Tech stocks plunged after DeepSeek, a Chinese AI company, showed it could train models to get similar results as American rivals but using fewer chips. Investors fear that will cut demand for AI hardware. The share price of Nvidia, an American chipmaker, fell more than 11%, helping to drag the S&P500 down by around 2%. The Netherlands’s ASML was down 9%. Marc Andreessen, a venture capitalist, called DeepSeek’s model AI’s “Sputnik moment”.
The Rwanda-backed M23 rebels in the Democratic Republic of Congo claimed control over the eastern city of Goma after assaulting it on Sunday. The Congolese government, which denies the claim, accused Rwanda of “declaring war” and cut diplomatic ties. Paul Kagame, the president of Rwanda, and Félix Tshisekedi, his Congolese counterpart, have agreed to hold talks in Kenya on Wednesday to address the conflict.
Tesla sued the European Union over anti-subsidy tariffs on Chinese-made electric vehicles it imposed in October. The bloc set a 7.8% tariff on some Teslas and up to 35.3% on other brands. Tesla, which exports Model 3s from its Shanghai factory to Europe, joins BMW and several Chinese firms, including BYD, Geely and SAIC, in challenging the move.
Palestinians began returning to the north of Gaza after Israel and Hamas reached an agreement securing the release of an Israeli hostage held in the strip. Israel had said it would not allow the displaced Palestinians back until Arbel Yehoud, whom it had expected to be released on Saturday, was freed. She, and five others, are due to be set free by next weekend.
The EU renewed sanctions on Russia for six months after Hungary dropped its veto. The measures, including trade bans and freezing central-bank assets, aim to weaken Moscow’s war finances. Hungary had demanded assurances that Russian gas deliveries via Ukraine would continue. The EU agreed to help the country secure its energy supply.
The White House said that it would hold off on imposing tariffs and sanctions on Colombia after it agreed to accept deportation flights of migrants. Earlier Donald Trump had announced “emergency” tariffs of 25% on goods from the country in response to Colombia’s refusal of entry to two such flights. Luis Gilberto Murillo, the foreign minister, said his country would receive returning Colombians.
An undersea fibre-optic cable between Latvia and Sweden was damaged on Sunday, probably by an “external influence”, said Latvia’s prime minister. Sweden is investigating possible sabotage and has seized a vessel as part of its inquiry. NATO is sending patrol ships to the area. Previous recent damage to cables in the Baltic Sea has been linked to Chinese and Russian ships.
Figure of the day: 200,000, the manpower of Poland’s armed forces, which have doubled in size since 2014. Read the full story.
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