The prospect of official intervention in the currency markets continues to stir the financial community. For several days now, speculation has mounted over the possibility of coordinated action by Japan and the United States to shore up the yen, prompting investors to adjust their strategies. The threat alone has already pushed down the USD/JPY pair, though it remains unclear whether that will suffice. In such scenarios, the announcement can be as effective as the action itself: the mere risk of official intervention often delivers the desired effect, rendering the actual move almost redundant. As I noted yesterday, developments in Japan matter, as the yen, Japanese interest rates, and the country's savers sit at the heart of a vast global financial mechanism.

Yet the situation has not prevented equity markets from performing well. Although Switzerland and France got off to a sluggish weekly start, the broad Stoxx Europe 600 index rose by 0.2%. Its American counterpart, the S&P 500, advanced 0.5%, notching up a fourth consecutive positive session. Equities appear to be coping rather well with the renewed barking on the trade front, even if full reassurance remains elusive.

Two key events could distract investors from the latest rumblings in the Far East: a deluge of earnings from major global corporations - including UnitedHealth, LVMH, Boeing and General Motors today - and the Fed's monetary policy decision on interest rates, due tomorrow evening. In the grand financial equation, corporate earnings remain central to the narrative, especially in a fluid macroeconomic environment. The US central bank's stance is not in doubt, but attention will swiftly shift to what comes next - and to the remarks of Jerome Powell, still under pressure from the White House just months before he is due to step down as Chair.

In the meantime, investors returned yesterday to their trusty old tech favourites ahead of earnings. Apple, Microsoft, Alphabet and Meta all drew strong interest. There was also frenzied buying of silver. The grey metal is currently trading around USD 109 an ounce. A year ago, you could have picked it up for just USD 30. Even gold, which is also scaling new heights, cannot keep pace: up 17.5% since 1 January - impressive, but still only a third of silver's 52% surge. I know I sound like a broken record, but it bears repeating: this frenzy has clear drivers. Precious metals are buoyed by their safe-haven status in an environment riddled with instability - economic, political, and currency-related. Prices are also inflated by the global rush into tangible assets, fuelled by competition for raw materials. And silver enjoys an added boost from its dual role as a precious and industrial metal, increasingly used to enhance the performance of data centre equipment.

Behind many of today's global tensions, one name frequently recurs: Donald Trump. The American President is navigating a rocky stretch of his second term, but he is seeking to regain control. On the domestic front, rising public anger over the behaviour of immigration enforcement has compelled Trump to crack down on his own ranks. He is eager to prevent the Democrats from capitalising on voter frustration - particularly by forcing a new budget standoff. Congress must reach an agreement by Friday to avert a government shutdown. Among the spending bills in the balance is funding for the Department of Homeland Security, giving the opposition a potent bargaining chip. On the economic front, the White House has slammed the table with threats to raise tariffs on South Korea, which it accuses of dragging its feet on finalising a previously agreed deal with Washington. Meanwhile, Canada and the UK are holding economic talks with China, and the EU is finalising a trade agreement with India - developments that have not gone down well with the occupant of the Oval Office.

In Asia-Pacific, little seems capable of disrupting South Korea's stock market golden age. The initial local pullback following the US tariff threat was swiftly erased by a powerful rebound led by the tech sector. The result: a 2.6% jump in the KOSPI, marking the 16th rise in 18 sessions this year. For an in-depth look at the drivers behind Korea's market momentum, do read our detailed analysis. Elsewhere in the region, green dominates: a 0.8% gain in Japan, 1.3% in Hong Kong, and 0.9% in Australia, where mining stocks continue their ascent. India remains more cautious, edging up 0.2%. European markets are expected to open higher, supported by US futures comfortably in the green ahead of the first major wave of corporate results this earnings season.

Today's economic highlights:

On today's agenda: NAB Business Confidence in Australia; Consumer Confidence in France; Unemployment Rate in Spain; in the United States, S&P/Case-Shiller Home Price Index, CB Consumer Confidence, and API Crude Oil Stock Change; ECB President Lagarde's speech in the Euro Area. See the full calendar here.

  • GBP / USD: US$1.37
  • Gold: US$5,089.46
  • Crude Oil (BRENT): US$64.54
  • United States 10 years: 4.22%
  • BITCOIN: US$88,422.8

In corporate news:

  • Boots announced a management reshuffle, with Ornella Barra stepping back as group chief executive to become chair, potentially paving the way for a separation from parent Walgreens Boots Alliance.
  • Lloyds has been fined 160,000 pounds for UK sanctions breaches after its Bank of Scotland unit allowed Dmitrii Ovsiannikov, an ally of Russian President Vladimir Putin, to open a Halifax account in 2023.
  • London-based AI start-up Synthesia has raised $200 million in new funding led by Google Ventures, nearly doubling its valuation to $4 billion.
  • Pershing Square Holdings announced its 2026 dividend schedule.
  • Apollo Global Management incurred an about $170 million loss a year ago when an asset-backed loan for Amazon brand aggregator Perch was wiped out.
  • Shell and other oil majors lost an arbitration case over a Kazakh field, facing a $4 billion charge.
  • Wizz Air has sought U.S. approval to operate flights between the UK and the United States.
  • Tesla's December EU sales fell 20%, reflecting challenges in the EV market.
  • Epiroc drives a 0.4% rise in the OMXS30 index with strong industrial performance.
  • Roche's weight-loss drug CT-388 shows positive efficacy results in a mid-stage trial.
  • Pirelli faces governance conflict between major shareholders CNRC (Sinochem) and Camfin.
  • HMS Networks AB announces Q4 results showing robust performance and proposes a dividend of SEK 4.80 per share.
  • Xvivo Perfusion's quarterly revenue and operating results exceed expectations.
  • Micro Systemation reports a 19.6% revenue increase and proposes a higher dividend per share.
  • Meta is testing premium subscriptions on its major social platforms.
  • Apple, Meta, and Tesla are anticipated to release upcoming earnings.
  • Micron Technology will invest $24 billion in Singapore to build a wafer fab.
  • Exxon Mobil has started operations on multiple carbon capture and storage projects in the United States.
  • Nike is investigating a possible data breach claimed by the World Leaks ransomware group.

See more news from UK listed companies here

Analyst Recommendations:

  • Rio Tinto Plc: Oddo BHF maintains its outperform recommendation and raises the target price from GBP 68 to GBP 82.
  • Unite Group Plc: Berenberg maintains its buy recommendation and reduces the target price from GBX 855 to GBX 774.
  • Workspace Group Plc: Berenberg maintains its buy recommendation and raises the target price from GBX 487 to GBX 503.
  • Land Securities Group Plc: Berenberg maintains its buy recommendation and reduces the target price from GBX 917 to GBX 897.
  • Londonmetric Property Plc: Berenberg maintains its buy recommendation and raises the target price from GBX 269 to GBX 282.
  • Grainger Plc: Berenberg maintains its buy recommendation and raises the target price from GBX 260 to GBX 285.
  • Serco Group Plc: Peel Hunt downgrades to add from buy and raises the target price from GBP 2.47 to GBP 3.29.
  • London Stock Exchange Group Plc: Citi maintains its buy recommendation and reduces the target price from GBP 133 to GBP 131.
  • Lloyds Banking Group Plc: Citi maintains its neutral recommendation and raises the target price from GBP 0.97 to GBP 0.98.
  • Astrazeneca Plc: Citi initiates a buy recommendation with a target price of GBP 170.
  • Burberry Group Plc: Barclays upgrades to overweight from market weight and raises the target price from GBP 13.40 to GBP 14.50.
  • Spirax Group Plc: Barclays maintains its overweight recommendation and raises the target price from GBP 79.50 to GBP 80.20.