Ten Stories Moving the Market

U.S. President Donald Trump said he would refrain from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, citing a “framework of a future deal” he said was reached regarding the island – Bloomberg. (Why you should care - the 1951 U.S.–Denmark Treaty on the Defense of Greenland authorizes the U.S. to establish, operate, and expand military facilities there to meet NATO defense requirements)

U.S. President Donald Trump ​indicated he was close to choosing the new chair of the Federal Reserve, adding he liked the idea ‌of keeping White House economic adviser Kevin Hassett in his current post – Reuters. (Why you should care – Hassett remaining in his current role would likely satisfy Wall Street’s desire for an independent Fed chief)

Supreme Court justices across the ideological spectrum expressed deep unease about President Trump’s attempt to fire a member of the Federal Reserve, with several stressing the importance of a central bank insulated from political pressure; their comments signaled the court will likely allow Fed board member Lisa Cook to remain in the job while the legal challenge to her dismissal proceeds in the lower courts – WSJ. (Why you should care – letting Cook remain in her job will likely erode speculation about the Fed losing its independence)

Japan's exports rose for a fourth straight month in December thanks to solid data ‌center-related demand, according to government data; total exports by value rose 5.1% year-on-year in December, following a 6.1% rise in November - Reuters. (Why you should care – steady export growth should boost the outlook for Japanese economic growth)

South Korea isn’t delaying the first planned $20 billion tranche of its U.S. investment commitments as part of a trade deal framework, Finance Minister Koo Yun Cheol said, adding that the time-consuming process to select projects is underway even though it’s unlikely to be completed in the first half of the year – Bloomberg. (Why you should care – South Korea is attempting to quell speculation that it may not fulfill its end of a U.S. trade bargain struck last year)

Valero bought a cargo of Venezuelan crude oil, the first deal by a U.S. Gulf Coast refiner struck as part of Washington's deal with Caracas to buy up to 50 million barrels of the South American country's crude; the oil was traded for delivery to the U.S. Gulf Coast at a discount of about $8.50 to $9.50 to Brent crude – Reuters. (Why you should care – the price is a discount of roughly $2.50/barrel to last week)

Nvidia Chief Executive Officer Jensen Huang said artificial intelligence will require one of the biggest infrastructure buildouts in history, with trillions of dollars in new investment; he made the case that made the case that skilled vocational workers are seeing increasing demand and rising salaries – Bloomberg. (Why you should care – such a scenario would boost the outlook for domestic economic spending and growth)

JPMorgan Chase CEO ​Jamie Dimon warned that a proposal to cap credit card interest rates would amount to economic disaster, while U.S. President Donald Trump doubled ‌down on the idea and said he was asking Congress to approve the move - Reuters. (Why you should care – the proposal is likely to prove political noise ahead of mid-term elections as the White House could have a difficult time garnering Congressional support)

A sharp selloff in Japanese government bonds this week shows investors remain on edge over generous spending promises in big advanced economies awash in public debt; long-term Japanese yields, which move inversely to prices, shot higher after Prime Minister Sanae Takaichi pledged a big consumption-tax giveaway to win over voters in a poll slated for February 8 – WSJ. (Why you should care – thebond market reaction is likely to curb some of Takaichi’s spending plans)

Japan’s government will win trust and reassure investors through a spending overhaul, the co-leader of Japan’s junior coalition partner said, a day after longer-term Japanese bond yields surged to record-highs over fiscal fears - Bloomberg. (Why you should care – the statement comes after dialogue with the U.S. about calming investor concerns about bond yields)

Economic Calendar:

Earnings: ABT, COF, CSX, FCX, GE, HBAN, INTC, PG

World Economic Forum in Switzerland

Japan – Exports, imports for December

South Korea – GDP for Q4

U.K. – Public sector net borrowing for December (2:00 a.m.)

Norges Bank (Norway) Monetary Policy Announcement (4:00 a.m.)

ECB meeting minutes (7:30 a.m.)

U.S. - Initial Jobless Claims (8:30 a.m.)

U.S. - Continuing Claims (8:30 a.m.)

U.S. – GDP (Second Take) for Q3 (8:30 a.m.)

U.S. – PCE for November (10:00 a.m.)

U.S. – Personal income, Spending for November (10:00 a.m.)

U.S. – Real Personal Consumption for November (10:00 a.m.)

U.S. – Kansas City Fed Manufacturing Index for January (11:00 a.m.)

Treasury Auctions $21 Billion in 10-Year TIPS (1 p.m.)

Fed's Balance Sheet Update (4:30 p.m.)