2026-01-13 15:54
WASHINGTON, Jan 13 (Reuters) - President Donald Trump welcomed December inflation figures released on Tuesday, saying they supported his push for Federal Reserve chair Jerome Powell to cut interest rates. The closely watched core CPI year-on-year figure came in at 2.6%, less than the 2.7% markets had expected. The overall annual inflation rate was 2.7%, matching November's gain. Sign up here. "We have very low inflation. That would give 'too late Powell' the chance to give us a nice beautiful big rate cut," Trump told reporters before departing for Detroit. Earlier Tuesday, Trump posted on social media that the inflation numbers mean Powell "should cut interest rates, MEANINGFULLY." But consumer prices increased in December from November, cementing expectations the Federal Reserve would leave interest rates unchanged this month. Trump has clashed repeatedly with Powell over the president's demand the Fed cut rates. The administration's decision to open a criminal investigation into Powell drew condemnation from former Fed chiefs and a chorus of criticism from key members of Trump's Republican Party on Monday. https://www.reuters.com/business/trump-says-inflation-data-means-fed-should-cut-interest-rates-2026-01-13/
2026-01-13 14:05
NEW YORK, Jan 13 (Reuters) - U.S. consumer prices increased in December, data showed on Tuesday, as the distortions related to the government shutdown that had artificially lowered inflation in the November unwound, cementing expectations the Federal Reserve would leave interest rates unchanged this month. The Consumer Price Index rose 0.3% last month, the Labor Department's Bureau of Labor Statistics said on Tuesday. In the 12 months through December, the CPI advanced 2.7%, matching November's gain. Economists polled by Reuters had forecast the CPI picking up 0.3%. The BLS estimated the CPI rose 0.2% from September to November. Sign up here. MARKET REACTION: STOCKS: U.S. stock futures trimmed losses after U.S. CPI data. BONDS: U.S. Treasury yields dipped post-CPI. The 10-year yield was last down 1.6 basis points at 4.171% . FOREX: The dollar index pared gains to 98.93. COMMENTS: ADAM SARHAN, CHIEF EXECUTIVE, 50 PARK INVESTMENTS, NEW YORK: "Any time inflation comes down that's good for stocks because of the simple fact that, that gives the Fed more room to cut rates. The market loves easy money from the Fed, and inflation has been public enemy No. 1...The Fed is moving toward an easier policy, less restrictive, even with stocks hitting all-time highs, and that's very bullish." ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK: (via email) "We got a modicum of good news with today's CPI report, which was milder than anticipated in December. While the headline number was in line with estimates at 2.7%, the core came in a tick cooler at 2.6%, versus an estimate of 2.7%. This should give the Fed some breathing room to cut rates in Q1 if the trend continues." ELLEN ZENTNER, CHIEF ECONOMIC STRATEGIST, MORGAN STANLEY WEALTH MANAGEMENT, NEW YORK (via email) "We've seen this movie before—inflation isn't reheating, but it remains above target. There's still only modest pass-through from tariffs, but housing affordability isn't thawing. Today's inflation report doesn't give the Fed what it needs to cut interest rates later this month." GENE GOLDMAN, CHIEF INVESTMENT OFFICER AT CETERA INVESTMENT MANAGEMENT, EL SEGUNDO, CALIFORNIA: "Overall market reaction today has reversed and turned positive as these readings reinforce the notion that inflation is moderating, and the Fed may be able to cut rates this year. Not to be outdone, the bond market also viewed CPI as positive as yields are lower, especially the Fed policy sensitive two-year U.S.Treasury. PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK: "This inflation report suggests that tariff reflationary pressures remain and are consistent, but we're not seeing the explosive rise to the upside, which is a positive." "The bottom line is we still have sticky inflation and that's mostly due to tariffs and the fact that we're not seeing any more aggressive increases is positive for the Fed." "We still have to see what (inflation in) January looks like. But based on these numbers, this is likely going to be one more positive consideration for the Fed." "It's too early. I don't think we're going to see (a rate cut) in January, but I do believe we'll see one in March and we'll probably have two rate cuts this year." BRIAN JACOBSEN, CHIEF ECONOMIC STRATEGIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN: "The consumer price index rose 2.7% from a year ago in December. The core index rose 2.6%. Because the government shutdown distorted to the downside the October and November numbers there was a lot of expectation that this report would be distorted to the upside. So much for that idea. The shelter index distortion won’t completely dissipate until Spring, but it does look like the inflation curve has bent and is heading towards the Fed's target instead of away from it." "Yields can rally on this, but the tail wagging the dog of the long-end of the curve is Japan with their long-bond yields rising. Bond investors don't just have to watch the Fed, they have to watch everything everywhere." https://www.reuters.com/business/view-december-rise-us-consumer-prices-backs-fed-pause-this-month-2026-01-13/
2026-01-13 14:05
Jan 13 (Reuters) - Blockchain firm Polygon Labs said on Tuesday it would buy crypto payments company Coinme and crypto infrastructure provider Sequence for more than $250 million, as it looks to tap the growing demand for stablecoin-based transactions. Stablecoins, digital tokens pegged to stable assets such as the U.S. dollar, are increasingly being explored as a tool for payments and settlements, especially after the passage of the Genius Act last year. Sign up here. However, the infrastructure for such transactions remains fragmented, and Polygon's acquisitions aim to bring key pieces in-house while expanding its reach in the market. "Our goal is to become a regulated U.S. payments player. Payments is the killer use case," Polygon CEO Marc Boiron said in an interview with Reuters. The initial push will target business-to-business payments, with a pivot to consumer services expected later, Boiron said. Established players such as Visa (V.N) , opens new tab and Mastercard (MA.N) , opens new tab are vying for dominance in stablecoin payments, but the crowded market may make it harder for companies to differentiate themselves. Boiron, however, said Polygon's strategy in the near term would be built on partnerships instead of head-to-head rivalry. "In five or 10 years, we will find out if cards are still going to be necessary. But for the time being, we can work together quite collaboratively and grow the pie," he said. Coinme, founded in 2014, allows users to convert cash to crypto. Its investors include crypto industry heavyweights such as Pantera, Digital Currency Group and Circle (CRCL.N) , opens new tab. Sequence offers technology to simplify crypto transfers across blockchains. It has been backed by Brevan Howard Digital and Coinbase (COIN.O) , opens new tab, among others. https://www.reuters.com/business/polygon-targets-stablecoin-payments-with-deals-worth-250-million-2026-01-13/
2026-01-13 12:40
Rain and wind sweep away tents Most Gazans are displaced, confined to less than half of territory Hamas calls for mediators to demand more supplies arrive CAIRO/GAZA, Jan 13 (Reuters) - A rainstorm swept across the Gaza Strip on Tuesday, flooding hundreds of tents, collapsing homes sheltering families displaced by two years of war and killing at least six people, local health officials said. Medics said five people, including two women and a girl, died when homes collapsed near Gaza City’s beach, while a one-year-old boy died of extreme cold in a tent in Deir Al-Balah in central Gaza. Sign up here. Tents were torn from their stakes, some flying dozens of meters before crashing to the ground. Others lay crumpled in muddy pools as families scrambled to salvage what they could. Residents tried to resecure remaining shelters, hammering in loosened pegs and stacking sandbags around the edges to keep floodwaters from pouring inside. “We didn’t realize what was happening until the wall started collapsing — an eight-meter-high wall, a strong concrete wall. Because of the speed and force of the wind, the wall fell on top of us, onto three tents,” said Bassel Hamuda, a displaced man in Gaza. “The elderly man, 73 years old, was martyred. His son’s wife was killed, and his son’s daughter was killed,” he told Reuters. Three months since a ceasefire halted major combat, Israeli forces have ordered the near-total depopulation of nearly two thirds of Gaza, forcing its more than 2 million people into a narrow strip near the coast where most live either in makeshift tents or damaged buildings. RELATIVES GATHER AT MORGUE Dozens of relatives gathered at a hospital morgue on Tuesday for special prayers over bodies laid on medical stretchers before the funerals. The Hamas-run Gaza government media office said at least 31 Palestinians had died since the start of the winter season from exposure to cold or the collapse of unsafe buildings damaged by previous Israeli strikes. It said about 7,000 tents were damaged in the past 48 hours, most of whose occupants have no alternative shelter. Municipal and civil defense officials said they were unable to cope with the storm because of fuel shortages and damaged equipment. During the war Israel had destroyed hundreds of vehicles needed to respond to the weather emergency, including bulldozers and water pumps. In December, a U.N. report said 761 displacement sites hosting about 850,000 people were at high risk of flooding, and thousands had moved in anticipation of heavy rain. U.N. and Palestinian officials said at least 300,000 new tents were urgently needed for the roughly 1.5 million people still displaced. Most existing shelters are worn out or made of thin plastic and cloth sheeting. "In Gaza, winter weather is adding to the suffering of families already pushed to the brink by over two years of war," UNRWA, the U.N. Palestinian refugee agency, said in a post on X on Tuesday. “Flooding, cold temperatures, and damaged shelters are exposing displaced people to new risks, while humanitarian access remains severely constrained,” it added. In a statement on Tuesday, Hamas urged mediators of the Gaza ceasefire deal that began in October to compel Israel to allow the unconditional flow of aid, shelter, and rebuilding materials. Israel says hundreds of trucks enter Gaza daily carrying food, medical supplies and shelter equipment. International aid organisations say the supplies are still insufficient. https://www.reuters.com/business/environment/six-dead-gazas-displaced-struggle-hold-ground-torrential-rain-2026-01-13/
2026-01-13 12:35
19 companies awarded stakes in petroleum licences Norway's APA rounds aim to extend oil, gas production Green Party, environmental groups oppose Norway's oil policy SANDEFJORD, Norway, Jan 13 (Reuters) - Norway on Tuesday awarded stakes in 57 offshore oil and gas exploration licences to 19 companies in its annual licensing round, the country's energy minister told an industry conference. The allocation for mature areas rose from 53 licences awarded one year ago while the number of oil and gas firms receiving the permits decreased from 20. Sign up here. The annual predefined area (APA) rounds of new offshore exploration acreage are central to Norway's strategy of extending oil and gas production for decades to come although activity is set to decrease in the coming years. "Norway is Europe's most important energy supplier, but in a few years production will begin to decline. Therefore, we need new projects that can slow the decline and deliver as much production as possible," Energy Minister Terje Aasland said. The policy is fiercely opposed by the Green Party and by environmental groups which protested outside of the conference venue. https://www.reuters.com/business/energy/norway-awards-57-drilling-permits-offshore-oil-gas-exploration-round-2026-01-13/
2026-01-13 12:17
Jan 13 (Reuters) - Sinochem's Quanzhou Petrochemical said on Tuesday that it is close to completing maintenance at its refining-chemical complex in Fujian province, southeastern China, and expects to gradually resume operations soon. The overhaul at the 300,000 barrel-per-day refinery, which started on November 25, lasted for nearly two months, according to a company statement on its official WeChat platform. Sign up here. Prior to the maintenance, a fire struck the plant's No. 1 crude distillation unit. The refinery mainly produces gasoline, diesel, jet fuel and polypropylene. It has ethylene production capacity of 1 million metric tons per year, according to the company's official website. https://www.reuters.com/business/energy/sinochem-says-quanzhou-refinery-resume-operations-soon-2026-01-13/
