From grids to copper, markets brace for a new power shift - Jan 16, 2026

As of January 16, today's news sees developments in infrastructure investments, energy markets, and trade negotiations globally. Canada and China have reached a preliminary agreement to reduce tariffs on electric vehicles and canola, marking a significant step towards revitalizing diplomatic relations. Meanwhile, Germany's budget committee has approved a plan to acquire a 25.1% minority stake in TenneT Germany, a high-voltage power transmission grid, for an estimated 5.8 billion euros, marking a crucial step in enhancing the state's control over vital infrastructure. Furthermore, the proposed merger between mining giants Rio Tinto and Glencore may necessitate asset sales to obtain regulatory approval from China, which maintains strict oversight over resource security and market concentration. Analysts noted that the merger could raise antitrust concerns due to the potential dominance in copper and iron ore production. On the commodities front, copper prices have recently experienced volatility, dropping to a one-week low amid growing concerns over demand from China and the impact of a firmer dollar. This decline comes after a significant price rally, driven primarily by temporary trading factors, which some analysts believe will not be sustainable in the long run. In the renewable energy sector, the U.S. Energy Information Administration has forecast an overall increase in electricity demand, mainly due to AI-driven data center expansion, while traditional fossil fuel power output is expected to decline. Predictions indicate a 46% increase in solar generation and a 12% rise in wind power over the next two years, illustrating the ongoing transition towards more sustainable energy sources despite political challenges. Internationally, China is seeking tighter control over iron ore pricing through its dominant state-backed corporation, which poses risks for global suppliers. Meanwhile, Taiwan has announced intentions to deepen ties with the U.S. in artificial intelligence following a tariff reduction agreement, a move likely to escalate tensions with China further. Finally, France's government is now expected to force through a 2026 budget bill without a vote in parliament after months of talks with lawmakers failed to reach a compromise.