FED: FEARS OF INFLATION SURGING IN 2025
The minutes of the Federal Reserve's December meeting revealed that the plans of President-elect Donald Trump, which include widespread tariffs and mass deportations, have created uncertainty among central bank officials regarding inflation prospects. Dollar monetary policy officials expressed concerns that the recent cooling in price increases could be disrupted by changes in Trump’s policies. They also warned that reaching the 2% inflation target may take longer than initially anticipated.

US EMPLOYMENT REPORT: BETTER THAN EXPECTED
The employment report exceeded market expectations, highlighting key points:
● 256,000 jobs were created last month, higher than the previous month and well above estimates.
● Unemployment rate dropped to 4.1%, surpassing the forecast of remaining at 4.2%.
● Average hourly earnings increased 3.9% year-on-year (slightly lower than the previous month), with a 0.3% monthly rise, also below the previous month’s figure.

EUROPE IN CRISIS: RETAIL SALES FALL
Eurozone retail sales grew less than expected in November, confirming that consumer spending remains sluggish, adding to a series of bleak data on the economic health of the monetary bloc. Retail sales across the 20 euro-sharing countries grew by just 0.1% in November, below the 0.4% expectation from a Reuters poll. The eurozone economy has managed to narrowly avoid recession over the past year.

ITALY: STRIKES CONTINUE The first strikes of 2025 have already been organised, impacting local public transport, aviation, and rail sectors in protest of working and wage conditions. These issues triggered numerous protests in 2024. Barely a week into the year, this work stoppage follows a trend of dissatisfaction from 2024, which saw 622 strikes in Italy, many related to the transport sector.

GERMANY: RECORD NUMBER OF INSOLVENCIES Germany recorded the highest number of corporate insolvencies in the last quarter of 2024 since 2009, according to a study by the Halle Institute for Economic Research. In Q4 2024, there were 4,215 corporate insolvencies, affecting nearly 38,000 jobs, a level not seen since the financial crisis of 2009.

CANADA: FOLLOWING EUROPE’S PATH Canada's Prime Minister, Justin Trudeau, has announced his resignation as leader of the Liberal Party. He will remain in office until his party appoints a new leader. Key reasons behind his decision:
●  In 2020, he faced criticism for selecting a charity linked to his family to manage a major government programme.
●  In the previous general election, his party was reduced to a minority, forcing the Liberals to rely on other parties to remain in power.
●  His popularity was hit by rising living costs and inflation, contributing to global electoral setbacks for governments.
●  His promotion of an overly ambitious agenda filled with grand promises led to growing dissatisfaction.

CHINA: ECONOMIC STAGNATION CONTINUES Consumer prices in China barely rose in 2024, while factory prices saw their second consecutive annual decline, weighed down by persistently weak domestic demand, according to official data released on Thursday.
Factors such as job insecurity, a prolonged real estate slump, mounting debt, and tariff threats from the incoming Trump administration have dampened demand, despite Beijing's efforts to stimulate activity.

SOFTWARE AND AI SECTOR: ON THE RISE IN 2025
AI demand is expected to grow in 2025 amid a sharp increase in capital expenditure in the sector. Software and cloud companies are predicted to benefit significantly from the interest in AI. Highlighted companies, according to Piper Sandler, a major US investment firm:
●  Snowflake (NYSE:SNOW): Piper Sandler analysts predict steady demand for Snowflake as businesses increasingly invest in cloud technology to manage AI workloads.
●  Salesforce (NYSE:CRM): Analysts believe Salesforce is in a strong position and could maintain double-digit free cash flow growth even if revenue growth slows.
●  Microsoft: A top recommendation by the firm, Microsoft remains a leader in AI, with investments in OpenAI and promising long-term growth prospects.

ARGENTINA SURPRISES THE WORLD: IMF STATEMENTS IMF
Managing Director Kristalina Georgieva reflected on the global economy in 2024, highlighting Argentina’s economic policy changes as "the most impressive case in recent history." Georgieva also noted:
●  The EU is "somewhat stagnating."
●  Brazil has faced "higher" inflation.
●  China has encountered the opposite, where "any new shock could negatively affect inflation."
She emphasised that much of 2025’s growth will be driven by the US. BITCOIN MINERS: HOLDING THEIR BTC According to a 7 January report from NiceHash and Digital Mining Solutions, public Bitcoin miners followed MicroStrategy’s example by increasing Bitcoin holdings in their treasuries. In 2024, a notable shift occurred, with miners opting to retain more of their mined Bitcoin or refraining from selling altogether. Reasons: ● Anticipation of higher BTC price appreciation.
● Strengthening financial reserves. This strategy reflects a clear trend among major miners to accumulate Bitcoin, signalling confidence in this asset’s long-term value.

EL SALVADOR: A FINANCIAL EDUCATION ROLE MODEL
The National Bitcoin Office of El Salvador (ONBTC) announced the launch of an educational programme on artificial intelligence (AI) and robotics, set to be implemented in the country’s public secondary schools. The programme will begin in late January, initially reaching 20 public secondary schools. It is part of ONBTC's 2025 agenda, which prioritises education about the Bitcoin ecosystem.

BITCOIN AS A STRATEGIC TREASURY ASSET FOR NATIONS?
Aleš Michl, Governor of the Czech National Bank, discussed the potential of adopting Bitcoin as a strategic treasury asset. While he considers BTC suitable for diversifying national reserves, he stressed that the decision is beyond his authority. Countries showing interest in Bitcoin reserves include:
● United States: President-elect Donald Trump has promised a national Bitcoin reserve starting with 200,000 coins.
●  European Union: French lawmaker Sarah Knafo has called for a strategic Bitcoin reserve in the region.
●  Switzerland: The Federal Chancellery has approved a proposal to include Bitcoin in the Swiss National Bank's reserves.