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Every morning at 7:30 a.m. sharp, a race begins on the outskirts of Chengdu, a sprawling Chinese metropolis known for its spicy hotpot, old tea houses and the country’s most beloved animal – giant pandas.

From the gates of the famed Chengdu Panda Base, fans run to the leafy “villa” of its celebrity resident: Hua Hua, China’s most popular panda. Among them is A’Qiu, who rents an apartment nearby and shares his bedroom with dozens of stuffed black and white teddy bears.

The 32-year-old bikes to the panda base every morning to see Hua Hua and film the celebrity bear for his 10,000 followers on Douyin, TikTok’s sister app. In the summer, he gets up as early as 3 a.m. to be at the front of the line. “Just seeing her face makes me feel incredibly happy,” he said.

Rare, fluffy and irresistibly cute, pandas are adored across the globe. Yet Hua Hua’s star power is something else entirely. The 4-year-old is so popular that only 30 people are allowed to admire her for a mere three minutes each before being ushered out by security guards. On a busy weekend or holiday, tens of thousands of visitors from across China spend more than two hours in line just to catch a glimpse of her.

In Chengdu, Hua Hua’s face is everywhere – in souvenir shops, cafes, post offices and on billboards. She also enjoys a massive following on Chinese social media, where her videos have racked up billions of views.

Hua Hua’s unprecedented popularity epitomizes a new wave of “pandamonium” that is sweeping across China, following a decades-long government effort to transform the giant panda from a little-known animal into a cultural icon, a national symbol and a potent tool of diplomacy.

But the success of the pandas’ rebranding has created an unexpected challenge for Beijing, as it seeks to balance its use of the animals for much-needed soft power abroad against the demands of an adoring public to protect their “national treasure” at all costs.

While many Chinese are proud to share pandas with the world, some – including a vocal fringe group of online influencers – oppose sending their beloved bears to the United States and other “unfriendly” countries, ostensibly for fear they’ll be mistreated.

The group’s howls of protest could be heard last year outside the Dujiangyan Panda Base, the temporary home of two pandas that were sent to the US in a carefully orchestrated process cloaked in secrecy to avoid unscripted attention.

Some animal rights activists and panda fans have also targeted researchers and scientists involved in China’s panda breeding program, prompting the government to signal it will no longer tolerate any attempt to tarnish the conservation success story of the country’s cuddly soft power asset.

From obscurity to fame

Pandas once roamed a vast swath of China, along with parts of northern Myanmar and Vietnam, but human encroachment and climate change shrank the habitat of the bamboo-munching bears to just six mountain ranges above the Sichuan basin, deep in China’s hinterland.

Hailed in imperial times as the “land of heavenly abundance,” Sichuan is now better known as the “hometown of pandas.” The mountainous province boasts a latticework of panda nature reserves and breeding centers, all built in recent decades as China – and the world – raced to save the multimillion years old “living fossil” from extinction.

The provincial capital, Chengdu, home to 21 million people, sits at the foot of snow-capped mountains with misty old-growth forests where wild pandas still roam.

The city’s panda breeding base is the largest in the country, housing more than 240 bears – or a third of the world’s captive panda population. The sprawling facility draws up to 11 million visitors a year, on par with Shanghai Disneyland.

“It’s a symbol of China. All Chinese people want to see it in person,” said a visitor who traveled 800 miles (1,300 kilometers) to Chengdu and lined up at 6 a.m. to see the pandas. But the giant panda hasn’t always been an emblem of the Chinese nation.

Throughout much of history, these elusive bears left little impression on Chinese literature and art, let alone holding any cultural significance like the dragon, the tiger or the crane.

The obscure panda only emerged as a national icon well after the founding of the People’s Republic in 1949, according to E. Elena Songster, a historian and author of “Panda Nation: The Construction and Conservation of China’s Modern Icon.”

Unique, lovable and free of historical baggage, the black and white bear was deemed an ideal symbol for the young communist nation to shape its image and identity.

Even then, it took years for the panda to gain widespread recognition and adoration in an impoverished country.

Liu Xuehua, an ecologist who dedicated her career to preserving panda habitat, never knew about these bears growing up in a small industrial city in southeastern China in the 1960s and 1970s. “The media wasn’t so developed, we spent a lot of time studying at school and there weren’t that many zoos in the provinces,” she recalled.

Nowadays, it’s virtually impossible for a Chinese child to grow up without knowing pandas – the “national treasure” brought back from the brink of extinction.

They are featured in cartoons, textbooks, toy stores, and – with their captive population growing from about 100 to more than 700 in a span of decades – can now be seen in zoos across nearly every province in China.

The wild panda population has also rebounded from a low in the 1980s, reaching an estimated 1,864 by the last official count in 2014. Two years later, the giant panda was downgraded from “endangered” to “vulnerable” on the global red list of threatened species.

Soft power asset

Pandas are not only a success story for China in wildlife conservation – they’re also a major soft power asset.

Soft power is something China has struggled with in recent decades even as it propelled itself to become the world’s second-largest economy. Japanese fashion, films, anime, manga and video games have long captivated fans across the globe. More recently, the “Korean wave” has taken the world by storm, setting off a craze for K-pop, K-drama, K-beauty, K-everything.

For China, an authoritarian state where cultural czars dictate the terms of artistic creations, the most successful tool to win hearts and minds worldwide has been – and remains – its monopoly on pandas.

For more than half a century, Beijing has dispatched these charismatic animals overseas to shore up alliances, mend estranged ties and court new partners.

Pandas have been a cornerstone of US-China engagement ever since a pair arrived in Washington in 1972, following President Richard Nixon’s ice-breaking trip to the communist nation during the Cold War.

But relations between the US and China, the world’s two most powerful nations, have sunk to their lowest ebb in decades, strained by spiraling competition over technology, military, geopolitics and more.

Panda diplomacy has been a small bright spot in an otherwise darkened landscape. Last June, China sent the San Diego Zoo the first pair of pandas to enter America in 21 years. A second pair, Bao Li and Qing Bao, made their public debut last Friday at the Smithsonian’s National Zoo after arriving in Washington in October.

“People want a good news story. They want something that shows we can be successful … in protecting the planet,” said Ellen Stofan, the undersecretary for science and research at the Smithsonian, in October as she watched pandas loll about at Wolong Shenshuping, a mountain-ringed breeding base where Bao Li and Qing Bao were born.

Yet even that rare bright spot in relations couldn’t fully escape the shadow of distrust and animosity between the two countries – sentiments that some fear will only deepen now that President Donald Trump is back in the White House with a cabinet staffed with China hawks.

‘Patriotic’ backlash

As the Chinese public grows fonder – and perhaps more protective – of the pandas, some online influencers have expressed concerns about the bears’ welfare abroad, alleging that American zoos have mistreated China’s “national treasures.”

Such claims have often been fueled by the kind of nationalistic, anti-US sentiment fanned by state media. They have gained traction on the Chinese internet in recent years, especially following controversy over the health of Ya Ya, a panda previously on loan to the Memphis Zoo.

In 2023, Ya Ya’s skinny looks and scraggly fur spurred concerns for her health, especially after her male partner, Le Le, died just months before the pair were scheduled to return to China. Chinese social media was awash with wild allegations that the Memphis Zoo had mistreated its pandas as a deliberate snub to China.

Zoo officials repeatedly dismissed such accusations, attributing Ya Ya’s fur loss to a genetic skin disease – a conclusion shared by Chinese experts dispatched to Memphis to examine the panda.

The backlash didn’t derail the panda loan program, which generates an annual fee of about US$1 million per pair of bears for China, but it seems to have complicated matters for everyone involved.

Transporting pandas across the Pacific Ocean has always been a logistically complex undertaking that requires months of planning. Now, authorities must navigate added layers of political sensitivity and secrecy.

The departure date of Bao Li and Qing Bao was kept strictly under wraps, only revealed to the public by the Chinese government once their chartered plane was in the air.

Once held at panda bases, the invitation-only official send-off ceremonies now take place in hotel conference rooms away from crowds of tourists.

A day before Bao Li and Qing Bao’s send-off, Chinese officials rushed to change the event’s location to a more secluded hotel, likely to prevent a repeat of scenes in June, when a small group of protesters gathered outside the Dujiangyan panda base with banners opposing their transfer.

Local journalists who have reported on pandas for years said the crowds were part of a recent trend of “extreme panda fans” protesting the animals being sent overseas. Some even tried to stop their journey by bombarding panda experts, officials and government agencies with angry phone calls. “They believe they’re being very patriotic,” one of the journalists said.

Scrutiny over breeding techniques

The Chinese public’s growing love affair with the bears has also brought more scrutiny to the treatment of pandas in breeding centers and zoos inside China.

“So many fans are watching the live panda cams. And the Chinese institutions are extremely careful in terms of what kind of content they provide and how they’re being perceived by the public. I think (that’s) becoming more of a norm right now,” said Qiongyu Huang, a wildlife biologist at the Smithsonian who has worked with Chinese partners on pandas.

A major point of contention centers on the artificial breeding of pandas in captivity.

Some panda advocates have criticized the use of electroejaculation, a common technique for collecting sperm from mammals, especially on cattle farms. It involves inserting an electric probe with mild currents into the rectum of a male under anesthesia to stimulate ejaculation — a process that some critics say is cruel and harmful. (The procedure is also used on humans when a patient cannot ejaculate on their own due to a spine injury, nerve problem or other condition.)

To address concerns, the Chengdu breeding base conducted a public experiment allowing panda fans to experience the strength of the electric currents firsthand. Visitors were invited to touch an electric probe set to the same voltage used on pandas, and according to the center’s statement, none reported feeling any noticeable sensations.

But criticism and questions have persisted.

Wang Donghui, a scientist at the Chengdu base, is part of a research team that developed a new technique to freeze panda semen to improve its viability – and increase the success rate of artificial insemination. The breakthrough was widely hailed in state media at the time and earned him the nickname “Doctor Panda.” However, Wang now avoids discussing the topic — or anything related to panda sperm and artificial insemination. “We’ve been attacked,” he explained off camera.

That sense of nervousness is palpable at other panda bases too. Some staff spoke of concerns that panda experts and caretakers have become frequent targets of online bullying and phone harassment; one said, only half-jokingly, that they now work in a “high-risk industry.”

The intensity of online harassment has “made it difficult for some experts to carry out their research work properly,” Hou Rong, a leading researcher and deputy director of the Chengdu base, told the state-run People’s Daily.

China’s captive breeding program had a terrible start, its early years marred by failures at both artificial breeding and keeping cubs alive.

An official at the Chengdu base recalled in an interview with state media that in 1996, whenever scientists tried to collect sperm from pandas, the bears would end up with blood in their stools – a condition that persisted for six months at a time. “The situation at the time was extremely dire, none of the captive male pandas could produce any semen,” the official was quoted as saying.

Panda reproduction in captivity is notoriously difficult. Female pandas are in heat only once a year for about 24 to 72 hours. They’re also very picky about who they choose to mate with. And when they finally give birth, newborn pandas are extremely fragile. In the 1990s, the survival rate of cubs under human care at some breeding centers was only 10%, according to state media.

But these hurdles had been largely overcome by the 2000s with the help of American and European scientists, said Wu Honglin, the deputy director of the Shenshuping base.

“With a deeper understanding and research into pandas, along with breakthroughs in reproductive technology, it’s no longer a challenge,” Wu said. And the large captive population offers females more options. “In recent years, we have relied entirely on natural mating,” he added.

China’s breeding centers now boast cub survival rates well above 90%, and every year, dozens of new cubs are born.

Melissa Songer, a conservation biologist at the Smithsonian, said China learned from past lessons. “It’s not that there’s never been a mistake or that things couldn’t get better, but I think things have gotten so much better so quickly,” she said.

Return to the wild

Proponents of the captive breeding program say it serves as vital insurance against extinction.

The end goal is to return the pandas to the wild, and a sizable captive population is the foundation for that long and challenging effort, said Huang, the ecologist at the Smithsonian.

Deep in the misty mountains above the Shenshuping breeding site lies the Tiantaishan rewilding base, where select panda cubs are prepared for life in the wild.

Here, bamboo trees often have messy, broken branches – an unmistakable sign of feeding for the trained eye.

When the cubs reach 1 year old, they are brought into the base’s wild enclosures with their mothers to learn vital survival skills such as foraging, finding water, and dealing with other wildlife like black bears and wild boars.

If deemed ready, the youngster will be released into the wilderness at around 2 years old to face all its beauty, rawness, and dangers on its own. Many don’t pass the strict qualification process and spend the rest of their lives in captivity.

Unlike pandas born in zoos, these rewilding candidates are born in large, semi-natural enclosures, raised entirely by their mothers, with minimal human contact.

Staff have come up with an intriguing way to shield the bears from people – the panda suit.

Keepers here only ever interact with their animal charges while dressed in full-body panda outfits, carefully scented with panda urine or feces.

“The goal isn’t to trick the cubs into thinking we’re pandas,” explained Zhang Dalei, a keeper with over a decade of experience in the program, “but to ensure they don’t develop a dependency on humans.”

The work is not without its risks and at Tiantaishan, Zhang has witnessed a lesser-known, aggressive side of these cuddly bears.

In 2016, a keeper wearing a panda suit was attacked and mauled by a protective mother bear who mistook him as an intruder on her territory. When Zhang rushed to the scene, he found his colleague’s wrist bones exposed, the costume soaked in blood. Though the keeper survived, the bear’s powerful jaws had shattered multiple bones and tendons in his arms and legs.

Rewilding carries substantial risks for its trainees, too.

China’s first attempt at releasing a panda into the wild in 2006 ended in tragedy when a 5-year-old bear, Xiang Xiang, was found dead in the snow less than a year later. He was believed to have fallen from height during a territorial fight with a wild male panda. The setback prompted the immediate suspension of the program.

Chinese researchers spent four years reflecting, learning, and refining their methods before restarting the training in its current form, where mother and cub learn to survive in the wild together. The next panda was released in 2012, and since then, 10 more have followed. One of them died six weeks after release, due to a bacterial infection, and at least two pandas perished during training, according to state media reports at the time.

Each failure and loss in China were met with fierce public backlash, and the pressure has likely led researchers to err on the side of caution in releasing more pandas, Huang said. “The progress has been slow because the species is so valuable, it’s like a treasure. Any misstep will have huge consequences in the public domain,” he said.

Restoring panda habitat

Habitat loss and fragmentation remain the biggest threat to wild pandas. By the early 2010s, some of China’s most prominent panda experts had warned that the success in breeding the bears in captivity had masked a critical conservation failure: the species’ rapidly vanishing natural habitat.

Over the past few decades, China has boosted the number of panda reserves from 12 to 67, but many are interspersed with villages and human infrastructure. This has confined many panda subpopulations to isolated patches of habitat carved by roads, railways, dams and farms, cutting them off from new bamboo forests and potential mates. Some groups comprise fewer than 10 individual bears.

Climate change is aggravating the problem. Studies show that a temperature rise of more than 3 degrees Celsius will result in mass death of bamboo, said Yang Hongbo, a researcher at the Chinese Academy of Sciences who focuses on panda habitat.

In 2021, China took a significant step by establishing the Giant Panda National Park, spanning three provinces and covering an area more than twice the size of Yellowstone. The park aims to link existing reserves and reconnect isolated subpopulations.

“It’s all about the habitat, ultimately, for supporting the wild pandas, for growing the wild population,” Songer said.

With enough habitat, the hope is that in the future, panda cubs can be trained in the location where they will eventually be released. “When they’re ready, we only need to remove the fences around their training sites,” said Zhang, the rewilding keeper. “It’s like choosing a home for them to settle into in advance.”

For now, the Chinese government remains committed to breeding pandas in captivity and loaning them to foreign zoos. It has also signaled that it will no longer tolerate overt opposition to “panda diplomacy,” and moved to contain the nationalist backlash.

In December, police in Dujiangyan arrested two online influencers for spreading false rumors about pandas being abused in the US and “inciting opposition” to the panda exchange program. (The suspects are also accused of raking in profits of more than $23,000 through live streaming and fundraising from their followers.) Since May last year, Sichuan authorities have arrested four groups of “extreme” animal rights activists accused of slandering and harassing Chinese panda experts.

Alongside the flurry of arrests intended to deter future “extreme” activism, authorities have ramped up efforts to counter negative opinions about the panda exchange program, although not everyone’s convinced.

A visitor to the Beijing Zoo described pandas as “indispensable” to China. Asked for his view about loaning pandas abroad, he replied with a laugh: “The fewer we send, the better.”

Back at the Chengdu panda base, Hua Hua, the 4-year-old celebrity panda, enjoyed her breakfast of bamboo shoots while the crowd oohed and aahed at her every move. The bear has become a national sensation for her unique looks: for many, she resembles a giant triangular rice ball when she sits.

Others love her chill vibes – a subject of envy for millions of young people struggling to find work in China’s slowing economy.

“She’s not competitive at all. We humans exhaust ourselves every day, longing to ‘lie flat’ and take it easy, but we can’t. Yet Hua Hua can,” said Deng Shoujuan, a staff member at the base.

Qi Qi, a 36-year-old Chengdu local who has visited the base more than 100 times in the past year, is in favor of sending pandas abroad.

“China is the homeland of pandas, but everyone should be able feel the warmth and joy they bring. The giant panda is a gift to humanity, a gift to the world,” she said.

But A’Qiu, the fan who bikes to the base each day to film its most famous resident, says there’s one panda he never wants to see go overseas.

“Don’t even think about Hua Hua,” he said.

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An undersea fiber optic cable between Latvia and Sweden was damaged on Sunday, likely as a result of external influence, Latvia said, triggering an investigation by local and NATO maritime forces in the Baltic Sea.

“We have determined that there is most likely external damage and that it is significant,” Latvian Prime Minister Evika Silina told reporters following an extraordinary government meeting.

Latvia is coordinating with NATO and the countries of the Baltic Sea region to clarify the circumstances, she said separately in a post on X.

Latvia’s navy earlier on Sunday said it had dispatched a patrol boat to inspect a ship and that two other vessels were also subject to investigation.

Up to several thousand commercial vessels make their way through the Baltic Sea at any given time, and a number of them passed the broken cable on Sunday, data from the MarinTraffic ship tracking service showed.

One such ship, the Malta-flagged bulk carrier Vezhen, was closely followed by a Swedish coast guard vessel on Sunday evening, MarineTraffic data showed, and the two were heading in toward the southern Swedish coastline.

It was not immediately clear if the Vezhen, which passed the fiber optic cable at 0045 GMT on Sunday, was subject to investigation.

A Swedish coastguard spokesperson declined to comment on the Vezhen or the position of coastguard ships.

“We are in a stage where we cannot give any information,” the spokesperson said. “Exactly how we are involved we cannot say.”

Bulgarian shipping company Navigation Maritime Bulgare, which listed the Vezhen among its fleet, did not immediately reply when called and emailed by Reuters outside of office hours.

NATO cooperation

Swedish navy spokesperson Jimmie Adamsson earlier told Reuters it was too soon to say what caused the damage to the cable or whether it was intentional or a technical fault.

“NATO ships and aircrafts are working together with national resources from the Baltic Sea countries to investigate and, if necessary, take action,” the alliance said in a statement on Sunday.

Swedish Prime Minister Ulf Kristersson said his country was cooperating closely with NATO and Latvia.

“Sweden will contribute important capabilities to the ongoing effort to investigate the suspected incident,” Kristersson said on X.

NATO said last week it would deploy frigates, patrol aircraft and naval drones in the Baltic Sea to help protect critical infrastructure and reserved the right to take action against ships suspected of posing a security threat.

The military alliance is taking the action, dubbed “Baltic Sentry”, following a string of incidents in which power cables, telecom links and gas pipelines have been damaged in the wake of Russia’s invasion of Ukraine in February 2022.

Finnish police last month seized a tanker carrying Russian oil and said they suspected the vessel had damaged the Finnish-Estonian Estlink 2 power line and four telecoms cables by dragging its anchor across the seabed.

Finland’s prime minister in a statement said the latest cable damage highlighted the need to increase protection for critical undersea infrastructure in the Baltic Sea.

The cable that broke on Sunday linked the Latvian town of Ventspils with Sweden’s Gotland island, and was damaged in Sweden’s exclusive economic zone, the Latvian navy said.

Communications providers were able to switch to alternative transmission routes, the cable’s operator, Latvian State Radio and Television Centre (LVRTC), said in a statement, adding it was seeking to contract a vessel to begin repairs.

“The exact nature of the damage can only be determined once cable repair work begins,” LVRTC said.

A spokesperson for the operator said the cable, laid at depths of more than 50 metres (164 ft), was damaged on early Sunday but declined to give an exact time of the incident.

Unlike seabed gas pipelines and power cables, which can take many months to repair after damage, fiber optic cables that have suffered damage in the Baltic Sea have generally been restored within weeks.

A Swedish Post and Telecom Authority spokesperson said it was aware of the situation but had no further comment.

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South Korea’s authorities investigating last month’s Jeju Air plane crash have submitted a preliminary accident report to the UN aviation agency and to the authorities of the United States, France and Thailand, an official said on Monday.

The investigation into the deadliest air disaster on the country’s soil remains ongoing, the report made available on Monday said, focused on the role of “bird strike” and involving an analysis of the engines and the “localizer” landing guidance structure.

“These all-out investigation activities aim to determine the accurate cause of the accident,” it said.

The International Civil Aviation Organization (ICAO), the UN agency, requires accident investigators to produce a preliminary report within 30 days of the accident and encourages a final report to be made public within 12 months.

The Boeing 737-800 jet, from Bangkok and scheduled to arrive at Muan International Airport, overshot the runway as it made an emergency belly landing and crashed into the localizer structure, killing all but two of the 181 people and crew members on board on December 29.

The localizer aids navigation of an aircraft making an approach to the runway, and the structure built of reinforced concrete and earth at Muan airport supporting the system’s antennae was likely a cause of the disaster, experts have said.

The report highlighted much of the initial findings by the South Korean investigators that was shared with the families of the victims on Saturday, including the pilots discussing a flock of birds they spotted on its final approach.

The exact time of a bird strike reported by the pilots remains unconfirmed, the accident report said, but the aircraft “made an emergency declaration for a bird strike during a go-around.”

“Both engines were examined, and feathers and bird blood stains were found on each,” it said.

“After the crash into the embankment, fire and a partial explosion occurred. Both engines were buried in the embankment’s soil mound, and the fore fuselage scattered up to 30-200 meters from the embankment,” it said.

The report does not say what may have led to the two data recorders to stop recording simultaneously just before the pilots declared mayday. The aircraft was at an altitude of 498 ft (152 metres) flying at 161 knots (298 km/h or 185 mph) at the moment the blackboxes stopped recording, it said.

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Tens of thousands of displaced Gaza residents ended months of exile in temporary camps and began returning to what was left of their homes on Monday after Israel opened a corridor into the north of the battered enclave.

For days, they had sat out in the streets or on a beach with their mattresses, belongings, and water tanks, waiting for the checkpoint to open under the terms of the ceasefire and hostage release deal between Israel and Hamas.

“We miss our home. We have been living in tents for 470 days,” said Fadi Al Sinwar, from Gaza City on Sunday.

“We want to return home … Even though my house is destroyed. I miss my land and my place,” she said.

Their return was pushed back by 48 hours after Israel accused Hamas of breaching the terms of the ceasefire agreement over the release of hostage Arbel Yehud, delaying the opening of the Netzarim corridor that bisects the territory.

Hamas and Israel agreed to release more hostages, including Yehud, on Thursday and Saturday, the Israeli Prime Minister’s Office said on Sunday.

Under the agreement, Israel would allow Gazans to return to the north from Monday morning, according to the office.

The incident escalated tensions and threatened to derail the already fragile truce.

Those tensions heightened further on Saturday after President Donald Trump said he had discussed his plan to “clean out” Gaza with the king of Jordan and intended to raise the matter with Egyptian President Abdel Fattah el-Sisi.

The US president said he would like both Jordan and Egypt — which borders Gaza — to house hundreds of thousands of Palestinians either temporarily or “long term,” telling reporters onboard Air Force One, “because I’m looking at the whole Gaza Strip right now and it’s a mess, it’s a real mess.”

“It’s literally a demolition site right now,” Trump said of Gaza, much of which lies in ruins from relentless Israeli strikes during its 15-month war with Hamas. “I’d rather get involved with some of the Arab nations and build housing in a different location where I think they could maybe live in peace for a change.”

Trump’s Gaza plan strongly condemned

Both Jordan and Egypt rejected Trump’s idea to shift Palestinians out of the enclave, saying such a move would displace Palestinians from their homeland. Trump’s comments were also strongly condemned by Palestinian leaders and human rights groups, who denounced the forced relocation of residents as ethnic cleansing and a possible war crime.

“Our refusal of displacement is a steadfast position that will not change,” Jordan’s minister of foreign affairs said in a statement Sunday. Jordan is committed to “ensuring that Palestinians remain on their land,” Ayman Safadi said, adding: “Jordan is for Jordanians, and Palestine is for Palestinians.”

Jordan is already home to more than 2.39 million registered Palestinian refugees and more than half a million war-displaced Syrians, according to the United Nations.

Egypt has also taken in huge numbers of refugees from Syria, South Sudan, Libya, Iraq and other African nations, and has repeatedly opposed previous attempts to evacuate Gazan residents across its borders.

Egypt’s Ministry of Foreign Affairs reiterated the country’s position against “the displacement of Palestinians from their land through forced eviction” in a statement Sunday.

“Such actions threaten stability, risk extending the conflict further in the region, and undermine opportunities for peace and coexistence,” the statement added.

Trump’s comments appear to break with decades of US foreign policy, which has long emphasized a two-state solution for Israel and Palestine.

Specter of further mass displacement

But Trump’s idea to ultimately move residents to another country has only raised fears of further mass displacement among Palestinians.

The Palestinian Presidency said the plan “constitutes a blatant violation of red lines Palestinian leadership have consistently warned about.”

“The Palestinian people will never abandon their lands or their Holy Sites, and will not allow the repetition of the Nakba of 1948 and Naksa 1967,” the presidency said.

The movement of Palestinian refugees out of Gaza would evoke painful memories of the mass displacement that accompanied the creation of Israel in 1948. There are some 5.9 million Palestinian refugees worldwide, most of them descendants of the 700,000 people who were expelled or fled their homes during the Nakba, or catastrophe.

Hundreds of thousands more were displaced during the 1967 war, when Israel captured the West Bank from Jordan and Gaza from Egypt.

There are fears that if carried out, Trump’s plan would bring an end to any future prospect of Palestinian-Israeli peace based on a two-state solution.

Hamas in a statement said it will “categorically reject any plans to deport and displace them from their land,” and called on the US administration to “stop these proposals.”

Palestinian militant group Islamic Jihad also condemned Trump’s “reprehensible statements” and called the proposal “a continuation of the policy of denying the existence of the Palestinian people, their will and their rights.”

Human rights groups have also denounced the idea.

Human Rights Watch’s Israel and Palestine Director Omar Shakir said in a post on X that it “would amount to an alarming escalation in the ethnic cleansing of the Palestinian people and exponentially increase their suffering.”

US-based advocacy group the Council on American–Islamic Relations (CAIR), said Trump’s idea was “delusional and dangerous nonsense.”

“The Palestinian people are not willing to abandon Gaza, and neighboring countries are not willing to help Israel ethnically cleanse Gaza,” CAIR said on X.

Trump’s plan was supported by Israeli far-right politicians, however.

Israel’s Finance Minister Bezalel Smotrich, who has argued strenuously for Israel to re-establish Jewish settlements in Gaza abandoned under an Israeli order in 2005, quickly endorsed Trump’s comments.

“For years, politicians have proposed unrealistic solutions like dividing the land and establishing a Palestinian state, which endangered the existence and security of the only Jewish state in the world, and only led to bloodshed and suffering for many people,” he said in a statement released by his spokesperson.

“Only out-of-the-box thinking with new solutions will bring a peace and security solution.”

Chairman of the far-right Otzma Yehudit party, Itamar Ben Gvir, congratulated Trump on the proposal.

“I think that when the president of the world’s largest power himself raises this idea, then the Israeli government should implement encouraging immigration, now,” he said. Ben Gvir was Israel’s national security minister before resigning from Benjamin Netanyahu’s cabinet in protest at the Gaza ceasefire and hostage release deal.

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Adidas plans to cut as many as 500 jobs in a bid to simplify its business, a person familiar with the matter confirmed to CNBC on Thursday. 

The layoffs will affect employees at Adidas’ headquarters in Herzogenaurach, Germany, and represent nearly 9% of the 5,800 staffers it employs at the location. 

The company has not determined how many jobs it will cut, but up to 500 positions could be affected, a source told CNBC. Adidas will decide the final number when it is further along in its process. 

Employees learned about the cuts on Wednesday, just one day after Adidas announced what it called better-than-expected preliminary profit results for its holiday quarter and 19% sales growth. It is expecting sales to grow to 5.97 billion euros, ahead of the 5.68 billion euros that analysts had expected ahead of the announcement, according to LSEG. 

In a statement to CNBC, a spokesperson said Adidas’ current operating model has become “too complex” and the cuts are designed to simplify operations. 

“To set adidas up for long-term success we are now starting to look at how we align our operating model with the reality of how we work. This may have an impact on the organizational structure and number of roles based at our HQ in Herzogenaurach,” the spokesperson said. “We will now start to work closely with the Works Council to ensure that any changes are handled with the utmost respect and care of all employees.” 

The layoffs are not part of a cost-cutting program, but more of an effort to adapt its business to how it has changed over the past couple of years, the spokesperson said.

Adidas has been restructuring its business and capped off 2024 on a high note with sales and profits that came in higher than analysts and the company expected. 

It has leaned on its classic Samba and Gazelle styles to boost sales and has also benefited from a slowdown at Nike, its biggest competitor. 

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Remember that old commercial, “It’s not nice to fool Mother Nature?” Well, there should be another one pertaining to the stock market, “Don’t bet against a secular bull market advance!” We’re all trained, or brainwashed, if you will, to believe that the next major stock market top is at hand or just around the corner. It completely immobilizes us when it comes to having belief in the major advance at hand. Give us a bit of selling and we’ll quickly point out the likely recession and swift stock market drop ahead. Two weeks ago, reigniting inflation was a major concern and the S&P 500 was 5% off its high. Today, we’re in all-time high territory after the ACTUAL inflation data said that inflation is NOT a problem. Or we can just be blindfolded and keep tuning into the circus that is CNBC.

Drown out the noise and all the bearish rhetoric, and instead focus on one of my favorite charts. This is a 100-year monthly chart of the S&P 500:

I show this chart to our EarningsBeats.com members at least once per week. It’s that important to recognize and understand long-term perspective. The next time you think, “is this the start of the next secular bear market?”, I want you to remember one thing. There have been TWO starts to secular bear markets in my entire lifetime – the early 1970s and the turn of the century as the dot com bubble popped. That’s it. Just stop trying to call the 3rd one. There have only been 14 cyclical bear markets since 1950, which means that, on average, we see only one of these lesser bear markets every 5-6 years. Since 2018, we’ve had 3 of them (2018, 2020, 2022). That’s waaaaay more than our fair share. Let the bulls do their thing.

The following chart is the HERE AND NOW, not the bears’ wishful thinking and hoping. Yep, it’s another all-time high on the S&P 500:

If you look back above to the 100-year chart, you’ll see that the S&P 500’s monthly PPO is accelerating to the upside, telling us that long-term bullish momentum just keeps building. Bear markets don’t begin until that monthly PPO moves into negative territory. That sure seems like a long time from now based on the 100-year chart. Get on the right side of the trade, which is the long side. Not only is the S&P 500 monthly PPO nowhere near negative territory, none of our 11 sectors are anywhere close either. Every sector currently has a monthly PPO above 4. Our aggressive sectors have monthly PPOs residing near 10 or 11.

At EarningsBeats.com, we stress the importance of owning leading stocks in leading industry groups, which is the exact strategy we use to beat the S&P 500 in our portfolios. Our flagship Model Portfolio has now gained more than 300% since its inception on November 19, 2018. It’s crushing the benchmark S&P 500 as you can see below:

The current quarter is showing tremendous outperformance again. Growth stocks tend to power secular bull market advances, so taking advantageous of that helps in terms of relative performance. Stocks like PLTR, CLS, and TPR are providing us excellent leadership and direction.

Time to Relax

At 4:15pm ET today, our EarningsBeats.com team is hosting a virtual Friday Happy Hour. Everyone is invited! Grab your favorite beverage and join us as we celebrate another all-time S&P 500 high 2025-style! Simply CLICK HERE to join the event, but remember, it won’t start until 4:15pm. Be sure to stop by and meet our entire team!

Happy trading!

Tom

No changes in the top-5

At the end of this week, there were no changes in the ranking of the top-5 sectors.

  1. (1) XLY – Consumer Discretionary
  2. (2) XLF – Financials
  3. (3) XLC – Communication Services
  4. (4) XLI – Industrials
  5. (5) XLE – Energy
  6. (6) XLK – Technology
  7. (7) XLU – Utilities
  8. (11) XLB – Materials
  9. (8) XLRE – Real Estate
  10. (9) XLP – Consumer Staples
  11. (10) XLV – Health Care

In the bottom of the ranking, a few changes are showing up.

Materials rose from #11 to #8. XLRE dropped from #8 to #9. And XLP and XLV both dropped one position to #10 and #11.

As a refresher, this ranking is done based on a combination of RRG metrics on both the daily and the weekly RRGs.

Based on the positions of XLE and XLK on the weekly RRG, it may seem strange that XLE is above XLK. However, looking at the daily RRG, it can be seen that XLE made a huge move into and through leading with a very high RS-ratio and RS-momentum reading, which dragged the sector above XLK.

Consumer Discretionary

XLY has put a new higher low into place which underscores the current strength of this sector. The newly formed low at 218 is now the first support level to watch for XLY.

The first target to the upside is the level of the previous peak around 240. The uptrends in both price and relative strength are still intact.

Financials

The Financials sector now also has a new higher low in place at 47, which should also be seen as the first support level for XLF.

51.6 is the first target and resistance level on the upside. An upward break will unlock more upside for financial stocks.

Communication Services

Out of the top-5 sector charts, XLC is probably the strongest.

This week’s upward break out of the flag-like consolidation pattern must be seen as very strong and the signal for a further rally. Taking out the previous high at 102.40 will be the confirmation.

Industrials

XLI continues its bounce of support and is underway to the upper boundary of its rising channel. Intermediate resistance is expected around 144.

Relative strength remains under pressure but is still stronger than the other sectors and therefore keeping XLI inside the top 5.

Energy

Energy dropped back a bit after its rally in the last few weeks but remains solidly in the middle of its range. Here also relative strength remains under pressure.

Performance

As of the close on 1/24 the top-5 portfolio gained 3.89%, keeping up with SPY which gained 3.99% over the same period.

#StayAlert, and have a great weekend. — Julius


In this video, Mary Ellen reviews the new uptrend in the S&P 500, and highlights what’s driving it higher. She then shares new pockets of strength that are poised to take off, and what to be on the lookout for ahead of next week’s M7 earnings reports.

This video originally premiered January 24, 2025. You can watch it on our dedicated page for Mary Ellen’s videos.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

The Indian equities continued to trade with a corrective undertone as they ended the week on a mildly negative note. Over the past five sessions, the Nifty continued facing selling pressure at higher levels while staying mainly in a range. The markets remained in a very defined trading range and stayed decisively below key levels. The trading range widened a bit; the Nifty oscillated in 449.45 points before closing towards its lower end of the range. The volatility increased; the India VIX inched higher by 6.33% to 16.75 and stayed at elevated levels. While not showing any major reversal attempts, the benchmark index closed with a net weekly loss of 111 points (-0.48%).

The coming week will be a 6-day trading week. Both NSE and BSE shall conduct a special full-day trading session on Saturday, February 1, 2025, on account of the presentation of the Union Budget.

As we commence a new week, it is important to observe that the markets remain decidedly below key levels. The Nifty Index is significantly below its 200-day moving average (200-DMA), which is situated at 23,984. Additionally, a Death Cross pattern has formed on the daily charts as the 50-day moving average (50-DMA) has crossed below the 200-DMA. On the weekly charts, we are also below the 50-week moving average (50-WMA) placed at 23,711. Consequently, even the most robust technical rebounds, should they occur, are likely to encounter resistance around the 23,700 level and higher. In summary, as long as the Nifty remains below the 23,500-23,650 range, it will likely be susceptible to profit-taking at elevated levels.

The levels of 23325 and 23500 are expected to act as potential resistance points in the coming week. The supports are at 22900 and 22650.

The weekly RSI is 40.71. It stays neutral and does not show any divergence against the price. The weekly MACD is bearish and trades below the signal line.

The pattern analysis of the weekly charts shows that the Nifty is now decisively below the 50-week MA at 23711. This means the key resistance level has been dragged lower to this point, even from a medium-term horizon. As evidenced on the chart, while the Nifty breached the 50-week MA, it also slipped below the support of the rising trend line pattern.

Overall, the markets will likely trade with a weak undertone over the immediate short-term. We are likely to see ranged markets with weak undercurrents through the week. However, we will likely see immense volatility on Saturday as we head into the Union Budget on February 1. The markets may see some risk-off sentiment playing out; this is likely to see the traditionally defensive sectors like IT, Pharma, FMCG, etc., doing well. We will also see some Budget-driven movement in a few select pockets. The markets shall fully digest the Budget the week after this one. It is strongly recommended to be very light on positions and keep leveraged exposures at modest levels. A highly cautious view is advised for the coming week.


Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) show a lack of leadership in the sectoral setup. The Nifty Realty, Banknifty, Financial Services Index, and the Midcap 100 Index are inside the leading quadrant. Except for the Midcap 100 Index, the rest are showing a decline in their relative momentum. However, these groups are likely to outperform the broader markets relatively.

The Nifty IT index has rolled inside the weakening quadrant. However, stock-specific performance may be seen from this space. The Nifty Pharma and the Services Sector Indices are also inside the weakening quadrant.

The Nifty Metal, Media, PSE, Energy, FMCG, Consumption, and Commodities Indices are inside the lagging quadrant. Most of these sectors are showing sharp improvement in their relative momentum.

The Nifty Auto has rolled inside the improving quadrant, and the Nifty Infrastructure and PSU Bank Indices are also inside the improving quadrant. However, the PSU Bank Index is seen sharply giving up on its relative momentum.


Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

Hamas freed four female Israeli soldiers in a second round of releases under a ceasefire deal that also saw Israel accusing Hamas of failing to fulfil its obligations to release civilians first.

Following their release, Israel has released 200 Palestinian prisoners from detention centers.

The four hostages freed Saturday – Karina Ariev, Daniella Gilboa, Naama Levy, all 20 years old, and Liri Albag, 19 – had been held in Gaza since the Hamas attacks of October 7, 2023.

Hamas militants took the women, dressed in makeshift military uniforms, on stage in Palestine Square in Gaza City before handing them to the Red Cross. They appeared elated as they waved to the crowds, with Israelis visibly emotional as they watched the live pictures in Hostages Square, Tel Aviv.

Hamas put on show of force during the handover, waving green flags and displaying a poster of current and former Israeli leaders alongside the word “failure,” in what seemed to be a message to Israeli that it remained powerful despite being battered by the Gaza offensive.

Soon after the releases, the Israeli Prime Minister’s Office said that civilians in Gaza would not be allowed to move to their homes in northern Gaza as planned – because an Israeli female civilian due to be released Saturday was not among those freed.

Israel has been pushing for the release of Arbel Yehud, 29, who was kidnapped from her home in kibbutz Nir Oz. Israel says she is a civilian and should have been released Saturday.

IDF spokesperson Daniel Hagari said the four hostages released Saturday had been reunited with their families. The family of Daniella Gilboa expressed their joy at her release from Gaza.

The Israeli prison service confirmed that 200 Palestinian prisoners had been released from detention facilities as part of the ceasefire and hostage release deal.

Prisoners from Ofer prison in the occupied West Bank were being taken elsewhere in the West Bank, the prison service said. Meanwhile, prisoners from Ktzi’ot prison, a detention facility in the Negev, will be taken to the Kerem Shalom crossing in the south. Hamas previously said it expected Israel to release around 200 Palestinian prisoners, including 120 prisoners serving life sentences and 80 others with high sentences.

Hamas said it expected Israel to release around 200 Palestinian prisoners Saturday as part of the deal, including 120 prisoners serving life sentences and 80 others with high sentences.

This post appeared first on cnn.com