Zerohedge

GM Shares Surge 7% After Surpassing Q4 Estimates, Raising Guidance, Planning $6B Stock Buyback General Motors exceeded Wall Street’s fourth-quarter earnings expectations and forecast another year of “strong financial performance” in 2026. While revenue fell slightly short, the company announced a 20% dividend increase and a new $6 billion stock buyback program, according to CNBC and GM. GM reported adjusted earnings per share of $2.51, beating estimates of $2.20, though revenue of $45.29 billion missed expectations. Shares rose about 7% in early trading. For 2026, GM projects net income of $10.3 billion to $11.7 billion, adjusted EBIT of $13 billion to $15 billion, and earnings per share between $11 and $13. These forecasts reflect continued investment of $10 billion to $12 billion as the company reevaluates its shift toward electric vehicles. CEO Mary Barra said GM expects North American profit margins of 8% to 10% this year, up from 6.8% in 2025. She added that GM remains “in a strong position to return capital to shareholders.” In 2025, GM posted net income of $2.7 billion and adjusted EBIT of $12.7 billion, both down sharply from 2024. Revenue fell 1.3% to $185.02 billion. The company reported a fourth-quarter net loss of $3.3 billion, driven largely by more than $7.2 billion in special charges tied to EV cutbacks, legal issues, restructuring in China, and the shutdown of Cruise. Barra said GM’s smaller Detroit headquarters is expected to save “hundreds of millions of dollars” each year. The report says that the new buyback and dividend increase to 18 cents per share continue GM’s effort to reduce shares outstanding, which fell to 904 million at the end of 2025. North America remained GM’s strongest region, though profits declined 28.1% to $10.45 billion. International operations improved, while losses in China narrowed. CFO Paul Jacobson said U.S. tariffs cost GM $3.1 billion in 2025. Barra said the company is “hopeful” the U.S. and South Korea will finalize a trade deal with a 15% tariff, warning that higher tariffs could hurt costs. “We’re really encouraging the countries to get the trade deal done,” Barra said. GM continues to rely on South Korea for entry-level vehicles such as the Chevrolet Trax and Buick Envista, making trade policy a key issue for its future performance.  Tyler Durden Tue, 01/27/2026 - 10:20

Trump Admin Wins Appeal Of ICE Injunction In Minnesota Authored by Jonathan Turley, In a significant victory for the Trump Administration, a panel of the United States Court of Appeals for the Eighth Circuit lifted the injunction of U.S. District Judge Katherin Menendez, who prevented officers from arresting, detaining, pepper-spraying or retaliating against protesters in Minneapolis without probable cause. In her Jan. 16 decision, Judge Menendez (a Biden appointee and former public defender) ruled in favor of the protesters suing the Department of Homeland Security (DHS) and ICE. She found the plaintiffs were likely to succeed on claims that federal agents violated their First and Fourth Amendment rights. The Eighth Circuit first flagged how Menendez ignored the fact that the record shows a wide range of conduct raising different conditions for law enforcement: “We accessed and viewed the same videos the district court did. … What they show is observers and protestors engaging in a wide range of conduct, some of it peaceful but much of it not. They also show federal agents responding in various ways. Even the named plaintiffs’ claims involve different conduct, by different officers, at different times, in different places, in response to different behavior. These differences mean that there are no “questions of law or fact common to the class,” Fed. R. Civ. P. 23(a)(2), that would allow the court to decide all their claims in “one stroke.” The panel also found Judge Menendez’s order unacceptably vague: “Second, in addition to being too broad, the injunction is too vague. …Even the provision that singles out the use of “pepper-spray or similar nonlethal munitions and crowd dispersal tools” requires federal agents to predict what the district court would consider “peaceful and unobstructive protest activity.” The videos underscore how difficult it would be for them to decide who has crossed the line: they show a fast-changing mix of peaceful and obstructive conduct, with many protestors getting in officers’ faces and blocking their vehicles as they conduct their activities, only for some of them to then rejoin the crowd and intermix with others who were merely recording and observing the scene.” The panel found that Judge Menendez’s order left federal authorities in a dangerous position of not knowing when they could use these crowd control measures: “to the extent the injunction’s breadth and vagueness cause federal agents to hesitate in performing their lawful duties, it threatens to irreparably harm the government and undermine the public interest.” Notably, Judge Menendez is the same judge reviewing an even more sweeping motion for an injunction to enjoin ICE operations, a filing from Minnesota Attorney General Keith Ellison that I have criticized as constitutionally meritless. Here is the opinion: Tincher v. Noem Tyler Durden Tue, 01/27/2026 - 09:45

The Grid Will Hold - Maybe - But The Bill Will Rise Authored by Terry L. Headley via RealClearEnergy, Americans are about to pay a lot more for electricity anyway — not because the grid fails, but because of how we now power it. As another deep winter cold snap presses across much of the eastern United States, grid operators are doing what they always do in these moments: watching reserve margins, issuing conservation guidance, leaning on dispatchable generation, and quietly hoping nothing large trips offline at the wrong hour. If history is a guide, the system will muddle through. It usually does. But survival isn’t the same thing as success. And it’s certainly not the same thing as affordability. Even if there is no blackout, no emergency load shedding, and no headline-grabbing crisis, this weather event will still deliver a financial shock — one that will show up first in gas markets, then in wholesale power prices, and finally, months later, in the electric bills of households and businesses. That downstream billing impact is not accidental. It is structural. And it tells us far more about the state of the modern grid than any press release ever will. Yes, the system will probably muddle through through this time. But one day in the not-too-distant future it won’t. Counting the Cost of High Electric Bills The modern American electric grid has become adept at avoiding disaster. Operators have more tools than ever: demand response, emergency imports, market signaling, conservation messaging, and sophisticated forecasting. What they do not have — at least not in sufficient quantity — is inexpensive, fuel-secure generation that can run whenever it is needed, regardless of weather. In winter, the grid’s vulnerability is not generation capacity on paper. It is fuel deliverability in the real world. Natural gas now sits at the center of that vulnerability. It dominates the marginal price of electricity across large portions of the country, particularly in regions like PJM Interconnection, which spans much of the Mid-Atlantic and Midwest. When gas is abundant and cheap, markets hum along. When it is constrained by cold weather, competing heating demand, pipeline limits, or freeze-offs, prices rise sharply — even if no generator actually fails. Gas does not have to break to become expensive. It only has to be needed. That is exactly what happens during prolonged cold snaps. Residential heating takes priority. Storage withdrawals accelerate. Pipelines run near their limits. Power generators bid defensively to secure fuel. The result is predictable: spot gas prices spike at constrained hubs, wholesale electric prices follow, and utilities quietly rack up higher procurement costs. No blackout. No drama. Just higher bills. And high electric bills extract a quiet but relentless toll. They are not merely an inconvenience; they function as a regressive tax on households least able to absorb them and a hidden drag on the broader economy. For families, higher electric bills mean hard tradeoffs. Money spent keeping the lights on is money not spent on groceries, prescriptions, school supplies, or savings. For seniors on fixed incomes, a volatile power bill can force choices between heat and healthcare. For working households, it turns routine weather events into financial stress tests. For businesses, especially manufacturers and small employers, high electricity costs erode margins, discourage expansion, and quietly kill jobs. Energy-intensive operations either scale back, pass costs along to consumers, or relocate to regions with more stable and affordable power. Over time, this hollowing-out effect weakens local tax bases and strains public services. For communities, persistently high power costs accelerate decline. Retail districts dim. Investment slows. Population loss follows opportunity. Utility shutoffs rise, charitable assistance is stretched thin, and local governments face growing pressure to subsidize basic services that were once affordable. And for the grid itself, high bills often signal deeper structural problems—overreliance on volatile fuels, premature retirement of reliable generation, or policy-driven distortions that shift costs from balance sheets to ratepayers. The bill arrives monthly, but the damage accumulates quietly, year after year. In the end, high electric bills cost more than dollars. They cost stability, competitiveness, and confidence—exactly the things a healthy economy and a secure society require. The Renewable Mirage in Winter Renewable advocates often argue that wind and solar will insulate consumers from fossil-fuel volatility. Winter stress events expose the weakness of that claim. Solar output is minimal during winter peak hours. Wind can help — or not — depending on meteorological luck. Batteries can shave peaks for minutes or a few hours, but they can’t carry a grid through multi-day cold events. When the weather turns hostile, renewables become supplements, not solutions. That doesn’t mean renewables are useless. It means they are conditional. And conditional resources cannot set the reliability floor of a winter grid. Yet they increasingly shape the cost structure of the system. Renewable mandates, tax credits, and priority dispatch suppress energy prices when conditions are favorable, discouraging investment in dispatchable generation. But when conditions are unfavorable — when cold sets in and demand spikes — those same policies leave the grid leaning heavily on gas, with fewer alternatives available to keep prices in check. The irony is hard to ignore: policies sold as a hedge against volatility often amplify it. The Quiet Role of Coal This is where coal enters the discussion — not as a political symbol, but as an economic stabilizer. When coal still dominated the grid, winter pricing behaved differently. Coal plants stored months of fuel on site. They did not compete with residential heating for delivery. They did not depend on pipeline pressure or wellhead performance. When cold arrived, they simply ran. That mattered. Coal-heavy systems were not immune to outages or price swings, but they were insulated from the kind of fuel-driven volatility that now defines winter power markets. Coal did not set the marginal price every hour, but it capped how high that price could go. It acted as ballast — heavy, unglamorous, and stabilizing. Consider the role played by plants like John E. Amos Power Plant in West Virginia. Facilities like this are not interchangeable widgets. They anchor voltage, reduce transmission stress, and provide firm megawatts precisely when they are most valuable. When they run, they suppress scarcity pricing across wide swaths of the grid. When they retire, that suppression disappears — and consumers pay the difference. If Coal Still Dominated the Grid, This Cold Snap Would Barely Register It is worth asking a simple, uncomfortable question: If coal still dominated the electric grid the way it once did, would this cold snap even matter? From a consumer perspective, the answer is largely no. In a coal-dominated system, winter cold was an operational issue, not a pricing crisis. Load went up, coal units ran harder, operators adjusted dispatch, and the system absorbed the stress. What did not happen — at least not routinely — were sharp fuel price spikes, emergency conservation messaging, or springtime bill surprises blamed on “market conditions.” The reason was structural. Coal plants carried weeks — sometimes months — of fuel on site. That fuel was already purchased, already delivered, and already insulated from real-time weather events. Coal did not compete with residential heating demand. It did not depend on pipeline pressure, compressor stations, or wellhead performance. When the temperature dropped, coal plants did not enter a bidding war with homeowners for survival. They simply ran. That mattered because coal often sat at or near the margin during winter peaks. And when coal is the marginal fuel, prices behave differently. They move modestly. They reflect cost, not fear. They do not explode because of perceived scarcity three states away. Contrast that with today’s system. Natural gas now sets the price in much of the country. Gas does not need to fail to become expensive; it only needs to be stressed. Cold weather alone is enough. Add pipeline congestion, freeze-offs, or even the risk of nonperformance, and markets immediately inject a scarcity premium. Wholesale electric prices spike — even if every generator shows up and no emergency is declared. That volatility then works its way downstream. Utilities absorb higher procurement costs. Fuel adjustment clauses kick in months later. Consumers see higher electric bills long after the weather has passed and are told, vaguely, that it was “because of winter.” Under a coal-dominated grid, that chain reaction was muted or absent. Gas prices might still rise for home heating, but electricity did not compound the pain. Households were not hit twice — once for gas, and again for gas-driven power prices. Industrial customers did not face the same level of real-time exposure. Regulators were not forced to explain why nothing went wrong yet bills still went up. None of this means coal eliminated winter stress. It did something more valuable: it absorbed it. Coal acted as ballast — heavy, unfashionable, and quietly stabilizing. By removing that ballast without replacing its function, we did not make the grid more fragile in obvious ways. We made it more expensive in subtle, recurring ones. That is why today’s cold snap will show up on electric bills even if the grid performs flawlessly. And that is why, when coal still dominated, it would have passed with little more than a footnote in an operator’s log. The lights stayed on then, too. The difference is that the bill did not quietly grow teeth afterward. How the Bill Really Shows Up Consumers rarely connect winter reliability events to their electric bills, because the impact is delayed and obscured. Here is how it actually works: Renewables go MIA. Cold weather tightens reserves Gas prices spike at regional hubs Wholesale power prices rise during peak hours Utilities absorb higher procurement costs Fuel adjustment clauses catch up months later By spring, customers open their bills and wonder why rates are higher, even though “nothing happened.” Utilities point to weather. Regulators nod. The underlying structural cause goes largely unexamined. Industrial customers feel it immediately through real-time pricing and demand charges. Residential customers feel it later, but more painfully, as higher energy bills stack on top of already elevated heating costs. This is not a one-off phenomenon. It is now a recurring feature of winter. We Chose This… None of this is accidental. We made policy choices that traded fuel security for market efficiency, and market efficiency for political aesthetics. We shifted the grid toward just-in-time fuel delivery. We retired on-site fuel without replacing its stabilizing function. We assumed markets would solve problems that are, at their core, physical. Markets are excellent at pricing scarcity. They are less effective at preventing it. The result is a grid that survives winter stress events — but at a higher and more volatile cost. We have optimized for avoiding blackouts, not for protecting consumers from price shocks. The Bottom Line The grid will likely get through this winter storm. Operators are competent. Procedures are in place. The system will bend, not break. But bending has a price. Renewables will be MIA. Gas prices will rise. Wholesale electric prices will spike. Retail bills will follow. And once again, consumers will pay for a system that values politics over reliability. Coal’s continued presence on the grid does not eliminate these costs — but its absence guarantees they will be higher. If we want affordable electricity in winter, we must stop designing a grid that depends on perfect conditions to keep prices low. And the bill always comes due. Tyler Durden Tue, 01/27/2026 - 09:15

Futures Rise Ahead Of Tech Earnings As Gold, Silver Resume Surge US futures are higher, led by Tech, and approaching record levels from earlier this month as geopolitical and headline risk subsides while the market focuses on looming Mag 7 earnings and Wednesday's Fed decision is expected to be a non-event. Equities are poised for another attempt at 7k. As of 8:00am ET, S&P futures are up 0.2% and set for a fifth day of gains; Nasdaq futures lead gains, up 0.6% with all Mag7 members higher while Healthcare stocks hammered on headlines related to Medicare pricing. Micron jumped 5% in premarket trading on plans to expand its memory-chip capacity. Big tech has started to wake up, with Apple having its best day in three months yesterday and Meta also strong. Both are due to report later this week. So far, the earnings season has been good but not great, according to strategists at BofA. The dollar hit the lowest level since March 2022, while the yen fluctuated as jitters over intervention lingered, before rising to session highs. The yield curve is twisting steeper as JGB-induced vol subsides; In commodities, precious metals continue to move vertically with gold +1.5% and silver +8%, though PGMs are being sold. Today’s macro focus is on the weekly ADP print, home price data, Consumer Confidence, and regional Fed activity indicators. In premarket trading, Mag 7 stocks are all higher (Microsoft +0.6%, Apple +1.2%, Tesla +0.4%, Nvidia +0.4%, Alphabet +1.1%, Amazon +0.5%, Meta +0.3%). Health insurers including Humana (HUM), UnitedHealth (UNH) and CVS (CVS) slide after the US proposed holding payments to private Medicare plans flat next year. Analyst note that investors are disappointed as they expected mid-single digit-percentage rises. Humana -15%, UnitedHealth -16%, CVS -13%. UnitedHealth also forecast a decline in 2026 revenue, the first annual contraction in more than three decades Agilysys Inc. (AGYS) falls 12% after the hospitality software firm posted fiscal third quarter adjusted earnings per share that fell short of expectations. American Airlines Group Inc. (AAL) rises 3% after reporting fourth-quarter results. CoreWeave (CRWV) gains 4%, set to extend Monday’s 5.7% rally, after Nvidia invested an additional $2 billion in the cloud computing firm. Following the latest investment announcement, Deutsche Bank raised the recommendation on the stock to buy. General Motors Co. (GM) climbs 4% as the company expects profits to grow as much as $2 billion this year and plans to return more of that to shareholders with a higher dividend and buybacks. JetBlue Airways Corp. (JBLU) falls 3% after reporting a wider loss than expected last quarter, highlighting challenges in its strategy to win over higher-paying customers. Northrop Grumman (NOC) slips 1% after the military contractor gave a forecast for full-year adjusted earnings per share below what analysts had expected. Redwire Corp. (RDW) climbs 15% after being awarded a contract for the Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense contract. RTX Corp. (RTX) gains 3% after the maker of aircraft engines and missiles reported fourth-quarter adjusted earnings per share above what analysts expected. Sanmina (SANM) falls 8% after the electronics manufacturing services provider gave a revenue outlook for the second quarter that fell short of the consensus estimate. United Parcel Service Inc. (UPS) gains 3% as the courier forecast full-year sales above Wall Street’s expectations as it forges ahead with plans to cut less-profitable package volume out of its network. Even as stocks are set to make new record highs, there are still numerous reasons to be cautious: Trump and Senate Democrats are hurtling toward another government shutdown, while North Korea fired what appeared to be ballistic missiles off its east coast days after the US released a new defense strategy for the region. While the Greenland drama has died down, there are still some tariff headlines. The EU and India concluded a free-trade agreement after almost two decades of negotiations, part of an effort to deepen economic ties amid Trump’s aggressive trade policies. And Trump threatened to hike tariffs on South Korea to 25%. Citigroup said that short-covering dominated the latest weekly US large-cap futures flows, while new long risk was added to the Russell 2000. Goldman Sachs strategists, meanwhile, said that a proprietary measure of risk appetite hit the highest level since 2021 last week despite elevated policy and geopolitical uncertainty. “In the US, while very elevated valuations and the dollar weakness make us more cautious than in Europe, there’s possibly still one or two interest-rate cuts lined up for this year,” said Laurent Chaudeurge, an investment committee member at BDL Capital Management in Paris. “Investors are still chasing the AI trade, and at the moment this is done through semiconductors.” Precious metals rallied again after gold and silver erased much of their advance in the previous session, with bullion trading near $5,080 an ounce.  “Gold prices could potentially exceed $7,000 by the end of the year,” said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. “The main drivers that were there last year — trade tensions, geopolitical instabilities — are still very much there.” In earnings, of the 69 S&P 500 companies to have reported so far this earnings season, about 77% have beaten analysts’ forecasts, while nearly 15% have missed. American Airlines, Boeing, General Motors and UPS are among companies scheduled to report before the market open. Texas Instruments is among those due after the close. In Europe, the Stoxx 600 is up 0.4%, with banks and insurance names leading gains after India and the European Union reached a free trade agreement, with a raft of upbeat earnings also lifting sentiment. Banks and telecoms outperform, while miners and carmakers are the biggest laggards. Here are the biggest movers Tuesday: Puma shares rise as much as 21%, before quickly paring gains, after China’s Anta Sports Products agreed to buy a ~29% stake for €1.5 billion, becoming the biggest shareholder in the German company Siegfried shares rise as much as 15%, the most in over three years, after the contract development and manufacturing organization serving the pharmaceutical industry bought two new sites in the US and one in Australia HSBC shares gain as much as 3.1% in London, to the highest on record, taking the bank’s market capitalization above $300 billion for the first time, as Citigroup (buy) lifts its price target Comet shares rise as much as 7.7% to the highest since October 2024 after ZKB said the Swiss technology firm’s share price doesn’t reflect the benefits it will likely see from the upcoming investment cycle in memory chips HMS Networks surges as much as 14% after releasing its fourth-quarter results, which DNB Carnegie says came in “better-than-feared” Spirax rises as much as 3.7% after analysts at Barclays raised their price target on the maker of pumps and steam management systems. Analysts say the stock has lagged the broader capital goods sector and is now trading at a discount Getinge shares drop as much as 7.2%, the most in more than six months, after the Swedish health-care equipment firm reported weaker-than-expected sales and earnings for the fourth quarter Amplifon shares drop as much as 3.7%, second-worst performer in the Stoxx 600 Health Care Index on Tuesday morning, after Kepler Cheuvreux cut its earning estimates for the hearing-aid retailer and decreased its price target Demant shares slip as much as 3.4%, among the worst performers in the Stoxx 600 Health Care Index on Tuesday morning, after Bank of America decreased its price target on the stock to the lowest among analysts tracked by Bloomberg Capgemini shares fall as much as 3.3%, with traders citing a TV report that highlighted a contract between the IT group and the US’s Immigration and Customs Enforcement Aker BP shares fall as much as 3.2% after Danske Bank cut its recommendation on the Norwegian oil and gas exploration firm to sell from hold on high valuation and the outlook for commodity prices Earlier in the session, Asian equities extended gains, lifted by a continued rally in technology stocks in Taiwan and South Korea. The MSCI Asia Pacific Index gained as much as 0.9%, with Samsung, SK Hynix and TSMC offering the biggest boost. South Korea’s Kospi led advances in the region with a nearly 3% gain, as investors bought the dip spurred by President Donald Trump’s latest tariff threat. Markets were mostly in the green, with benchmarks in Hong Kong, Singapore, Malaysia and Thailand rising more than 1%. Traders are awaiting mega-cap tech earnings, which will shape expectations for the sustainability of the AI-driven rally. The Federal Reserve’s rate decision on Wednesday will also hold sway over rate-sensitive stocks. In FX,the Bloomberg Dollar Spot Index drops to the lowest level since March 2022 as the greenback loses ground against almost all its G-10 peers. USD/JPY is down 0.6% near 153.35 after another bout of choppy price action. The pair dropped ~130 pips in relatively short order before recovering, a move that looked similar to price action observed during the European morning session on Friday. There did not appear to be a obvious catalyst for the move. In rates, treasuries dip following limited price action during Asia session and London morning, similar to European bonds.10-year yields are 4.23%, about 2bps higher on the day and slightly outperforming bunds and gilts in the sector. Focal points of US include consumer confidence data and a 5-year note auction.  In commodities, spot silver rises 8% and is closing in on Monday’s record high. US crude futures rise 0.5% to around $61 a barrel. US economic calendar includes weekly ADP employment change (8:15am), November FHFA house price index and S&P Cotality home prices (9am), January Richmond Fed manufacturing index and consumer confidence (10am) and Dallas Fed services activity (10:30am) Market Snapshot S&P 500 mini +0.3% Nasdaq 100 mini +0.6% Russell 2000 mini +0.4% Stoxx Europe 600 +0.3% DAX little changed, CAC 40 little changed 10-year Treasury yield +1 basis point at 4.22% VIX -0.2 points at 16 Bloomberg Dollar Index little changed at 1187.28 euro unchanged at $1.188 WTI crude +0.3% at $60.83/barrel Top Overnight News President Trump has received multiple U.S. intelligence reports indicating that the Iranian government’s position is weakening, according to several people familiar with the information. The reports signal that the Iranian government’s hold on power is at its weakest point since the shah was overthrown in the 1979 revolution. WSJ South Korea scrambled on Tuesday to assure the U.S. it remained committed to implementing a trade deal after U.S. President Donald Trump said he would hike tariffs on autos and other imports from its ally, blaming a delay in enacting the pact agreed last year. RTRS India and the European Union said Tuesday they have reached a free-trade agreement that will open a new market for European cars and other products, showing how the world’s middle powers are expanding alliances in response to President Trump’s tariffs. WSJ The Trump administration has indicated to Ukraine that US security guarantees are contingent on Kyiv first agreeing a peace deal that would likely involve ceding the Donbas region to Russia. FT China’s industrial enterprises had their first annual gain in profits since 2021, as producer deflation showed signs of easing in the wake of government efforts to curb excess competition and cut capacity. Profits climbed 5.3% in December from a year earlier, rising for the first time in three months and recovering from a plunge of more than 13% in November. BBG Japan’s bond meltdown sparked speculation that the $1.8 trillion GPIF might shift its portfolio allocation to JGBs while reducing foreign bond holdings, particularly Treasuries. BBG Trump said he will increase the tariff rate on South Korean imports from 15% to 25% unless the South Korean National Assembly approved the trade deal struck back in July. NYT US natural gas fell, with traders taking profits after prices shot up almost 30% on Monday amid freezing temperatures that pushed up heating demand. BBG Republicans and President Trump designed their tax cuts for this moment, creating a refund bonanza that will land in Americans’ bank accounts well ahead of the midterm elections. The annual tax-filing season that opened Monday will produce a cash surge estimated at $100 billion beyond last year’s $329 billion total. WSJ Philippines said they conducted joint military exercises with the US in the South China Sea: Al Arabiya. US ambassador to China Perdue said in Bloomberg TV interview that China and the US completed most agreements made in Busan, South Korea. Trade/Tariffs US President Trump announces he is "increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%". South Korea Legislature Trade Committee head said that passages of such trade bills usually take six to seven months. South Korea's ruling party said it aims to pass special act on US trade deal by end of February, according to Yonhap Infomax. South Korean ruling party official said bills to enact US investment have been introduced and will soon be reviewed. South Korean Industry Ministry said Minister is to visit the US soon and meet with Commerce Secretary Lutnick. EU Commission begins 2 set of proceeding on Google under the DMA; Google is designated as a core platform service, requiring interoperability with third-party services. China reportedly signs deals to buy at least 8 cargoes or approximately 520k tonnes of Canadian Canola following PM Carney's visit, according to sources. Chinese Foreign Minister said UK PM Starmer will visit China between January 28-31st. European Commission President von der Leyen said EU and India finalised a trade deal, and called it "the mother of all deals". Japan and the US are reportedly to announce several projects in a first batch under the USD 550bln scheme. A more detailed look at global markets courtesy of Newsquawk APAC stocks were mostly higher following on from the rebound on Wall Street, but with some of the gains capped ahead of key events and big tech earnings stateside, while participants also digested Trump's latest tariff salvo against South Korea. ASX 200 rallied on return from the long weekend, with risk appetite also facilitated by M&A-related headlines and improved business sentiment. Nikkei 225 gained despite the initial indecision following recent currency moves and after Services PPI cooled but remained above the BoJ's price  target. KOSPI sold off at the open following US President Trump's announcement to raise tariffs on South Korean autos, lumber, pharma, and all other reciprocal tariffs to 25% from 15% due to its legislature not yet enacting the US-Korea trade deal. However, the index then clawed back its losses and more, with the TACO trade likely in play and with South Korean officials attempting to appease Trump. Hang Seng and Shanghai Comp traded somewhat mixed with firm gains in Hong Kong led by Zijin Mining, which is to buy Canada's Allied Gold for USD 4bln, while the mainland index lagged despite an acceleration in Chinese Industrial Profits and the PBoC's liquidity efforts. Top Asian News China is to roll out policy document on boosting jobs amid AI impact, according to Xinhua. China will roll out policies to support employment amid AI shift and will boost support for employment among key groups. European bourses (STOXX 600 +0.3%) are broadly in the green this morning, following a similar theme seen in the APAC session. The DAX 40 (-0.2%) is mildly pressured whilst the FTSE 100 (+0.4%) outperforms slightly, benefitting from strength in Banking names. European sectors are mixed; Banks lead followed closely by Insurance names whilst Basic Resources lags given the broader losses seen in underlying metal prices. In terms of key movers, Puma (+4%) opened higher by 20%, but has since pared much of that move - Jefferies highlighted that ANTA may find it hard to boost Puma's brand in China, given it already has high presence in the region. Top European News China's Industry Ministry announces that they have renewed the cooperation MOU regarding green maritime tech and shipbuilding with Denmark. India to sign a security and defence partnership with EU today in addition to advancing the free trade agreement at the 16th India-EU Summit, according to The Print. UK government plans to tighten scrutiny of Chinese influence in the UK, with PM Starmer seeking to bolster the registration scheme while still deepening Sino-British ties, according to FT. FX G10s were initially broadly lower against the USD, but following recent JPY strength, G10s are now broadly higher. JPY leads the pile (vs initially underperforming), whilst the NZD and CAD hold around the unchanged mark. EUR/USD is mildly lower, and ultimately within a narrow 1.1850-1.1899 range. Earlier, the EU and India announced an FTA, which cut circa EUR 4bln of tariffs on the bloc’s exports. Delving into USD/JPY, the pair fell from 154.49 to a session low of 153.16 within a few minutes, but has since pared back towards 153.90. This drove the pair below the prior day’s low, and also below its 100 DMA at 153.61. A move that also weighed on the Dollar index, which fell from 97.10 to a session low of 96.90. Nothing fresh behind that move, with participants ultimately mindful of potential intervention risks, or further rate checks being carried out by the US and/or Japan. Note, the JPY move occurred alongside reports of an explosion near Iran's Parchin site, a development that potentially influenced the JPY; however, the lack of follow-through to other assets, particularly crude, diminishes this narrative. DXY is flat this morning and trades within a 96.90 to 97.28 range, and currently holding within the prior day’s ranges. On the trade front, US President Trump said South Korea had delayed its trade agreement with the US and imposed a 25% tariffs on various Korean sectors – the Korean Industry Minister is to visit the US, and aims to pass a special act on the deal by end-February. The Korean Won was initially pressured at the reopen of trading, but has pared about half of the move. Back to the US, markets await ADP Weekly Average figures, Richmond Fed and Consumer Confidence. Participants also count down to the FOMC tomorrow. Barring any surprises in the data, the DXY may find itself relatively rangebound into the confab. Fixed Income A modestly bearish start for fixed income. Action driven by the mostly constructive risk tone, though there are some pockets of weakness in Equities. USTs a tick or two softer in a 111-23 to 111-26+ band, within Monday's 111-22+ to 111-30 parameters. Aside from supply, which follows a solid 2yr auction last night, the US docket is headlined by ADP. Bunds are also lower, with magnitudes slightly larger to losses of 15 ticks at most. No follow through to Bunds or EGBs generally from the morning's German and Italian supply, taps that were unremarkable but robust enough. Gilts gapped lower by 15 ticks, acknowledging the pressure seen in peers overnight from the constructive risk tone. Since, the benchmark has stabilised slightly off lows and trades broadly in line with European benchmarks. The morning's 2033 UK auction was well received, with a b/c above the 3x mark, though this did not spur any move in Gilts. Italy sold EUR 3bln vs exp. EUR 2.5–3bln 2.20% 2028 BTP & EUR 2bln vs exp. EUR 1.5–2bln 1.10% 2031, 2.55% 2056 BTPei. UK sold GBP 3.25bln 4.125% 2033 Gilt: b/c 3.18x (prev. 3.04x), average yield 4.296% (prev. 4.191%), tail 0.2bps (prev. 0.3bps). Germany sells EUR 4.633bln vs exp. EUR 6bln 2.10% 2028 Schatz: b/c 2.1x, average yield 2.14%, retention 22.8%. Germany opens books to sell EUR-denominated 20-year Bund via syndicate; guidance seen +3bps to DBR. EIB to sell EUR-denominated 5-year bonds, guidance seen +9bps vs mid-swaps. Australia sold AUD 1bln 1.50% June 2031 bonds, b/c 3.46, avg. yield 4.4382%. Commodities Crude benchmarks softened in the earlier hours of the Asia-Pac session. WTI futures fell from USD 60.85/bbl to a trough of USD 60.17/bbl following the report, but have since rebounded slightly as the European session gets underway, but remains just shy of the USD 61/bbl figure. It was recently reported that explosions were heard near Iran's Parchin nuclear site, but no damage was reported. Some reports suggest it could have been a routine missile test – no move in crude benchmarks on the initial or subsequent reports. Nat Gas prices remain elevated, Dutch TTF holds above EUR 40/MWh while Henry Hub futures hover near USD 7/MMBtu, as the Arctic storm provides a short-term shock to gas production. Precious metals continue to rise, despite selling off late in the US session, which was seemingly led by profit-taking in silver. Spot XAU found support at USD 5,000/oz and is currently trading just shy of USD 5,100/oz. Spot silver returns above USD 112/oz after a USD 15/oz selloff from its ATH of USD 117.70/oz on Monday. 3M LME Copper re-opened lower, as it reacted from the selloff in the precious metals space, but found support at USD 13k/t before oscillating in a USD 13k-13.15k/t band. Explosions have reportedly been heard near Iran's Parchin nuclear site, no damage has been reported - details light, awaiting verification. Largest US power grid PJM Interconnection has issued alerts amid storm bolstering energy demand. Deutsche Bank expects a quarterly peak of USD 13k/t in Q2, with price moderation onwards as production recovers at several major mines. Threat of US tariffs on refined copper should lead to continued metal flows to the US in H1'26. On aluminium, they assume some moderation from current levels in H2 (2026 Avg. of USD 2.9k/t, peak of USD 3.1k/t in Q2). German's Economic Minister said they will move forward with the wind power tenders to expand capacity. Deutsche Bank thinks USD 6,000/oz for spot gold is achievable this year due to a weaker dollar; in alternative scenarios, USD 6,900/oz would be in line with the past 2-year outperformance. An eventual moderation of XAU/XAG ratio may result in higher absolute silver prices. ADNOC Gas (ADNOC) CEO said they're investing more than USD 20bln to increase processing capacity by approximately 30% by 2029. DTEK Power Company said the Russian attack damaged an energy facility in Ukraine's Odesa region. UAE’s ADNOC chief revises forecast and sees oil demand above 100mln barrels per day until 2040. US President Trump is said to be mulling a cap on California state fuel tax and vowed to drive down the state's gas prices, according to NY Post. Geopolitics: Ukraine DTEK Power Company said the Russian attack damaged an energy facility in Ukraine's Odesa region. Infrastructure facilities in the Lviv region of western Ukraine were hit by a Russian strike, according to the regional governor. US President Trump's administration has signalled to Ukraine that US security guarantees are contingent on Kyiv first agreeing a peace deal that would likely involve ceding the Donbas region to Russia, according to sources cited by FT. Geopolitics: Middle East Intensive diplomatic efforts are currently underway between Iran and the US across multiple channels, Kann news reported; efforts aimed at reducing the level of "escalation" between parties. However, no significant breakthrough reported at this stage. Explosions have reportedly been heard near Iran's Parchin nuclear site, no damage has been reported - details light, awaiting verification. Palestinian media reported Israeli artillery shelling targeting areas in Khan Yunis in the southern Gaza Strip, according to Sky News Arabia. The Rafah crossing is estimated to be opened on Wednesday or Thursday, Israeli media reported. The explosions heard on the outskirts of Tehran are a routine missile test, Al Hadath reported citing Iranian TV. Geopolitics: Other South Korea's National Security Office reportedly urges North Korea to immediately stop its launches of ballistic missiles. North Korea reportedly fired several ballistic missiles, according to the South Korea military. North Korean missile appears to have landed outside of Japan's Exclusive Economic Zone (EEZ), according to NTV. Japan's Coast Guard sends second notice that a possible North Korean ballistic missile has already fallen. Projectile believed to be North Korean-fired ballistic missile has already fallen, according to the Japanese Coast Guard. Japanese Coast Guard issues second notice regarding North Korean projectile. North Korea fires projectile towards sea, according to Yonhap; details light. China said US-Philippines patrol in South China Sea undermines regional peace, while China’s military vows to safeguard sovereignty and maritime rights, uphold regional peace amid US-Philippines patrol. US President Trump said he is pleased to report that Venezuela is releasing its political prisoners at a rapid rate, which rate will be increasing over the coming short period of time. Full post: "I am pleased to report that Venezuela is releasing its Political Prisoners at a rapid rate, which rate will be increasing over the coming short period of time. I’d like to thank the leadership of Venezuela for agreeing to this powerful humanitarian gesture! PRESIDENT DONALD J. TRUMP". US Event Calendar 9:00 am: Nov FHFA House Price Index MoM, est. 0.26%, prior 0.4% 9:00 am: Nov S&P Cotality CS 20-City YoY NSA, est. 1.2%, prior 1.31% 9:00 am: Nov S&P Cotality CS U.S. HPI YoY NSA, est. 1.3%, prior 1.36% 10:00 am: Jan Richmond Fed Manufact. Index, est. -5, prior -7 10:00 am: Jan Conf. Board Consumer Confidence, est. 91, prior 89.1 DB's Jim Reid concludes the overnight wrap The post-Greenland rally has continued over the last 24 hours, with the S&P 500 (+0.50%) posting a fourth consecutive advance that left the index within half a per cent of its record high. For 2026 standards it was a quiet but solid day for bonds and equities ahead of the FOMC tomorrow and four out of the Mag-7 reporting tomorrow and Thursday. However, we did see some extreme moves in precious metals, with gold prices (+0.43%) closing above $5,000/oz for the first time ever, while silver (+0.57%) gave up almost all of its +14% intra-day gain before rallying again this morning in the Asia session. That precious metal pullback began shortly after the European close yesterday but it’s proving short-lived, with gold back up +1.23% to $5,070oz as I type, with silver up +5.39% to $109.38/oz. And even though it’s still January, gold had already seen a YTD return of +16% as of yesterday’s close, whilst silver has surged +45% since the start of the year. Silver prices are up over +260% since the start of 2025, although unlike gold they still haven’t exceeded their real terms peak back in 1980. My CoTD yesterday (link here) showed the 235 year history for both gold and silver in real terms. The fascinating thing is that on January 9th this year (ie 2.5 weeks ago) silver in real terms was no higher than it was at the start of 1790! So while I've generally been a precious metal bug in recent years given my belief that fiat money is inherently inflationary, over the medium to longer-term precious metals are unlikely to compete with equities, especially from this starting point. It doesn't mean you shouldn't hold in a diversified portfolio but some realism of future long-term returns should be factored at these levels. The volatility in precious metals came as the US dollar lost further ground, with the dollar index (-0.55%) closing less than half a percent from the post-2022 lows it reached back in September. In part, that was driven by the Japanese Yen’s strength, which moved up +0.99% against the US Dollar yesterday, making it the strongest-performing G10 currency. That followed the weekend comments from PM Takaichi that the government was prepared to “take all necessary measures to address speculative and highly abnormal movements”. But on top of that, investors also had to grapple with the prospect of a fresh government shutdown this week, which is now considered a 79% probability on Polymarket, not long after the longest-ever government shutdown back in Q4. Those odds did decline a couple of percent age points from earlier yesterday as we saw some de-escalation of the tensions between the White House and local officials over the recent events in Minnesota. Our economists note that a shutdown could delay the big refund cheques about to go out so there are incentives to compromise and avoid any lasting disruption. Looking at the equity moves in more detail, as mentioned at the top, the S&P 500 (+0.50%) posted a 4th consecutive advance. The NASDAQ (+0.43%) and Mag-7 (+0.46%) saw similar gains, while blue chip names helped a slight outperformance for the Dow Jones (+0.64%). By contrast, the small cap Russell 2000 (-0.36%) lost ground for a second session running. The index is still up +7.16% YTD compared to a +1.53% gain for the S&P 500, having outperformed the S&P for fourteen consecutive sessions at the start of the year prior to Friday. Those equity gains were bolstered by another batch of stronger-than-expected US data which added to the buoyancy of risk assets there. For instance, the Dallas Fed’s manufacturing activity hit a six-month high of -1.2 in January (vs. -8.5 expected). And the durable goods orders for November were up +5.3% (vs. +4.0% expected). So that cemented the optimistic view around Q4 growth, with the Atlanta Fed’s GDPNow estimate remaining at an annualised pace of +5.4%. Earlier in Europe, the performance was a bit more subdued by comparison to the US, with the STOXX 600 only up +0.20%. That followed an underwhelming set of data, with the Ifo’s business climate indicator in Germany remaining at 87.6 in January (vs. 88.2 expected). Plus the expectations component unexpectedly fell to an 8-month low of 89.5 (vs. 90.3 expected). So that dampened sentiment a bit, with investors dialling up the probability of an ECB rate cut this year. And in turn, sovereign bonds rallied across Europe, with yields on 10yr bunds (-3.9bps), OATs (-5.8bps) and BTPs (-4.7bps) all falling back. US Treasuries also rallied a bit, with the 10yr yield (-1.3bps) falling to 4.21%. Elsewhere, the Canadian dollar was the worst performing of the G10 currencies yesterday after Trump’s weekend threat of 100% tariffs against Canada if it strikes a trade deal with China. In response, Canada’s trade minister LeBlanc said he had reassured US Trade Representative Greer that the recent pact with China was a "narrow arrangement”. We saw further tariff headlines just after the US close, as Trump posted that he was raising tariffs on South Korea from 15% to 25% in response to South Korea’s legislature not yet enacting the trade agreement reached last year. So tariff threats remain an active policy tool for the White House, even if last week’s episode over Greenland shows that the resulting tensions can also decline quickly. Asian equities are mostly higher this morning. The KOSPI (+2.43%) is higher after dipping at the open following the tariff news. However, sentiment improved when South Korea’s presidential office clarified that it had not received prior notification of any tariff increase plans. Additionally, it was noted that Trade Minister Kim Jung-kwan, who is currently in Canada, would travel to Washington for discussions with US Commerce Secretary Howard Lutnick. In other markets, the CSI (+0.34%), Shanghai Composite (+0.25%), the Nikkei (+0.69%), the ASX (+0.92%) and the Hang Seng (+1.01%) are all higher. S&P 500 (+0.28%) and NASDAQ 100 (+0.55%) futures are both higher. Meanwhile, 10yr USTs are +1.6bps higher standing at 4.23% as we go to print. The Japanese yen (-0.18%) is experiencing a small decline after two days of gains, with 10 and 30yr JGB yields back up +5.3bps and +4.8bps respectively. In terms of data, China’s industrial profits have returned to growth, ending a two-month contraction with a rise of +5.3% year-on-year in December, significantly surpassing expectations of a -13.1% decline. Looking at the day ahead, US data releases include the Conference Board’s consumer confidence for January and the Richmond Fed’s manufacturing index for January. Otherwise, central bank speakers include the ECB’s Nagel, and earnings releases include Boeing, UnitedHealth, UPS and General Motors. Tyler Durden Tue, 01/27/2026 - 08:33

Power Diverted From Data Centers To Households Across PJM Network Amid Historic Freeze The massive winter storm that disrupted US energy production, sparked the most flight cancellations since Covid, and paralyzed much of the eastern half of the country for days is finally over. BofA chief economist Aditya Bhave has warned that the winter blast could deliver a meaningful hit to first-quarter GDP. However, the eastern half of the US is not in the clear yet. At least another week of brutally cold weather is forecast, which could keep pushing power grids to the brink. As heating demand surged to record levels, fossil fuel power generation proved critical in preventing widespread rolling blackouts. James Bevan of Criterion Research made that clear in an exclusive note for ZeroHedge: "Sleep Tight, America. We Got This": NatGas And Coal Power Plants Prevented Grid Collapse During Historic Winter Blast To further stabilize the power grid this week, Energy Secretary Chris Wright instructed PJM Interconnection on Monday to divert power intended for data centers and other energy-intensive facilities to residential customers and hospitals. Those data centers and facilities were able to switch on their on-site diesel and natural gas generators, reducing power demand during peak hours. Bloomberg notes: PJM, which serves more than 67 million people from Chicago to Virginia, sought federal approval to stave off the potential need to impose rolling blackouts. Wright also gave the same authorization to two units of Duke Energy Corp. The move by Wright to divert power intended for data centers to residential customers and hospitals comes as average temperatures in Washington, DC, at the heart of the PJM grid in the energy crisis-stricken Mid-Atlantic, are in the low teens this week. The two-week forecast is not expected to rise above the 30-year average. This period also coincides with peak winter in the Northern Hemisphere. Historically, the 30-year seasonal average temperature for the Lower 48 does not begin to trend higher until next month. As of this morning, wholesale electricity prices in the PJM grid soared 241% to more than $2,300 per megawatt-hour. Largest US grid operator was authorized to divert power destined for data centers to households to prevent rolling blackouts. An order by Energy Secretary Chris Wright authorized PJM Interconnection to direct data centers to switch on back-up generators to reduce their burden on… — zerohedge (@zerohedge) January 27, 2026 Meanwhile, residents across Central Maryland are being financially crushed by a worsening power bill crisis, the result of green energy policies that have backfired in the one-party ruled state ruled by Democratic Party kings and queens. The grid mismanagement stems from a failed climate alarmism framework that collided head-on with the rapid buildout of energy-hungry data centers. Read: "I'm $6K Behind": Maryland Power Bill Crisis Sparks Debt Panic As 14,000 Residents Cry For Help Online Insurmountable household power bill debt is sparking public anxiety aimed squarely at Annapolis lawmakers. It's not just Maryland, the power bill crisis has erupted across the Northeast states.  Tyler Durden Tue, 01/27/2026 - 07:45

SK Hynix Soars On Microsoft Supply Deal Report; KOSPI Breaks Out, Shrugs Off Tariff Threat SK Hynix shares hit an all-time high in overnight trading in South Korea after a local media outlet reported that the semiconductor company, which specializes in memory chips, has become the sole supplier of advanced memory for Microsoft's new artificial intelligence chip. Also overnight, despite President Trump's tariff threat against South Korea for "not living up" to a trade deal cemented last year, the Korea Composite Stock Price Index surged above 5,000 for the first time. Business Korea reports that Hynix will exclusively supply high-bandwidth memory (HBM) for Microsoft's next-generation AI chip, the Maia 200. Here's additional color from the local outlet: According to industry sources on Jan. 27, SK Hynix is reported to supply its latest product, HBM3E (5th generation), to the Maia 200 AI accelerator that Microsoft unveiled on Jan. 26 (local time). Additionally, SK Hynix appears to be participating as the exclusive supplier for the product. The Maia 200, manufactured based on Taiwan's TSMC's 3-nanometer (nm; 1nm = 1 billionth of a meter) process, is characterized by enhanced efficiency in AI inference tasks. It uses 216 gigabyte (GB) HBM3E, with six units of SK Hynix's 12-layer HBM3E installed. Microsoft has already installed the chip in its Iowa data center in the United States and is expanding its applications by adding it to its Arizona data center as well. The report catapulted SK Hynix shares on the KOSPI nearly 9% higher on the session. The stock is now up 23% year to date and trading at record highs. A larger timeframe shows the trend is absolutely parabolic. Jung In Yun, chief executive officer at Fibonacci Asset Management Global, said the move higher in Hynix shares supports "dip buying and rising HBM earnings expectations." He added, "We will probably see SK Hynix earnings meeting expectations again." Another positive tailwind emerged after Citigroup analysts raised their price target on SK Hynix by 56% to a street-high 1,400,000 won, reaffirmed its buy rating, and placed the stock on a 30-day upside catalyst watch. "The memory market is shifting toward semi-customization, with memory customers required to sign a contract a year prior to actual product delivery," analyst Peter Lee wrote. "In 2026, we foresee global DRAM/NAND pricing growth to be significantly better than expected." According to Bloomberg data, Wall Street analysts rate SK Hynix with 41 buys, 2 holds, and just 1 sell. More broadly, KOSPI made a "clear breakout above 5,000 and closed @ 5,085 today, marking YTD growth of +21%," Goldman analyst Heather Oh told clients earlier. Heather provided clients with the drivers in the KOSPI today: Concerns over potential tariff hikes, with Trump vowing to raise tariffs on Korean goods, including autos and pharma, from 15% to 25%, led to a weaker market open. However, the KOSPI quickly recovered to close at an ATH. Most sectors rallied, with the exception of tariff-impacted areas such as Autos (-0.8%) and Steel (-0.8%). Semiconductors were a notable outperformer, surging by 6.3% ahead of the earnings and ongoing optimism on HBM developments. What were the main drivers today? Optimism is building ahead of the heavy earnings season, with January 29th being a key date for Samsung Electronics (005930, +5%) and SK Hynix (000660, +9%) earnings reports. GIR recently raised its KOSPI target to 5,700 (from 5,000), driven by earnings upgrades rather than P/E multiple expansion. Positive sentiment prevails as pension funds are anticipated to inject approximately W7tn more into Korean equities. The largest pension fund has increased its 2026 domestic equities allocation target to 14.9% (up from 14.4%) and will temporarily postpone rebalancing, thereby alleviating selling pressure when allocations diverge from the strategic asset allocation (SAA) range. Today's Investor positioning Turnover breakdown: Foreign 31%, local institutions 19%, Retails 50%. Net Inflows: Institutional flow-led rally today signals a healthy setup for further upside. Foreign: +$588m. Mainly passive program buying led the rally (+$760m). Buying was concentrated in Tech (+$743m) and Financials (+$86m). Local institutions: +$164m. Buying was concentrated in Tech (+$278m). Retail: -$706m. Profit taking was heavily concentrated in Tech (-$1b), followed by Banks (-$93m). Five Charts That Matter: KOSPI Price Performance Earnings 5-Day Investor Positining Trend (KOSPI (left) vs. KOSDAQ (right)) MF Positioning H/F Positioning Related research: First Victims Of 'Great Memory Crunch' Emerge As Data Centers Soak Up Global Supply "Entered New Era": SK Hynix To Build $13 Billion Memory Plant As Nvidia CEO Says AI Demand Soaring "Market That Never Existed": Nvidia CEO Sparks Frenzy In Memory Stocks Soaring Memory Costs Sink Nintendo Shares; Goldman Says Selloff Is Buy-The-Dip Opportunity UBS Says Soaring Memory Chip Prices To "Turbo-Charge" Samsung Earnings When your entire market is a couple of memory stocks: "This number really blew my mind. GS earning est for Korea in 2026 is - wait for it - 75% (granted its mostly only 2 names). followed by 12% in 2027. And trading at ~11x forward." - GS S&T pic.twitter.com/UZsIrcngMD — zerohedge (@zerohedge) January 25, 2026 The whole discussion on memory is shaping up to be a big theme in 2026 amid data center buildouts. Tyler Durden Tue, 01/27/2026 - 06:55

"Communism Is A Sh*tty Deal": Cuba's Power Grid Descends Further Into Blackout Nightmare   Cuba is facing a severe and worsening energy crisis driven by a tightening U.S. blockade, part of President Trump's gunboat diplomacy across the Caribbean region, as reported Sunday, with conditions now deteriorating further as the island's power grid appears to be imploding under strain, resulting in blackouts lasting up to 20 hours per day. "Cuba's electrical system has completely collapsed in Havana after more than 20 hours of blackouts," Venezuelan-born political commentator Eduardo Menoni wrote on X. Menoni said this widespread blackout for most of the day could last for weeks, as there is no known timeframe for when the grid will be fixed. He added, "Cuba's electrical system has completely collapsed in Havana after. Communism is A SHITTY DEAL." 🇨🇺🚨| URGENTE: El Sistema eléctrico de Cuba, colapsó por completo en La Habana tras más de 20 horas de apagones, dejando a la capital sin luz y con previsiones de hasta 2 semanas sin energía en toda la isla. El comunismo es UNA MIERDA. Dale ME GUSTA Y RT para que todos lo vean. pic.twitter.com/VQl0StH67p — Eduardo Menoni (@eduardomenoni) January 25, 2026 Following the U.S. intervention in Venezuela and the capture of President Nicolás Maduro, crude oil shipments from Cuba's main supplier have been halted, leaving the island with a massive energy deficit. Mexico has emerged as a major supplier of about 17,200 barrels per day to Cuba in late 2025, with President Claudia Sheinbaum defending these shipments as "solidarity" despite U.S. pressure. However, Sheinbaum's administration is now reviewing those shipments amid the risk of reprisals from Trump. "Cuba is facing more powerful US threats than it has in the 67 years since the revolution," Carlos de Céspedes, Cuba's ambassador to Colombia, told Al Jazeera on Saturday. Earlier this month, Trump unveiled the pressure campaign: "Cuba is ready to fall. Cuba now has no income. They got all of their income from Venezuela, from the Venezuelan oil. They're not getting any of it. Cuba literally is ready to fall." Tyler Durden Tue, 01/27/2026 - 05:45

NATO Secretary General Admits EU Incapable Of Defense Without US Help The globalist frenzy of the Davos Summit is subsiding and the geopolitical world is left to ponder (and question) some of the more "optimistic" comments made by world leaders.  One such claim was made by Finnish President Alexander Stubb, who argued that Europe 'unequivocally' has the ability to defend itself without US support.    The claim coincided with the Finnish leader's assertion that a " new world order" is rising with the UN at the helm.  NOW - Finland's President, Alexander Stubb, says Europe can "unequivocally" defend itself, without the Americans. pic.twitter.com/AeHFshxBr5 — Disclose.tv (@disclosetv) January 21, 2026 The suggestion has, of course, drawn scrutiny as being overly optimistic.  Stubb tried to qualify his argument with the assertion that Finland has the best cold weather troops in the world and the future of warfare is focused on the Arctic Circle.  An army accustomed to cold weather warfare is certainly useful, but that does not mean they are accustomed to attrition warfare - A strategic method which is serving the Russians well in Ukraine and a method western armies have not trained for since the conflict in Korea in 1950.   Finland claims to be able to field an army of 1 million through mandated conscription, but unwilling conscripts and trained soldiers are two very different things.  Currently, the country's army consists of only 24,000 active duty personnel.  Russia has 1.32 million, many of them battle tested after years in Ukraine.  Furthermore, the Russians have now adapted to the demands of drone warfare.  This is something European armies are still integrating, and with no real world experience.  Stubb's assertions are absurd, but it is this kind of fantasy mentality that is driving Europe to rattle their sabers against Russia at a time when they can't even fill basic recruitment quotas and the average citizen with the ability to fight has no interest in dying for the existing progressive governments.   NATO Secretary General Mark Rutte dumped some cold water on the Davos delusion this week during a Brussels press conference covering heightened tensions over Greenland.  He stated clearly that Europe has no chance of defending itself without US support. Rutte also suggested that the US needs NATO, which is debatable.  Russia does not have the naval capacity to engage with the US or the western hemisphere in a non-nuclear confrontation, even if the Kremlin wanted to.  It's also unlikely that Europe would ever enter into a direct conflict with China when EU nations continually pander to the CCP as a "replacement" for US trade.  In other words, Europe is useless and NATO is useless without US involvement. However, Rutte's comments do emphasize the reality that Europeans have lived comfortably for generations in their socialist havens because they don't have to shell out the cash needed to maintain their own security.  As the Secretary General warns, they still don't understand what this entails, but they're about to learn.         Tyler Durden Tue, 01/27/2026 - 04:15

IDF Recovers Final Slain Hostage From Gaza, All 251 Returned To Israel Israel is calling it "painful moment of closure" - as the Israeli military (IDF) has confirmed the return of the final captive’s remains from Gaza. "There are officially no more hostages in captivity in Gaza," the IDF announced on X Monday. Finally, all of the 251 people taken during the Hamas-led October 7, 2023 attack on Israel have been returned, whether living or dead. Source: Times of Israel The Israeli army launched an operation beginning Sunday to search a cemetery in the Gaza Strip for the remains of the last captive, Ran Gvili. It involved the cooperation of Hamas and local Palestinians. Gvili's body has now been brought back to Israel 843 days after being kidnapped in the October 7 Hamas/Islamic Jihad attacks, which overwhelmed southern IDF posts as well as several Jewish settlements during the large assault. The office of Defense Minister Israel Katz said of the recovery of the remains of police Master Sgt. Gvili: "It is a moment that underscores the State of Israel’s commitment to its soldiers and citizens: to bring every single one home, as we promised the families and the Israeli public." According to details of how his remains were positively identified: The IDF began exhuming hundreds of bodies at a Muslim cemetery in eastern Gaza City over the weekend, and until today, had tested around 250 of them for a potential match to Gvili. A few hours ago, dentists deployed to the cemetery were able to confirm that the dental structure of one body matched Gvili’s. In addition, fingerprints and other tests were carried out to confirm his identity, according to the military. The Gaza war that ensued after Oct.7 lasted over two years, and killed over 71,000 Palestinians, according to Gaza sources, which doesn't categorize combatants vs. civilian deaths. Israel has long maintained that tens of thousands of these included armed Hamas and Islamic Jihad fighters, disputing the death figures put out by the Gaza health office. But even the Trump administration has acknowledged Israeli forces and aerial bombardments have slain an appalling amount of Palestinian civilians. According to Israeli media, "Gvili served as a combat fighter in the Negev Border Police in the Southern District. On October 7, despite being injured with a broken shoulder from a motorcycle accident and scheduled for surgery, he went into combat." The report notes that "He succeeded in saving the lives of dozens of revelers at the Re’im music festival before being killed and abducted." Source: TOI/handout Hamas says that in allowing the IDF recovery mission, this demonstrates the group's commitment to observing the ceasefire. "We will continue to adhere to all aspects of the agreement, including facilitating the work of the National Committee for the Administration of Gaza and ensuring its success," the Hamas statement indicated. "We call on the mediators and the United States to compel the [Israeli] occupation to cease its violations of the agreement and implement its required obligations," the group added. Israel has agreed to reopen the vital Rafah crossing upon conclusion of this hostage recovery mission, another milestone in the truce process. Tyler Durden Tue, 01/27/2026 - 02:45

The "BRICS Naval Drill" That Wasn't Authored by Andrew Korybko, South Africa allowed this false perception to spread as a symbolic act of defiance against Trump given his hatred of BRICS, whose members and partners were invited to this drill, and to signal to the domestic audience that their country has friends across the world amidst its tensions with the US. Most folks have probably heard about the “BRICS naval drill” that recently took place in South African waters, which prompted a complaint from the US due to Iran’s participation. The South African Defense Minister had earlier defended the drill, to which all BRICS Plus countries were invited, as planned before the US’ seizure of a Russian-flagged tanker and aimed at ensuring safety on the high seas. All the while, the world was left with the impression that this was indeed a “BRICS naval drill”, which wasn’t true. India chose not to participate and released a statement reading that “We clarify that the exercise in question was entirely a South African initiative in which some BRICS members took part. It was not a regular or institutionalised BRICS activity, nor did all BRICS members take part in it. India has not participated in previous such activities. The regular exercise that India is a part of in this context is the IBSAMAR maritime exercise that brings together the navies of India, Brazil and South Africa.” Amidst the fake news about BRICS that’s been spread by Alt-Media, all of which centers on the false notion that it’s an allied bloc that assembled against the West, it’s understandable why many believed that this was a “BRICS naval drill”. India’s clarification that it wasn’t dispelled the perception that it’s distancing itself from the group, which is another falsehood peddled by Alt-Media, and reaffirmed that BRICS isn’t a security organization unlike what some of its enthusiasts hope that it one day becomes. As for why India didn’t join the drill in which many of its BRICS Plus partners participated, it likely felt uncomfortable taking part in a non-obligatory exercise with China (unlike yearly SCO ones) amidst their unresolved border disputes and probably also didn’t want to risk angering the US given Trump’s hatred of BRICS. He’s been misled into thinking that its members are plotting to dethrone the dollar and consequently threatened tariffs against its members a year ago solely on that pretext. He’s since imposed a 25% tariff on India for its purchase of Russian oil on top of the 25% “reciprocal” one that he earlier decreed for a total of 50% tariffs, however, and then threatened secondary ones for noncompliance with last fall’s energy-related sanctions against Russia. Any further tariffs upon India, regardless of the pretext, might have a noticeable effect on its economy and therefore the popularity of Prime Minister Narendra Modi’s government. It’s therefore understandable why he’d want to avoid that. South Africa is under US pressure just like India is, but officially over the Boer issue, though it was explained here how the US seeks to advance other interests on this pretext. The US also dislikes South Africa’s championing of the Palestinian cause and that it took Israel to the International Court of Justice over accusations of committing genocide during the recent war. Instead of playing it safe like India has and avoiding anything that could further provoke the US, South Africa organized the latest naval drill. Only inviting its BRICS Plus partners might therefore have been meant as a symbolic act of defiance against Trump and to signal to the domestic audience that their country has friends across the world amidst its tensions with the US. That would explain why South Africa didn’t clarify that this wasn’t a “BRICS naval drill” and instead let that false perception spread to India’s chagrin. The reality is that no such “BRICS naval drill” was held and none might ever be organized due to the group’s economic focus. Tyler Durden Mon, 01/26/2026 - 23:25