The Overnight News Roundup

Jan 24, 2025

PiQ and Zack Eiseman provide you with a consolidated roundup of the overnight news that matters most to markets.

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MACRO:

The Yen appreciated after the BoJ hiked rates to 0.5% as expected. The bank's inflation forecasts were all raised and there were no growth forecast downgrades, but there was one dissenter, Nakamura, who voted to stand pat.
The Yen saw two way action in Ueda's presser, weakening after he said the bank had no preset idea in mind for future rate adjustments, saying the BoJ is not in a behind the curve situation right now. Whilst the currency found strength after he stressed the very low level of real interest rates and touted strong wage hikes.
A China-led risk on market move was seen after Trump said in a Fox News interview that he would rather not use tariffs against China but called tariffs a "tremendous power." Said he could make a deal with China over fair trade practices. (Fox News)
The US Treasury said it’s expanding its use of special accounting measures to avert breaching the federal debt limit, which kicked back in earlier this month. (BBG)
Traders looking to sell the Dollar are far more common than thought even as the dollar’s dominance rips across markets, according to Morgan Stanley, who say “Many have dry powder and are waiting for a sign to enter shorts.” (BBG)
An imminent PBoC RRR cut is now deemed as less likely, particularly after the bank pumped a record amount of short-term funds via the 14-day reverse repo ahead of the Lunar holiday, alleviating any funding concerns. (FT)
The PBoC's decision to halt bond buying is exacerbating the rise in short-end rates and flattening the yield curve, spurring bets the bank may resume government debt purchases. (BBG)
China’s straitened economic circumstances are being reflected in Lunar New Year travel plans, with many choosing cheaper domestic trips or nearby destinations in Asia. (BBG)
Strategists say the yen is primed for further gains after the BoJ sent hawkish signals while raising the benchmark rate, where the upward revision in inflation expectations for the fiscal year 2025 has given room for the central bank to hike rates again this year. (BBG)
Japan’s consumer price growth picked up in December, rising to 3.6% from 2.9%, boosted by energy, while the core figure remained at +2.4%. (WSJ)
Japan's largest trade union Rengo President Yoshino emphasized the importance of securing wage increases as real wages continue to decline. Said this year's "Shunto" wage negotiations must surpass last year's. (RTRS)
Japan’s PM Ishiba sought support for his minority government with the opening of parliament on Friday, as he aims to pass a record ¥115.5 trillion ($738 billion) annual budget and navigate ties with the new US administration. (BBG)
Inflation concerns are staging a comeback, raising questions over when the ECB may need to pause or halt interest-rate reductions in the spring, according to a Bloomberg survey of economists. (BBG)
UK consumer confidence fell sharply in January to the lowest level in more than a year as a spike in government borrowing costs and warnings of job cuts took a toll on economic sentiment, according to the GfK survey. (FT)
Singapore loosened its monetary policy for the first time since 2020, citing a faster than expected decline in inflation and warning about a growth slowdown, mentioning trade risks. (CNBC)
New Zealand inflation may accelerate this year as a weaker currency and rising oil prices increase the cost of imported goods, according to economists at ANZ Bank New Zealand. (BBG)
US President Donald Trump appears to have opened the door for construction of the Keystone XL pipeline, the controversial oil conduit that even its former developer doesn’t want to build. (BBG)
LNG shipping costs are plummeting as the market grapples with a glut of vessels, a development that could provide relief for gas importers and help pad profits for traders. (BBG)
SEC staff repealed accounting guidance the crypto industry has said squashed its ability to work with banks. (BBG)
South African coal and iron-ore exporters aim to sign agreements with state-owned logistics company Transnet SOC Ltd. next month that could pave the way for them to spend billions of rand to help fix crucial rail lines and boost shipments. (BBG)

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GEOPOLITICAL:

Two Iranian ships docked in China have been loaded with a critical ingredient to produce propellant for ballistic missiles—a demonstration of the challenge the Trump administration will have in pressing China to reduce its cooperation with Iran. (WSJ)
The Secretary of Russia's Security Council warned that the risk of an armed clash between nuclear powers is increasing. Russia accused NATO of escalating its activities on Russia and Belarus's eastern flank and conducting rehearsals for offensive operations there. (TASS)
Delta will resume commercial flights between New York and Tel Aviv starting April 1, making it the first US carrier to announce it’s restarting a route suspended after the October 2023 Hamas attack. (BBG)

EQUITIES:

The Stargate project has not yet secured the funding it requires, will receive no government financing, and will only serve OpenAI once completed. (FT)
OpenAI’s board is locked in complex negotiations to become a for-profit company, struggling to determine the price of Microsoft’s stake in the start-up while holding talks to value its newly formed charitable arm at $30bn. (FT)
Tesla launched a new higher-priced version of the Model Y, its best-selling car, in the United States, Canada and Europe on Thursday, weeks after it was first released in China. (RTRS)
Boeing warned that it expected a fourth-quarter loss of about $4 billion to close a year marred by a production quality crisis, stricter regulatory scrutiny, supply chain delays and a crippling strike by U.S. West Coast factory workers. (RTRS)
US energy group Venture Global has been valued at just above $60bn in its initial public offering, marking a climbdown from a much loftier target of more than $100bn. (FT)
Texas Instruments forecast Q1 profit below analysts' estimates, as the analog chipmaker grapples with an inventory buildup in its key automotive and industrial markets. (RTRS)
Canada warned Amazon CEO Jassy that the federal government is reviewing its business ties with the company’s cloud-computing unit following Amazon’s decision to shut down its warehouses in Quebec. (WSJ)
Reliance Group is building what may become the world’s biggest data center by capacity in India, the latest in a blitz of global investments to capitalize on booming demand for artificial intelligence services. (BBG)
Ericsson sees further signs that the overall network market is stabilizing, as customer spending continues to accelerate in North America. (WSJ)
Rolls-Royce will manufacture nuclear reactors to power new U.K. submarines under a contract valued approximately 9 billion pounds ($9.37 billion). (FT)
Italy’s Banca Monte dei Paschi di Siena launched an all-share offer to buy Mediobanca Banca di Credito Finanziario, valuing its peer at 13.3 billion euros ($13.86 billion). (WSJ)
Rio Tinto said first-quarter iron-ore shipments will be affected by flood damage from a tropical cyclone that lashed northwest Australia, but stuck with its full-year guidance for 2025. (WSJ)
Mitsubishi Motors, a junior partner of Nissan Motor, is considering not joining a planned merger between Nissan and Honda Motor. (RTRS)
China's BYD could start selling its first plug-in hybrid vehicle in Japan this year, as it aims to expand its lineup in the country to seven or eight models over the next two years or so. (RTRS)
Bengang Steel Plates, a unit of China’s No. 2 steelmaker, Ansteel, rallied by their daily limit after President Xi Jinping toured one the firm’s plants and emphasized support for what he called “an important foundational industry.” (BBG)