Trending Market News

Microsoft has signed a record-breaking deal with Indigo Carbon to purchase 2.85 million soil carbon credits over 12 years, valued between $171-228 million. The agreement supports regenerative agriculture practices in the United States as Microsoft pursues its goal to become carbon negative by 2030, despite rising emissions from AI-driven data center expansion.

• The deal represents the largest soil carbon credits purchase to date, surpassing Microsoft's previous 2.6 million credit agreement with Agoro Carbon
• Credits are priced at $60-80 per ton, with participating farmers receiving 75% of the average weighted cost from each issuance or crop year
• Microsoft is the world's biggest buyer of carbon removal credits as it aims to remove more carbon than it emits globally by 2030

Toyota Motor increased its buyout offer for Toyota Industries to 18,800 yen ($118.11) per share, raising the total deal value to over $35 billion. Toyota Industries shares surged 17% following the announcement, though analysts suggest the offer may still undervalue the company. The deal would see Toyota Motor acquire its parent company, which produces forklifts, engines, and electronic components.

• The revised offer of 18,800 yen per share represents an all-time high but falls below the middle of the valuation range set by independent advisers
• Toyota Industries had previously requested a higher price in December, citing concerns about the deal's limited chances of success
• Toyota Industries, which founded Toyota Motor, manufactures diverse products including forklifts, engines, electronic components, and stamping dies

President Donald Trump stated he supports Venezuela remaining in OPEC but expressed uncertainty about whether this benefits the United States. The U.S. has recently asserted control over Venezuela's oil supply following an operation that ousted the country's president, creating potential conflicts between U.S. objectives to boost Venezuelan oil production and OPEC's production limits designed to stabilize prices.

• Trump's administration seeks to control Venezuela's oil resources indefinitely to rebuild the industry, despite Venezuela being a founding OPEC member with some of the world's largest crude reserves
• U.S. control over Venezuelan oil policy could clash with OPEC quota systems if Trump ramps up production while the cartel implements cuts to support prices, particularly given Saudi Arabia's leadership role
• White House aides confirm Venezuela's OPEC membership has not been discussed internally but could become a flashpoint given conflicting production strategies between U.S. interests and the cartel's supply management goals

Coinbase CEO Brian Armstrong announced the company cannot support a draft U.S. cryptocurrency regulatory bill introduced by senators this week, citing 'too many issues' with the legislation. The bill aims to establish a regulatory framework for crypto by defining token classifications and assigning oversight of spot crypto markets to the CFTC. Without Coinbase's backing, the bill's progress is uncertain given the company's significant political donations and role as a key stakeholder in negotiations.

• Armstrong identified major concerns including a 'de facto ban on tokenized equities,' erosion of CFTC authority, and amendments that would 'kill rewards on stablecoins'
• The bill prohibits crypto companies from paying interest solely for holding stablecoins, though it allows rewards for specific activities like payments or loyalty programs
• Coinbase donated millions to pro-crypto political action committees in 2024 and has been a central stakeholder in bill negotiations, making its opposition potentially decisive for the legislation's future

Boeing reached tentative settlements with a Canadian man who lost six family members in the 2019 Ethiopian Airlines Flight 302 crash involving a 737 MAX jet. The settlements, reached just as a jury trial was set to begin in Chicago, come as Boeing has now resolved over 90% of civil lawsuits related to two 737 MAX crashes that killed 346 people total. Settlement terms were not disclosed.

• The crashes of Ethiopian Airlines Flight 302 and Lion Air Flight 610, caused by an automated flight control system issue, led to a global grounding of Boeing's best-selling 737 MAX jet
• Boeing has paid out billions of dollars through lawsuits, a deferred prosecution agreement, and other payments related to the two accidents
• Boeing accepted legal responsibility for the accidents and committed to 'fully and fairly compensate' families, while respecting their right to pursue claims through court trials

President Trump confirmed his administration will approve sales of Nvidia's H200 AI chip to China with a 25% government surcharge on sales. The approval comes with strict requirements including supply certifications, security procedures, and third-party testing, with shipments capped at 50% of U.S. deliveries. It remains uncertain whether Chinese regulators will approve imports as China pushes domestic chip development.

• The H200 is not a specially downgraded export chip but a full Hopper-generation product also sold in U.S. markets, though it has been exceeded by Nvidia's newer Blackwell and Rubin generations
• Department of Commerce requirements include certifying sufficient U.S. supply, ensuring chips won't consume foundry capacity needed for advanced U.S.-bound chips, and mandatory independent U.S. testing before shipping
• Nvidia previously estimated the Chinese market could be worth significant revenue, with CEO Jensen Huang stating 'very high' interest from Chinese customers and supply chains reactivated for H200 production

Oil prices fell more than 2% on Wednesday after President Trump signaled he might not attack Iran, walking back earlier threats of 'very strong action' against the country over its crackdown on protestors. WTI crude dropped $1.81 to $59.34 per barrel, while Brent fell $1.84 to $63.63 per barrel.

• Trump stated that 'the killing in Iran is stopping' and there's 'no plan for executions,' leading markets to interpret this as reduced likelihood of military strikes
• Iranian security forces have cracked down on large-scale demonstrations with hundreds reportedly dead, while the government cut off Internet access
• Traders are monitoring whether social unrest in Iran, a significant OPEC crude oil producer, could disrupt supplies

Chevron is expected to receive an expanded operating license from the U.S. government this week that would permit increased oil production in Venezuela, according to oil industry sources. The development signals a potential easing of U.S. sanctions on Venezuelan oil operations. Chevron stated it operates in compliance with all applicable laws and sanctions frameworks.

• The expanded license could allow Chevron to boost production levels from Venezuela beyond current restrictions
• The anticipated approval comes as part of ongoing U.S. policy adjustments regarding Venezuelan energy sanctions
• Chevron confirmed it maintains compliance with all regulations but did not provide details on the potential license expansion

Verizon Communications experienced a significant network outage on Wednesday affecting thousands of users across the United States. According to outage tracking website Downdetector.com, more than 170,000 incidents were reported by users experiencing service disruptions.

• Over 170,000 user-reported incidents were logged on Downdetector during the outage
• Downdetector tracks outages by aggregating status reports from multiple sources, including user-submitted errors
• The outage affected Verizon's telecommunications network services across the U.S. on January 14

The U.S. Department of Justice has closed its investigation into Swedbank without taking enforcement action. The DOJ probe, launched in 2019, examined the Swedish bank's historical anti-money laundering practices. The closure without penalties marks a positive outcome for Swedbank after years of regulatory scrutiny.

• The DOJ investigation was initiated in 2019 and focused on Swedbank's past anti-money laundering compliance work
• The probe has been closed with no enforcement action or penalties imposed against the bank
• The resolution removes a significant regulatory overhang that had been pending for approximately six years

eBay unveiled its first climate transition plan on January 14, 2026, committing to achieve net-zero emissions by 2045. The plan, validated by the Science Based Targets initiative, builds on the company's achievement of powering all facilities with 100% renewable electricity in 2024 and aims to align with the Paris Agreement's 1.5°C warming limit.

• eBay has already cut operational emissions by 92% from 2019 levels and reduced transportation emissions by 21% toward a 2030 goal of 27.5%
• Shipping represents 84% of eBay's Scope 3 emissions, making it the company's biggest decarbonization challenge
• The company plans to expand renewable energy adoption, implement low-carbon shipping innovations, and encourage resale and reuse among users to reduce emissions and waste

The S&P 500 recovered from an initial 500-point decline to close at all-time highs Monday after news of a criminal investigation into Federal Reserve Chair Jerome Powell. The market's resilience came as global economists voiced support for Powell and some Republicans opposed the investigation, suggesting investors view this as a temporary political flare-up rather than a fundamental threat to Fed independence.

• Initial market panic subsided as vocal support from leading economists worldwide and Republican opposition in Congress reassured investors the investigation would not escalate further
• While stocks recovered, other assets showed investor concern: the U.S. dollar weakened, gold and silver hit new highs, and U.S. stocks underperformed international markets
• The VIX volatility index jumped but remained within its recent range, indicating investors were not significantly worried and quickly shifted focus to Q4 earnings season and inflation data

Wall Street's main indexes opened lower on Wednesday as investors reacted to quarterly earnings reports from Bank of America and Citigroup. Economic data on retail sales and producer prices failed to change market expectations for interest rate cuts later in 2026.

• The Dow Jones fell 103.7 points (0.21%) to 49,088.25 at the open
• The S&P 500 dropped 26.3 points (0.38%) to 6,937.41, while the Nasdaq declined 146.0 points (0.62%) to 23,563.916
• Recent retail sales and producer price data did not shift investor expectations regarding anticipated interest rate cuts in 2026

U.S. retail sales rose 0.6% in November, beating expectations of 0.4%, driven by rebounding motor vehicle purchases and broader consumer spending. The data points to solid fourth-quarter economic growth, with the Atlanta Federal Reserve forecasting GDP growth at 5.1% for the period. However, spending growth remains heavily concentrated among higher-income households while lower-income consumers struggle with rising costs.

• Core retail sales (excluding autos, gas, building materials, and food services) increased 0.4% in November, closely tied to GDP consumer spending component
• Bank of America data shows a 'K-shape' spending divergence between income groups that started in late 2024 and widened through the fourth quarter, particularly in discretionary spending
• October retail sales were revised down to a 0.1% drop from previously reported unchanged, while core October sales were revised down to 0.6% from 0.8%

France is exploring the possibility of sending Eutelsat satellite terminals to Iran to help restore internet access following a communications blackout imposed by Iranian authorities. French Foreign Minister Jean-Noel Barrot confirmed to parliament that Paris is considering this option among other measures to support connectivity during the ongoing crisis.

• The initiative responds to an internet blackout imposed by Iranian authorities amid anti-government protests in the country
• French Foreign Minister Jean-Noel Barrot told lawmakers France is 'exploring all options' including satellite terminal deployment
• Eutelsat terminals would provide alternative internet services bypassing government-controlled infrastructure

Climate activist group Follow This has filed shareholder resolutions urging BP and Shell to disclose how they will create value if global oil and gas demand declines. This marks a strategic shift for the group, which previously focused on demanding emissions cuts from producers but suspended that campaign in April 2024 due to lack of investor support. The resolutions are backed by investors managing approximately 1.5 trillion euros in assets.

• Follow This requests BP and Shell publish 10-year reports detailing capital expenditure, production plans, and cash flow projections under declining demand scenarios, including IEA forecasts that predict oil demand could peak around 2030
• Previous climate resolutions achieved only 20% investor support at BP and around one-third at Shell, compared to 80% at Phillips 66, prompting the group's shift in strategy
• Both BP and Shell have recently scaled back renewable energy commitments to focus investment on oil and gas projects, making the demand for decline scenario planning more pressing

Wells Fargo reported fourth-quarter net income of $5.36 billion ($1.62 per share) as profit rose driven by loan growth and higher net interest income. The results cap a strong year for the bank, which saw regulators lift its $1.95 trillion asset cap in June following years of penalties tied to its fake-accounts scandal, allowing the bank to surpass $2 trillion in total assets for the first time.

• Net interest income rose 4% to $12.33 billion, slightly below the bank's $12.4-12.5 billion guidance range, while provision for credit losses declined to $1.04 billion from $1.10 billion year-over-year
• CEO Charlie Scharf highlighted strong growth metrics: 20% increase in new credit card accounts, 19% jump in auto lending balances, 12% commercial loan growth, and 14% rise in investment banking fees
• The bank recorded $612 million in severance expenses during the quarter as it continues workforce streamlining initiatives, with Scharf emphasizing cost cuts to fund long-term growth and citing AI as a major productivity opportunity

Bank of America is scheduled to report fourth-quarter earnings on Wednesday before the opening bell. Wall Street expects earnings of 96 cents per share and revenue of $27.94 billion. The second-largest U.S. bank by assets has benefited from surging trading fees, stable consumer credit, and deregulation.

• Analysts expect net interest income of $15.68 billion and trading revenue of $2.64 billion in fixed income and $1.86 billion in equities
• CEO Brian Moynihan will host an analyst call at 8:30 a.m. ET to provide guidance on whether momentum will continue into 2026
• Bank of America's results follow strong performance from peers, with JPMorgan posting better-than-expected trading revenue on Tuesday

French oil major TotalEnergies has signed an agreement to sell its 10% stake in Nigeria's SPDC onshore oil asset (now Renaissance JV) to Vaaris, after Nigerian regulators blocked a previous 2025 sale to Chappal Energies due to funding issues. The deal is subject to Nigerian regulatory approval and is part of TotalEnergies' strategy to divest mature, polluting assets.

• The previous sale attempt to Mauritius-based Chappal Energies was blocked by Nigerian regulators because the buyer could not secure the necessary funds
• SPDC has experienced hundreds of oil spills from theft, sabotage, and operational problems, making it a costly and environmentally challenging asset
• Shell previously sold its larger 30% stake in SPDC to a consortium of mostly local companies for up to $2.4 billion, while NNPC holds 55% and Eni holds 5%

Amazon will appeal a reduced Italian antitrust fine, arguing it should not be charged at all. Italy's antitrust authority originally fined Amazon 1.13 billion euros in 2021 for abusing its dominant position in e-commerce logistics services, but a regional court reduced the penalty to 751 million euros ($876.3 million). Both Amazon and the Italian regulator plan to appeal the court's decision.

• The original 1.13 billion euro fine was imposed in 2021 for restricting competition in Italy's e-commerce logistics services
• A regional administrative court reduced the penalty to 751 million euros ($876.3 million), approximately a 33% reduction
• Italy's antitrust authority will also appeal the ruling, seeking to restore the higher original fine amount