#geopolitical-risk

#geopolitical-risk

The Tesla CEO argued that too many companies are underestimating their exposure to geopolitical risks posed by fragile supply chains, particularly for critical materials used in electric vehicles and energy storage. "There are so many companies out there that are asleep at the switch with regard to geopolitical risk - or they just have their head in the sand and hope nothing bad will happen," Musk said. "I'm way more paranoid than that."

Sterling has surged to $1.38 against the US dollar, its strongest level since October 2021, as a combination of US economic disruption, shifting interest rate expectations and geopolitical uncertainty weakens the greenback. Currency analysts said the move has been driven more by dollar softness than by a sudden strengthening of the pound, creating what some describe as a rare buying opportunity for consumers and businesses needing US currency.

Tuesday is the first trading day on U.S. stock markets since President Donald Trump escalated his threats over Greenland this weekend. The president threatened additional tariffs on allied countries that objected to his desired takeover of the Danish territory. The geopolitical uncertainty that has emerged appears to be behind a decline in stock futures, particularly in Big Tech stocks. And that fall has reignited concerns about a revived "Sell America" trade. Here's what you need to know.

The International Monetary Fund has warned mounting geopolitical tensions and an escalation of Donald Trump's tariff war could hit global economic growth and trigger a backlash in financial markets. In an update as Trump threatens to impose tariffs on Nato allies opposed to his ambitions in Greenland, the Washington-based fund said a renewed eruption in trade tensions was among the biggest risks to global growth in 2026.

Yes, it would have to be rates for some reason or other jumping up. I find that remarkably unlikely. I don't think that would happen. Price growth jumping to a point whereby affordability declines further? I don't see that happening either. So I think all in all, modest improvement across the board is one that is the most likely scenario.

Markets are operating in a fragmented geopolitical environment where security concerns increasingly shape trade, investment, and technology policy. Geopolitical tensions, supply chains disruptions, and intense competition in areas such as artificial intelligence are influencing where capital flows and how risks are priced. Although US growth remains relatively strong, it exists alongside ongoing geopolitical uncertainty, stubborn services inflation, and uneven global policy direction.

European markets have entered the final full week of 2025 on a largely tepid tone with many easing back ahead of a shortened week that looks likely to see lower volume and lower volatility. Coming off the back of a period that has seen a raft of big-ticket, market-moving events, traders are expecting things to calm down towards year-end. Today's notable release in Europe saw UK GDP confirmed at 0.1% for the third quarter. This lays the groundwork for tomorrow's US GDP release.

TSM's growth story in 2025 hinges on artificial intelligence (AI) demand, which has transformed the company from a steady foundry into an indispensable AI enabler. Second-quarter revenue hit $30.1 billion, a 44% year-over-year jump that exceeded analyst forecasts. This beat stemmed from robust orders for advanced nodes like 3-nanometer (nm) and 5nm, which power Nvidia's GPUs and Apple's latest processors. Advanced technologies, defined as 7nm and more advanced technologies, accounted for 74% of total wafer revenue.