US President Donald Trump gives a speech by video conference at the annual meeting of the World Economic Forum in Davos, January 23, 2025.
Fabrice Coffrini AF | Getty's paintings
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What you need to know today
The Bank of Japan increases interest rates
Japan Bank on Friday increased interest rates by 25 base points to 0.5%The highest level from 2008 as a result of this decision Japanese yen He strengthened to 155.3 in relation to the American dollar at 13:30 Singapore time. Earlier on Friday, Tokyo published a file report It showed Base inflation in the country is growing to the highest level of 3% in 16 months In December, in an annual basis, as expected resulting from the Reuters survey.
Record closure for S&P
The S & p500 On Thursday they closed at the fresh peak Because investors liked what they heard from Trump about interest rate discounts. All the main American benchmarks have a four -day run of victory. Good moods on Wall Street On Friday, the quotations in Asian markets raised. Hong Kong Hang Senga index jumped by over 2%, but in Japan Nikkei 225 They fell after an increase in interest rates.
Trump's speech in Davos
US President Donald Trump turned to World Economic Forum in Davos, Switzerland, practically on Thursday. In his speech, Trump said that “it will bedemand immediate reduction of interest rates “ address Saudi Arabia and OPEC about “lower the oil price“And he called European Union trade relations with the USA Very unfair.
Trump said “very” likes XI
Trump said on Thursday that yes “He likes the Chinese president XI Jinping.”“, According to reading his virtual interview in Davos in the White House. He gave the idea of ​​cooperation with the XI to end the war in Ukraine. The survey published on Thursday of the American Chamber of Commerce in China shows that 30% of the company's Americans in China accelerate their own plans to transfer production or supplyThe highest percentage from 2022.
Order of cryptocurrencies signed by Trump
Proponents of cryptocurrencies received another impulse on Thursday after signing the contract by him Executive ordinance aimed at promoting cryptocurrency development In the USA, most of the order focuses on establishing technologies and cryptocurrency rules. One of the key elements is the creation of a working group that will consider domestic stocks of digital resources.
Boeing predicts huge losses
Boeing He said on Thursday that it is likely He lost about $ 4 billion in the fourth quarteror a loss of USD 5.46 per share. Revenues will probably amount to $ 15.2 billion, less than LSEG estimates. Boeing has not recorded an annual profit since 2018. The manufacturer of aircraft began 2024 with: An accident in the air And he ended her a destructive workers' strike AND exemptions.
(PRO) FINK opposes pessimism in Europe
According to Larry Fink, the headmaster of Blackrock, Davos has a serious “pessimism” about the future of Europe. However, FINK said on Thursday CNBC that the situation could be “close to the bottom” – and explains Why does he have such a view.
Most important
Markets should be based on numbers: results from the past, profit forecasts, rate of return on equity. However, words have equally great influence on markets, as Trump's virtual speech on the World Economic Forum showed.
Price American oil and a global reference point Brenta He fell on Trump, saying that he would “ask Saudi Arabia and OPEC to reduce oil prices.”
And after Trump announced that he would “demand immediate reduction of interest rates”, the profitability of 2-year treasury bonds, which usually follow short-term interest rates, fell while the shares increased.
In fact, S & p500 He added 0.53%, closing with a record high level 6.118.71. The last peak of all time at the closure was 6090.27 at the beginning of December. The Industrial average Dow Jones increased by 0.92%, a NASDAQ compositegained 0.22%. For all three indexes it was the fourth in a row in a green session.
But unlike numbers – which are based on facts (at least in most cases) – words can be capricious.
“Trump's speech in Davos contained several seemingly positive verses (he called OPEC to reduce oil prices, demanded from central banks a reduction in interest rates and repeated earlier promises regarding tax cuts and regulations), but there were few of them within the reach of his control” – Adam Crisafulli, The founder of Vital Knowledge said in a note.
This does not mean that Trump will not make its declarations. However, it is silly to rely on comments not supported by specific actions.
On the other hand, behind some words there is a policy roller that investors should take seriously.
The US Federal Reserve is gathering next week. If the chance of decreasing interest rates is then close to zero, according to CMEGRUP Fedwatch toolAccording to James Demmert, the director of investment in Main Street Research, what chairman Jerome Powell said at a press conference, “will probably cause variability on the market.”
Thus, learning what to listen to can be as important for investors as deciphering numbers.
– Alex Harring and Jesse Pound from CNBC made contribution to this report.