World leaders and business executives departed from Davos after an eventful World Economic Forum annual meeting which was dominated by U.S. President Donald Trump. Here's what we learned: GEOPOLITICS Europe learned the value of standing up to Trump.
Lower valuations, government support and loose fiscal policy set against a cyclical backdrop in China is encouraging investors to rotate into technology and diversify away from the U.S., UBS fund managers told Reuters this week in Davos, Switzerland. "We like ?China tech in particular because there's some success there.
Lower valuations, government support and loose fiscal policy set against a cyclical backdrop in China is encouraging investors to rotate into technology and diversify away from the U.S., UBS fund managers told Reuters this week in Davos, Switzerland. "We like ?China tech in particular because there's some success there.
MSCI's global equities index was rising modestly on Friday and benchmark U.S. Treasury yields edged down while the yen gained against the dollar as traders bet that Japanese authorities are close to intervening directly to support the currency.
* Global stocks flat as Greenland tensions ease. * Oil gains on Trump threats on Iran. * Potential for yen intervention in focus. * U.S. Treasury yields dip. By Sin?ad Carew and Iain Withers.
* Bond investors consolidate positions ahead of Fed. * Friday's data supportive of Fed rate pause. * US yield curve flattens for 3rd day. By Gertrude Chavez-Dreyfuss.
Spot silver prices jumped to the key psychological level of $100 an ounce ?level for the first time on ?Friday as robust demand ?and buying momentum ?fueled prices. Silver's ?run toward the $100 an ounce ?mark comes as investors ?pile into safe-haven assets in the ?backdrop of geopolitical ?turmoil, ?and amid expectations of lower interest rates by the U.S. ?Federal Reserve.
U.S. consumer sentiment improved across the board in January, though concerns about high prices and the labor market lingered, a survey showed on ?Friday. The University of Michigan's Surveys of Consumers said its Consumer ?Sentiment Index increased to a final reading of ?56.4 this month, from an ?earlier estimate ?of 54.0. The index was at 52.9 in December.
U.S. business activity was steady in January as an improvement in new orders was offset by a lackluster labor market and lingering concerns among firms over higher costs because of import tariffs, a survey showed on Friday. S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, ?inched down to 52.8 this month from 52.7 in December.
Washington has threatened senior Iraqi politicians with sanctions targeting the Iraqi state - including potentially its critical supply of oil revenue sourced via the Federal Reserve Bank of New York - should Iran-backed armed groups be included ?in the next government, four sources told Reuters.
Mexico's economy unexpectedly contracted in November due to declines in manufacturing and mining, official data showed on Friday, prompting analysts to underline the need ?for caution ahead of the next central bank rate decision. National statistics agency INEGI ?reported that economic activity fell 0.1% compared with the same ?month in 2024, well below expectations for a ?1% increase.
European discount retailer Pepco does not plan to raise prices to boost margins, instead banking on improved efficiency amid subdued consumer sentiment, the finance head ?of its main brand said on Friday. "Our ?model is not to ?increase prices," Hugo van Santen, chief financial officer of the Pepco brand, told Reuters ?in an interview.
* Yen volatile as markets speculate about rate checks. * Bank of Japan keeps rates steady. * Dollar selling intact as Greenland saga rumbles on. * Trump touts 'total access' Greenland deal with NATO. By Ankur Banerjee and Sophie Kiderlin.
* Global stocks flat after Greenland tensions ease. * Oil gains on Trump threats on Iran. * BOJ holds rates as expected, yen choppy. * Dollar stabilises near weakest levels of 2026. By Iain Withers and Gregor Stuart Hunter.
Investors who have been consumed by geopolitical turmoil to start the year may switch focus in the coming week to prospects for artificial intelligence-related profits and the path for interest rates, with a huge crop of earnings reports and a Federal Reserve meeting on tap.
* About one fifth of S&P 500 set to post quarterly results. * Microsoft (MSFT), Apple (AAPL), Tesla among those due to report. * Fed expected to hold rates steady on Wednesday as independence questions hover. By Lewis Krauskopf.
Multilateral lender AfreximBank terminated its relationship ?with credit rating ?firm Fitch on Friday, ?due to ?what ?it said was ?a "firm ?belief" that the agency's rating exercise ?no ?longer ?reflected the bank's establishment agreement.
* Government circumvented parliament on budget due to lack of majority. * Le Pen warns government's backers of electoral consequences. * PM says deficit won't top 5% of GDP, still exceeds EU cap. By Elizabeth Pineau and Dominique Vidalon.
Japanese Finance Minister Satsuki Katayama said on ?Friday she was watching currency markets closely, ?but declined to comment on ?speculation among traders that authorities ?had checked ?currency rates with banks - a prelude to ?potential intervention.
The current world order is changing but its transformation is ?not a rupture, European Central ?Bank President Christine Lagarde ?said on Friday, pushing ?back ?on Canadian Prime Minister Mark ?Carney's argument that "we ?are in the midst of a rupture". "I'm ?not exactly ?on ?the same page as Mark," Lagarde told the World ?Economic Forum in Davos.
* Yen volatile as markets speculate about rate checks. * Bank of Japan keeps rates steady. * Dollar selling intact as Greenland saga rumbles on. * Trump touts 'total access' Greenland deal with NATO. By Ankur Banerjee and Sophie Kiderlin.
German ultra-long-dated bond yields looked on track for their sharpest weekly rise in nearly two months on Friday, as traders braced for continued supply pressure and shrugged off mixed purchasing managers' index data.
Taiwan looks forward to even more semiconductor investment in Arizona to bolster ties with the United States, President Lai Ching-te told a visiting senator from the state on Friday. U.S. President Donald Trump has ?pushed the major producer of semiconductors, which runs a large trade surplus with the ?United States, to invest more in the U.S., specifically in ?chips that power AI.
Taiwan looks forward to even more semiconductor investment in Arizona to bolster ties with the United States, President Lai Ching-te told a visiting senator from the state on Friday. U.S. President Donald Trump ?has pushed the major producer of semiconductors, which runs a large trade surplus with ?the United States, to invest more in the U.S., specifically in ?chips that power AI.
Japanese Finance Minister Satsuki ?Katayama on ?Friday declined ?to respond ?to ?a question ?on whether ?authorities had conducted ?rate ?checks ?in the market, saying only that ?she was monitoring currency markets ?with ?a sense of urgency. Katayama ?was speaking to reporters at the Ministry ?of Finance.
Hawkish signals from the Bank of Japan on Friday boosted short-term government bond yields to a three-decade high, while the yen abruptly spiked after sliding past 159 per dollar towards an 18-month low. The yen had weakened even as two-year JGB yields climbed to 1.25% for the first time since August 1996, as BOJ Governor Kazuo ?Ueda's press conference unfolded without any surprises.
* India to prioritise 15 sectors including semiconductors, labour-intensive sectors. * Nearly $1 billion to be spent on manufacturing hubs, funding advanced sectors. * Focus on cutting red tape, speeding approvals and aligning tariffs. * Divergent policies by India's federal and state governments have weighed on investment. By Nikunj Ohri and Sarita Chaganti Singh.
British retail sales rose unexpectedly last month, helped by strong online shopping, according to data published on Friday which added to signs of a pickup in the economy after finance minister Rachel Reeves' budget. Sales volumes rose by 0.4% in December from November, the Office for National Statistics ?said.
The Bank of Japan raised its growth estimate and maintained its hawkish inflation forecasts on Friday even as it kept interest rates steady, signalling its confidence ?a moderate recovery would justify raising still-low borrowing costs further.
Hawkish signals from the Bank of Japan on Friday lifted short-term government bond yields to a three-decade high, but did little to curb persistent weakness in the yen.
* Yen holds near 160/dollar after BOJ decision. * BOJ keeps rates steady, focus on Ueda comments. * Dollar selling intact as Greenland saga rumbles on. * Trump touts 'total access' Greenland deal with NATO. By Ankur Banerjee.
* Regional benchmarks choppy after Wall Street gains. * BOJ stays on hold as expected, Governor Ueda to speak at 0630 GMT. * Dollar stabilises near weakest levels of 2026 after biggest one-day drop in six weeks. By Gregor Stuart Hunter.
The Bank of Japan kept interest rates steady on Friday and raised its economic and inflation forecasts, signalling its readiness to continue hiking still-low borrowing costs. As widely expected, the central bank maintained short-term interest rates at 0.75% by an 8-1 vote. COMMENTS. HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO: "As expected, the BOJ left monetary policy unchanged.
Japan's Nikkei stock average extended its advance and government bond futures turned lower on Friday after the Bank of Japan left interest rates unchanged, as had been widely expected. The yen remained weaker against the U.S. dollar, even as the central bank raised its economic and ?inflation forecasts, and reiterated a pledge to continue tightening policy.
* BOJ keeps key policy rate steady at 0.75% as widely expected. * Board revises up growth forecasts for fiscal 2025, 2026. * Hawkish member Takata proposes rate hike, turned down by board. * Governor Ueda says wage hikes leading to broader inflation. * Yen slumps despite hawkish tone, before jumping vs dollar. By Leika Kihara and Makiko Yamazaki.
* Yen softens near 160/dollar after BOJ decision. * BOJ keeps rates steady, focus on Ueda comments. * Dollar under pressure as Greenland saga rumbles on. * Trump touts 'total access' Greenland deal with NATO. By Ankur Banerjee.
Here are ?the median ?forecasts for ?changes ?in
real ?gross domestic ?product (GDP) ?and consumer price ?index (CPI) ?from ?the Bank
of Japan's policy ?board members.
The Bank of Japan kept interest ?rates steady on ?Friday and raised ?its economic and ?inflation ?forecasts, signalling its ?readiness to ?continue hiking still-low borrowing costs. As ?widely ?expected, ?the central bank maintained short-term interest ?rates at 0.75% by an 8-1 vote.
The Bank of Japan kept interest rates ?steady on ?Friday and raised ?its economic ?and inflation ?forecasts, signalling its ?readiness to ?continue hiking still-low borrowing costs. As ?widely ?expected, ?the central bank maintained short-term interest rates ?at 0.75% by an 8-1 vote.
The yen traded choppily on Friday with traders nervous that Japanese authorities are close to intervening directly in markets to support the currency, while global stocks were subdued after previously rallying on U.S. President Donald Trump's softer stance on Greenland.
* Regional benchmarks choppy after Wall St gains. * BOJ decision due after 0330 GMT, Governor Ueda to speak at 0630 GMT. * Dollar holds near weakest levels of 2026 after biggest drop in six weeks. By Gregor Stuart Hunter. Stocks made tepid gains in early Asian trading on Friday ahead of the Bank of Japan's latest policy meeting, at which it is widely expected to ?keep rates on hold.
The yen was volatile on Friday, with a sudden spike raising market speculation that authorities had conducted a rate check, often a precursor to intervention, while the dollar was set for its steepest weekly decline since June as geopolitical tensions unsettled investors. The yen was last stronger on the day at 158.215 per dollar.
* Dollar under pressure as Greenland saga rumbles on. * Trump touts 'total access' Greenland deal with NATO. * Yen steady but close to 160/dlr ahead of BOJ meet. * BOJ seen to stand pat, focus on Ueda comments. By Ankur Banerjee.
China is likely to set this ?year's economic growth ?target in ?a range ?between ?4.5% and 5%, ?the ?South China Morning Post said ?on ?Friday, ?citing sources briefed on the matter. China's State ?Council Information Office did not immediately respond ?to ?Reuters' request for comment. The ?economy grew 5.0% in 2025, meeting the government's target.
The Bank of Japan retained its hawkish inflation forecasts on Friday and stressed it will remain vigilant to price risks from a weak yen, signalling that policymakers intend to keep raising still-low borrowing costs in a politically charged atmosphere.
Japan's core consumer inflation slowed in the year to December but stayed above the central bank's 2% target, data showed on ?Friday, keeping alive market expectations of future interest rate rises.
Japanese stocks edged higher along with government bond futures on Friday, with investors taking early cues from U.S. markets ahead of a Bank of Japan policy decision later in the day. The Nikkei was slightly above flat after the ?first 10 minutes of trading, having opened around 0.3% higher. Benchmark 10-year Japanese ?government bond futures added 0.05 yen to 131.65 yen.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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