Jan. 26, 2025 - Daily News Digest
On this day: in 1841, Gordon Bremer takes formal possession of Hong Kong Island at what is now Possession Point, establishing British Hong Kong.
QOTD: "Whether the international community recognizes this or not, we don't understand their perspective. The people’s vote is the recognition we need," junta chief Min Aung Hlaing told reporters on Sunday, according to video broadcast on state TV.
The military has insisted the election is free of coercion and has public backing.
GIFT LINK - China’s Top General Accused of Giving Nuclear Secrets to U.S.
https://www.wsj.com/world/china/chinas-top-general-accused-of-giving-nuclear-secrets-to-u-s-b8f59dae?st=5FHNP3&reflink=desktopwebshare_permalink
China’s senior-most general is accused of leaking information about the country’s nuclear-weapons program to the U.S. and accepting bribes for official acts, including the promotion of an officer to defense minister, said people familiar with a high-level briefing on the allegations.
The briefing—attended on Saturday morning by some of the military’s highest-ranking officers—came just before China’s Ministry of National Defense made the bombshell announcement of an investigation into Gen. Zhang Youxia, once considered Chinese leader Xi Jinping’s most-trusted military ally. That statement gave few details beyond a probe of severe violations of party discipline and state laws.
But the people familiar with the briefing—which hasn’t been reported until now—said Zhang is under investigation for allegedly forming political cliques, a phrase describing efforts to build networks of influence that undermine party unity, and abusing his authority within the Communist Party’s top military decision-making body, known as the Central Military Commission.
Authorities are also scrutinizing his oversight of a powerful agency responsible for the research, development and procurement of military hardware. Those familiar with the briefing said Zhang was alleged to have accepted huge sums of money in exchange for official promotions in this big-budget procurement system.
The most shocking allegation disclosed during the closed-door briefing, the people said, was that Zhang had leaked core technical data on China’s nuclear weapons to the U.S.
Some evidence against Zhang came from Gu Jun, the former general manager of the China National Nuclear Corp., a state-owned company that oversees all aspects of China’s civilian and military nuclear programs, said the people familiar with the briefing. Beijing announced an investigation into Gu last Monday for suspected severe violations of party discipline and state laws.
During Saturday’s briefing, authorities revealed that the probe into Gu has linked Zhang to a security breach within China’s nuclear sector, the people said. Details on the breach weren’t disclosed during the briefing, the people said.
EU/RUSSIA/ENERGY - EU agrees on complete ban of Russian gas imports by 2027
https://www.dw.com/en/eu-agrees-on-complete-ban-of-russian-gas-imports-by-2027/a-75660043
Ministers from the 27 EU member states on Monday gave their final approval to a regulation that will see all Russian gas imports into the bloc banned by late 2027, a vote that allows the measure to pass into law.
The agreement is in line with the European Union's pledge to cut ties with its former main gas supplier amid security fears stoked by Russia's full-scale invasion of Ukraine, which began in February 2022.
What does the policy entail?
Under the agreement, the EU will halt imports of Russian liquefied natural gas (LNG) by the end of 2026 and of pipeline gas by September 30, 2027.
Under the law, that end date can be moved back to November 1, 2027, if a member state is having difficulties reaching its required gas storage levels with other sources ahead of the winter heating season.
According to the website of the Council of the European Union, member states will have until March 1 this year to "prepare national plans to diversify gas supplies and identify potential challenges in replacing Russian gas."
It said that if supply security is "seriously threatened in one or more EU countires," the import ban could be suspended for up to four weeks.
INDIA/EU/TRADE - Exclusive: India to slash tariffs on cars to 40% in trade deal with EU, sources say
https://www.reuters.com/world/india/india-slash-tariffs-cars-40-trade-deal-with-eu-sources-say-2026-01-25/
India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as Tuesday.
Prime Minister Narendra Modi's government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.
This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.
The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India's commerce ministry and the European Commission declined to comment.
PACT ALREADY DUBBED 'MOTHER OF ALL DEALS'
India and the EU are expected to announce on Tuesday the conclusion of protracted negotiations for the free trade pact, after which the two sides will finalise the details and ratify what is being called "the mother of all deals.
The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% U.S. tariffs since late August.
CANADA/INDIA/TRADE - Exclusive: Carney likely to visit India in early March as Canada trade pivot intensifies, envoy says
https://www.reuters.com/world/carney-likely-visit-india-early-march-canada-trade-pivot-intensifies-envoy-says-2026-01-26/
Canada's Prime Minister Mark Carney will likely visit India the first week of March and sign deals on uranium, energy, minerals and artificial intelligence, Dinesh Patnaik, India's High Commissioner to Canada said in an interview.
Carney is making all-out efforts to diversify Canada's alliances beyond the U.S., its top trade partner. In Davos last week, he earned a rare standing ovation for saying the old rules-based order is over and called on middle powers like Canada to build coalitions to shape a fairer, more resilient world.
His viral speech followed an agreement with China to slash tariffs on electric vehicles and canola and open up to C$7 billion ($5.11 billion) in export markets as he tries to double non-U.S. exports over the next decade.
Carney is also resetting relations with India after his predecessor Justin Trudeau accused the Indian government of involvement in the killing of a Sikh separatist leader in 2023. India has denied those claims.
Prime Minister Narendra Modi attended the Group of 7 summit on Carney's invitation last year and several of Carney's ministers have traveled to India.
"I have a feeling in the first week of March is what we are looking at," said High Commissioner Patnaik on Carney's visit during a weekend interview.
RUSSIA/UKRAINE/POWER - Russian strike on Ukraine's Kyiv leaves 1,330 buildings still without heat, mayor says
https://www.reuters.com/business/energy/around-1700-kyiv-apartment-blocks-still-without-heating-after-russian-strike-2026-01-25/
More than 1,300 apartment buildings in the Ukrainian capital Kyiv were still without heating following a Russian missile and drone attack earlier this week, Kyiv Mayor Vitalii Klitschko said on Sunday.
Russia has sharply intensified bombardments of Ukraine's energy system since it invaded its neighbour in 2022.
Russia launched a vast attack on Ukraine's energy system on Saturday, rocking Kyiv with explosions overnight and leaving 1.2 million properties without power nationwide during sub-zero winter temperatures.
IRAN/ENERGY - Iran Is Selling More Oil but Making Less Money
https://www.wsj.com/world/middle-east/iran-is-selling-more-oil-but-making-less-money-841985ea
Iran exported more oil in 2025 than it had done in years, smuggling crude in defiance of sanctions, mainly to China. At the same time, the regime’s profits from the commodity collapsed.
The falling price of global crude compressed prices, but the decline was largely driven by a web of middlemen and buyers taking advantage of the regime’s precarious position and dependence on oil revenue. They know Tehran has few other ways to unload its sanctioned oil apart from through its shadow fleet, a global network of aging tankers that the Trump administration is pursuing with sanctions and special forces.
Now, those involved in the Iranian oil trade are demanding even higher fees for handling the crude. Buyers are also increasingly exploiting the restrictions on Iran to get the sanctioned oil at even deeper discounts.
The drop in oil revenue is sharpening the economic crisis in Iran that triggered days of deadly protests—the biggest challenge to the Shiite leaders in their more than four decades in power.
This month, the U.S. imposed new sanctions on Iran in response to its government crackdown on protesters, inflicting penalties on individuals and entities linked to “laundering the proceeds of Iranian petroleum and petrochemical sales to foreign markets,” the Treasury said.
MYANMAR/POL/MIL - Myanmar's junta leader dismisses critics as military allies head for landslide election win
https://www.reuters.com/world/asia-pacific/final-phase-myanmars-election-underway-military-backed-party-set-win-2026-01-25/
Myanmar's junta chief on Sunday dismissed foreign criticism of the war-torn country's general election as a final round of voting took place, with the military-backed party having secured a majority of seats in previous rounds.
The Union Solidarity and Development Party has won 193 of 209 seats in the lower house and 52 of 78 seats in the upper house after two rounds held on December 28 and January 11. Voter turnout was around 55% in each round, sharply lower than levels of about 70% in the 2020 and 2015 elections.
Major opposition groups are not contesting the polls amid a civil war triggered by a 2021 coup that brought the military to power. c
Malaysia, which last year chaired the 11-member Association of Southeast Asian Nations, which includes Myanmar, has said the bloc would not endorse the election.
JAPAN/POL - Japan PM Takaichi's high approval rating slips ahead of election
https://www.reuters.com/world/asia-pacific/japan-pm-takaichis-administration-sees-approval-rating-fall-67-poll-shows-2026-01-26/
Japanese Prime Minister Sanae Takaichi's public approval rating has slipped in new polling ahead of a national election next month that she has framed as a direct verdict on her stewardship of the world's fourth largest economy.
In a survey released on Monday by the Nikkei newspaper, support for her administration fell below 70% for the first time since she became Japan's first female premier in October, dropping to 67% from 75% in December.
A separate Kyodo voter survey showed approval slipping to 63% from 68% while a Mainichi newspaper poll said it had fallen ten points to 57%.
By calling a snap vote to decide all 465 lower-house seats, Takaichi is seeking to convert personal popularity into support for her expansionary fiscal policies and to strengthen her grip on the ruling Liberal Democratic Party (LDP). It and coalition partner, the Japan Innovation Party (Ishin), hold a one-seat majority in the chamber.
The polling suggests voter scepticism of her economic plans may be growing. In the Nikkei survey, 56% of respondents did not think Takaichi's proposed stimulus package would cushion the impact of rising living costs. Market concern that Japan may need to issue additional debt to fund the measures has pushed up government bond yields.
FRANCE/RUSSIA/INDIA - France detains Indian captain of suspected shadow fleet tanker
https://www.reuters.com/world/india/france-detains-indian-captain-suspected-shadow-fleet-tanker-2026-01-25/
The captain of an oil tanker intercepted by the French navy has been detained under investigations into whether it was operating under a false flag, the Marseille prosecutor’s office said on Sunday.
The vessel named Grinch was seized in the Mediterranean on Thursday, then diverted to anchor off the French port city, on suspicion of being part of the shadow fleet that lets Russia export oil despite sanctions. The 58-year-old captain, an Indian national, was detained as part of the preliminary investigations, the prosecutors said in a statement that did not mention Russia.
The vessel left the Russian port of Murmansk in early January, sailing under a Comoros flag, French authorities have said.
Other crew members, also Indian nationals, remain on board the ship while investigators verify the validity of the flag and the vessel's navigation documents, the statement added.
The EU has imposed 19 packages of sanctions against Russia, but Moscow has adapted to most measures and continues to sell millions of barrels of oil to countries such as India and China, typically at discounted prices.
ISRAEL/POL - Israel says it has retrieved remains of final Gaza hostage
https://www.bbc.com/news/articles/c5ydvz7nz4mo
The Israeli military says it has retrieved the body of the last hostage in Gaza, paving the way for the next phase of US President Donald Trump's peace plan to get under way.
It had been searching for Master Sgt Ran Gvili since the ceasefire with Hamas began in October.
Israeli Prime Minister Benjamin Netanyahu called Gvili's return "an extraordinary achievement".
The Israeli military began a new operation to find Gvili on Sunday. Earlier, Hamas's armed wing said it had provided mediators with "all the details and information" about Gvili's location.
Netanyahu's office said Israel would reopen Gaza's key border crossing with Egypt once the operation to find and return Gvili was complete.