Squeeze risk remains real...

Origin Energy has extended the deadline for the closure of the Eraring power station. It was originally slated to shut down in 2025.

US stocks rose on Wednesday after President Trump ruled out military action to acquire Greenland, easing market fears, though gains were capped after Denmark rejected Trumpʼs demand to negotiate a US takeover of the island. 

Trump to not impose February 1st tariffs on EU after "very productive" meeting with NATO's Rutte, both reached a framework of a future deal; Denmark rejects Trump's proposal to negotiate an acquisition of Greenland; Trump threatens Iran if it attempts a Trump assassination; SCOTUS seemingly likely to rule in favour of Fed's Cook against Trump; Kazakhstan's TengizChevroil declares a force majeure on Tengiz; US pending home sales unexpectedly sink; NFLX guidance disappoints.

US equities should be supported by a macro outlook that’s inherently favorable, yet risk/reward remains tricky until we see better levels...

Overall, the relative calm today in Japanese yields is likely to be a fleeting phenomenon...

Empires rarely fall in a single dramatic moment.

"Of course, the fake news media led by the Financial Times amplified it..." 

Overall, this was a stellar 20Y auction, and one which pushed yields in the secondary market slightly lower after news of the break, although with many other factors determining yields (Japan, Greenland, earnings), don't expect the auction's impact on the broader market to last.

...in short, the political establishment cannot tolerate a sustained downturn in the stock market. It would unleash intense social and political instability that could bring down the entire system...

“We have been left with no alternative but to suspend work” on the trade deal, Lange added, “until the US decides to reengage on a path of cooperation rather than confrontation.”

The proposed sale of the 325.4 million shares by Berkshire represents about 28% of the packaged-food company.

"The US is going heavy into nuclear. I wasn't a fan of nuclear, but the safety progress they've made with nuclear is unbelievable. We are very much into the world of nuclear energy" - Donald Trump

"Over the past 24hrs the risk off sentiment has clearly exacerbated"

“Conciliatory remarks by Trump would surely improve the mood in markets but, in my view, wouldn’t trigger a strong rally unless yield curves come down.”

...markets should be far more open to upside inflation risks…elevated dispersion challenges the prevailing narrative of benign, linear disinflation…

"We found that ~14% of ASO stores are within 25 miles of the World Cup stadiums, compared to ~12% at DKS, while noting..." 

Any potential threat by Europe to sell its Treasuries in retaliation for President Donald Trump’s aim to annex Greenland is likely to be an empty one...