It took more than 25 years, but the European Union and Mercosur, the South American common market, provisionally agreed to a free trade deal, eliminating tariffs on over 90% of each other’s exports. If it passes, it would create the largest free trade zone in the world and mark the largest trade agreement the EU has ever signed, opening the door to expanded trade in agriculture and food products. The deal includes a concession to European farmers, namely early access to €45 billion ($52 billion) in agricultural aid, though that wasn’t enough to ward off opposition from France and several other countries. First envisioned when the world was careening toward globalization, the agreement now represents a bulwark to the “Donroe Doctrine” and US President Donald Trump’s extensive tariffs.
Venezuela’s opposition leader, María Corina Machado, is set to meet US President Donald Trump next week, following his refusal to back her as the country’s leader after the US ousted Nicolás Maduro from power. The meeting was scheduled after Machado offered to give her Nobel Peace Prize to Trump, but the real question is whatMachado has to offer Trump beyond the award he has long coveted. The US made the decision to prioritize stability over democratic transition by keeping in place Maduro’s vice president, Delcy Rodríguez, who has the backing of Venezuela’s military. Machado may push for elections down the line, but in the short term, her leverage to convince Trump that she can take the reins in Caracas is limited.
Russia fired a Oreshnik ballistic missile at Ukraine on Thursday, targeting Lviv, the country’s westernmost major city, which has largely been spared from attacks. More than a dozen missiles and hundreds of drones were also launched at the capital city, Kyiv. Last night marked only the second time Moscow has used the Oreshnik in the nearly four-year war. By striking it so close to the border with Poland – an area that serves as NATO’s hub for operations in Ukraine – Russia may have been aiming to intimidate Europe, which is preparing to take a more active role in Ukraine’s security once a ceasefire agreement is reached.
US President Donald Trump listens to a question from a reporter prior to signing an executive order on AI next to Sriram Krishnan, Senior White House Policy Advisor on Artificial Intelligence, US Sen. Ted Cruz (R-TX), US Commerce Secretary Howard Lutnick, and David Sacks, chair of the President's Council of Advisors on Science and Technology, in the Oval Office at the White House in Washington, D.C., USA, on December 11, 2025.
Artificial intelligence and Donald Trump's foreign policy are creating huge tail risks for markets.
Last week, Microsoft released a new report offering an in-depth look at AI adoption across the United States, with state- and county-level insights for the first time. While more than 30 percent of working-age Americans now use AI tools, adoption remains uneven across regions, with significantly higher usage in urban areas and communities tied to universities. The findings point to a broader challenge: without stronger access to infrastructure, skills, and education, AI’s benefits risk remaining concentrated rather than broadly shared. Read the full blog here.
The maker of the large-language model Claude became the latest AI giant to file to go public.
Hundreds took to the streets in Kenya after the US announced plans to build an Ebola quarantine center on a Kenyan air base, with protesters warning the facility risks introducing a disease the country has never recorded. President Ruto is defending the project.