Highlights:

• Kashkari Rips Hassett Criticism of New York Fed Tariff Analysis — Minneapolis Fed President Neel Kashkari said critical comments by National Economic Council Director Kevin Hassett about a New York Fed tariff study undermine central bank independence. Bloomberg Economics

• Former Prince Andrew's Arrest Sends Shockwaves — The brother of King Charles has been arrested on suspicion of misconduct in public office following details about his relationship with Jeffrey Epstein. Bloomberg Politics

• Baltics Plan Hundreds of Bunkers to Fortify Border With Russia — Estonia announced tenders for 600 underground military bunkers along the Russian border to strengthen NATO's eastern flank. Bloomberg Politics

• US Jobless Claims Drop by the Most Since November to 206,000 — Applications for unemployment benefits fell sharply, signaling labor market stabilization. Bloomberg Economics

• US Notches One of Its Biggest Annual Trade Deficits Since 1960 — The US trade deficit widened in December, capping a year marked by erratic tariff policy. Bloomberg Economics

• Canada's 2025 Trade Deficit Widest on Record Excluding Pandemic — Canada's trade deficit reached C$31.3 billion, the largest annual shortfall outside the pandemic, as US tariffs hit key export sectors. Bloomberg Economics

• Former South Korean President Gets Life in Prison for Martial Law Bid — Ousted President Yoon Suk Yeol was found guilty of leading an insurrection through his 2024 martial law declaration. Bloomberg Politics

• UK Renews Push for Saudi Arabia to Invest in Fighter Jet Program — The UK is seeking Saudi investment in its next-generation fighter jet program alongside Italy and Japan as costs rise. Bloomberg Politics

• South Africa Allows Emergency Water-Supply Boost Amid Crisis — South Africa's government granted an urgent license to its bulk-water supplier to increase extraction from a key river system to address supply shortages. Bloomberg Politics

• Farmers Bet on Soy With More Planting Tied to China Demand — US growers plan to increase soybean plantings and reduce corn acreage following the resumption of soybean exports to China. Bloomberg Economics