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Washington moved forward on a record Taiwan weapons package as Beijing keeps up military pressure around the island. President Trump used a rare prime-time address to reframe the economy amid political headwinds and limited new policy detail.

Elsewhere, a U.S. military strike in the eastern Pacific killed four people, expanding the reach of counter-drug operations and raising questions about authority, escalation, and regional fallout.

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The U.S. cleared a record arms package for Taiwan that includes rocket systems, artillery, drones, and munitions, with the notification process moving through Congress. Taipei framed the move as part of a broader push to harden defenses and speed procurement.

The sale lands as China keeps pressure on the island through military activity and diplomatic messaging. The package emphasizes capabilities tied to a “deny and deter” posture rather than power projection.

The timing matters because both sides read signals. A larger package can strengthen deterrence, but it also raises the risk of near-term escalation if Beijing responds with shows of force or economic pressure.

President Donald Trump delivered a rare prime-time address from the White House as his administration works to reshape the economic narrative heading into 2026, emphasizing growth, jobs, and national strength. The speech was framed in advance as an effort to highlight perceived gains despite weak public approval.

The address included limited new policy actions, such as one-time holiday payments for active-duty troops, while signaling a push for lower interest rates through future Federal Reserve leadership. Concrete details on inflation relief or legislative priorities were largely absent, with the focus instead on optimism and inherited challenges.

The moment matters because it sets the administration’s tone for the coming year and frames debates over monetary policy, spending, and executive power. With political pressure mounting, the address functions as a strategic reset aimed at voters, markets, and Washington insiders.

The U.S. military carried out a strike on a vessel in the eastern Pacific Ocean that killed four people, describing the target as a boat linked to drug trafficking networks operating toward North America. Defense officials released footage of the strike and said the operation was conducted under existing counter-narcotics authorities.

The operation is part of a broader campaign that has expanded the geographic scope and tempo of U.S. military actions against suspected trafficking routes. Critics have questioned the evidence used to justify the strikes and raised concerns about civilian harm, legal authority, and the lack of transparent post-strike assessments.

The escalation matters because it stretches traditional definitions of counter-drug enforcement into sustained military operations, increasing diplomatic friction across the region. With Venezuela condemning U.S. actions and regional leaders urging restraint, the strikes risk entangling U.S. security policy with wider geopolitical disputes beyond narcotics control.

A mortar shell hit a residential area during an Israeli operation, injuring civilians as the Gaza ceasefire remains fragile. The episode adds pressure to restart talks on the truce’s next phase and broader governance questions.

French, Saudi, and U.S. officials planned Paris talks on a Hezbollah disarmament roadmap, centered on the Lebanese army’s role. The discussions come as regional actors test what post-ceasefire arrangements can realistically hold. markdown Copy code

European shares were muted ahead of key decisions in the day’s trading, with sectors moving on rates and corporate headlines. The next round of guidance could reset expectations into year-end.

The Federal Reserve terminated enforcement actions tied to Citigroup’s long-running risk management failures, ending requirements detailed in a supervisory move that had constrained the bank’s operations. The decision follows years of remediation and removes a key regulatory overhang.

A U.S. judge said he intends to block hundreds of federal layoffs linked to a shutdown-era law, raising questions about executive authority during funding gaps. The case could shape how future administrations manage workforce actions.

The Senate confirmed Jared Isaacman as NASA administrator, placing a commercial spaceflight figure at the head of the agency. The confirmation vote comes as NASA weighs Artemis timelines against budget pressure and private-sector growth.

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Global markets steadied after tech-led jitters as investors braced for policy signals in the central bank lineup. Traders are watching how inflation, growth, and labor data reshape the path for rates.

A renewed wave of concern about large AI infrastructure outlays weighed on risk appetite in the latest market wrap. The theme is shifting from “who can build fastest” to “who can monetize soonest.”

Major U.S. indexes fell again, with the Dow and S&P 500 logging a fourth straight daily decline amid renewed worries over expensive AI bets and slowing growth, a Wall Street losses recap notes. Tech names led the slide, while investors rotated toward defensive sectors ahead of key central bank meetings.

A major monitoring effort found most teen substance use remains low, with abstention holding near historic highs in the latest survey release. The readout offers a baseline as vaping products and cannabis policy keep evolving.

Health officials convened to advance evidence, integration, and safety guardrails in the traditional medicine summit. The effort aims to standardize what works, what’s safe, and how systems measure outcomes.

Two batches of satellites went up in a dual-coast launch sequence. The cadence highlights how commercial operators are scaling broadband networks in low Earth orbit.

New Jersey took a tight win as a shootout goal and strong goaltending sealed the Devils win. Vegas saw a point streak end as lineup absences mounted.

Chicago shot efficiently and controlled momentum in a Bulls win that flipped a recent trend in the matchup. The result steadied the team after a rough stretch.

Cleveland acquired a left-handed reliever while opening a roster spot in the Guardians trade. The move signals early bullpen shaping ahead of deeper offseason decisions.

The next ceremony has a new emcee, with BAFTA’s host announcement setting the tone for awards season. Longlists and nominations timelines are now in focus.

A new outlook projects a stronger global year as major franchises and high-profile releases stack the calendar in the 2026 box office forecast. The call hinges on release timing, international demand, and premium-format performance.

Early projections point to a major domestic start and a big overseas debut for opening weekend estimates. The numbers will test whether event films can reliably pull audiences back at scale.

Birth rates are falling across most of the world, reshaping economies, politics, and social systems faster than policymakers expected. New population projections show more than half of countries now sit below the replacement rate of 2.1 children per woman, a shift visible across Europe, East Asia, and parts of the Americas. Even regions once defined by rapid population growth are seeing sharp slowdowns, changing long-term assumptions about labor, growth, and public spending.

Several forces are driving the decline. Rising housing and childcare costs have made parenthood harder to afford in major cities, while longer education timelines delay family formation. Expanded access to contraception and changing gender norms have also given people more control over if and when they have children. Data summarized by the United Nations population division shows these trends accelerating rather than stabilizing.

Governments are struggling to respond. Cash bonuses, tax credits, and extended parental leave have produced only modest, short-term gains in places like Japan and South Korea. Analysts reviewing OECD demographic indicators note that financial incentives alone rarely offset structural pressures such as job insecurity and limited childcare availability. Immigration has helped slow population decline in some countries, but it brings its own political and integration challenges.

The economic stakes are significant. Fewer working-age adults mean tighter labor markets, slower growth, and rising pressure on pension and health systems. Countries with rapidly aging populations may face hard trade-offs between higher taxes, reduced benefits, or increased borrowing.

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—The Five Minute Daily Team