Daily US Equity Opening News - NFLX falls on underwhelming Q1 outlook amid WBD deal; UAL rises after Q4 beat, JNJ hit on profit miss

TODAY'S AGENDA:

US INDEX FUTURES: ES -0.2%, NQ -0.3%, YM -0.3%, RUT unch
DAY AHEAD: The US Supreme Court will today consider whether President Trump can remove Fed Governor Lisa Cook while allegations against her are contested; the case follows Trump’s earlier attempt to fire Cook and forms part of his broader effort to exert pressure on the Fed. Traders will continue to monitor commentary from policymakers at Davos; today's schedule includes: US President Donald Trump, ECB President Christine Lagarde, ECB’s Villeroy, EU Economy Commissioner Dombrovskis, IAEA Director General Grossi, Nvidia CEO Huang, JPMorgan CEO Dimon, BlackRock CEO Fink, UBS CEO Ermotti, Standard Chartered CEO Winters, Coinbase CEO Armstrong, TotalEnergies CEO Pouyanne, Sanofi CEO Hudson, Roche Chair Franz Schwan. In supply, the UST will auction USD 13bln of 20yr bonds. US corporate earnings due today include: TRV, SCHW, PLD, KMI.
BROKER MOVES: OKLO upgraded at BofA; FDX downgraded at Rothschild & Co Redburn. For the full list, click here.
MAJOR MORNING MOVES RECAP: NFLX, PRGS, KHC, UAL, NVDA, JNJ, TFC, HAL, TRV. For the full list, click here.
US DAILY CONFERENCE CALENDAR: INTC. For the full list, click here.

GEOPOLITICS

Iran - US President Trump warned Iran that it would face total destruction if he were assassinated, saying he had issued firm instructions for retaliation. He criticised past US leaders for not responding forcefully to alleged threats, and said any harm to him would trigger overwhelming action against Iran.
Venezuela - US forces seized a seventh oil tanker linked to Venezuela as the Trump administration intensified pressure over sanctioned shipping. The Motor Vessel Sagitta was captured without incident in Caribbean waters after being found out of compliance with US restrictions, US Southern Command said.
Russia - The UK is pushing talks to sell warships to Denmark amid rising Russian threats in the North Atlantic and strains over Greenland; Defence Secretary Healey and Denmark’s Troels Lund Poulsen are set to discuss a possible sale of Babcock-made (BCKIY) Type 31 frigates.

MACRO

Trump - Senior White House official said US President Trump speech in Davos to focus on America first, may touch on Greenland and Venezuela; to also focus on board of peace and hemispheric domination; Trump not announcing Fed Chair pick while in Davos, he hasn't made up his mind on the Fed; Venezuela's Rodriguez will come to the US, but nothing currently on the schedule.
Fed - The US Supreme Court will today consider whether President Trump can remove Fed Governor Lisa Cook while allegations against her are contested; the case follows Trump’s earlier attempt to fire Cook and forms part of his broader effort to exert pressure on the Fed. Separately, two Democratic senators demanded records related to the DoJ criminal probe of Fed Chair Powell; Elizabeth Warren and Dick Durbin called the investigation a misuse of power and asked administration officials to preserve and hand over documents following recent subpoenas to the Fed.
US Markets - JPMorgan Asset Management’s Bob Michele said the recent market selloff signals a need for the Trump administration to restore calm. He said markets appear panicked and recalled that investor confidence returned last year after officials stepped back from policies following tariff-related volatility.

TECH

NVIDIA (NVDA) - CEO said trillions of USD in AI infrastructure needs to be built out. Meanwhile, CEO Jensen Huang is planning to travel to China in late January to attend company parties and potentially meet with senior Chinese officials, Bloomberg reports.
Data Centres - PJM Interconnection proposed giving priority grid connections to data centres that secure their own power supply, aiming to accelerate approvals for co-located power plants, Bloomberg reports. The plan seeks to ensure adequate electricity as rapidly expanding data-centre campuses place increasing strain on the largest US power grid.
Apple (AAPL) - UBS reiterated a ‘Neutral’ rating and a USD 280 price target on Apple, expecting solid iPhone 17 demand. It forecast the December quarter iPhone unit sell-in of about 84.5–85.0mln (+12–13%), citing slight pull-in ahead of rising memory costs that boosted late-quarter production and sell-through.
NVIDIA (NVDA) - NVIDIA CEO Jensen Huang plans to travel to China in late January to reopen the AI chip market, Bloomberg News reports. He may attend events and visit Beijing.
OpenAI - OpenAI is lining up advertisers and has disclosed key details ahead of launching advertising, initially charging per ad view, not per ad click, and is asking them for commitments of less than USD 1mln, according to The Information.
TE Connectivity (TEL) Q1 2025 (USD): Adj. EPS 2.72 (exp. 2.54), Revenue 4.67bln (exp. 4.52bln); sees Q2 adj. EPS of 2.65 (exp. 2.63) and Q2 revenue of 4.78bln (exp. 4.7bln).
Accenture (ACN), Palantir (PLTR) - Sovereign AI has selected Accenture, and Palantir Technologies to help it build and scale next-generation AI data centers across EMEA. The initiative is designed to deliver a resilient sovereign AI foundation for commercial and government sectorsArm Holdings (ARM) - Upgraded at Susquehanna to 'Positive' from 'Neutral'. Recent sell-side competitor downgrades and the significant underperformance of the stock offer "an excellent setup," the firm argued. Investor worries about the effects of higher memory prices on the mobile and PC markets have pressured shares, but the firm views this selloff "opportunistically" as it contrasts well-known market weakness with the potential of two important, data centre-related and significant "company-changing" initiatives, namely the development of an AI XPU ASIC and a custom server CPU.Teledyne Tech (TDY) Q4 2025 (USD): Non-GAAP EPS 6.30 (exp. 5.83), Revenue 1.61bln (exp. 1.57bln); sees Q1 non-GAAP EPS 5.40-5.50 (exp. 5.46) and sees FY25 non-GAAP EPS 23.45-23.85 (exp. 23.60).
ServiceNow (NOW) - Enhanced its global Partner Programme to accelerate AI agent innovation, introducing a reimagined Build Program, strengthening the ServiceNow Store, and enabling broader ISV and developer participation. More than 1,000 partners will transition, it said.
Progress Software (PRGS) Q4 2025 (USD): Adj. EPS 1.51 (exp. 1.31), Revenue 252.7mln (exp. 252.9mln); performance was supported by completion of the ShareFile integration, strong portfolio execution and AI-driven customer demand, with net retention at 100%. Management said FY25 was its strongest year, highlighting solid operating momentum, a stronger balance sheet and continued ARR growth. For Q1, sees adj. EPS at 1.56–1.62 (exp. 1.41), Q1 revenue at 244–250mln (exp. 243.6mln). For FY26, sees adj. EPS between 5.82–5.96 (exp. 5.66), revenue at 986mln–1.00bln (exp. 992.4mln).
Xiaomi (XIACY) - Chinese firms listed in Hong Kong expanded share buybacks to support wavering stocks. Xiaomi repurchased shares almost daily in 2026 after spending over HKD 3.2bln last month, its highest in more than two years, Bloomberg reports.

COMMUNICATIONS

Netflix (NFLX) - Netflix shares fell in extended trading, despite a modest earnings beat, as investor focus shifted to the costly and uncertain bidding war for Warner Bros. Discovery (WBD), which overshadowed the quarterly results. Q4 2025 (USD): EPS 0.56 (exp. 0.55), Revenue 12.05bln (exp. 11.97bln). Paid memberships surpassed 325mln; FY25 revenue +16% to 45bln, with operating margin improving to 29.5% from 26.7%, while advertising revenue more than doubled to over 1.5bln and H2 engagement +2% Y/Y to 96bln hours watched. NFLX sees healthy organic growth, expects more typical seasonality in FY26 and highlighted expansion into newer initiatives, such as live sports and video podcasts. Will pause share buybacks to accumulate cash to fund the pending all-cash acquisition of Warner Bros, noting capital allocation priorities are otherwise unchanged. Sees Q1 EPS at 0.76 (exp. 0.81) and Q1 revenue of 12.16bln (exp. 12.17bln). For FY26, sees revenue at 50.7–51.7bln (exp. 50.98bln), implying 12–14% Y/Y growth; FY26 operating margin seen at 31.5%, including ~275mln of acquisition-related costs; content amortisation is expected to rise around 10% Y/Y. Separately, Bloomberg reports that banks including Wells Fargo (WFC), BNP Paribas (BNPQY) and HSBC (HSBC) began syndicating an additional 8.2bln of short-term bridge loans to help Netflix fund its planned acquisition of Warner Bros. studio and streaming business.
Meta Platforms (META) - CTO said the Co.'s superintelligence labs team, delivered first high profile AI models this month, showing lots of promise. Meanwhile, the FTC said it will appeal a ruling that Meta Platforms does not hold a social networking monopoly. Follows a judge finding that Meta’s acquisitions of Instagram and WhatsApp did not breach antitrust laws, citing competition from Alphabet’s (GOOG) YouTube and TikTok.
GameStop (GME) - Chairman Ryan Cohen purchased 500k shares, raising his stake to 9.2%, which represents a total over 41.58mln shares. Cohen purchased 500k shares on 20th January, at a weighted average price of USD 21.12/shr, in multiple transactions priced between USD 20.81-21.20, according to a filing.
Snap Inc. (SNAP) - Snap reached a settlement over claims that its platform’s design caused addiction and mental health harm to a key plaintiff. Lawyers for both sides announced a basic settlement agreement during a final status conference in Los Angeles County Superior Court.

FINANCIALS

Charles Schwab Corp (SCHW) Q4 2025 (USD): Adj. 1.39 (exp. 1.38), Revenue 6.34bln (exp. 6.34bln), Net income 2.5bln, NIM 2.9%.
Travelers Companies Inc. (TRV) Q4 2025 (USD): Adj. EPS 11.13 (exp. 8.65), Revenue 12.4bln (exp. 11.15bln); Net Written Premiums 10.9bln (exp. 11bln). Authorised an additional 5.0bln of share repurchases. Said "we remain highly confident in the outlook for Travelers in 2026 and beyond."
Truist Financial Corporation (TFC) Q4 2025 (USD): EPS 1.00 (exp. 1.09), Revenue 5.25bln (exp. 5.31bln).
Citizens Financial (CFG) Q4 2025 (USD): EPS 1.13 (exp. 1.11), Revenue 2.16bln (exp. 2.15bln).
Blackstone (BX) - Weighing a sale of Beacon Offshore Energy, a Houston-based Gulf of Mexico driller it has owned for about a decade, that could fetch more than USD 5bln, Bloomberg reports. The asset manager is talking with investment banks about bringing the company to market as soon as Q1. Separately, Blackstone is considering an IPO of its Indian glass packaging maker PGP Glass in Mumbai, which could raise up to USD 500mln; BX is in talks with banks and seeks a valuation of as much as USD 4bln, Bloomberg reports.
Interactive Brokers (IBKR) Q1 2026 (USD): Adj. EPS 0.65 (exp. 0.59), Revenue 1.64bln (exp. 1.64bln), adj. net revenue 1.67bln. Commission revenue +22% Y/Y to 582mln on higher trading activity, with customer options, futures and stock volumes up +27%, +22% and +16%; net interest income +20% to 966mln, supported by stronger margin loans and customer credit balances. Customer accounts +32% to 4.40mln, customer equity +37% to 779.9bln, total DARTs +30% to 4.04mln, customer margin loans +40% to 90.2bln, customer credits +34% to 160.1bln. Other income -55% to 10mln, partly reflecting investing activity and currency diversification effects. Declared a quarterly dividend of 0.08/shr.
KKR & Co. (KKR) - KKR & Co.’s planned sale of Metro Pacific Health, the Philippines’ largest private hospital operator, has stalled due to valuation differences, Bloomberg reports. KKR had been seeking a valuation of USD 3bln+.
Zions Bancorp (ZION) Q4 2025 (USD): EPS 1.76 (exp. 1.57), Revenue 879mln (exp. 864.58mln); Q4 NIM 3.31% (vs 3.05% Y/Y). Adjusted taxable-equivalent revenue rose 7.1% Y/Y, while adjusted non-interest expense increased 7.7% to 548mln, including a 15mln charitable donation; excluding this, expenses would have risen 4.7%, delivering positive operating leverage of 2.4% and an efficiency ratio of 60.6%.
Ally Financial (ALLY) Q4 2025 (USD): Adj. EPS 1.09 (exp. 1.02).
JPMorgan (JPM) - CEO said on AI, bank will have fewer jobs in five years that it does now.

CONSUMER DISCRETIONARY

Tesla (TSLA) - CEO Musk in a post on X discussing upcoming Cybercab production wrote "Initial production is always very slow and follows an S-curve. The speed of the production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonisingly slow, but eventually end up being insanely fast." Separately, Tesla has apparently cut a significant number of jobs at its German gigafactory, according to research by the Handelsblatt newspaper; the plant currently employs 10,703 people. Internal documents show a job cut of almost 14%.
Global Autos - Chinese EV makers are surpassing Tesla (TSLA) in global markets despite tariffs and trade barriers, WSJ reports. Governments in the US, EU and Mexico are attempting to curb the accelerating demand for Chinese EVs, which continue to gain consumer attention and expand internationally.
Toyoto Motor (TM) - Set to raise prices for parts suppliers, according to Kyodo.
Alibaba (BABA) - Alibaba set up an electricity generation JV with China National Nuclear Power Co. and partners, registering CNY 250mln, to help supply power for AI data centres. Alibaba has now earmarked more than USD 53bln for AI development and research.
Burberry Group (BURBY) - Beat Q3 sales expectations, with comparable sales +3% (exp. +2%), helped by its refocus on British heritage and improved Chinese demand; China comps +6%. Sees annual profit in line with market expectations.
Nike (NKE) - Announced regional leadership changes. EMEA VP/GM Carl Grebert will retire after nearly 30 years, with Cesar Garcia appointed effective 2nd February. Greater China head Angela Dong will leave on 31st March, succeeded by Cathy Sparks. Cristin Campbell becomes interim VP/GM APLA.
Continental (CON GY) - Prelim. FY25 based on Q4 results (EUR): Sales 19.7bln (guided 19.5-21bln), adj. EBIT margin 13.6% (guided 12.5-14%), ContiTech sales c. 6bln (guided 6-6.5bln), ContiTech adj. EBIT margin c. 4.9% (guided 6-7%). ContiTech: "The lower-than-expected earnings are mainly due to the lack of market recovery in the past quarter, transformation expenses, currency and valuation effects, and the deferral of certain earnings-safeguarding measures to subsequent quarters."
Lululemon Athletica (LULU) - Paused online sales of its Get Low activewear collection after customer complaints that the material was too sheer. The company removed the line from its website but said it remains available in stores across North America.
Ford (F) - Recalling 119,075 Focus, Escape, Explorer and Lincoln MKC vehicles in the US as the engine block heater may crack and leak coolant, potentially causing a short circuit and increasing the risk of a fire when the heater is plugged in, the NHTSA said.
Ulta Beauty (ULTA) - Upgraded at Raymond James to 'Strong Buy' from 'Outperform' with a USD 790 PT (prev. 605). The firm sees "outsized growth" in fiscal 2026 for the company after a period of heavy investments. Ulta will compound "steadily in a faster-growth category". Raymond James said the company has multiple initiatives to drive faster growth.
JD Sports (JDSPY) - Reported a 1.8% decline in LFL sales in the nine weeks to 3rd January, worsening slightly vs the 1.7% fall in Q3; improved trading in North America, which generates about 40% of revenue, was offset by weaker European markets.
Sonoco Products (SON) - Chief Operating Officer Rodger Fuller will retire after a 40yr, effective 28th February. The company will not name a successor, with presidents of each business unit reporting directly to the President and CEO.

MATERIALS

Silver - Surging retail demand is tightening global silver supplies as prices rally sharply, Bloomberg reports. After rising almost 150% last year, silver has gained about a third in early 2026, with buying spanning China, Turkey and South Korea, leaving banks and refiners struggling to meet unprecedented investor demand.
Mosaic (MOS) - Announced extension of phosphate production curtailments in Brazil.
Rio Tinto (RIO) - Reported Q4 Pilbara iron ore production of 89.7Mt (+4% Y/Y). Said FY25 Pilbara output is expected at the lower end of its 323–338Mt guidance range. Raised 2025 output guidance for bauxite, aluminium and copper, citing operational improvements and project milestones.
DuPont (DD) - Appointed D.G. Macpherson to its Board, effective immediately. Macpherson is Chairman and Chief Executive Officer of W.W. Grainger (GWW), was a Partner at Boston Consulting, and previously served on International Paper (IP).
Gold Resource (GORO) - Reported preliminary Q4 production at Don David Gold Mine, accounting for 45% of FY25 output. It ended 2025 with USD 25mln cash and no debt, sold 23,125 AuEq ounces for the year, and achieved record silver sales, with silver contributing about 80% of revenue.
Centerra Gold (CGAU) - Said its Mount Milligan Mine in British Columbia received amended environmental approval and permits to continue operations through 2035, including a 10% plant throughput expansion from 2028. The project was selected for expedited permitting in January 2025 as the company studies extending mine life to 2045.
Energy Materials (UUUU) - Agreed to acquire Australian Strategic Materials in a deal valuing ASM’s equity at AUD 447mln, The transaction combines ASM’s Korean metalisation plant and planned US facility with Energy Fuels’ rare earth oxide production at its White Mesa Mill in Utah.
Lynas Rare Earths (LYSDY) - Seeking an agreement with the US DoD for government-backed price floors for its rare earth supplies. Talks were delayed by a US government shutdown last quarter, and price support remains a central focus of ongoing negotiations, according to its CEO.

INDUSTRIALS

United Airlines (UAL) - UAL shares rose in extended trading after it beat profit expectations, highlighted strong momentum from its loyalty-focused strategy, and issued an outlook that topped forecasts. Q4 2025 (USD): Adj. EPS 3.10 (exp. 2.94), Revenue 15.4bln (exp. 15.34bln); Q4 capacity +6.5% Y/Y, total RASM -1.6% Y/Y, CASM -0.3% Y/Y and CASM-ex +0.4% Y/Y. Management noted premium demand was outperforming main cabin. The CEO said results reflect “winning more and more brand-loyal customers”, adding it was the highest-revenue quarter in United’s history, and revenue momentum is continuing into 2026; he also flagged “cause for optimism” on strong demand but said 2026 guidance is more conservative than normal. Sees Q1 adj. EPS between 1.00–1.50 (exp. 1.11); for FY26, adj. EPS seen between 12.00–14.00 (exp. 13.07), and FY26 adj. capex is seen above 8bln, alongside plans to take delivery of 100+ narrowbody aircraft and around 20 Boeing (BA) 787s in 2026 to support profitable network expansion and customer-experience upgrades.
GE Vernova (GEV) - Said gas turbine backlog grew to 80GW at end of 2025 (prev. 46GW in 2024).
FedEx (FDX) - Downgraded at Rothschild & Co Redburn to 'Neutral' from 'Buy'. The firm said current valuation levels fairly reflect the potential value creation from the spinoff of FedEx's freight division. Investor perception toward the less-than-truckload sector has tilted positive, bringing into focus FedEx's June spinoff while also driving group valuation higher.
Boeing (BA) - President Trump’s trip to the WEF in Davos was delayed after Air Force One, made by Boeing (BA), returned to Joint Base Andrews shortly after departure due to an electrical issue. Trump later boarded a replacement aircraft, delaying arrival in Switzerland by more than two hours.
Danaos Corporation (DAC) - Glenfarne subsidiary Glenfarne Alaska LNG and Danaos formed a strategic partnership to advance the Alaska LNG Project. Danaos will help construct and operate at least six LNG carriers and invest USD 50mln, supporting delivery to global customers via short, canal-free Asia routes.

ENERGY

Halliburton (HAL) Q4 2025 (USD): Adj. EPS 0.69 (exp. 0.55), Revenue 5.7bln (exp. 5.41bln).
Chevron (CVX) - Aimed to finalise the sale of its Singapore refining and distribution assets in Q1, according to Reuters, citing sources, and is in final talks with Japan’s Eneos and Glencore. The assets include Chevron’s stake in a Singapore refinery, terminal and retail stations, with potential inclusion of retail sites in Cambodia and Malaysia. The package is valued at USD 1bln or more and forms part of Chevron’s broader effort to divest Asian refining and storage assets as it streamlines operations and cuts costs.
Kazakhstan - Kazakhstan's TengizChevroil has declared a force majeure on the Tengiz oil project; is not able to state how long it will last.
Japan Nuclear Energy - Japan’s largest utility Tokyo Electric Power Co. will restart its No. 6 reactor at its Kashiwazaki Kariwa nuclear plant in Niigata, marking its first restart since the 2011 Fukushima disaster, after a brief delay caused by an alarm system issue.
UK Energy - The UK will spend GBP 15bln over the next three years to help households cut energy bills and move away from gas-fired boilers, Bloomberg reports. Home heating accounts for 18% of national greenhouse gas emissions, and the investment aims to support greener alternatives.

CONSUMER STAPLES

Kraft Heinz (KHC) - KHC shares fell in extended trading after the company disclosed that Berkshire Hathaway may sell its 27.5% stake (of 325.4mln shares), according to a filing cited by Reuters. The stake was valued at about USD 7.7bln. Berkshire has written down the investment by USD 6.76bln. The update comes as Kraft Heinz plans to split into two companies.
L'Oreal (LRLCY) - Will invest USD 383.4mln to build a beauty tech hub in Hyderabad, aiming to create 2,000 tech jobs through 2030 and serve as a global base for AI-driven beauty innovation.

HEALTHCARE

Johnson & Johnson (JNJ) Q4 2025 (USD): Adj. EPS 2.46 (exp. 2.49), Revenue 24.6bln (exp. 24.15bln); guides initial FY26 adj. EPS at 11.53 (exp. 11.46) and FY26 revenue of 100.5bln (exp. 98.5bln). EPS growth skewed to H2 over H1 in 2026. Said on track to become first healthcare company to exceed USD 100bln in annual revenue, with a clear line of sight to double-digit growth by the end of the decade.
Apellis Pharmaceuticals (APLS) - Upgraded at BofA to 'Buy' from 'Neutral'. The firm believes current valuation levels underappreciate the commercial potential of Empaveli in new rare kidney disease indications. Since approval in late July, Apellis has received 267 new patient start forms for Empaveli, representing 5% penetration of the 5,000 U.S. patient population. BofA is "encouraged" by the "strong launch trajectory" and sees room for continued estimate upside.

REAL ESTATE

Prologis (PLD) Q4 2025 (USD): EPS 1.49 (exp. 0.70), Revenue 2.25bln (exp. 2.09bln); Core FFO 1.44/shr; sees FY26 AFFO at 6.05-6.25 (exp. 5.81).
Single-Family Homes - US President Trump signed an order restricting large institutional investors from buying single-family homes, aiming to boost home ownership. Federal programmes will limit sales to investors, while the DoJ and FTC will review acquisitions.

UTILITIES

Oklo (OKLO) - Upgraded at BofA to 'Buy' from 'Neutral' with a USD 127 PT (prev. 111), following the binding agreement with Meta (META) to develop a phased 1.2 GW advanced nuclear campus. While the MW contribution is "modest," the deal signals a "meaningful step forward" and provides tangible proof of execution and counterparty commitment. Meta's willingness to commit capital years ahead of delivery underscores the importance of nuclear as AI and data center demand accelerate, adds the analyst, who sees Oklo as the most levered public SMR name to data center demand.

TRADE

US-South Korea - South Korean President Lee Jae Myung downplayed US threats of 100% tariffs on foreign-made semiconductors, saying he was not seriously concerned and reaffirming commitment to existing trade agreements, adding that such rhetoric can arise in negotiations but existing policies and principles would be maintained. Myung also said the KRW may strengthen and stabilise around 1,400 vs the USD within the next two months; he added that recent FX weakness was not unique to South Korea, citing pressure on Japan’s JPY, and pledged efforts to stabilise the exchange rate. Elsewhere, South Korea’s exports accelerated in early January, supported by strong semiconductor demand, while auto shipments weakened due to higher US tariffs; exports adjusted for working days rose 14.9% y/Y in the first 20 days of January (vs +13.3% in December).
US-EU - President Trump said new tariffs linked to his bid to take control of Greenland would not derail EU investment in the US. He downplayed retaliation threats after EC President Ursula von der Leyen warned the move would violate last year’s trade deal.
China Yuan Fix - The PBoC set its daily USDCNY fixing to 7.0014 to slow recent gains amid a softer USD. The fixing was weaker than all survey estimates, and near the widest discount to the onshore yuan since 2023.

MACRO (MORE)

Japan - Opposition leader Tamaki said Japan’s government and the BoJ must take a firm stance on rising bond yields, calling the moves very irregular after yields hit record highs. He suggested possible steps, including buying back government debt and cutting issuance of 40yr bonds. Japan’s largest trade union group, Rengo, also urged the government to stabilise FX rates, saying JPY weakness is driving inflation via higher import costs. Elsewhere, Bloomberg reports that JGB liquidity deteriorated to record levels amid a sharp selloff, highlighting a buyers’ strike that has pushed super-long yields higher. Citigroup said volatility in JGBs could force risk parity funds to cut exposure, potentially triggering up to USD 130bln of US Treasury selling, and warned that spillovers may prompt broader risk reduction. Meanwhile, S&P Global warned that Japan’s proposed cut to sales tax on food could weaken government revenues and worsen the fiscal position over the long term, stating that such tax reductions risk becoming permanent rather than one-off measures, undermining public finances.
ECB - President Lagarde said uncertainty has returned due to President Trump’s latest tariff threats, warning that trust between the US and Europe is being undermined and companies are struggling to assess the impact of potential new levies. Elsewhere, Lagarde said policy was in a good position.
China Lithium - China’s lithium price volatility has prompted renewed intervention by the Guangzhou Futures Exchange. Lithium carbonate futures repeatedly hit daily limits this month, closing limit-up on Tuesday. In response, the exchange widened the daily trading band to 11% from 9% starting Wednesday’s settlement to manage market risks, Bloomberg reports.
New Zealand - PM Luxon called a national election for 7th November, as he seeks a second term. He said announcing the date early provides certainty and pledged the government would continue governing through the year while focusing on faster economic growth and delivering its policy agenda.