Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

An airstrike launched by the US government in Iraq killed top Iranian general Qassem Soleimani, escalating tensions between the US and Iran to a point many feared would lead to war. In retaliation, the Iranian government attacked two US military bases in Iraq, but no casualties were reported. Aside from a fresh set of sanctions on Iran, the intensity of the tit-for-tat conflict has simmered. Markets do not seem to have dismissed completely further escalations.

US President Donald Trump’s impeachment trial in the Senate formally began on January 16th and is already coming to a close. Before the weekend, the Senate voted 51 to 49 to block the consideration of additional witnesses and evidence leading to what is expected to be a swift acquittal in the coming days.

The US and China signed phase one of a trade agreement that halts, for the time being, the trade war between the two countries that has rattled global markets for the last two years. This phase of the agreement includes intellectual property protection, tariff rollbacks, and an increase in imports of US goods and services to China. Both countries reserve the right to reimpose tariffs if the other party falls short of its commitments. Market impact could be limited due to remaining tariffs as well as uncertainty regarding further agreements.

Puerto Rico has been rocked by a string of earthquakes over the last month. More than 950 earthquakes and aftershocks have hit the island since December 31st. Dozens of buildings and homes have crumbled to the ground, cutting power and water to large portions of the island. Families have begun fleeing as the earthquakes and tremors continue.

Europe

Amidst the US-Iran crisis in early January, Iran announced they would end compliance with the Joint Comprehensive Plan of Action, also known as the Iran Nuclear Deal. After intense pressure from the US, the E3 countries – France, Germany, and the United Kingdom – triggered a mechanism in the agreement that allows them to further sanction Iran.

On the evening of January 31st, the United Kingdom formally left the European Union. The departure fulfills UK Prime Minister Boris Johnson’s Brexit plan and ends nearly four years of Brexit uncertainty. The UK will remain in the single market and customs union through 2020 but will no longer be represented by EU decision-making bodies. Now, the clock begins to tick on a new trade agreement the UK will have to strike up with the EU. We are not holding our breath since we expect further turmoil by year’s end.

Russia’s prime minister and entire executive cabinet resigned after President Vladimir Putin’s annual state of the nation address. In the address, President Putin proposed big changes to the country’s political system. Included in these big changes is a new leadership role for Putin after his presidential term comes to an end in 2024, therefore extending his 20-year reign.

Italy’s far-right party lost in regional elections this past month. Matteo Salvini, leader of Italy’s far-right League party, failed to defeat his counterpart Stefano Bonaccini to overturn decades of leftwing rule in the northern region of Emilia-Romagna. Salvini has campaigned relentlessly to bring victory to his rightwing party and bring down the national government which is much divided internally.

German Chancellor Angela Merkel is pushing for accession talks for Albania and North Macedonia in March. In October, EU leaders failed to reach an agreement on inviting the two countries to begin accession talks. French President Emmanuel Macron has been a particularly outspoken opponent to starting membership talks because he believes the EU’s enlargement process is flawed and needs revised.

Asia-Pacific

In a first major leadership change since the protests began in Hong Kong, the Chinese government has replaced its top representative in Hong Kong with Luo Huining. Mr. Huining believes Hong Kong can return to normal and says the one country, two systems policy must be offered in the long-term. Chief Executive Carrie Lam has recently announced that Hong Kong’s autonomy can be guaranteed past the original 2047 deadline. Further market turmoil is expected.

Many in India continue protesting a controversial citizenship law that was passed in December, giving citizenship rights to non-Muslim minorities. Over the last two months, protests have grown to include not just Muslims but also many students, and those who are anti-Prime Minister Narendra Modi. As the protests have endured, protesters are not just acting against the citizenship law, many are challenging Modi’s Hindu-nationalist agenda and calling for secularism and religious coexistence.

In a huge win for democracy, Taiwan’s President Tsai Ing-wen was re-elected in a landslide victory. Her re-election shows the people of Taiwan want formal independence from China. Many have reported that the elections were energized by the pro-democracy protests in Hong Kong which further expressed to mainland China the growing desire for democracy.

Record-breaking temperatures and months of drought have led to devastating wildfires across Australia. The wildfires raged across 110,000 square miles of land, killing 33 people and billions of animals, and destroying thousands of homes. Though fires have subdued due to cooler weather and rain, there are still more than 50 fires burning in New South Wales and Victoria. The world has come together to provide billions in dollars in aid for Australia’s recovery.

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