TSMC's earnings boost markets; Trump unveils healthcare plan; China's central bank cuts rates.

Trump Unveils "Great Healthcare Plan"

Overview of the Healthcare Reform Proposal

Former President Donald Trump is urging Congress to pass legislation for his newly announced healthcare reform aimed at reducing drug prices and insurance premiums. This initiative comes as midterm elections approach, addressing a political vulnerability for the Republican Party.

The proposal includes:

• Codifying voluntary agreements with pharmaceutical companies to lower certain prices.
• Expanding access to over-the-counter medications.
• Directly providing billions in subsidies to consumers to lower premiums, rather than through insurance plans.
• Targeting prescription drug middlemen to eliminate rebates that inflate healthcare costs.

Despite being touted as a "comprehensive plan," it lacks critical details necessary for legislative support.

Trump's Financial Disclosures

Investments in Affected Companies

Recent financial disclosures reveal that Trump holds municipal and corporate bonds worth at least $51 million, including those from companies like Netflix, General Motors, and Boeing, which are influenced by his policies.

He reported 189 buy transactions and two sell transactions between November 14 and December 29, with the latter totaling at least $1.3 million.

U.S. Military Buildup in the Middle East

Increased Military Presence

In response to escalating tensions with Iran, the U.S. is deploying additional military forces to the Middle East, including at least one aircraft carrier and more missile defense systems. This move aims to provide President Trump with various military options regarding potential actions against Iran.

IMF President Supports Central Bank Independence

Endorsement of Fed Chair Powell

IMF President Kristalina Georgieva emphasized the importance of central bank independence for economic stability, publicly supporting Federal Reserve Chair Jerome Powell amid investigations by the Trump administration. She praised Powell's professionalism and reputation among international central bankers.

OpenAI's Hardware Supply Chain Expansion

Seeking U.S. Suppliers

OpenAI is looking to strengthen its hardware supply chain in the U.S. as part of a significant product expansion into consumer devices, robotics, and cloud data centers. The company has issued requests for proposals for various components but has not disclosed specific investment amounts or timelines.

Wall Street Banks' Record Buybacks

Historical Returns to Shareholders

With soaring profits and relaxed capital regulations, Wall Street banks are returning a record amount of funds to shareholders, exceeding $140 billion in dividends and buybacks in 2025. JPMorgan led the way with over $30 billion in stock repurchases, marking a significant increase from previous years.

Inflation and Labor Market Insights

Remarks from Richmond Fed President

On January 15, Richmond Fed President Thomas Barkin commented on persistent inflation and signs of stabilization in the labor market, describing the current economy as driven by artificial intelligence and wealth concentration.

Ongoing Crypto Regulation Debate

Tensions Between Banks and Crypto Firms

The Wall Street Journal reports a lobbying battle between the banking sector and the crypto industry over high-yield digital tokens, which could disrupt legislative efforts to integrate cryptocurrencies into mainstream finance.

Central Bank Policy Initiatives

New Economic Measures

The People's Bank of China announced eight new policy measures aimed at supporting economic structural transformation and optimization, further details of which were shared in a recent press conference.