Morning brief: EU backs Ukraine with $105B loan, TikTok strikes US JV deal

European policymakers, global markets, and Washington delivered a flurry of closely watched developments on Friday that underscored shifting geopolitical and financial dynamics.

From a major European Union funding commitment to Ukraine, to a breakthrough deal aimed at keeping TikTok operating in the United States, alongside central bank signals in Asia, and a landmark US defense bill.

EU agrees $105 billion aid package for Ukraine

European Union leaders have agreed to allocate €90 billion ($105 billion) in financial support to Ukraine for 2026 and 2027, providing a critical funding backstop as Kyiv faces rising fiscal strain and waning certainty over US financial backing.

The package was approved after marathon negotiations at a Brussels summit and will be financed through joint EU borrowing guaranteed by the bloc’s budget.

EU Council President Antonio Costa confirmed the deal on Friday, saying Ukraine would only repay the loan if Russia pays reparations.

The agreement marks a clear shift away from earlier plans to use around €210 billion in frozen Russian central bank assets held largely in Belgium.

While several governments supported tapping those funds, legal uncertainties and fears of retaliation stalled consensus.

Belgium, home to most of the frozen assets through Euroclear, warned of litigation risks, with Prime Minister Bart De Wever insisting on concrete guarantees.

Instead, leaders opted for joint borrowing. German Chancellor Friedrich Merz called the outcome “pragmatic,” while European Commission President Ursula von der Leyen said Russian assets would remain frozen, leaving open the option of using them later to help repay the loan.

The deal comes as European officials warn Ukraine’s finances could run dry by April.

Since Russia’s 2022 invasion, EU support to Kyiv has exceeded €187 billion, including bridge financing and loans under a G7-led scheme.

ByteDance seals TikTok US joint venture

TikTok’s Chinese owner, ByteDance, has signed binding agreements with Oracle, Silver Lake, and Abu Dhabi-based MGX to form a new joint venture that will operate TikTok’s US app, in a bid to avert a long-threatened ban.

The agreement represents a milestone after years of regulatory and political uncertainty surrounding the app, which is used regularly by more than 170 million Americans.

Under the structure, American and global investors will hold an 80.1% stake, while ByteDance retains 19.9%.

The new entity, TikTok USDS Joint Venture LLC, will be governed by a seven-member board, with ByteDance appointing one member and Americans holding the majority.

TikTok CEO Shou Zi Chew said the joint venture would operate independently with authority over US data protection, algorithm security, content moderation and software assurance.

Oracle will act as the “trusted security partner,” hosting US user data on domestic cloud infrastructure and auditing compliance.

The deal aligns with an outline unveiled in September, when President Donald Trump delayed enforcement of a 2024 law requiring divestment.

While Trump has praised TikTok’s political reach, critics, including Senator Elizabeth Warren, say key questions remain unresolved.

Asian markets steady after Bank of Japan hike

Asian share markets held onto Wall Street-driven gains as investors digested a widely expected interest rate hike by the Bank of Japan.

The BOJ lifted rates to 0.75%, the highest level in three decades, prompting a modest sell-off in the yen as markets awaited further guidance.

The dollar edged up to around 156 yen, while Japan’s Nikkei rose 1.18%, tracking gains in US equities.

Shares in South Korea and Taiwan also advanced, supported in part by strong results from Micron Technology.

India’s Nifty 50 was up 0.38%.

Investors remain cautious about the pace of future BOJ tightening, particularly as real rates stay negative.

Trump signs $1 trillion US defense bill

US President Donald Trump signed into law a nearly $1 trillion annual defense policy bill, authorizing a record $901 billion in military spending for fiscal 2026.

The legislation includes $800 million in aid for Ukraine over two years and measures reinforcing US security commitments in Europe, despite Trump’s skepticism about allied burden-sharing.

The bill limits reductions in US troop levels in Europe and maintains the US role as NATO’s Supreme Allied Commander.

While Trump previously vetoed a defense bill during his first term, the latest measure was signed quietly without an Oval Office ceremony.

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