People who stay mentally and physically fit and continue to seek novel, emotionally rewarding experiences can subjectively expand their sense of time, regardless of age.

Read the rest here...

Tyler Durden Mon, 12/29/2025 - 22:35

These Are The Best-Selling Video Games Since 2020

Zero Hedge -

These Are The Best-Selling Video Games Since 2020

Since 2020, blockbuster game launches have arrived across every major platform and in a variety of genres, from cozy life sims to sprawling open-world adventure RPGs.

This visualization, via Visual Capitalist's Niccolo Conte, ranks the best-selling video games from 2020 to 2025 based on global unit sales using data from Video Game Sales Wiki (Fandom).

Animal Crossing Dominates as the 2020s’ Best-Selling Game

At 48.2 million units, Animal Crossing: New Horizons stands alone at the top of the ranking.

The game released on March 20, 2020, right as much of the world began to lock down due to the COVID-19 pandemic. As such, the latest addition to the Animal Crossing series made for the perfect time-sink amidst a period of global uncertainty and inactivity.

The table below shows the full ranking of the top 20 best-selling games from 2020 to 2025:

In second place is Hogwarts Legacy with 34.0 million, making the gap between #1 and #2 a sizable 14.2 million units. Hogwarts Legacy had the advantage of being tied to one of the world’s best-known franchises, Harry Potter, and delivered the open-world wizardry experience many fans had been waiting years for.

After that, the leaderboard tightens dramatically: four different games sit at exactly 30.0 million units (Elden RingCyberpunk 2077Call of Duty: Black Ops Cold War, and Call of Duty: Vanguard).

Nintendo Games Continue to Lead Sales

Several of the best-sellers are instantly recognizable Nintendo franchises. With six games in the top 20 best-sellers since 2020, Nintendo continues to be a development and publishing powerhouse in the world of gaming.

The six Nintendo titles together reached 144.7 million in sales, with no other singular publisher or developer coming close.

The company’s continued refinement of well-established franchises like Pokemon, Super Mario Bros., and The Legend of Zelda has proven fruitful, with the company still able to produce hits across genres.

With the Nintendo Switch 2 console selling well since its June 2025 launch, Nintendo’s dominance doesn’t seem like it’s fading anytime soon.

To learn more about the global video game industry, check out this graphic that breaks down video game revenue by country on Voronoi.

Tyler Durden Mon, 12/29/2025 - 22:10

China's CNOOC Discovers Massive Oilfield in Bohai Sea

Zero Hedge -

China's CNOOC Discovers Massive Oilfield in Bohai Sea

By Tsvetana Paraskova of OilPrice.com

CNOOC Ltd, China’s top offshore crude oil and natural gas producer, has announced the discovery of a major new oilfield in the Bohai Sea. 

The Qinhuangdao 29-6 discovery in the shallow Neogene formations of the Bohai Sea is yet another oilfield estimated to hold more than 100 million tons of crude, or about 730 million barrels, and discovered by CNOOC recently, the company said.  

Through continued exploration, the proved in-place volume of Qinhuangdao 29-6 Oilfield has exceeded 100 million tons of oil equivalent. 

The oil property of the major new discovery is medium-heavy crude, the Chinese major added.  

The Qinhuangdao 29-6 Oilfield is the second one-hundred-million-ton-class lithological oilfield discovered in the mature exploration area of the Shijiutuo Uplift, CNOOC said. This further highlights the value of exploration and consolidates the resource base for increasing CNOOC’s reserves and production, according to the company. 

In the middle of 2025, CNOOC launched production of heavy crude from its Kenli 10-2 Oilfields Development Project, which is the largest shallow lithological oilfield offshore China.  

The project in the southern Bohai Sea will see 79 development wells commissioned, including 33 cold recovery wells, 24 thermal recovery wells, 21 water injection wells, and 1 water source well.  

CNOOC expects the project to achieve peak production of about 19,400 barrels of oil equivalent per day (boepd) in 2026.  

Similarly to all other state majors in China, CNOOC is boosting domestic oil and gas production and exploration per orders by the Chinese authorities who seek to reduce China’s dependence on imported oil and gas. 

CNOOC has managed to post record high production in recent years, with an all-time high output in 2024, and another record-high expected for 2025.

Outside China, CNOOC is a minority partner in many major offshore developments, including in the Exxon-led consortium that has found more than 11 billion barrels of oil equivalents offshore Guyana and is currently the only producing consortium in the South American country. 

Tyler Durden Mon, 12/29/2025 - 21:45

Tuesday: Case-Shiller House Prices, Chicago PMI, FOMC Minutes

Calculated Risk -

Mortgage Rates From Matthew Graham at Mortgage News Daily: New 2-Month Lows, Just Barely
With another holiday closure on deck and light calendar of events, the rate market is off to another uneventful start this week. In fact, the average lender barely budged from last Friday. But it was enough for MND's 30yr fixed rate index to tick down by 0.01%.

This is the lowest level since October 28th--just barely edging out the lows seen on November 25th. There were only 5 days in November and one day in September with lower rates. Before that, you'd have to go back to September 2024 to see anything lower.[30 year fixed 6.194%]
emphasis added
Tuesday:
• At 9:00 AM ET, FHFA House Price Index for October. This was originally a GSE only repeat sales, however there is also an expanded index. 

• Also at 9:00 AM, S&P/Case-Shiller House Price Index for October. The consensus is for an 1.1% year-over-year increase in the Composite 20 index for October.

• At 9:45 AM, Chicago Purchasing Managers Index for December.

• At 2:00 PM, FOMC Minutes, Meeting of December 9-10<

Sunken Russian Ship Allegedly Carried Nuclear Submarine Reactors Destined For North Korea

Zero Hedge -

Sunken Russian Ship Allegedly Carried Nuclear Submarine Reactors Destined For North Korea

The maritime industry publication The Maritime Executive, citing a new report from the Spanish outlet La Verdad, reported that the Russian cargo ship that sank last year off Spain's southeastern Mediterranean coast was transporting undeclared components for two VM-4SG nuclear submarine reactors, allegedly with a port call planned in North Korea.

In December 2024, the Russian cargo ship Ursa Major sank under highly suspicious circumstances in waters between Spain and Algeria following reported engine room explosions. The ship's owners characterized the incident as "an act of terrorism."

Spanish authorities determined that blue-tarped objects on Ursa Major's stern were likely unfueled naval nuclear reactor casings, each weighing roughly 65 tons. Investigators identified them as components of VM-4SG reactors, Soviet-designed naval nuclear reactors developed to power Russia's nuclear ballistic-missile submarine fleet during the late Cold War and still in limited service today.

Here's the report:

The circumstances of the vessel's sudden sinking were suspicious, prompting the maritime captaincy to begin questioning the crew. Ursa Major's master, Capt. Igor Vladimirovich Anisimov, initially told investigators the cargo consisted of more than 100 empty containers, two giant crawler cranes on deck, and two large components for a Russian icebreaker project, referring to the tarped objects near the stern. All cargo was reportedly bound for Vladivostok.

The two so-called "icebreaker components" were shipped as deck cargo and were visible to spotting aircraft during the ship's earlier transit. Based on aerial surveillance, each object measured approximately 20 to 25 feet square, including crating, dunnage, and tarping.

Spanish authorities estimated their weight at roughly 65 tonnes each, indicating unusually high density. La Verdad reported that after the captain was pressed on the matter, he asked for time to think before telling investigators the items were merely "manhole covers."

Documents reviewed by La Verdad show Spanish investigators ultimately identified the cargo as casings for nuclear submarine reactors, specifically two Soviet-era VM-4SG reactors.

As for the destination, Spanish authorities speculated the reactor components may have been intended for North Korea's nuclear submarine program, which recently unveiled its first ballistic-missile submarine. Multiple analysts have suggested the new North Korean vessel likely benefited from Russian technical assistance for reactor design and could potentially incorporate a fully built Russian reactor. Russia is believed to owe North Korea a strategic debt following Pyongyang's large-scale transfers of artillery shells and munitions that helped Russian forces stabilize and regain ground in eastern Ukraine.

The cause of Ursa Major's sinking appears to have been kinetic. The shipowner told media there were three explosions and a 20-inch hole in the shell plating, while the captain confirmed the hole's ragged edges were bent inward. This damage profile is consistent with an external explosion impacting the hull.

This report surfaced days after North Korea released new images of what it claims is its first nuclear-powered submarine, a platform framed as a direct challenge to American naval dominance in the region.

If the report that Ursa Major's sinking was kinetic is accurate, the unresolved question is who executed the strike and under what operational authority.

Tyler Durden Mon, 12/29/2025 - 18:50

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