Thanks for joining me. Gold hit a record high and the dollar fell after the chairman of the US Federal Reserve said the Trump administration had launched a criminal investigation against him. Read on for what you need to get up to speed.
5 things to start your day
1) Miliband ‘to miss net zero targets by 15 years’ | Cornwall Insight, an energy consultancy, warned the Energy Secretary has little practical chance of achieving his goal of a 95pc decarbonised electricity grid by 2030.
2) Jobseekers flood the market as companies lay off staff | The number of people seeking permanent work rose at its fastest pace in four months in December, according to a survey by KPMG and the Recruitment & Employment Confederation.
3) Trump’s $200bn scramble to save America’s housing market | But analysts warn Trump’s bond-buying plan will deliver little more than a short-term sugar rush of housing demand. And his strategy is a risky one that could push up house prices and overall inflation.
4) Starmer fails to get Canada’s backing over Musk AI row | Downing Street has been discussing a coordinated response with allies to X’s AI bot, Grok, which has been used to generate fake naked images of women and children.
5) Billionaire Labour donor pays himself £66m | Tom Morris, who is nicknamed “the richest Scouser to have ever lived”, received the payout from his company, TJ Morris Group, last year, according to newly published accounts.
What happened overnight
The dollar slipped and Wall Street indexes fell in premarket trading after Federal Reserve chairman Jerome Powell said the Trump administration had threatened him with a criminal indictment.
Gold hit a record high as investors sought out safety as the escalation in hostilities between the Trump administration and the Fed stoked worries about the central bank’s independence.
The Swiss franc strengthened 0.4pc to nearly 0.80 per dollar and the euro was 0.2pc higher at $1.165. The pound rose 0.3pc to $1.344.
However, stocks appeared unperturbed by the action. In Asia, Hong Kong’s Hang Seng gained 1.2pc to 26,547.64, while the Shanghai Composite index jumped 1pc to 4,163.11 after reports that Chinese leaders were preparing more help for the economy.
Tokyo’s markets were closed for a holiday but in South Korea, the Kospi added 0.8pc to 4,624.79, while Australia’s S&P/ASX 200 gained 0.5pc to 8,759.40. Taiwan’s Taiex gained 0.9pc.
On Friday, US stocks hit records following a mixed report on the American job market, one that may delay another cut to interest rates by the Federal Reserve but does not slam the door on it.