Crypto News: Courting Modi

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The "mother of all deals" concluded between India and the European Union is the latest example of an emerging pattern: New Delhi as the go-to partner for countries snubbed by President Donald Trump.

The free-trade pact — struck in India yesterday, with EU chief Ursula von der Leyen afforded all the pomp of a state visit — was almost two decades in the making.

Yet much has changed for both Europe and India in the last year to light a fire under the negotiations. India currently faces 50% tariffs on its US exports, while Europe has been battling repeated threats from Trump — most recently of new levies over Greenland.

The EU is far from alone in its eagerness to do business with India. And with US-India trade talks in the freezer, Prime Minister Narendra Modi is just as keen to receive all comers — including Russia's president, Vladimir Putin.

Vladimir Putin, Russia's president, left, shakes hands with Narendra Modi, India's prime minister, during a news conference at Hyderabad House in New Delhi, India, on Friday, Dec. 5, 2025. Modi and Putin held a bilateral meeting in New Delhi, as the two leaders look to deepen economic cooperation in the face of pressure from US President Donald Trump. Photographer: Prakash Singh/Bloomberg — Putin and Modi in New Delhi in December.

New Zealand struck a trade deal with New Delhi in December. Germany's Friedrich Merz was there this month on his first Asia trip as chancellor. In February, it's the turn of French President Emmanuel Macron, attending a tech summit, while Brazilian President Luiz Inácio Lula da Silva has confirmed a visit as well.

Canadian Prime Minister Mark Carney is planning to visit India soon, with both sides already pledging to boost trade in oil and gas.

India isn't the only destination for leaders seeking to diversify their economic ties.

Vietnam and the EU are expected to announce a comprehensive strategic partnership. UK Prime Minister Keir Starmer arrives in China today, while Carney was there two weeks back — and took flak from Trump for striking deals on EVs and agriculture with Beijing.

It's unknown what the sudden rush to India means for New Delhi's standing in Washington — and its prospects for a deal that provides tariff relief. So far, there's little sign the US is budging.

That only makes Modi all the more likely to keep the door open to others. — Dan Strumpf

Narendra Modi, India's prime minister, center, with Antonio Costa, president of the European Council, left, and Ursula von der Leyen, president of the European Commission, at Hyderabad House in New Delhi, India, on Tuesday, Jan. 27, 2026. India and the European Union have agreed on a free trade agreement, Prime Minister Narendra Modi said on Tuesday, capping nearly two decades of negotiations at a time of strained ties with Washington. Photographer: Prakash Singh/Bloomberg — Modi, center, with European Council President António Costa and von der Leyen in New Delhi yesterday.

Global Must Reads

Trump said he was looking to "de-escalate" in Minnesota with a reshuffle of the leadership running his deportation effort there after widespread outcry over the killing of two US citizens by federal agents. Italian officials meanwhile protested US plans to deploy some Immigration and Customs Enforcement staff at this year's Winter Olympics in Milan, underscoring how the agency's role in the immigration crackdown at home is stirring opposition overseas.

Mick Mulvaney, acting White House chief of staff in Trump's first term, said the administration's reset on its immigration crackdown is the most significant pivot Trump's ever made, and it's the right response to the public furor that's arisen over the killings of two US citizens in Minneapolis. — WATCH: Mick Mulvaney, acting White House chief of staff during Trump's first term, told Bloomberg TV that the president's reset on its immigration crackdown is the most significant pivot he's ever made.

President Xi Jinping's purge of top Chinese generals has cost Western governments a key channel of communication and deepened fears that the People's Liberation Army is becoming even more walled-off from contact. While Liu Zhenli's removal at the weekend drew less attention than that of his more senior counterpart, Zhang Youxia, his absence is of more immediate concern because he'd been the most effective interlocutor for managing risks and preventing miscalculation, sources say.

Starmer arrived in Beijing today confident he can do what few leaders have managed: broaden trade ties with China without annoying Trump. The UK prime minister is bringing a delegation heavy on British banking executives and cultural emissaries representing the arts and sports, as well as a range of manufacturers, as he seeks to open up more export business for UK industries.

Keir Starmer and Xi Jinping in 2024. — Starmer and Xi in 2024.

China said it's "watching very closely" how Australia handles the status of a port leased to a Chinese firm that the government in Canberra has pledged to return to local control, and vowed to step in if necessary. The lease of Darwin port to Landbridge Group is a point of contention between the two nations, which have otherwise improved ties since Prime Minister Anthony Albanese first won office in 2022.

The Trump administration is demanding that South Korea take concrete steps to implement its six-month-old trade deal with the US to prevent tariffs from rising to 25%. The latest threat marked the culmination of broader tensions in the trade relationship between Washington and Seoul, which have been exacerbated by frustration over Korean digital-services regulations.

Secretary of State Marco Rubio said the US is prepared to use force to ensure that Venezuela cooperates to the greatest extent possible, while hoping that self-interest will motivate acting President Delcy Rodríguez to advance key American objectives.

Venezuela's interim president Delcy Rodríguez. Photographer: Jesus Vargas/Getty Images — Rodríguez at the parliament in Caracas this month.

Japanese government bonds gained after a 40-year auction drew the strongest demand since March, easing immediate worries about long-term debt even as fiscal concerns mount ahead of the Feb. 8 snap election.

French Prime Minister Sébastien Lecornu survived renewed attempts by lawmakers from the far right and far left to oust him over his fiscal policies, bringing the country a step closer to securing a 2026 budget.

Trump warned Iraq's largest political bloc against tapping former Prime Minister Nouri al-Maliki to return to office, saying the US would "no longer help" the nation if he was back in power.

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Chart of the Day

Trump indicated he's comfortable with the dollar's recent decline, helping send the currency to its weakest level since early 2022. His comments added fuel to what was already its deepest drop since his tariff rollout last year sent markets into a tailspin, fanning fears that his erratic policy shifts would drive overseas investors to pull back from the US. His relaxed tone about the selloff is fueling speculation the greenback is set for a longer-term decline.

And Finally

A US judge said a nearly completed $4.5 billion wind project off the coast of Massachusetts can resume construction, weeks after the Trump administration compelled all such developments to stop work. Vineyard Wind is the fourth US offshore venture that's won court approval for a restart following the government's decision in December to halt five unfinished projects on the East Coast, based on claims that they posed national-security risks.