EU unveils €3bn strategy to cut dependency on China for raw materials

Scott Bessent stated that China is on track to fulfill its commitments regarding US soybean purchases, indicating a positive momentum in agricultural trade relations between the two nations. This follows a series of significant transactions, including China's largest soybean buy from the US in two years, which has buoyed prices and encouraged sales from struggling farmers.

The European Union (EU) is taking steps to enhance its defenses against economic threats, particularly in light of recent export restrictions imposed by China. This initiative reflects the EU's growing concerns about its reliance on Chinese imports and aims to bolster its economic resilience in a shifting global landscape.

Brussels is proposing emergency powers to raise €210 billion from frozen Russian assets to fund Ukraine, marking a significant shift in EU financial strategy amid ongoing conflict. This initiative aims to provide critical support to Ukraine's defense and recovery efforts as it faces persistent challenges from Russia.

The European Union's decision to ban Russian gas imports by 2027 is not expected to significantly impact global markets, according to analysis from Capital Economics. The Dutch TTF contract remained stable, indicating a lack of immediate market disruption following the announcement.

Hungary plans to challenge the European Union's decision to phase out Russian energy imports, a move that reflects the country's reliance on Russian energy supplies amid ongoing geopolitical tensions. This decision comes as the EU aims to reduce dependency on Russian gas by 2027, which Hungary opposes due to its economic implications.

Bank of America has projected a decline in the AUD/USD exchange rate, forecasting it to fall to 0.63 by the first quarter of 2026, primarily due to ongoing economic weaknesses in China. This outlook reflects concerns about the impact of China's economic challenges on global markets.

The European Union is set to unveil a new plan aimed at reducing its dependence on China for rare earths, critical minerals essential for various high-stakes supply chains, including defense, renewable energy, and automotive sectors. This announcement comes amid concerns over China's dominance in the global rare earths market, particularly following recent export restrictions imposed by Beijing.

Volvo Car reported a 10% decline in global sales for November, continuing a trend of challenging industry conditions. Despite this downturn, the company expressed optimism due to growth in electric vehicle sales and increased deliveries of long-range plug-in hybrids in China.