SCMP News Digest
Wednesday, 28 January 2026
US Federal Reserve holds interest rates steady, defying Trump pressure
The US Federal Reserve held interest rates steady on Wednesday at its first policy gathering this year, citing robust economic growth, as the central bank resists President US Donald Trump’s mounting pressure for cuts.
The Fed’s 10-2 vote maintains rates at a range between 3.50 per cent and 3.75 per cent, an outcome that was widely expected as officials await more data on the world’s biggest economy.
In a statement on its decision, policymakers flagged that economic activity has been “expanding…
US Treasury chief Bessent cautions Canada, says he’s disappointed by EU-India deal
US Treasury Secretary Scott Bessent said on Wednesday that the United States and Canada were likely to end up in a “good place” on trade but warned Ottawa not to start a political fight ahead of coming talks on the US-Mexico-Canada free trade deal.
Speaking in a CNBC interview on Wednesday, Bessent also said he was disappointed by Europe’s major trade with India and defended US President Donald Trump’s decision to raise tariffs on South Korean goods.
The European Union on Tuesday…
Plane crashes in India, killing Maharashtra deputy chief minister and 4 others
Ajit Pawar, the deputy chief minister of India’s wealthiest state, Maharashtra, died in a plane crash on Wednesday when his charter aircraft went down in flames, killing him and four othrs on board, the aviation regulator has said.
Pawar, who hailed from a top political family, was en route to his home region to canvass in local elections, media said.
Two of his staff and two crew were also aboard the VSR Ventures-operated Learjet 45 aircraft, the directorate general of civil aviation…
How AI model predicts heavy rainstorms 4 hours in advance
Hong Kong and mainland Chinese scholars have developed a pioneering AI model that uses satellite data to forecast heavy rainstorms up to four hours before they strike, much earlier than current predictions allow.
The model represented a “major advancement in atmospheric monitoring and severe weather early warnings, enabling faster and more accurate forecasts and strengthening regional disaster preparedness and response”, Dr Dai Kuai, a postdoctoral fellow in the University of Science and…
S&P 500 hits 7,000 for first time as Nvidia, Microsoft and AI boom drive market surge
The S&P 500 breached the 7,000-point mark for the first time on Wednesday, driven by unrelenting optimism over artificial intelligence and expectations of strong Big Tech earnings as well as monetary policy easing.
The benchmark index’s ascent between successive 1,000-point additions has quickened in recent years, reflecting mounting investor confidence in the US economy and corporate America.
It took about three years for the S&P 500 to rise to 5,000 points from 4,000, but only about nine…
Why Greenland’s rare earth riches cannot end US dependence on China’s minerals
Despite the United States pushing to acquire Greenland, geological and technical constraints have so far prevented any country – including China – from successfully extracting and processing one of the Danish territory’s main critical minerals, a New York-based mining investor said.
“In the Arctic, one of the popular – the sort of commonly occurring mineral – is called eudialyte,” said Tomasz Nadrowski, portfolio manager at Amvest Terraden, an investment and corporate finance firm specialising…
Caribbean island wins climate case against Netherlands forcing Dutch action on rising seas
A court on Wednesday ordered the Dutch government to draw up a plan to protect residents on the tiny Caribbean island of Bonaire from the devastating effects of climate change – a sweeping victory for the islanders.
The Hague District Court, in a stunning rebuke of Dutch authorities, also ruled that the government discriminated against the island’s 20,000 inhabitants by not taking “timely and appropriate measures” to protect them from climate change before it is too late.
“The island already…
Hong Kong eyes lowering age bar for health checks on commercial drivers to 65
Hong Kong plans to lower the age threshold for mandatory medical certification for commercial vehicle drivers from 70 to 65 under legislative proposals to be submitted in the first quarter of this year, with the new rules supported by a transport advisory body.
The government on Wednesday briefed the Transport Advisory Committee on the proposals to tighten medical fitness requirements for commercial vehicle drivers in a bid to further safeguard road safety amid an ageing workforce in the…
Hygon’s chips ‘safe’ from AMD security flaw amid China’s tech self-reliance drive
Chips from Chinese semiconductor designer Hygon Information Technology were found unaffected by a recently disclosed vulnerability in products developed by its US tech licenser and former joint venture partner Advanced Micro Devices (AMD), according to analysts, which showed progress in China’s self-reliance drive.
Hygon’s central processing units (CPUs), which were developed under a licence to use AMD’s X86-based Zen chip architecture, did not have the hardware security flaw that affected a…
Would Chinese or US supply lines be more vulnerable in a Pacific conflict?
The US faces critical “sustainment risks” that might lead to rapid defeat in a conflict with China, according to a Heritage Foundation report, which also found that while such a scenario could start in the Taiwan Strait, it would not be contained there.
Based on the findings of an AI-based study called Tidalwave – after a 1943 operation of the same name – the right-wing think tank urged Washington to immediately strengthen American fuel and munitions reserves and logistical networks.
At the same…
Hong Kong transport chief pledges to refine bus seat belt rules after backlash
Hong Kong’s transport minister has pledged to refine a policy requiring passengers to wear seat belts on buses by ensuring the devices become more user-friendly, while acknowledging lawmakers’ calls for a review of the recent law.
Secretary for Transport and Logistics Mable Chan made the promise on Wednesday, less than a week after the new rules took effect. The regulations require all passengers travelling on public or private buses, including franchised and school services, to wear seat belts…
What haunts China’s investors? US geopolitics and a birth dearth, survey finds
Chinese investors rank US-China relations and domestic demand as their top two concerns for the next 12 months, while highlighting a weak property market and declining birth rates as key risks, according to quarterly survey results.
While the outlook has instilled a continued sense of caution following a year of volatility and policy-driven rebounds, the overall investor sentiment remains resilient, the Cheung Kong Graduate School of Business (CKGSB) in Beijing said on Wednesday about its…
Amazon cuts 16,000 jobs amid AI shift, post-pandemic restructuring
Amazon is slashing about 16,000 corporate jobs in the second round of mass lay-offs for the e-commerce company in three months.
The tech giant has said it plans to use generative artificial intelligence to replace corporate workers. It has also been reducing a workforce that increased during the pandemic.
Beth Galetti, a senior vice-president at Amazon, said in a blog post on Wednesday that the company has been “reducing layers, increasing ownership, and removing bureaucracy”.
The company did…
Moonshot’s newest release narrows US-China AI model development gap: analysts
Moonshot AI’s newest release, Kimi K2.5, has narrowed the gap between the US and China to the closest it has ever been in the development of artificial intelligence models, according to third-party evaluations.
That feat by the Beijing-based start-up, founded in March 2023, has raised questions about the efficacy of US policies – most notably, export controls on advanced semiconductors – to constrain China’s AI development efforts, said Kyle Chan, a fellow of the John L Thornton China Centre at…
Sarah Mullally confirmed as Archbishop of Canterbury, first woman to lead Church of England
Sarah Mullally was confirmed as Archbishop of Canterbury on Wednesday, becoming the first woman to lead the Church of England.
The worldwide Anglican Communion, which includes the Episcopal Church in the US, has no formal head, but the archbishop traditionally has been seen as its spiritual leader.
Mullally, 63, a cancer nurse turned cleric, officially took up the responsibilities of her new job as judges presided over a legal ceremony confirming her appointment, which was announced almost four…
With China visit, Starmer makes clear he’s putting Britain first
“I’m often invited to simply choose between countries. I don’t do that,” UK Prime Minister Keir Starmer said on Monday ahead of his China trip. The visit – after Canadian Prime Minister Mark Carney’s Beijing trip drew US tariff threats – is an attempt to drag British foreign policy into alignment with 21st century realities: a world of strategic rivalry but deep economic interdependence.
Starmer’s remarks are not diplomatic wordplay, but a declaration the United Kingdom will no longer be a…
Hong Kong logs US$37 million Admiralty office deal amid tentative market recovery
A Hong Kong office unit at Admiralty Centre has changed hands for HK$292.17 million (US$37.46 million), making it the most expensive commercial property transaction registered on Tuesday, according to official records, in a deal that adds to tentative signs of stabilisation in the city’s battered real estate market.
The office space, located in Tower 1 of the Admiralty Centre within the city’s core business district, was acquired by Luck Ring Development, Land Registry records showed.
The unit…
China will step in if Australia moves to regain control of Darwin Port, envoy says
Beijing has pledged to step in if Canberra commits to regaining control of a strategic port in northern Australia that is leased to a Chinese firm.
Chinese ambassador to Australia Xiao Qian said on Wednesday that Beijing “has the obligation to take measures” to protect the legitimate rights of Chinese companies overseas if the port of Darwin were taken back through a forced sale, according to Australian media reports.
During last year’s successful re-election campaign, Australian Prime Minister…
Beijing clears Nvidia’s H200 imports, ending chip uncertainty for China tech giants
Beijing has begun approving imports of Nvidia’s H200 graphics processing units (GPUs), according to two sources familiar with the matter, ending regulatory uncertainty over the US tech giant’s second most powerful artificial intelligence chip.
The first batch was expected to go to Big Tech companies, which were in urgent need of the GPU, a source said. However, access for state-backed companies, such as telecommunication network operators, was expected to remain under tight control, the source…
As World Cup boosts merch demand, China’s small-goods capital Yiwu stays wary
With less than five months to go before the opening match of the 2026 Fifa World Cup in the United States, Canada and Mexico, a wave of World Cup-driven orders is already rippling through China’s manufacturing heartlands.
In Yiwu, the eastern Chinese city long known as the world’s largest hub for small commodities, exporters of fan merchandise and sporting accessories are reporting an early surge in overseas orders.
World Cup fan merchandise maker and exporter Miji, who declined to give his full…