Morgan Stanley believes the US stock market still has room to rise through 2026, despite late cycle concerns. The bank cites six underpriced drivers, including strong earnings growth, easier monetary policy, deregulation, and productivity gains from artificial intelligence, as factors supporting the ongoing uptrend. Based on this outlook, Morgan Stanley has set a 2026 target of 7800 for the S&P 500 index.

UK food inflation rose in December 2025 for the first time since August, reaching 3.3 percent. According to the British Retail Consortium, this pushed overall shop price inflation to 0.7 percent, while non food price inflation continued to decline. Weak consumer confidence led shoppers to seek cheaper options during the Christmas period, helping discount retailers such as Aldi and Lidl post record sales.

A reporter from Axios said that negotiations between Iran and the United States, with the mediation of Qatar, Egypt, and Turkey, are ongoing, but no major breakthrough has been achieved so far. The delivery of enriched uranium, zero nuclear activity, recognition of Israel, and ceasing support for proxy groups in the region are the US conditions for negotiations, which directly contradict the Islamic Republic’s red lines. So far, there have been rumors of an agreement on handing over the uranium, but the other conditions remain unclear. Meanwhile, Trump is pressuring Iran through Venezuela's oil.

While negotiations are ongoing, both sides (Iran and the United States) are not refraining from military threats. The commander-in-chief of Iran’s army warned that if the enemy "makes a mistake," Tehran may target Israel. These remarks come amid growing concerns about the possibility of a US military strike against Iran. Iranian officials are also preparing for a potential confrontation, including converting underground parking lots into shelters and preparing a mass burial site for the "temporary burial of invading US soldiers." This comes as Iran’s foreign minister emphasized in a social media post that Tehran is ready to accept a "fair and equitable nuclear deal" that ensures "no nuclear weapons" and guarantees the lifting of sanctions.