latest news in economy
China’s Record Trade Surplus Tests Global Markets as US Influence Wanes
Beijing, Monday, 2 February 2026.
China’s trade surplus hit a record $1.19 trillion in 2025, defying US tariffs as exports shifted to Southeast Asia. Yet, this external strength masks severe internal weakness, highlighted by a staggering 17.2% collapse in property investment and stalling consumer demand.
Prediction Markets Face Scrutiny as Sustainable Investment Vehicles
New York, Sunday, 1 February 2026.
As Robinhood and Coinbase enter the prediction market sector in early 2026, analysts are scrutinizing whether these platforms represent sustainable long-term investments or merely short-term speculative tools. While Galaxy Digital identifies this as new financial infrastructure for pricing uncertainty, the inherent volatility of binary outcomes raises critical questions about their viability in a diversified portfolio compared to traditional assets.
Stanford Study Finds Geothermal Energy Could Solve AI Sector’s Power Crisis
Stanford, Sunday, 1 February 2026.
Stanford research indicates advanced geothermal systems could cut fossil fuel costs by 60% while providing the reliable, 24/7 clean baseload electricity essential for powering energy-intensive AI data centers.
Warsh Nomination Signals Strategic Pivot to Strong Dollar Policy
Washington D.C., Sunday, 1 February 2026.
President Trump’s nomination of Kevin Warsh as Federal Reserve Chair marks a decisive pivot toward a “King Dollar” policy for 2026. This strategic shift aims to prioritize currency stability, sparking immediate volatility in global markets. Following the announcement, the U.S. dollar strengthened while commodities plummeted—gold fell over 9% and silver crashed nearly 27% in a single day. Warsh, a former Fed Governor and critic of post-crisis stimulus, proposes a new “Accord” with the Treasury to manage the balance sheet and curb inflation. Investors must now prepare for a regime change characterized by tighter monetary conditions and a potential repricing of hard assets.
Sahm Rule Creator Warns of Structural Labor Market Risks Beyond Recession Indicators
New York, Saturday, 31 January 2026.
Economist Claudia Sahm warns that a deceptive “low-hire” dynamic is masking structural labor vulnerabilities. She argues that relying on standard recession metrics misses these slow-moving shifts, a danger heightened by impending Federal Reserve leadership changes.
Stalled Growth in November Points to a Shrinking Canadian Economy
Ottawa, Saturday, 31 January 2026.
Canada’s economic engine stalled in November 2025, showing zero growth after a decline in October. This stagnation suggests the economy likely shrank during the fourth quarter, performing worse than the Bank of Canada predicted. While service sectors like retail managed a 1.3 percent rebound, they were overpowered by weakness in goods production. The most alarming data point is a 6.4 percent plunge in auto manufacturing, driven by a global semiconductor shortage. With the economy failing to expand for much of late 2025, this data highlights how trade uncertainty and supply chain issues are actively braking national growth.