Trump proposes higher tariffs on South Korea; market reactions and major investments announced.

Trump Increases Tariffs on South Korea

President Trump announced on social media that he will raise the equivalent tariffs on South Korean goods from 15% to 25%. He stated that the South Korean National Assembly has not ratified a trade agreement made with President Yoon Suk-yeol in July 2025, which he believes is beneficial for both countries. The increased tariffs will apply to automobiles, timber, pharmaceuticals, and other goods.

Federal Reserve Maintains Interest Rates

According to CME's "FedWatch," there is a 96.1% probability that the Federal Reserve will keep interest rates unchanged this week. The likelihood of a 25 basis point cut in January is only 3.9%, with a 15.5% chance of a cumulative cut of 25 basis points by March.

European Parliament Delays Trade Agreement Decision

The European Parliament's International Trade Committee has postponed its decision on whether to resume the approval process for the EU-US trade agreement. A meeting is scheduled for February 23-24 to discuss the matter further.

Trump’s Immigration Policy Support Hits New Low

A recent poll indicates that President Trump's approval rating on immigration has dropped to its lowest level during his term, with only 39% of American adults supporting his policies. The poll shows that 58% believe that immigration enforcement actions have gone too far.

Norway's Sovereign Wealth Fund Advised on Geopolitical Risks

A government-appointed advisory group has urged Norway's $2.1 trillion sovereign wealth fund to prepare for increasing geopolitical risks, including tariffs and financial sanctions that could impact its overseas investments.

Silver Margin Levels May Change Again

Analysts suggest that silver market conditions are among the best seen historically, with potential changes in margin levels expected this week. Retail investors are entering the market, which could lead to some selling pressure for silver miners.

Trump Leaves Door Open for Diplomatic Solutions with Iran

In an interview, President Trump stated that he has not completely ruled out the possibility of resolving issues with Iran diplomatically, noting that Iran has expressed a desire to negotiate.

Chicago Power Prices Drop Below Zero

Despite increased electricity demand due to severe weather, power prices in Chicago have fallen into negative territory due to congestion in high-voltage transmission lines.

Emerging Market ETFs See Continued Inflows

Investors have continued to pour money into emerging market ETFs for the 14th consecutive week, with inflows totaling $6.83 billion last week, led by significant investments in China.

U.S. Senate Delays Crypto Market Structure Bill

The U.S. Senate Agriculture Committee has rescheduled its review of the crypto market structure bill to January 29 due to weather-related disruptions.

OpenAI Launches Advertising Business

OpenAI has introduced its advertising business with pricing comparable to high-demand events like NFL games, although it will not initially provide detailed performance metrics to advertisers.

U.S. Markets Rise Amid Geopolitical Tensions

On January 26, U.S. stock markets closed higher, with the Dow Jones up 0.64% and the S&P 500 up 0.5%. Precious metals saw significant price increases as investors sought safe havens amid rising geopolitical risks.

Trump Proposes No Change to Medicare Rates

Reports indicate that the Trump administration has proposed to keep Medicare payment rates largely unchanged for the upcoming year, which may negatively impact major insurance companies.

Nvidia Invests in CoreWeave

Nvidia has announced a $2 billion investment in CoreWeave to support the expansion of AI computing infrastructure.

Microsoft Launches New AI Chip

Microsoft has unveiled its second-generation AI chip, Maia 200, aimed at reducing reliance on Nvidia products.

USA Rare Earth Expects Cash Flow Breakeven by 2029

USA Rare Earth CFO Rob Steele stated that government investment will help the company accelerate operations, aiming for cash flow breakeven by 2029.

Morgan Stanley Raises Apple Price Target

Morgan Stanley has increased its price target for Apple to $315, citing strong demand for the iPhone 17 and reduced operating expenses.

Tencent and Alibaba Develop AI Models

Tencent and Alibaba have made significant advancements in AI, with Tencent focusing on decentralized approaches and Alibaba launching a new flagship AI model.

GameStop Stock Rises on Michael Burry's Purchases

GameStop shares surged after investor Michael Burry announced he has been buying the stock, expressing confidence in the company's leadership.

Strategy Increases Bitcoin Holdings

Strategy has purchased an additional 2,932 BTC, bringing its total holdings to 712,647 BTC.

Hong Kong Stock Market Activity

On January 26, Hong Kong stocks saw significant activity, with Tencent and Xiaomi receiving substantial net purchases, while China Mobile faced net selling.

Zijin Mining Plans Acquisition

Zijin Mining has announced plans to acquire Allied Gold for approximately 55 billion CAD, which includes significant gold resources.

Hong Kong IPO Market Update

Hong Kong's Financial Secretary reported that over 400 companies are currently waiting for IPO approvals, many from advanced technology sectors.

Conclusion

The financial landscape is currently influenced by geopolitical tensions, market dynamics, and significant corporate developments, with various sectors showing both challenges and opportunities.