International News 12 January 2026
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Greenland Rejects U.S. Takeover Amid Trump’s Renewed Threats
Greenland’s political parties firmly rejected any notion of becoming part of the United States after President Donald Trump again suggested the possible use of force to take control of the mineral-rich, semi-autonomous Danish territory. Leaders from five parties in Greenland’s parliament said the island’s future must be decided solely by its people, stressing that they want to be neither American nor Danish, but Greenlandic. Trump reiterated that Washington would “do something” about Greenland, citing U.S. national security concerns amid rising Russian and Chinese activity in the Arctic. Denmark and its European allies expressed shock at Trump’s remarks, warning that any invasion of Greenland would undermine NATO and the post-World War II security order. Danish Prime Minister Mette Frederiksen said such an action would effectively end the transatlantic defense pact, while Trump dismissed Denmark’s historical claims over the island. Although Russia and China have increased their Arctic presence, neither has claimed Greenland. U.S. Secretary of State Marco Rubio is scheduled to meet Danish and Greenlandic officials next week as tensions over the issue continue to escalate.
Myanmar Holds Second Round of Elections Amid Conflict and Credibility Concerns
Myanmar held the second round of its general election on Sunday, January 11, 2026, with voting largely dominated by parties backed by the military. Analysts say the second phase was intended to mask low voter turnout in the first round, which recorded only 52% participation and was widely criticized as a sham. The election takes place amid ongoing civil conflict triggered by the military’s 2021 coup that ousted the civilian government and detained Nobel laureate Aung San Suu Kyi. Her National League for Democracy, which won the last two elections by landslides, was dissolved along with dozens of anti-junta parties, while rebel groups boycotted the vote. The United Nations, Western governments, and human rights groups have condemned the election as neither free nor fair, calling it an attempt by the junta to legitimize its rule through a controlled civilian facade. Despite this, the military insists the process has public support and denies coercion, even as voters told Reuters they participated out of fear of repercussions. The military-linked Union Solidarity and Development Party (USDP) secured 88% of contested lower-house seats in the first round and is widely expected to win decisively overall. The final voting round is scheduled for January 25, with the junta aiming to form a new government by April, though analysts warn such a military-dominated administration is unlikely to gain broad international recognition amid Myanmar’s deepening humanitarian crisis.
Risk of US Corporate Bonds Falling to Junk Status Rises
The risk of US corporate bonds losing their investment-grade status is increasing. JPMorgan Chase & Co. estimates that about US$63 billion of US corporate bonds are now on the brink of being downgraded to junk status, up from US$37 billion in 2024. These bonds are rated investment grade by at least one agency but sit at BBB-, the lowest investment-grade level, with a negative outlook from others. JPMorgan notes that rising interest costs from debt refinancing are pressuring corporate balance sheets and weakening credit ratings. While the bank does not expect near-term market turmoil—supported by strong investor demand and stable earnings—it warns risks remain. In 2025, around US$55 billion of bonds were downgraded to junk, far exceeding upgrades. Leverage has risen due to higher yields, heavy spending on artificial intelligence, and acquisitions. Credit analysts see early signs of credit deterioration, though bond spreads remain tight at around 78 basis points, well below the long-term average. Looking ahead, JPMorgan expects fewer rating upgrades, particularly as AI-related financing and acquisitions increase leverage, especially in the technology sector. Some investors are already reducing exposure to issuers with aggressive spending or merger plans.