PETER’S BUSINESS & FINANCE BRIEFING – Friday 7 February 2025, 06:00 Hong Kong

● BoE cuts interest rates & halves UK growth forecast ● Bessent says Trump wants lower 10-year yields, not Fed cuts ● Nissan searching for strategic partner in tech industry

Friday’s Opening Call

Hang Seng (Hong Kong) Projected Open: 20,934 +42 points +0.2%

Nikkei 225 (Japan) Projected Open: 38,970 -97 points -0.2%

Quick Summary - 4 Things To Know Before Asian Markets Open

1. The Bank of England (BoE) has cut interest rates from 4.75% to 4.5%, the lowest base rate since June 2023. The Bank's Monetary Policy Committee voted 7-2 in favour of the cut, while two members wanted a bigger cut, to 4.25%. The BoE also cuts its growth forecast for the UK economy in 2025 from 1.5% to 0.75%. And it says inflation will rise to 3.7% later this year
   
   

2. US Treasury Secretary Scott Bessent told Fox Business he and President Donald Trump are focused on 10-year Treasury yields, and not pushing the central bank to lower rates. He reaffirmed that expanding energy supply will help lower inflation and that reducing the budget deficit will help bring 10-year yields lower.
   
   

3. China has toughened its tone following the Trump administration’s imposition of 10% tariffs on Chinese exports, which took effect on Tuesday. Beijing’s official commentary had previously emphasized the willingness to negotiate. On Thursday, Chinese Ministry of Commerce Spokesperson He Yongqian told reporters, “in the face of one-sided acts of bullying, China will definitely take necessary measures to firmly protect its own rights and interests.” She added that China would not provoke trade disputes and remained ready to resolve problems through discussions.
   
   

4. Japanese automaker Nissan’s CEO Makoto Uchida has told Honda chief Toshihiro Mibe to terminate their merger talks, Japan’s Asahi Shimbun newspaper reported Thursday. Both companies are expected to hold board meetings to discuss the termination, the report said. Honda and Nissan have failed to reach a consensus on a US$58bn merger in which Honda would offer Nissan a lifeline and bring the two brands under a single holding company slated to list shares in August 2026. Nissan has begun searching for a strategic partner in the tech industry according to reports.
   
   

Bank Of England Cuts Interest Rates & Halves UK Growth Forecast

The Bank of England (BoE) has cut interest rates from 4.75% to 4.5%, the lowest base rate since June 2023. The Bank's Monetary Policy Committee (MPC) voted 7-2 in favour of the cut, while two members wanted a bigger cut, to 4.25%. The BoE also cuts its growth forecast for the UK economy in 2025 from 1.5% to 0.75%. The UK will only narrowly avoid a recession, according to the forecasts, after the Bank downgraded its economic outlook. It has predicted that the economy shrank between October and December and will grow only marginally in the first three months of this year.

The BoE says it will take a “careful and gradual” approach to future interest rate cuts as it weighs up a number of factors that could affect inflation, including threats of trade tariffs from US President Donald Trump. Inflation is expected to briefly rise to 3.7% later on this year, largely driven by energy prices and water bills, and while the bank expects it to ease, it will take until the latter part of 2027 instead of earlier that year to fall back to the 2% target.

In its quarterly monetary policy report (MPR), the Bank says economic growth has been “broadly flat since March last year”. The UK economy showed zero growth between July and September. For the following three months, the Bank of England now expects it to shrink by 0.1% against a previous forecast for 0.3% growth. For the first three months of this year, the Bank now forecasts economic growth of 0.1%, down from its 0.3% forecast published in last November’s inflation report. While the Bank has cut its forecasts for 2024 and this year, it expects the economy to surpass its previous expectations in 2026 and 2027. The economy is forecast to grow by 1.5% in both of those years, up from 1.25%. Official figures on the UK economy will be published next Thursday.

The MPR said that tariffs and other trade barriers would likely have "adverse effects" on UK activity, though the impact on inflation is "highly uncertain". The MPC’s forecast was finalised before President Trump announced new import tariffs on China, Canada and Mexico earlier this week. The US is the UK’s second-largest trade partner, after the EU, accounting for 22% of UK exports in 2023. However, almost 70% of the UK’s exports to the US are services exports, which would not be directly affected by the imposition of US tariffs.

BoE Governor Andrew Bailey gave hints of hope and caution in the press conference that followed the announcement, saying the road ahead "will have bumps on it". When asked why the UK is having such a tough time getting inflation down, Bailey says some factors are very much UK-only such as higher water bills and bus fares. He also says that the way higher energy prices feed through to consumers is different from country to country. He says the committee will consider cutting rates again soon, taking a careful approach. "We expect to be able to cut bank rates further as the disinflation process continues, but we will have to judge meeting by meeting, how far and how fast," he said. Markets are now expecting three more cuts in interest rates this year.

Bessent Says Trump Wants Lower 10-Year Yields, Not Fed Cuts

US Treasury Secretary Scott Bessent told Fox Business he and President Donald Trump are focused on 10-year Treasury yields, and not pushing the central bank to lower rates. He reaffirmed that expanding energy supply will help lower inflation and that reducing the budget deficit will help bring 10-year yields lower. Bessent said, “he and I are focused on the 10-year Treasury,” when asked about whether President Donald Trump wants lower interest rates. “He is not calling for the Fed to lower rates.” Bessent repeated his view that expanding energy supply will help lower inflation. For working-class Americans, “the energy component for them is one of the surest indicators for long-term inflation expectations,” he said. “So if we can get gasoline back down, heating oil back down, then those consumers not only will be saving money, but their optimism for the future will help them rebuild from the recent years of high inflation,” Bessent said. “The bond market is recognizing that” under Trump “energy prices will be lower and we can have non-inflationary growth,” Bessent said of the drop in yields in recent weeks. “We cut the spending, we cut the size of government we get more efficiency in government. And we’re going to go into a good interest-rate cycle.”

BOJ Board Member Says Necessary To Lift Rates To Around 1%

Bank of Japan board member Naoki Tamura on Thursday said that it was “necessary” for the BOJ to lift short-term interest rates to “at least around 1%” by the second half of fiscal year 2025. This is to “contain the upside risks to prices and achieve the price stability target in a sustainable and stable manner,” Tamura said. By the second half of fiscal 2025 when annual wage hikes are confirmed, the country’s economy is likely to reach a state where the bank’s 2% price stability target has been achieved, Tamura added.

On Wednesday, data showed the fastest wage growth in Japan since 1997. Nominal wages in Japan rose 4.8% year-on-year in December, up from 3.9% in November, driven by a significant increase in winter bonuses. Inflation-adjusted real wages, which reflect consumer purchasing power, also increased by 0.6% in December, marking the second consecutive month of positive growth. The surge was largely attributed to a 6.8% rise in special payments, primarily from companies' winter bonuses. The Bank of Japan has emphasized the need for broad-based wage hikes to support higher borrowing costs.

India Expected To Cut Interest Rates For First Time In Nearly 5 Years

India’s central bank will likely cut benchmark interest rates when its policy meeting concludes today, as easing inflation offers it room to stimulate a faltering economy. The Reserve Bank of India is poised to trim the repo rate by 25 bps to 6.25% beginning what is expected to be a shallow rate cutting cycle. However, the weakness of the rupee, which has tumbled to record lows over the past month, poses a challenge. The rupee has shed 3.6% against the dollar since early November. If the RBI does lower rates, it will be the first cut in nearly five years. The central bank last reduced rates in May 2020 as the country battled the Covid-19 pandemic-inflicted downturn. The benchmark repo rate has remained steady at 6.5% for the past two years, as the domestic inflation rate has stayed above the central bank’s medium-term target of 4%, and even breached the RBI’s upper tolerance limit of 6% in October.

Investors will also scrutinize the statement of the new RBI Governor Sanjay Malhotra to assess the direction of the bank’s monetary policy. Malhotra took charge in December. The Indian government has been steadily lowering its full-year real GDP forecasts, after economic growth missed expectations by a large margin in the quarter ended September, when it grew by 5.4%, its slowest expansion in nearly two years. The latest projection last month trimmed the growth estimates for the current fiscal year to 6.4% from 7.2% in October, its worst in four years, while the inflation projection was raised to 4.8% versus 4.5% earlier. After breaching the upper limit in October, India’s consumer price inflation has eased, dropping within the central bank’s tolerance ceiling of 6%, coming in at 5.22% in December and 5.48% in November.

External headwinds are a concern to growth in India. With a trade surplus of over US$43 billion with the US in 2023 and over US$41 billion in the first 11 months of 2024, India faces heightened scrutiny as Trump focuses on reducing trade deficits.

Australia Export Growth Slows Sharply

Australia's goods exports rose 1.1% from the previous month in December, decelerating sharply from a downwardly revised 4.2% growth in November. Despite the steep slowdown, their total value hit a 10-month high of AU$44.03 billion. Sales grew to China (20.9%), Japan (13.3%), Singapore (5.1%), and South Korea (3.2%).

Australia's imports of goods jumped by 5.9% month-over-month in December, picking up from a downwardly revised 1.4% growth in the previous month and marking the largest value since March of AU$38.94 billion. Australia's trade surplus on goods decreased to AU$5.09 billion in December from a downwardly revised AU$6.79 billion in the previous month, missing expectations for a gain of AU$7 billion and marking the smallest value since September.

Thailand Inflation Slightly Above Expectations In January

Thailand's annual inflation rate rose to 1.32% in January, up from 1.23% in the previous month and slightly above the expected 1.30%. This marks the highest reading since May 2024 and the second consecutive month within the central bank’s target range of 1% to 3%, driven by rising energy and food prices. The annual core inflation rate, which excludes volatile items such as food and energy, edged up to 0.83% from 0.79% in December, slightly surpassing forecasts of 0.80%.

Vietnam Inflation Rate Climbs To 6-Month High

The annual inflation rate in Vietnam rose to 3.6% in January, the highest since July last year, and up from 2.9% in December. The main upward pressure came from a faster increase in prices for food and beverage services (4.42% vs. 3.87% in December) and health services (14.14% vs. 5.32%). The annual core inflation rate, which excludes volatile items, rose to 3.1%, the highest since November 2023, up from 2.85% in December. On a monthly basis, consumer prices grew 1.0%, following a 0.2% increase in the preceding period.

Vietnam Economic Activity Builds Momentum

A data dump from Vietnam on Thursday showed the economy building on strong momentum in the last quarter of 2024. Retail sales in Vietnam advanced by 9.5% year-on-year in January from a 9.3% increase in the previous month. This marked the 38th consecutive month of growth in retail activity and the strongest since May 2024. On a monthly basis, retail activity grew by 2.7%.

Vietnam's industrial production increased by 0.6% year-on-year in January, sharply slowing from 8.8% growth in the previous month and marking the slowest rise since February 2023. The sharp slowdown reflected sluggish factory activity ahead of the Lunar New Year festival. Monthly, industrial production contracted by 9.2%. In 2024, industrial output expanded by 8.4%.

Vietnam’s trade surplus on goods declined slightly to US$3.03 billion in January, down from US$3.63 billion in the same month last year. This marked the eighth consecutive month of gains in merchandise trade. Exports shrank by 4.3% compared to a year earlier, while imports dropped 2.6%. The US was Vietnam's largest export market, with a turnover of US$9.8 billion, while China was the country's largest import market, with a turnover of US$11.6 billion. In 2024, the country registered a surplus of US$24.77 billion.

International arrivals to Vietnam rose by 36.9% year-on-year, reaching a record high of 2.07 million in January, following a 27.4% rise in the previous month. Visitors from Asia grew by 42.8%, led by Cambodia (168.6%) and China (137.4%). Arrivals from North America grew by 23.1%, specifically from Canada (32.7%), while those from Europe jumped by 22.9%.

US Initial Jobless Claims Rise More than Expected

Initial claims for unemployment insurance increased more than expected last week but generally remained within the recent range, the US Labor Department reported Thursday. Initial jobless claims in the US rose by 11,000 from the previous week to 219,000 in the last week of January 2025, above analysts’ expectations of 213,000. The four-week moving average for initial claims, which smooths week-to-week volatility, rose by 4,000 to 216,750. Continuing claims rose by 26,000 to 1,886,000 in the previous week, ahead of expectations of 1,870,000. The data was in line with the view that the US labour market is softening in 2025.

China Appoints ‘Wolf Warrior’ Ambassador To EU

China has named one of its most controversial ambassadors to manage its diplomatic relationship with Europe, an appointment that signals a hardening of Beijing’s stance after clashes with the EU over trade and the Ukraine war. Former ambassador to France Lu Shaye, who enraged many in Europe in 2023 when he questioned the sovereignty of former Soviet states and whether Crimea was part of Ukraine, had been appointed China’s special representative for European affairs, the foreign ministry said. The French-speaking Lu replaced Wu Hongbo, a former Chinese envoy to the UN who was known for his more traditional, conservative style of diplomacy. Lu is one of the more prominent “wolf warriors”, Chinese diplomats known for aggressive and unapologetic rhetoric, and said on French television in 2023 that “ex-Soviet Union countries do not have effective status under international law”.

Michael Sheridan, author of a biography of China’s president, ‘The Red Emperor: Xi Jinping and His New China,’ said that given the delicate balance of relations with the EU, Lu’s appointment was designed to send a message to Europe that Beijing was willing to play tough. “This is a signal appointment,” Sheridan said. “Just as there are rumbles out of Brussels that the EU and von der Leyen might be moderating their pitch towards China, Xi Jinping sends a very hard-edged operator who clearly has his complete confidence.” Reuben Wong, deputy head of the political science department at the National University of Singapore, said the appointment was “another example of a more assertive Chinese foreign policy”.

China Says Will Protect Its Own Interests In Face Of US ‘Bullying’

China has toughened its tone following the Trump administration’s imposition of 10% tariffs on Chinese exports, which took effect on Tuesday. Beijing’s official commentary had previously emphasized the willingness to negotiate. On Thursday, Chinese Ministry of Commerce Spokesperson He Yongqian told reporters, “in the face of one-sided acts of bullying, China will definitely take necessary measures to firmly protect its own rights and interests.” She added that China would not provoke trade disputes and remained ready to resolve problems through discussions. China’s Ministry of Foreign Affairs Spokesperson Lin Jian said, “China firmly deplores and opposes the move of the US to levy a 10% additional tariff on Chinese imports under the pretext of the fentanyl issue. The measures China has taken are what’s needed for safeguarding our legitimate rights and interests.”

After the US announced 10% tariffs on Chinese goods, the Chinese side on Tuesday retaliated with its own duties of up to 15% on US liquefied natural gas and select products, starting Feb. 10.

Shein, Temu Retailers Slapped With 30% Levy On US-Bound Goods

Chinese retailers that sell on Shein and PDD Holdings’ Temu platform say they have been asked by logistics agents to start paying an additional 30% levy after President Donald Trump earlier this week hiked tariffs on goods imported to the US from China and Hong Kong. The vendors received notifications about the new prices they would be charged by their logistics agents late on Wednesday night, according to a memo seen by Bloomberg. The extra 30% of the retail value of the goods being sold must be paid in the form of a deposit, which agents will then return or ask to be topped up depending on the actual tax charges from US customs. Retailers also told Bloomberg that they’re worried about the possibility of significant logistical delays because it’s not clear how much extra time the customs clearing process may take.

The added stress comes as the US Postal Service flip-flops on inbound international packages from China and Hong Kong. Just hours after the mail service earlier this week announced it was suspending some shipments, it reversed that decision, saying it was working with Customs and Border Protection to “implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”

As well as a new 10% tariff on goods, Trump has revoked a “de minimis” rule for China, which had allowed small packages under US$800 to enter the US duty-free. The vast majority of the clothing and other household goods purchased on Shein and Temu would fall into that category.

Hottest January On Record Shocks Scientists

Last month was the hottest January on record, surprising scientists who expected the cooling La Niña weather cycle in the tropical Pacific to slow almost two years of record-high temperatures. Calling the data “terrifying”, one expert said, “I don’t think there can be any doubt that dangerous, all-pervasive, climate breakdown has arrived.” January ranked as the third-hottest month globally on record, with a surface air temperature of 13.23C, 1.75C above the pre-industrial average, according to the Copernicus Climate Change service, the EU’s Earth observation agency. Bill McGuire, emeritus professor of geophysical and climate hazards at UCL, said the January data was “both astonishing and, frankly terrifying”, adding, “on the basis of the Valencia floods and apocalyptic Los Angeles wildfires, I don’t think there can be any doubt that dangerous, all-pervasive, climate breakdown has arrived. Yet emissions continue to rise.” The average sea surface temperature globally was 20.78C, the second-highest value on record for the month after January last year. Although the central equatorial Pacific had become cooler, temperatures were “unusually high in many other ocean basins and seas”, the scientists said.

Nissan CEO Proposes To Terminate Merger Talks, Asahi Reports

Japanese automaker Nissan’s CEO Makoto Uchida has told Honda chief Toshihiro Mibe to terminate their merger talks, Japan’s Asahi Shimbun newspaper reported Thursday. Both companies are expected to hold board meetings to discuss the termination, the report said. Honda and Nissan have failed to reach a consensus on a US$58bn merger in which Honda would offer Nissan a lifeline and bring the two brands under a single holding company slated to list shares in August 2026. They were hoping that by combining, they could gain economies of scale and fight off the growing competitive threat of Chinese newcomers led by BYD. However, Honda demanded that Nissan implement a restructuring plan, while Nissan struggled to find ways to cut staff at various factories.

Nissan has begun searching for a strategic partner in the tech industry according to reports. The search for new partners would be broad and outside the automotive industry, according to people with direct knowledge of the matter. The collapse of the takeover talks leaves the door open for Foxconn to reignite its ambitions to take Renault’s stake in Nissan as a platform to expand its electric vehicle unit. France’s Renault had been offloading its 36% shareholding in Nissan following a restructuring of their 25-year alliance in 2023.

US Attorneys-General Say Wall Street Firms Underplay China Risk

Republican attorneys-general from more than a dozen US states have accused BlackRock, Goldman Sachs and JPMorgan of misrepresenting the risks of investing in China, including the possibility of a Chinese invasion of Taiwan.

In a letter to the three firms and other big asset managers, including State Street, Invesco and Morgan Stanley, 17 attorneys-general said the financial groups were concealing or misrepresenting the investment risks in China, the Financial Times reported Thursday. “We are particularly concerned about BlackRock’s material misstatements and omissions, as BlackRock is the largest issuer of emerging market ETFs and China ETFs,” they wrote in a letter that focused on BlackRock. “BlackRock implies that investing in China has similar risks to investing in other countries, even though China is a statutorily designated foreign adversary of the US and has threatened to invade Taiwan.”

The attorneys-general, who include the top state government lawyers from Texas, Montana, Ohio and Virginia, said the “misstatements or material omissions” by all the firms “prevent fiduciaries from being able to fulfil their duty of care to investigate the facts underlying an investment”. The attorneys-general added that this made it impossible for state pension funds to invest in funds that have China exposure “without violating their fiduciary duty”. It noted that Texas governor Greg Abbott last year directed state agencies to divest from China “as soon as possible”.

Asia Pacific Markets Higher

Asia-Pacific markets traded higher Thursday, tracking gains on Wall Street as investors shrugged off a week of trade turmoil and a slew of disappointing US tech earnings. Japan’s Nikkei 225 rose 0.6% to close at 39,067. Shares of Nissan rose 7.3% while Honda lost 4.0% on reports that their proposed US$58bn merger is on the brink of collapse.

South Korea’s Kospi rose 1.1%. In Taiwan, the Taiex closed 0.7% firmer. Australia’s S&P/ASX 200 traded 1.2% higher.

In India, the BSE Sensex fell 0.3%. to 78,058. India’s central bank is expected to cut interest rates by 25 bps when it announces its first monetary policy decision of the year later today.

Mainland Chinese Shares Rebound

Mainland Chinese shares rebounded Tuesday after ending lower the previous day, which was the first day of trading following the extended Lunar New Year holidays. The CSI 300 climbed 1.3% to 3,843.

In Hong Kong, the Hang Seng added 295 points, or 1.4%, to end the day at 20,892, an almost two-month high. Tech shares led the gains. The Hang Seng Tech index surged 2.6% buoyed by robust gains from Sunny Optical (9.9%), Semiconductor Manufacturing (7.2%), and Hua Hong Semiconductor (7.5%). BYD soared 11.5% as it plans to hold an intelligent strategy launch event next week and allow people to experience advanced intelligent driving. The Hang Seng China Enterprises Index of mainland companies listed in the city rose 1.6%.

European Stocks Close At record High

European markets closed at a record high Thursday, with investors assessing more earnings reports and following a 25 bps rate cut from the Bank of England. The regional benchmark Stoxx 600 ended the day 1.2% firmer as almost all sectors traded higher. Germany's Dax Index also closed at a record high, climbing 1.5% on the day. The prospect of lower rates took the FTSE 100 to a record high. The UK’s benchmark index, many of whose members record revenues in dollars, jumped 1.2%. Housebuilders and construction shares also rose.

Shipping giant Maersk jumped 6.4% after beating fourth-quarter profit expectations, despite forecasting a weaker result this year. Societe Generale shares surged 13.2% after the French lender posted sharp year-on-year hikes in fourth-quarter and full-year profit and announced an €872 million (US$903mn) share buyback scheme. On the downside, Sweden’s Volvo Cars lost 11.1% after warning that 2025 would be a challenging year in which EV competition from China would intensify and market growth would slow.

US Stocks Notch Modest Gain

US stocks rose Thursday as a diverse range of companies reported earnings. The S&P 500 notched a third straight winning session, closing 0.4% higher at 6,084. The Nasdaq Composite rose 0.5% to 19,792. The Dow, however, lost 126 points, or 0.3%, and closed at 44,748.

The S&P 500’s biggest gainers Thursday suggested that American consumers are confident in their employment and continue to spend at a healthy clip. Ralph Lauren and Tapestry, which owns the Coach and Kate Spade brands, added 9.7% and 12%, respectively. Both fashion firms closed at all-time highs. Skyworks Solutions was the worst performer in the S&P 500, plunging almost 25% after the Apple supplier said tougher competition for the iPhone maker's semiconductor business would cut into sales this year.

Hershey, the confectioner, rose 4.4% and Eli Lilly, which makes the anti-obesity drug Zepbound, climbed 3.4% after both updated investors yesterday. Meanwhile, Honeywell shares sank 5.6% after the industrial conglomerate said it was preparing to split into three independent companies. Arm reported record quarterly sales, buoyed by a rush of artificial-intelligence chip buying, but its outlook disappointed investors, sending shares 3.3% lower. Roblox shares plummeted 11.1% after the gaming platform reported disappointing fourth-quarter bookings and daily active user figures. Ford Motor also fell 7.8% after the automaker forecast a difficult 2025. By contrast, Philip Morris shares surged nearly 11% to a record high on the heels of the international tobacco company reporting better-than-expected earnings and revenue for the fourth quarter.

After the closing bell, Amazon reported better-than-expected earnings and revenue for the fourth quarter, but it gave disappointing guidance for the current period. The company blamed the weak guidance on foreign exchange headwinds. Based on Amazon’s forecast, the company only expects revenue growth of 5% to 9% in the first quarter. At the low end of the range, that would mark the slowest growth on record. Amazon went public in 1997. Shares of Amazon fell over 3% in after-hours trading.

US Treasuries Muted

Benchmark Treasury yields ticked slightly higher, after declining in the previous session. The 10-year yield settled at 4.44% Thursday, up 1 bp on the day. The 2-year yield was 2 bps higher at 4.21%.

US Dollar Snaps 3-Day Decline

The dollar strengthened against most major currencies. The US Dollar Index was up 0.1% at 107.69, after a three-day decline.

The Japanese yen strengthened 0.8% to ¥151.43 per dollar on Thursday, reaching its highest level in eight weeks as Bank of Japan board member Naoki Tamura said that the central bank must lift the policy rate to at least 1% in the latter part of fiscal 2025. Finance Minister Katsunobu Kato also warned that inflation could continue rising.

The offshore yuan steadied around Rmb 7.2850 per dollar, down 0.1% on the day, as concerns over escalating US-China trade tensions began to subside.

The British pound weakened after the Bank of England cut interest rates by 25 bps. Sterling lost 0.5% against the dollar to $1.2434. Derivatives markets suggest rates will fall to 3.75% by year-end, implying three more quarter-point cuts, according to LSEG despite the central bank stressing it would act “carefully” in its future decisions and raising its inflation forecast. The euro was down marginally at $1.0387.

Gold Hovers Near Record High

Gold hovered around $2,855 per ounce on Thursday, close to an all-time high of $2,882 reached on Wednesday, as increasing speculation of lower interest rates magnified the metal’s appeal as a safe haven amid economic and geopolitical risks. Data released Wednesday showed weaker-than-expected demand for services, suggesting economic activity could moderate in the coming months. This prompted investors to position for two Federal Reserve rate cuts this year, in line with the latest FOMC projections.

Oil Lower

Crude oil futures edged lower on Thursday, after earlier attempting to recover from an almost 2% decline in the previous session, as Saudi Arabia's state oil company announced a significant price hike for March deliveries to Asia. This was driven by rising demand from China and India and disruptions to Russian supply due to US sanctions. Brent crude oil settled 0.6% lower at $74.25 a barrel.

Bitcoin Falls Below $97,000

Bitcoin has fallen every day this week from $102,000 to below $97,000. Over the past 24 hours, it has lost 0.6% to $96,345.

Peter Lewis’ Money Talk Podcast

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