9th January 2026

MACRO

Trump Orders $200 Billion Mortgage Bond Purchases

President Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to bring down housing-loan rates.

Mortgage debt and US home-lender stocks rallied on the news.

Some in the administration hope that mortgage-bond purchases could also boost Fannie and Freddie earnings ahead of potential IPOs.

(Truth Social, Wall Street Journal)

US Political Developments

Nearly 20 oil executives are set to meet Trump and officials at the White House on Friday.

The Republican-controlled House passed Democratic-backed legislation that would restore expired health insurance subsidies.

The Supreme Court ruling on Trump’s tariffs may come as soon as Friday. Some companies anticipate that even if the court invalidates the tariffs, Trump will not make refunds easy.

Trump lashed out at five GOP senators who sided with Democrats in advancing a motion to block further military action in Venezuela without congressional approval.

(Bloomberg, Reuters, Wall Street Journal)

Bank of Japan to Raise Growth Forecast

The BOJ is likely to raise its economic growth projection when its board meets later this month, while keeping the benchmark interest rate on hold.

Japanese annual household spending unexpectedly grew in November, rebounding from a sharp decline in October and aligning with a gradual recovery in private consumption.

(Bloomberg, Reuters)

China Inflation Accelerates

China’s inflation accelerated last month at the fastest pace in nearly three years, though the upswing is largely driven by higher food costs masking deeper deflationary pressure.

Copper demand from Chinese industrial users has decreased due to record-high prices, with the metal surging to over $13,000 a ton on the LME.

China’s car sales fell at the fastest clip in nearly two years in December as automakers scrambled to hit year-end targets amid cutthroat competition.

Mainland China and Hong Kong stocks advanced on Friday, with the Shanghai benchmark touching a decade-high level.

A number of Chinese listed companies have released 2025 earnings forecasts projecting net profits to more than double.

More Chinese cities have announced adjustments to home-buying policies to ease restrictions and stimulate demand.

(Bloomberg, Reuters, Securities Daily)

UK Labour Market Deteriorates

More British workers face losing their jobs than at any point in almost three years.

Potential redundancies jumped to 33,392 in the four weeks ending December 14 - the most since early 2023 and the second-highest level in the post-pandemic period.

Storm Goretti continues to batter the UK with tens of thousands facing power cuts, travel disruption and school closures.

(Bloomberg)

Germany: Industrial Output Rises Third Month

German industrial output rose for a third straight month in November, holding its footing as manufacturing firms shrugged off tariff concerns and awaited the benefits of Berlin’s fiscal stimulus package.

(Wall Street Journal)

South Korea Currency Reforms

South Korea will introduce 24-hour currency exchange trading in July and relax rules for offshore transactions by September, the latest step in its effort to secure developed-market status from MSCI.

The government expects the economy to grow faster than previously forecast in 2026, supported by a recovery in domestic demand.

(Bloomberg, Wall Street Journal)

Saudi Oil to East Asia

Crude oil sales from Saudi Arabia to East Asia are set to persist above usual levels after the world’s biggest exporter cut prices for a third month on signs of oversupply.

Asian refiners outside China are set to receive at least 9 million more February-loading barrels from Saudi Aramco than usual.

(Bloomberg)

Turkey: Tight Policy to Continue

Turkey will stick with a tight economic policy stance despite signs of easing inflation, Vice President Yilmaz said, pushing back against expectations of policy loosening.

(Bloomberg)

GEOPOLITICAL

Iran Protests Escalate

Protests in Iran escalated overnight amid an internet blackout, with thousands taking to the streets across the country.

Trump said he warned Tehran not to shoot protesters.

(Bloomberg)

Trump Preparing Cartel Strikes

Trump said the US military is preparing strikes against drug cartel facilities, just days after the operation to capture Maduro.

“We are going to start now hitting the land with regard to the cartels,” Trump told Fox News.

(Bloomberg)

Russia-Ukraine

Ukraine reported explosions across the country as Russia launched a widespread air attack, targeting energy infrastructure and damaging apartment buildings.

(Bloomberg)

Japan-China Tensions Escalate

Japan is ramping up efforts to reach out to G7 peers and beyond amid mounting concerns over China’s grip on rare earths.

Japanese Finance Minister Katayama said she would meet US counterparts next week to discuss rare earth supplies and repeated Tokyo’s condemnation of China’s export controls.

China’s foreign and defense ministries issued statements condemning alleged re-militarism efforts by Tokyo, citing Japan’s potential introduction of nuclear-powered submarines.

Exports of Japanese products including sake and food items are being delayed at Chinese customs amid the escalating dispute.

The Japanese public now sees China’s growing military power as the country’s leading security concern, overtaking the threat from North Korean nuclear missiles.

(Bloomberg, Reuters, Nikkei)

US Aid to Cambodia and Thailand

The US will provide $45 million in assistance to Cambodia and Thailand to help solidify Trump’s peace-making efforts between the two countries.

(Reuters)

EQUITIES

Rio Tinto in Talks to Buy Glencore

Rio Tinto confirmed it is in early talks to buy Glencore, which would create the world’s largest mining company with a combined market value of nearly $207 billion.

(Reuters)

GM Takes $6 Billion EV Charge

General Motors is booking a $6 billion charge on its fast-shrinking, money-losing electric vehicle business - the latest reckoning tied to the collapse of EVs in the US.

(Wall Street Journal)

TSMC Revenue Tops Estimates

TSMC’s revenue beat expectations with a roughly 20% rise in December-quarter revenue to NT$1.05 trillion.

TSMC is moving old production lines to affiliate Vanguard International’s Singapore fab to make room for additional CoWoS advanced packaging capacity.

Nvidia Vera Rubin-based AI servers will begin shipping in the second half of 2026 from Foxconn, which has secured its place as Nvidia’s primary new product supplier.

(Bloomberg, UDN)

MiniMax Rockets 78% on Hong Kong Debut

MiniMax Group, China’s second “AI tiger” to go public, surged 78% on its first day of Hong Kong trading as investors clamoured for a piece of the startup with popular consumer AI apps.

(Reuters)

Saks Parent Nearing Bankruptcy

The parent of Saks Fifth Avenue and Neiman Marcus is closing in on a $1.25 billion bankruptcy financing package and preparing to file in the coming days.

(Wall Street Journal)

Johnson & Johnson Lowers Drug Prices

J&J has agreed to lower the prices of medicines for certain US patients, the latest pharma company to strike a deal with the Trump administration.

(Wall Street Journal)

China Vanke Preparing Debt Restructuring

China Vanke is preparing a debt restructuring plan at the request of authorities, which could lead to a default and is one of China’s biggest-ever.

A comprehensive debt plan could streamline talks with lenders and minimize wrangling between creditor groups.

(Bloomberg)

xAI Losses Mount

xAI reported a net loss of $1.46 billion for the September quarter, up from $1 billion in Q1. Revenue nearly doubled quarter-over-quarter to $107 million.

(Bloomberg)

Nvidia Hires First CMO

Nvidia hired Google marketing executive Alison Wagonfeld as its first-ever Chief Marketing Officer. She will report to CEO Jensen Huang.

(Wall Street Journal)

China Summons Battery Giants

China summoned its biggest power and battery companies - including CATL and BYD - to meet with four top regulators, signaling a high-level move to curb price wars and capacity expansion.

(China Daily)

Venezuela Oil Developments

Trafigura and Vitol are in discussions with US refiners to gauge interest in buying Venezuelan oil.

(Bloomberg)

Memory Chip Market Tightens

SanDisk has started offering long-term contracts for NAND flash memory chips asking for 100% cash prepayment - an unprecedented move.

(DigiTimes)

Disney CEO Meets China’s Vice Premier

China’s Vice Premier Ding Xuexiang met Disney CEO Bob Iger in Beijing, encouraging him to invest more in the world’s second-largest economy.

(Reuters)

Strava Files for IPO

Strava filed confidentially for an IPO and hired Goldman Sachs to run the listing.

(The Information)

Other Notable Moves

Xpeng said it wants to become known as a “physical AI” company rather than just a carmaker, gearing up to launch robotaxi trials and mass produce humanoid robots this year.

LG Electronics expects to post a quarterly operating loss for the first time in nine years due to sluggish TV demand and intensified competition.

Bridge Data Centres is planning expansion into the Middle East, Australia and Japan.

J Sainsbury raised its outlook for retail free cash flow after reporting increased sales for Q3 and the Christmas period.

(Reuters, Wall Street Journal)

‍