Power, technology and capital flows are under new strain as global markets and politics collide.
Automakers are facing hard truths about electrification in the United States as federal threats to quell civil unrest escalate.
Even as geopolitics take center stage, AI is a powerful economic force in Asia.
A crucial Indian tax ruling may redefine rules for investors who want to navigate one of the fastest growing markets in the world.
Trump Threatens to Deploy Troops in Minnesota Over ICE Protests
US President Trump threatened to use the Insurrection Act on Minnesota. This has escalated tensions between federal and state governments over disagreements about governance.
Legal scholars and officials are concerned about the constitutional implications of this threat, which is a clear assertion by executive authority.
Minnesota’s Democratic Leadership has strongly resisted, calling the action a dangerous overreach which undermines federalism.
Experts in constitutional law warn that this type of invocation may lead to prolonged legal battles, and could set the precedent for an unprecedented level of executive intervention.
This standoff is a reflection of the growing polarization between Washington, DC and states governments.
Ford and BYD move towards hybrids
Ford’s talks with Chinese battery manufacturer BYD indicate Detroit’s pivot to hybrids, as the demand for EVs is dwindling.
Automaker BYD is looking at importing BYD battery packs for hybrids produced outside of the United States.
The partnership will tap into BYD’s dominant position, since the company currently controls 55% of all global battery production for EVs.
Ford hybrids sales grew 18% in 2025 Q4 compared to the previous quarter, reaching 55,000 vehicles, highlighting market realities.
The deal, while preliminary and without guarantees, reflects an industry-wide acknowledgement that battery-electric cars aren’t profitable.
Ford could gain a competitive advantage in the highly lucrative hybrid market by leveraging BYD’s technology and cost-savings.
TSMC announces record Q4 profits
Taiwan Semiconductor Manufacturing Company posted record profits in the fourth quarter, fueled by an unquenchable demand for artificial intelligence chips that is reshaping semiconductors.
TSMC has seen its market value surpass NT$1 trillion. This reflects investor confidence that AI will drive growth.
Major tech firms are fiercely competing for production slots. The advanced manufacturing capability of the chipmaker remains the bottleneck in global AI.
AI clients are now willing to pay premium prices for the latest nodes, resulting in a significant increase in profit margins.
TSMC’s forecast is volatile due to geopolitical tensions in Taiwan, but demand remains robust.
Analysts predict that growth will continue through the year 2026. However, supply constraints may eventually limit potential.
India’s Tax Court weighs in on Tiger Global and Walmart deal
A court in India is about to make a decision on the Tiger Global Walmart deal of 2018, which could have a major impact on how Indians tax foreign investments.
This case is about whether Tiger Global exiting Flipkart via Walmart’s acquisition in 2018 triggered gains taxable under Indian law.
This landmark ruling could set precedents for New Delhi’s treatment of foreign venture capital exits, and M&A deals across borders.
The tax authorities challenged the valuation method of this deal.
The ruling in favor of India’s position on taxation could lead to retroactive assessment for other foreign investors.
This judgment has implications that go beyond Tiger Global. It affects venture capital’s confidence in India’s investment ecosystem, and the regulatory predictability.
The post Evening Digest: Trump’s troops threat, Ford BYD talks and TSMC Q4 earnings will be updated as new information becomes available
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