Talk Time
Senior officials from the United States and Russia have begun discussions in Saudi Arabia on resolving the war in Ukraine, without any representatives from Kyiv present
- This meeting comes after a significant phone conversation between Donald Trump and Vladimir Putin, which could set the stage for a summit between the two leaders as early as next week
- The negotiations have raised concerns among European leaders, who feel sidelined and fear that any agreements reached without Ukraine’s participation may not result in a sustainable peace
- Trump has abandoned Biden’s stance of engaging Russia only with Kyiv involved and reversed U.S. support for Ukraine’s full territorial recovery and NATO ambitions, though doubts about those commitments had already been growing under Biden
China: Xi Jinping meets top entrepreneurs
China is taking action to reinvigorate private business as part of its strategy to achieve stronger and more diversified economic growth:
- President Xi Jinping met with some of the country’s most influential entrepreneurs, with top tech leaders in attendance, including Huawei’s Ren Zhengfei, Xiaomi’s Lei Jun, and CATL’s Robin Zeng
- Alibaba founder Jack Ma also attended the high-profile meeting, marking his return after years of political marginalization
- Aiming to Boost Economic Growth and Innovation, officials emphasized the need for private companies to drive technological innovation and consumption, hinting at potential policy support to revitalize the sector
German elections
On Sunday, February 23, 2025, Germany will hold snap federal elections to renew the Bundestag, the federal parliament.
The main candidates for the chancellorship are:
- Friedrich Merz for the Christian Democratic Union (CDU)
- Olaf Scholz for the Social Democratic Party (SPD)
- Alice Weidel for Alternative for Germany (AfD)
- Robert Habeck for the Greens
According to the latest polls, the CDU leads with a clear advantage, followed by AfD and SPD. No party appears poised to secure an absolute majority, making coalition negotiations highly likely. These elections are seen as crucial not only for Germany’s political future but also for Europe considering the current economic and geopolitical challenges.
Gold is good, could silver be better?
Many traders believe silver has considerable room to run given the surge of gold this year and the historical correlation between the two metals
- Currently trading at around 33 USD per ounce, it is still well below its 2011 peak (48 USD)
- Correlation between the two metals is strong and positive, with silver having more appeal given that it is cheaper and offers a more accessible entry point
- Silver offers also a broader industrial application, especially in solar panels and electronics – if economic activity remains resilient and China continues with stimulus silver could continue benefitting
- On the negative side, silver has had historically sharper and less predictable moves than gold
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