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Wall Street shares soared to record levels, and the U.S. dollar marked its largest gain in eight years after Donald Trump’s historic re-election victory to the White House. Investors responded swiftly, with major U.S. indexes rallying and Bitcoin hitting an all-time high as markets anticipated a policy shift focused on tax cuts, higher tariffs, and a pro-crypto agenda.

Trump’s election campaign promised to establish the U.S. as a global hub for Bitcoin and other cryptocurrencies, which, combined with anticipated fiscal policies, has driven a surge in digital assets. The value of Bitcoin jumped by $6,000 to reach a record high of $75,371.69.

Investors are betting that Trump’s proposed tax cuts and increased tariffs will spur inflation, which may prompt the Federal Reserve to keep interest rates higher for an extended period. Higher rates would yield better returns on dollar-denominated assets, creating additional demand for the currency. As a result, the dollar rose by about 1.75% against major currencies, including the pound, euro, and Japanese yen.

Global Market Movements

Trump’s re-election has had a sweeping impact on global financial markets and currencies:

  • U.S. Stock Market: Key U.S. indexes jumped as trading opened, with banking stocks performing exceptionally well, buoyed by expectations of regulatory easing.
  • Dollar Gains: The dollar rallied by approximately 1.75% against a range of currencies.
  • Pound and Euro: The pound dropped 1.41% against the dollar, hitting its lowest level since August, while the euro fell 2.24% to its lowest point since June.
  • FTSE 100: The UK’s FTSE 100 index rose by 0.1% on Wednesday afternoon.
  • Asian Markets: In Japan, the Nikkei 225 index closed 2.6% higher, and Australia’s ASX 200 rose by 0.8%, while in China, the Shanghai Composite Index dipped slightly by 0.1%, and Hong Kong’s Hang Seng was down by around 2.23%.

Bitcoin’s Record Surge

Bitcoin’s value surged following Trump’s pledge to make the U.S. the “Bitcoin and cryptocurrency capital of the world,” contrasting sharply with the previous administration’s more stringent stance on digital assets. During his campaign, Trump signaled potential changes at the U.S. Securities and Exchange Commission (SEC), including a plan to dismiss Chair Gary Gensler, who has been criticized by the crypto community for his strict regulatory approach. Trump’s willingness to scale back crypto oversight is seen as a positive move by investors, helping push Bitcoin to record highs.

Elon Musk, a long-time cryptocurrency advocate and supporter of Trump, could also play a central role in this new policy direction. Trump suggested that Musk would lead a government audit to identify wasteful spending, a move that is expected to further stimulate support for cryptocurrencies. Tesla, Musk’s electric vehicle company, famously invested $1.5 billion in Bitcoin in 2021. On Wednesday, Tesla’s Frankfurt-listed shares surged by over 14% in early trading.

Broader Economic Implications

Analysts anticipate that Trump’s tax cuts and tariffs could push up inflation, leading to fewer rate cuts and potentially higher rates for longer. “Investors are bracing for tariffs… which will push up the price of imported goods for American shoppers,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Meanwhile, Trump’s immigration policies could raise wage costs for U.S. companies if restrictions reduce labor availability, potentially increasing inflationary pressures. These policy shifts may have ripple effects across the global economy as other nations respond to U.S. tariffs with measures of their own, affecting trade flows and potentially stoking global inflation.

With U.S. and global markets reacting swiftly to Trump’s victory, financial analysts will continue monitoring the administration’s first moves, especially regarding fiscal and trade policies, as the world adjusts to Trump’s second term.

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Satellite Imagery Reveals Oil Transfers Between Russia and North Korea, Violating UN Sanctions

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Russia has supplied North Korea with over a million barrels of oil since March 2024, a significant breach of UN sanctions, according to new satellite imagery analysis from the UK-based Open Source Centre. The oil is believed to be exchanged for weapons and troops sent by Pyongyang to support Russia’s war in Ukraine, experts and UK officials say.

The satellite images, shared exclusively with the BBC, show North Korean oil tankers making 43 trips to Russia’s Far East oil terminal over the past eight months. The tankers, often seen arriving empty and departing full, have been tracked by the Open Source Centre, which estimates that the transfers have provided North Korea with more than double the UN-imposed annual oil cap of 500,000 barrels. The cap, intended to limit North Korea’s fuel supply to prevent further development of its nuclear program, has been consistently violated by Russia.

The first documented oil transfer occurred on March 7, 2024, following reports that North Korea had been supplying weapons to Russia. These shipments have continued amid reports that thousands of North Korean troops are being deployed to fight alongside Russian forces, with the most recent transfer recorded in early November.

Experts, including Joe Byrne from the Open Source Centre, emphasize that these illicit oil shipments offer North Korea a much-needed lifeline, stabilizing the country’s economy. “This steady flow of oil gives North Korea a level of stability it hasn’t had since sanctions were introduced,” Byrne says. Hugh Griffiths, a former UN sanctions panel leader, argues that these transfers are “fueling Putin’s war machine”—a trade of oil for missiles, artillery, and soldiers.

North Korea, the only country in the world banned from buying oil on the open market, relies heavily on illicit oil to meet its needs. The country consumes around nine million barrels of refined petroleum annually, far exceeding the 500,000 barrels allowed under UN sanctions. Historically, it has resorted to risky ship-to-ship transfers to obtain fuel, but the recent direct oil shipments from Russia offer a more reliable and possibly free source of oil.

While Russia has not responded to requests for comment, the continued oil transfers and growing military ties between Moscow and Pyongyang suggest a significant shift in global dynamics. The United Nations, however, faces mounting challenges in enforcing sanctions, particularly after Russia’s veto in March 2024 led to the disbandment of the UN sanctions panel monitoring North Korean violations.

These developments raise concerns about the increasing cooperation between Russia and North Korea, with both regimes seemingly ignoring international law. Experts warn that this alliance could have dangerous implications, including the potential sharing of military technology that could further destabilize the global security landscape. As tensions rise, officials in South Korea and the US are closely monitoring the situation, with some experts fearing that North Korea’s increasing leverage could lead to even more dangerous military collaborations.

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Ford to Cut 4,000 Jobs in Europe Amid Economic and EV Sales Struggles

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Ford has announced plans to cut 4,000 jobs across Europe by the end of 2027, attributing the decision to increased competition, weaker-than-expected electric vehicle (EV) sales, and ongoing economic challenges. The cuts, which represent around 14% of the company’s European workforce, will predominantly affect Germany, where 3,000 positions will be eliminated, along with 800 jobs in the UK.

The company emphasized that the job reductions are part of a broader strategy to improve its competitiveness in the face of a rapidly changing automotive landscape. Discussions with unions are still ongoing, and a final decision on the cuts will be made once talks are concluded.

In addition to job cuts, Ford also plans to reduce working hours for employees at its Cologne plant in Germany, where it manufactures electric vehicles such as the Capri and Explorer. Dave Johnston, Ford’s European vice president for transformation and partnerships, explained, “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

The company cited the global auto industry’s ongoing transition to electrified mobility as a major factor in the restructuring. Ford’s statement acknowledged the particularly challenging environment in Europe, where automakers face stiff competition, economic headwinds, and a mismatch between stringent CO2 regulations and consumer demand for electric vehicles.

To adapt to these pressures, Ford has already cut back on vehicle production, focusing on models that generate the highest profit margins. The company is also adjusting to the new regulatory landscape, where European car manufacturers must sell more electric vehicles to meet stricter carbon dioxide emission limits by 2025. However, consumer interest in EVs has been slower than anticipated, partly due to rising costs and the withdrawal of government incentives for EV purchases in key markets like Germany.

Ford’s move follows similar actions by other automakers. General Motors recently announced 1,000 global job cuts, and Nissan revealed plans to eliminate 9,000 jobs and reduce its global production capacity by 20%. Volkswagen is also reportedly considering the closure of three plants in Germany, which could result in thousands of job losses.

The European Automobile Manufacturers’ Association has called for a faster review of the lower CO2 emission limits set for 2026, urging policymakers to reconsider the current pace of the transition to electric vehicles amid market challenges.

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Ukraine Fires US-Supplied Long-Range Missiles Into Russia for the First Time

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Russia has reported that Ukraine launched U.S.-supplied long-range missiles into its territory on Tuesday, a day after Washington gave its approval for such attacks. According to Russia’s Ministry of Defence, the missiles targeted the Bryansk region in western Russia, marking the first use of the Army Tactical Missile System (Atacms) against Russian territory.

The Russian military claimed that five of the missiles were intercepted by air defence systems, while one missile was reportedly damaged. The fragments of the damaged missile allegedly caused a fire at a military facility in the region, although no further details about casualties or the extent of the damage were immediately available.

This missile strike follows a recent decision by the U.S. government to allow Ukraine to use the advanced Atacms system to target Russian positions within internationally-recognized Russian borders. Prior to this approval, the U.S. had restricted the use of such missiles to areas within the Ukrainian territory occupied by Russian forces, citing concerns over escalating the conflict.

Russia quickly condemned the missile strike and vowed to “react accordingly.” The Kremlin has previously warned that any escalation of the war, especially involving attacks on Russian territory, would lead to a strengthened military response.

The deployment of Atacms marks a significant development in the ongoing war between Russia and Ukraine, as the missile system has a range of up to 300 kilometers, giving Ukraine the ability to strike deeper into Russian-held territories.

Washington’s decision to allow the use of these missiles is seen as a key step in increasing military support for Ukraine, as it continues its efforts to defend its sovereignty against Russia’s ongoing invasion. However, the move has raised concerns about further intensifying the conflict and potentially drawing in more direct involvement from NATO members.

The Ukrainian government has yet to officially comment on the strike, but the use of such advanced weaponry is expected to have a significant impact on the trajectory of the war. As the conflict enters its second year, both sides continue to engage in intense military operations, with international diplomacy struggling to find a path to peace.

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