Daily US Equity Opening News - House to vote on spending package; PLTR surges after Q4 beat; NXPI lower on slower auto growth

TODAY'S AGENDA:

US INDEX FUTURES: ES +0.2%, NQ +0.5%, YM unch, RUT +0.2%
DAY AHEAD: A partial US government shutdown will delay the January jobs report (which was due Friday) and other labour data (including the JOLTS report that was scheduled for release today), the BLS said; data collection and releases are suspended until funding is restored after the shutdown began on 31st January. The US Day sees the release of RCM/TIPP Economic Optimism Index for February, which is expected to rise slightly to 47.9 from 47.2. After the close, the API will release its gauge of weekly energy inventories. Speakers today include: Fed's Bowman (voter, dovish; text and Q&A expected); ECB President Lagarde will speak at an informal dinner with EU Commissioner Sefcovic, but is not expected to comment on monpol ahead of the central bank's policy announcement on Thursday. Notable US corporates reporting today includes: AMGN, ENPH, EA, MDLZ, SMCI, TTWO, CMG, CB, AMD, CTVA.
BROKER MOVES: FDX upgraded at Wells Fargo; ADBE, FRSH, VERX downgraded at Piper Sandler. For the full list, click here.
MAJOR MORNING MOVES RECAP: NVDA, PLTR, PYPL, NXPI, AMZN, WWD, PEP, ADM, MRK, ETN, PFE. For the full list, click here.
US DAILY CONFERENCE CALENDAR: GS, NVDA, AMZN, CRM, CSCO, INTC. For the full list, click here.

NEWS:

MACRO

Government Shutdown - US lawmakers teed up a House vote expected today to end the government shutdown after a House committee advanced a Senate spending package. The shutdown followed Democratic anger over federal immigration agents killing two US citizens in Minneapolis, derailing talks on new DHS funding. President Trump urged immediate passage with no changes.

TECH

OpenAI, NVIDIA (NVDA) - OpenAI has sought alternatives to NVIDIA’s latest AI chips since last year, citing dissatisfaction with the speed at which NVIDIA hardware delivers answers to ChatGPT users on complex problems. CNBC earlier reported that the potential deal between NVIDIA and OpenAI remains under consideration. Later, OpenAI's chief, Sam Altman, said he hopes to be a huge NVIDIA customer in the long-term, and that NVIDIA makes the world's best AI chips.
xAI, SpaceX - SpaceX confirmed that is acquiring xAI; deal terms were undisclosed, though reports suggest xAI was valued at USD 250bln and SpaceX at USD 1tln, according to Reuters. Tesla (TSLA) invested USD 2bln in xAI last month. The merger combines space, satellite and AI operations, consolidating Musk’s businesses ahead of a potential SpaceX IPO.
Palantir Technologies (PLTR) - Palantir shares jumped over 10% in extended trading after it reported a record quarter that beat expectations, with strong demand for its AI offerings highlighted as the key driver. Q4 2025 (USD): Adj. EPS 0.25 (exp. 0.23), Revenue 1.41bln (exp. 1.34bln). US business revenue +93% Y/Y and +22% Q/Q, surpassing USD 1bln for the first time, including US commercial revenue +137% Y/Y; total customer count +34% Y/Y and +5% Q/Q to 954; Q4 TCV bookings USD 4.3bln, +138% Y/Y. Management said accelerating AIP demand is driving US outperformance and highlighted a Rule of 40 score of 127%. Exec said sales to US businesses in 2026 are expected to grow at least 115% to more than 3.14bln. Sees Q1 adj. operating income at 870-874mln (exp. 641mln), and Q1 revenue at 1.532-1.536bln (exp. 1.33bln). For the FY, sees revenue at 7.182-7.198bln (exp. 6.3bln), and FY adj. operating income of 4.126-4.142bln (exp. 3.14bln).
NXP Semiconductors (NXPI) - NXP's shares fell in extended trading after reporting a in line revenues, and slower-than-expected automotive growth, which outweighed the modest earnings beat. Q4 2025 (USD): Adj. EPS 3.35 (exp. 3.31), Revenue 3.34bln (exp. 3.31bln). Management noted sequential improvement across all end markets, citing progress in software-defined vehicles and physical AI, and portfolio strengthening via acquisitions to support automotive, industrial and IoT demand, positioning the group for profitable growth with disciplined investment and margin expansion. For Q1, expects adj. EPS between 2.77-3.17 (exp. 2.95), and revenue at 3.05-3.25bln (exp. 3.09bln).
STMicroelectronics (STM), NXP Semiconductors (NXPI) - STMicroelectronics completed the acquisition of NXP Semiconductors’ MEMS sensors business, announced in July 2025. The deal expands sensors capabilities and is expected to contribute about USD 45-49mln to revenues in Q1.
China Memory Makers - China’s leading memory chipmakers, ChangXin Memory Technologies and Yangtze Memory Technologies, are planning their most aggressive capacity expansions as a global memory supply crunch creates opportunities to narrow the gap with rivals Samsung, SK Hynix and Micron, according to Nikkei.
Samsung (SSNLF), SK Hynix (HXSCL) - Bloomberg notes that Samsung and SK Hynix are set to overtake Alibaba (BABA) and Tencent (TCEHY) by combined market value as Asia’s AI investment dynamics shift; their combined valuation reached USD 1.11tln during Tuesday trading, narrowly surpassing the two Chinese internet groups listed in Hong Kong.
Sandisk (SNDK) - Citrini Research's Jukan writes "I was imagining something: what if a certain company is trying to acquire Sandisk, and since JPM is advising on the deal, JPM stopped covering Sandisk because of that?". Adds, "Of course, it could be for a different reason. But I can’t really think of any other explanation."
Western Digital (WDC) - Authorised an additional USD 4bln of share repurchases.
Uber Technologies (UBER) - Uber is relaunching its ride-hailing service in Macau, marking its first expansion into a new Asian market in years.
Hewlett Packard Enterprise (HPE) - A US judge reviewing the DoJ settlement approving HPE’s acquisition of Juniper Networks allowed states opposing the deal to depose company lawyers and advisers. The judge said two lawyers and a consultant can be interviewed under oath as part of the state’s challenge.
HP (HPQ) - Announced FY outlook: Adj. EPS 2.90-3.20 (exp. 3.06); reaffirmed first quarter and fiscal 2026 outlook; Enrique Lores stepped down as President and CEO; appointed Bruce Broussard as interim CEO.
Broadridge Financial (BR) Q2 2026 (USD): Adj. EPS 1.59 (exp. 1.36), Revenue 1.71bln (exp. 1.6bln); raised FY26 adj. EPS growth view to 9-12% (exp. 9.45, prev. 8-12%) and backed FY26 recurring revenue growth in CC at the higher end of 5-7% (exp. 7.27bln).
Teradyne (TER) Q4 2025 (USD): EPS 1.80 (exp. 1.38), Revenue 1.08bln (exp. 978mln); sees Q1 EPS at 1.89-2.25 (exp. 1.25) and Q1 revenue at 1.15-1.25bln (exp. 942mln).
Gartner (IT) Q4 2025 (USD): Adj. EPS 3.94 (exp. 3.51), Revenue 1.8bln (exp. 1.75bln).
Rambus (RMBS) Q4 2025 (USD): EPS 0.68 (exp. 0.55), Revenue 190mln (exp. 188mln).
Adobe (ADBE) - Piper Sandler downgraded ADBE to 'Neutral' from 'Overweight' with a USD 330 PT (prev. 470). The firm is concerned that seat-compression and vibe coding narratives could put a ceiling on the multiple, adding that "this is not a call" on Q4 earnings. The analyst has mixed views on the software space despite share declines in the past 12 months. The firm expects continued "pessimism" around software and recommends investors focus on the hyperscaler, consumption and vertical sub-sectors. Piper also downgraded Vertex (VERX) to 'Neutral' from 'Overweight' and Freshworks (FRSH) to 'Neutral' from 'Overweight'; top picks are Microsoft (MSFT) and ServiceTitan (TTAN).

COMMUNICATIONS:

Netflix (NFLX) - Plans to live stream BTS’s comeback concert on 21st March, a day after the group releases its new album. Separately, the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights will hold a hearing on examining the competitive impact of the proposed Netflix-Warner Brothers transaction on Tuesday at 14:30ET/19:30GMT.
FuboTV (FUBO) Q1 2026 (USD): EPS 0.02 (exp. 0.01), Revenue 1.55bln (exp. 1.36bln); FUBTO TV and ESPN announced plans to a reseller and marketing arrangement to expand the reach and distribution of the Fubo services. Announced a planned reverse stock split of its Class A and Class B common stock at an exchange ratio between one-for-eight to one-for-twelve, with the final ratio to be selected by Fubo's board of directors.
Nintendo (NTDOY) - Maintained its FY outlook for Switch 2 sales and net profit after strong 9mth results. Net profit rose +51% Y/Y to JPY 358.86bln for the nine months ended December, while revenue nearly doubled to JPY 1.906tln.
Publicis Groupe (PUBGY) - Said account wins and AI demand lifted Q4 performance, with organic net revenue up +5.9%, Y/Y, beating expectations. The group forecast 2026 organic net revenue growth of 4-5%. Net profit fell to EUR 1.65bln in 2025, while revenue rose 8.5% to EUR 17.4bln.

FINANCIALS

PayPal Holdings (PYPL) Q4 2025 (USD): Adj. EPS 1.23 (exp. 1.29), Revenue 8.68bln (exp. 8.79bln); sees FY26 adj. EPS down low single digits to slightly positive and Q1 adj. EPS down mid single digits from last year. Appointed Enrique Lores as Chief CEO and David W. Dorman as Independent Board Chair. Lores has stepped down as President and CEO of HP to take the role. CFO said results are not yet where we expected them or want them to be - conference call; forecasts pressure across retail merchant portfolio, particularly among lower and middle-income consumers; forecasts deceleration in several high-growth Verticals, specifically in travel, ticketing, crypto, and Gaming in Q4; need to do more to win with key Merchants, particularly during high-volume shopping periods; while challenges in the macro environment are real, we haven’t executed as well as we need to; e-commerce growth has been challenging in key verticals and markets; no longer committed to the specific 2027 outlook provided at last year's investor day; Deems it prudent to offer guidance on a one-year basis; hard to say the exact time frame when the Co. will see an overall inflection point.
Global Bond Sales - Global publicly syndicated bond issuance reached USD 1tln, at a record pace, as borrowers tapped strong demand to secure relatively low funding costs; the milestone was passed on Monday after Oracle (ORCL) raised USD 25bln in the year’s largest corporate bond sale.
Intercontinental Exchange (ICE) - ICE won SEC approval to operate a clearinghouse for US Treasuries under new market rules; the NYSE owner said the service is now live, and plans to add repurchase agreement clearing by the end of the year.
First Horizon (FHN), Comerica (CMA) - First Horizon said Eric Teal joined its wealth management unit as senior vice president and chief investment officer; Teal previously served as chief investment officer at Comerica.
Willis Towers Watson (WTW) Q4 2025 (USD): Adj. EPS 8.12 (exp. 7.93), Revenue 2.9bln (exp. 2.86bln); sees 2026 FX tailwind on adj. EPS of 0.30; expects 2026 share repurchases of 1.0bln or greater.
SoFi Tech (SOFI) - Upgraded at JPMorgan to 'Overweight' from 'Neutral'. JPM says the selloff post Q4 earnings has created the entry point it had been waiting for. The momentum in SoFi 's business is "undeniable," as the company continues to add new members and deposits at a record pace.
Affirm Holdings (AFRM) - Upgraded at Morgan Stanley to 'Overweight' from 'Equal Weight' with a USD 76 PT (prev. 83). The recent stock weakness brings a "compelling risk/reward," the firm argued. The shares have impacted by Affirm's growth slowdown and consumer credit concerns. Morgan Stanley believes these will prove "transient" for the company. The BNPL category will continue to gain share within e-commerce, and Affirm will be a "key driver of that share gain".
Galaxy Digital (GLXY) Q4 2025 (USD): Adj. EPS -1.08 (exp. -0.92), Revenue 10.37bln (exp. 16.6bln).
Amundi (AMDUF) - Europe’s largest asset manager Amundi's Q4 pretax profit beat expectations, and the company said it is benefiting from investors diversifying away from USD assets. It also announced a EUR 500mln share buyback. Amundi said outflows from UniCredit (UNCRY) networks totalled EUR 16bln last year, including EUR 4bln in Q4, raising concerns the Italian bank may wind down its sales partnership with the French asset manager.

INDUSTRIALS

FedEx (FDX) - Upgraded at Wells Fargo to 'Overweight' from 'Equal Weight' with a USD 380 PT (prev. 295). The firm expects FedEx to issue multi-year financial targets above consensus and a path to potentially as much as USD 30 in earnings per share or the combined company through fiscal 2029. The company can achieve this through "self-help," rational pricing power, a cyclical tailwind and capital returns. Wells views the company's investor day and upcoming results as catalysts for the stock.
Boeing (BA), GE Aerospace (GE) - Boeing and GE identified a potential durability issue with a seal on the GE9X engine powering the 777X during a recent inspection. The issue may require redesign and retrofit during maintenance, but is not expected to cause new delays.
Woodward (WWD) Q1 2025 (USD): Adj. EPS 2.17 (exp. 1.65), Revenue 996.45mln (exp. 893.24mln); performance exceeded expectations with broad-based Y/Y growth across Aerospace and Industrial, with Aerospace margin expansion driven by a higher commercial services mix and strong defence OEM demand, and Industrial strength in power generation, transportation, and oil & gas. Management said the strong start to the year supports a higher sales and earnings outlook, and it raised FY26 guidance; sees EPS between 8.20-8.60 (exp. 8.05; prev. saw 7.50-8.00), and revenue growth seen between +14-18% (prev. saw +7-12%).
United Airlines (UAL) - Filed for a USD 1bln senior notes offering due 2029, SEC filing showed.
Axon Enterprise (AXON) - DHS' Noem said ICE officers in Minneapolis will immediately receive body cameras, with plans to expand nationwide as funding allows. Shares of Axon Enterprise, which makes body cameras, rose on the news in extended trading.
AMETEK (AME) Q4 2025 (USD): Basic EPS 1.74 (exp. 1.94), Revenue 1.998bln (exp. 1.95bln); sees Q1 adj. EPS at 1.85-1.90 (exp. 1.90) and Q1 revenue up 10%; sees FY26 adj. EPS at 7.87-8.07 (exp. 8.01) and FY26 revenue up mid-to-single-high digits.
Pentair (PNR) Q4 2025 (USD): Adj. EPS 1.18 (exp. 1.16), Revenue 1.02bln (exp. 1.01bln); sees FY26 adj. EPS at 5.25-5.40 (exp. 5.37) and sees Q1 adj. EPS 1.15-1.18 (exp. 1.23); expects Q1 sales to be up roughly 1-2% Q/Q (exp. 1.05bln).
Hubbell (HUBB) Q4 2025 (USD): Adj. EPS 4.73 (exp. 4.72), Revenue 1.493bln (exp. 1.49bln); sees FY26 adj. EPS 19.15-19.85 (exp. 19.81).
Illinois Tool Works (ITW) Q4 2025 (USD): EPS 2.72 (exp. 2.69), Revenue 4.1bln (exp. 4.06bln); sees FY26 EPS at 11.00-11.40 (exp. 11.26).
TransDigm Group (TDG) Q1 2026 (USD): Adj. EPS 8.23 (exp. 8.16), Revenue 2.29bln (exp. 2.26bln); Raised FY26 adj. EPS view 37.42-39.34 (exp. 37.87, prev. 36.49-38.53) and raised FY26 sales outlook to 9.845-10.035bln (exp. 9.93bln, prev. 9.75-9.95bln).
Crane (CR) - CEO Max Mitchell bought 1K shares on 30th January for a total USD 183.7k.
ATI (ATI) Q4 2025 (USD): Adj. EPS 0.93 (exp. 0.87), Revenue 1.2bln (exp. 1.19bln); sees Q1 adj. EPS at 0.83-0.89 (exp. 0.87) and FY26 adj. EPS at 3.99-4.27 (exp. 3.88).
Eaton (ETN) Q4 2025 (USD): Adj. EPS 3.33 (exp. 3.31), Revenue 7.06bln (exp. 7.09bln). Sees Q1 adj. EPS at 2.65-2.85 (exp. 3.01) and Q1 revenue of ~6.76bln (exp. 7.08bln); sees 2026 adj. EPS at 13.00-13.50 (exp. 13.52) and 2026 revenue of ~29.09bln (exp. 29.98bln).

HEALTHCARE

Pfizer (PFE) Q4 2025 (USD): Adj. EPS 0.66 (exp. 0.58), Revenue 17.6bln (exp. 16.85bln); FY26 revenue view 59.5-62.5bln (exp. 61.94bln), FY26 EPS 2.80-3.00 (exp. 2.97). The executive said obesity study results increase significantly Co's confidence in Phase 3 monthly dosing study set to launch this year, targeting the first of a series of potential obesity approvals in 2028. In a Phase 2b trial, Pfizer’s ultra-long-acting injectable GLP-1 showed robust, sustained weight loss with monthly dosing, achieving 12.3% weight loss at week 28 and meeting its primary endpoint with a competitive tolerability profile. Five participants discontinued due to adverse events across arms 1 and 3 during the weekly phase. Pfizer plans to launch 10 Phase 3 trials of PF-3944 in 2026.
Merck & Co. (MRK) Q4 2025 (USD): Adj. EPS 2.04 (exp. 2.01), Revenue 16.4bln (exp. 16.20bln). Revenue breakdown: Keytruda 8.37bln (exp. 8.31bln). Gardasil 1.03bln (exp. 0.991bln), Winrevair 467mln. Sees FY EPS at 5.00-5.15 (exp. 5.27) and FY revenue at 65.5-67.0bln (exp. 67.4bln).
DaVita (DVA) Q4 2025 (USD): Adj. EPS 3.40 (exp. 3.19), Revenue 3.62bln (exp. 3.51bln). Management expressed confidence in continued clinical and financial performance into 2026 and beyond. Sees FY26 adj. EPS at 13.60-15.00 (exp. 12.74).
Elevance Health (ELV) - Downgraded at RBC Capital to 'Sector Perform' from 'Outperform' with a USD 358 PT (prev. 392). While "encouraged" by management's confidence in underlying performance, the firm is stepping to the sidelines on the softer-than-expected 2026 guidance and go-forward margin outlook. The firm, which maintains its target PE multiple on its revised 2026 EPS, sees "little reason to reach beyond long-term historical average valuation levels."
Acadia Pharmaceuticals (ACAD) - Said the EMA’s CHMP issued a negative trend vote on its MAA for trofinetide to treat Rett syndrome after an oral explanation. Subject to the CHMP vote in February, Acadia plans to request a re-examination following formal adoption.
Relay Therapeutics (RLAY) - Said the US FDA granted Breakthrough Therapy designation to zovegalisib plus fulvestrant for adults with PIK3CA-mutant, HR-positive, HER2-negative advanced or metastatic breast cancer after progression on a CDK4/6 inhibitor.

CONSUMER DISCRETIONARY

Amazon (AMZN) - Amazon will cut around 2,200 jobs in Washington as part of 16,000 companywide layoffs, with reductions starting 28th April and continuing into June, Axios reports. The cuts follow roughly 14,000 global layoffs announced in October. Other firms, including T-Mobile, Expedia and Zillow, have also reported Washington job reductions.
Tesla (TSLA) - Launched a new all-wheel-drive Model Y in the US priced at USD 41,990, sitting above the cheaper rear-wheel-drive Standard version. The Standard trims help offset higher effective prices from reduced incentives, while in other markets, prices are cut by ~USD 5,000 to spur demand.
EV Makers - California Governor Gavin Newsom proposed a USD 200mln electric vehicle rebate programme to support Tesla (TSLA) and other EV makers. Passenger vehicles priced at or below USD 55k would qualify, along with USD 80k limits for vans, SUVs and pickups, and USD 25k for used vehicles.
Ford (F) - Ford Motor’s aluminium supplier Novelis has not fully resumed production more than four months after a September fire, compounded by another in late November, disrupting F-Series output, Reuters reports.
Ball (BALL) Q4 2025 (USD): Adj. EPS 0.91 (exp. 0.89), Revenue 3.35bln (exp. 3.11bln); sees "consistent" EPS growth in line with LT algorithm; sees FY26 comparable adj. EPS growth of 10%+.
China Food Delivery - China’s food delivery price war is easing after a regulatory probe, with major chains raising prices, Bloomberg reports. Yum China Holdings’ (YUMC) KFC lifted delivery prices by an average of CNY 0.8 last month, Cotti Coffee ended its CNY 9.9 promotion, and Luckin Coffee reduced items priced at CNY 9.9.

ENERGY

Marathon Petroleum Corporation (MPC) Q4 2025 (USD): Adj. EPS 4.07 (exp. 2.72), Revenue 33.422bln (exp. 31.08bln). Full-year refining utilization of 94% and margin capture of 105%, demonstrating strong operational and commercial performance. Cash from operations of USD 8.3bln enabled peer-leading capital returns of USD 4.5bln in 2025.
BP (BP) - BP investors managing GBP 191bln in assets filed a special resolution demanding evidence that increased oil and gas spending will boost shareholder returns, Bloomberg reports. The alliance asked BP to show how it applies disciplined capital expenditure and assesses whether new projects generate acceptable returns, according to the filing.
Sonoco (SON), Engie (ENGIY) - Sonoco said delivery has commenced under its virtual power purchase agreement with Engie for output from the Big Sampson Wind Project in Texas. The agreement covers about 140 megawatts annually for 15 years, representing roughly 83% of Sonoco’s US electricity use in 2025.

REAL ESTATE

Simon Property Group (SPG) Q4 2025 (USD): FFO/shr 3.27 (exp. 3.47), total real estate FFO 3.49; revenue 1.79bln (exp. 1.51bln). FY real estate FFO rose to a record 4.8bln and USD 3.5bln was returned to shareholders. Raised quarterly dividend by 0.10 to 2.20/shr. CEO said the company capped “another impressive year of performance” and remains focused on disciplined, value-creating investment and operational excellence to drive sustainable growth. For FY 2026, sees real estate FFO at 13.00–13.25 (exp. 13.02).
Healthpeak Properties (DOC) Q4 2025 (USD): FFO 0.47 (exp. 0.45); sees FY26 FFO 1.70-1.74 (exp. 1.84).
Fannie Mac (FNMA), Freddie Mac (FMCC) - FHFA Director Pulte said ready to go on Fannie and Freddie Mac IPOs it Trump wants that; strong change the IPOs will happen, also not happen.

MATERIALS

Shanghai Gold Exchange Margins - Shanghai Gold Exchange to adjust margin rations to 17% (prev. 16%) for some gold and silver contracts, and widen the daily price limit to 16% (prev. 15%) as of the 4th February settlement.
Akzo Nobel (AKZOY) - Warned of a tough 2026, citing sluggish customer demand and persistent economic uncertainty limiting spending. The paint maker forecast adj. EBITDA of at least EUR 1.47bln in 2026 (vs EUR 1.44bln Y/Y), and below analyst expectations.

CONSUMER STAPLES

Archer-Daniels-Midland Company (ADM) Q4 2025 (USD) EPS 0.87 (exp. 0.80), Revenue 18.6bln (exp. 21.06bln); increased quarterly dividend by 2%.; sees 2026 at adj. EPS 3.60-4.25 (exp. 4.22). The CEO said, "2025 was marked by a dynamic global trade landscape, and ongoing uncertainty around US biofuel policy created a challenging operating environment for ADM. Despite these external headwinds, the business units showed impressive resilience, and we delivered meaningful progress in the areas within our control."
PepsiCo Inc. (PEP) Q4 2025 (USD): Adj. EPS 2.26 (exp. 2.24), Revenue 29.34bln (exp. 28.98bln); seeks to buyback USD 10bln worth of shares by 2030; Raised dividend by +4%; affirmed 2026 outlook of core C.C. EPS up 4-6%. Commentary: Operating profit increased 15%, primarily reflecting effective net pricing, productivity savings and an 8ppts impact of favourable FX translation. These impacts were partially offset by certain operating cost increases, a decline in organic volume and a 6ppt impact of higher commodity costs; expects Frito Lay category to grow volume, revenue and operating margin early this year. The WSJ reports that Pepsico plans to cut prices by up to 15% on snacks due to customer complaints.

UTILITIES

The AES Corporation (AES) - BlackRock’s (BLK) Global Infrastructure Partners has teamed up with EQT AB to pursue an acquisition of AES, according to Bloomberg. Talks could reach an agreement in the coming weeks, but may stall. AES supplies renewable power to technology customers, including Microsoft (MSFT).

MACRO

US Economic Data - A partial US government shutdown will delay the January jobs report and other labour data, the BLS said. Data collection and releases are suspended until funding is restored after the shutdown began on 31st January.
US Elections - President Trump urged Republicans to federalise election rules, saying the party should take control of voting from individual states to influence the midterm elections. Trump criticised current systems as flawed, and said Republicans should nationalise voting in multiple states.
RBA - The RBA became the first major central bank to tighten policy this year, lifting rates by 25bps to 3.85%, its first hike in two years, citing a worsening inflation outlook and stronger economic conditions. The decision was unanimous, with policymakers judging that inflation pressures are persistent enough to justify restraint. In wake of the decision, markets priced a nearly 80% chance of another hike in May. "The fact that the decision was unanimous should tell households and businesses that the RBA isn't going to mess around with inflation," Oxford Economics wrote, "the board is aligned in their view that inflation's uptick can't be explained away by temporary factors, keeping the door open for more hikes"; OxEco believes that with the RBA now expecting a slower moderation in inflation, despite a higher rate path, the risk is clearly skewed toward a series of hikes rather than a one-off move. In its updated economic projections, the central bank now expects trimmed mean inflation to return to the middle of its 2-3% target band by mid-2028, a year later than it saw in November, and assumes that its Cash Rate rises to 4.2% by year-end -- about 80bps higher than previously assumed, and in line with the market's view. In her post-meeting press conference, Governor Bullock said it is unclear whether the RBA's hike marks a tightening cycle, though added that nothing can be ruled in or out. She said inflation momentum was too strong, returning to target will take longer, the board will not give forward guidance. Bullock said that the Board did not discuss a 50bps increase at the meeting.