Japan’s economic growth in the final quarter of 2025 was much weaker than expected, with GDP growing only 0.2% annually; this highlights the fragility of domestic demand and the inflation pressure on households. The weak growth is likely temporary and the overall economy and supportive policies remain unchanged. Meanwhile, Japan’s yield curve has steepened, as concerns about the government’s fiscal situation have increased long-term bond yields, and expectations of later rate hikes have lowered short-term yields. This steepening of the yield curve cannot be taken as a signal of economic boom

Westpac Bank stated that the strong US economy and the high wealth of households have sustained consumption and slowed the pace of inflation reduction. Low unemployment and wage growth indicate that demand is still strong, and price pressures, especially in the services sector, continue. For this reason, the bank predicts that the Federal Reserve will likely postpone its last interest rate cut until June 2026. This assessment is contrary to market expectations for faster rate cuts and indicates ongoing uncertainty in the US monetary policy path.

Zelensky said Trump is exerting disproportionate pressure on Ukraine to advance a peace agreement and is demanding more concessions from Kyiv than from Moscow. In an interview with Axios, Zelensky said that giving up additional territories, even if requested by Russia, would not be acceptable to Ukrainian public opinion. He emphasized that any plan involving withdrawal beyond the current lines would likely be rejected in a referendum. The Ukrainian president called for stabilizing the situation along the current contact lines, especially in the Donbas region.

Indirect talks between Iran and the United States in Geneva ended with what was described as good progress, and the two sides agreed on a set of guiding principles to continue negotiations and exchange draft proposals. Abbas Araghchi said the path of the talks is positive, but a quick agreement is unlikely. Meanwhile, Trump called for an immediate deal and warned that tougher options would be considered if diplomacy fails. The main disagreements still revolve around the nuclear program, sanctions, and missile and regional issues.