- China’s central bank increased the interest rates on medium-term loans that it uses to manage liquidity, a move analysts say signals its intent to keep a tight rein on leverage in the financial system. The one year Medium-term Lending Facility rate was raised to 3.1 percent from 3 percent and the six-month rate to 2.95 percent from 2.85 percent, the People’s Bank of China said in a statement Tuesday. The monetary authority said the operations injected 245.5 billion yuan ($36 billion) into the financial system.
- A gauge of China’s small-cap shares slid, extending a monthly retreat, as a liquidity crunch pressured the most speculative part of the nation’s equities. The ChiNext index fell 1.4 percent in Shenzhen, taking its January loss to 5.1 percent. The measure of mostly technology shares has underperformed the large-cap CSI 300 Index this year as funding costs rose and speculation mounted the regulator will accelerate the pace of initial public offerings, already at a 19-year high -- thereby diverting liquidity from existing shares.
- Toyota Motor Corp. will invest $600 million and add 400 jobs at an assembly plant in Princeton, Indiana, weeks after Donald Trump criticized Japan’s largest automaker for its plan to open a plant in Mexico.
- European Stocks End Four Days of Losses. (video)
- Commodities will be supported in the months ahead by a global rebound spanning the U.S., Europe and China that’s buttressing worldwide demand for raw materials, according to Goldman Sachs Group Inc. “We’re seeing a cyclical uptick in global economic activity and that’s driving demand, not only for oil but all commodities,” Jeffrey Currie, head of commodities research, said in Hong Kong on Tuesday. “That’s the core reason why we upgraded our outlook on commodities to overweight,” he said, referring to the bank’s November decision.
Wall Street Journal:
- Trump Signs Executive Orders to Push Keystone, Dakota Pipelines. Other orders seek to lighten the regulatory burden on infrastructure projects broadly.
- Mall Owners Rush to Get Out of the Mall Business. Surge in store closures prompts some shopping-center owners to walk away from troubled locations
- Trump Signs Executive Orders Renegotiating Keystone XL, Dakota Access Pipelines.
- Trump Orders Media Blackout At EPA: Bans Use Of Social Media, Bars New Contracts.
- Brexit: The Full Timetable Of What Happens Next.
- EU - Not China Or Japan - Is The Biggest US Treasury Holder (And This Is Not A Good Sign). (graph)
- China Deploys ICBM System "In Response To Trump's Provocative Remarks".
- China Tells US To "Act And Speak Cautiously" In Response To Spicer "Threat" Over South China Sea.
- Chinese Warships In Persian Gulf For First Time Since 2010.
- Senate Democrats Introduce $1 Trillion Infrastructure Plan, Offer Trump Support If He Backs It.
- US Manufacturing PMI Near 3-Year Highs As Input Costs Soar Most In 28 Months. (graph)
- Trump To Auto CEOs: "We Are Bringing Manufacturing Back To The U.S. Big League".
- December Existing Home Sales Plunge Most Since 2009, NAR Blames Rate "Surge" & Record Low Inventory. (graph)
- Fitch warns time is running out for China's debt-driven boom. China is creating credit at twice the pace of underlying growth and is relying on hazardous bubbles to keep growth running far above the safe speed limit, Fitch Ratings has warned. Short-term stimulus is papering over deep cracks in the economy and vital reforms are being neglected, storing up serious trouble for the future.