Trump Criticizes Powell, Announces Future Chair Candidate; Crypto Legislation Timeline Released; Nvidia Chip Export Controls Eased.

Trump Cancels Talks with Iran, Oil Prices Surge

On January 13, U.S. President Donald Trump announced via social media that he has canceled all talks with Iranian officials. Following this, the U.S. government issued a security warning urging citizens to leave Iran immediately. Iranian Army Commander Hatami stated that Iran's armed forces have significantly improved their capabilities in response to security threats after previous conflicts.

As a result of these developments, WTI crude oil prices surged over 3%, reaching a peak of $61.3 per barrel.

Trump Criticizes Powell and Fed Chair Announcement

Trump also criticized Federal Reserve Chairman Jerome Powell, stating that he would announce his choice for the next Fed chair in the coming weeks. He accused Powell of overspending by billions, questioning whether it was incompetence or corruption.

U.S. Economic Indicators

The U.S. December CPI was below expectations, leading to diminished hopes for a rate cut this month. The core CPI growth was the lowest in nearly five years, indicating a cooling of price pressures. Analysts believe that the Fed may need to see new evidence of a weakening job market or declining price pressures before considering rate cuts.

Federal Reserve's Stance

St. Louis Fed President Musalem stated that there is currently little reason to ease monetary policy further, as rates are near neutral. He noted risks in the labor market and inflation but expects stability in the job market and inflation moving towards the Fed's 2% target.

U.S. Fiscal Deficit and Cryptocurrency Developments

The U.S. government recorded a historic high fiscal deficit of $145 billion in December 2025, a 67% increase year-on-year. However, the fiscal deficit for the 2025 fiscal year narrowed to $1.67 trillion, the lowest in three years.

In cryptocurrency news, Bitcoin briefly surpassed $96,000, and Ethereum crossed $3,300. The U.S. Senate Agriculture Committee announced a timeline for cryptocurrency market structure legislation.

HSBC's Positive Outlook on Chinese Assets

HSBC has recommended overweighting A-shares and Hong Kong stocks, advocating for a bullish stance on the Chinese yuan as part of its macro strategy for 2026.

U.S. Stock Market Performance

On January 13, U.S. stock indices closed lower, with the Dow down 0.80% and the Nasdaq down 0.10%. Major tech stocks showed mixed results, with Intel rising over 7% and Tesla down 0.39%.

Nvidia and Meta Updates

The U.S. has relaxed export controls on Nvidia's H200 chips to China. Meanwhile, Meta is planning to double the production capacity of its AI smart glasses, aiming for an annual output of 20 million units by the end of 2026.

Microsoft and Caterpillar Developments

Microsoft announced a plan to cover data center electricity costs without passing them on to residents. Caterpillar's stock surged, briefly surpassing a market cap of $300 billion, driven by demand for data center power generation equipment.

Delta Airlines and JPMorgan Earnings

Delta Airlines has ordered 30 Boeing 787 wide-body aircraft, while JPMorgan reported a 7% year-on-year revenue increase for Q4, despite underperforming in investment banking.

Hong Kong Stock Market Activity

On January 13, southbound funds net bought HK stocks worth HKD 12.96 billion, with Alibaba and Tencent receiving significant inflows.

Conclusion

Key economic indicators to watch include U.S. retail sales and PPI for November, which may influence market sentiment moving forward.