International News 10 February 2026
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DBS Q4 Profit Misses Estimates as Rate Pressures Weigh on Outlook
Singapore’s largest bank, DBS Group, reported a 10% decline in net profit for Q4 2025, missing market expectations as lower interest rates squeezed margins. Net profit for October–December fell to S$2.26 billion from S$2.52 billion a year earlier, below analysts’ consensus of about S$2.55 billion. The bank’s net interest margin (NIM) dropped to 1.93% from 2.15%, while return on equity slipped to 13.5% from 15.8%. DBS shares fell around 1.5% in early trading following the results. Looking ahead, management expects 2026 net profit and net interest income to be slightly lower than in 2025, citing ongoing rate headwinds, an assumed average SORA of 1.25%, two Fed rate cuts, and a stronger Singapore dollar. Asset quality pressures also rose, with credit provisions jumping 81% to S$415 million, mainly linked to property exposure, partly offset by a S$206 million write-back of general reserves. Offsetting these challenges, DBS’s wealth management business remained strong, with assets under management rising 19% to a record S$488 billion. The bank declared a Q4 regular dividend of S$0.66 per share plus a capital return dividend of S$0.15, becoming the first Singapore bank to report this earnings season.
Gold and Silver Extend Rally as Weaker Dollar Boosts Safe-Haven Demand
Gold and silver prices continued to climb on Monday (Feb 9, 2026), supported by a weaker U.S. dollar and improving global risk sentiment, while investors awaited key U.S. labor market data for clues on the Federal Reserve’s rate path. Spot gold rose 1.4% to US$5,029.09 per ounce, after surging nearly 4% last Friday, while U.S. gold futures for April gained 1.4% to US$5,051. Spot silver jumped 2.5%, extending a sharp rally following an almost 10% surge in the previous session. The dollar’s fall to its lowest level since Feb. 4 made dollar-priced precious metals more attractive to overseas buyers. Sentiment was further supported by gains in Asian equities, particularly after Japan’s Prime Minister Sanae Takaichi secured a decisive election victory, fueling expectations of more aggressive reflation policies. In the U.S., Treasury Secretary Scott Bessent said the Fed is unlikely to rush balance-sheet reduction, even under a potential Fed Chair Kevin Warsh, while San Francisco Fed President Mary Daly noted that one or two additional rate cuts may still be needed amid labor market softening. Markets are now pricing in at least two 25-basis-point rate cuts in 2026, with the first expected in June—an environment typically favorable for non-yielding assets like gold. Investors are closely watching the delayed U.S. nonfarm payrolls report, due Wednesday, while geopolitical tensions around U.S.–Iran nuclear talks also remain on the radar.
Trump Repeatedly Claims Inflation “Beaten” Despite Persistent Price Pressures
President Donald Trump has repeatedly declared that inflation in the United States has been “beaten,” “way down,” or that prices are falling in nearly all of his major economic speeches since December 2025, according to a Reuters review of five speeches. In those addresses, he used such claims almost 20 times and said prices were decreasing almost 30 times, positioning himself as the main Republican voice on cost-of-living issues in an election year even though many Americans still feel real price strains. These assertions contrast with official inflation data showing inflation near 3% and continuing price increases for everyday goods such as food, and with many voters’ experiences, creating a gap between Trump’s rhetoric and economic reality. Analysts and Republican strategists warn that the disconnect could undermine credibility ahead of midterm elections, especially as Trump often diverts much of his speaking time to topics outside the economy, such as immigration and political grievances.
US Treasury: Fed Unlikely to Rush Balance Sheet Cuts Under Kevin Warsh
US Treasury Secretary Scott Bessent said he does not expect the Federal Reserve to move quickly to shrink its balance sheet, even if it is later led by Kevin Warsh, a long-time critic of large-scale bond purchases. Speaking to Fox News on Sunday (Feb 8, 2026), Bessent noted that the Fed could take up to a year just to decide on the future direction of its balance sheet policy, stressing that any decision would remain fully independent of the administration. Bessent added that a shift toward an “ample reserves” framework could actually require a larger balance sheet, making rapid reductions unlikely. The Fed’s balance sheet peaked near US$9 trillion in mid-2022 after aggressive stimulus during the global financial crisis and the COVID-19 pandemic, before being reduced to about US$6.6 trillion by end-2025 through quantitative tightening. However, the Fed resumed technical Treasury bill purchases in December to maintain system liquidity. While Warsh has argued that the Fed’s large asset holdings distort financial conditions and should be cut back significantly, analysts warn that further balance sheet reduction could clash with President Donald Trump’s desire for lower mortgage rates and risk destabilizing financial markets.