1. Asian Stocks Rise With Focus on China Support, BOJ: Markets Wrap

    (Bloomberg) — Asian shares rose after US stocks eked out small gains to close at fresh records, with all eyes on Chinese markets’ reaction to Beijing’s latest pledge to arrest a stock rout and the Bank of Japan’s policy decision. Japanese equities looked poised for a third straight day of increases, while those in South Korea and Australia also climbed.
  2. India Overtakes Hong Kong as World’s Fourth-Largest Stock Market

    (Bloomberg) — India’s stock market has overtaken Hong Kong’s for the first time in another feat for the South Asian nation whose growth prospects and policy reforms have made it an investor darling. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg.
  3. Hedge Fund Asia Genesis Shuts After ‘Big Mistake’ on China Trade

    (Bloomberg) — Singapore hedge fund Asia Genesis Asset Management Pte is closing its macro fund after suffering an “unprecedented drawdown” following China’s stock market rout and Japan’s rally. Chua Soon Hock’s Asia Genesis Macro Fund had a drawdown of 18.8% in the first weeks of January, according to a letter sent to investors seen by Bloomberg News.
  4. US, UK Airstrikes Hit More Houthi Targets in New Escalation

    (Bloomberg) — The US and UK launched new airstrikes against eight Houthi targets in Yemen on Monday, the latest salvo in an allied bid to stop the group from harassing commercial shipping in the Red Sea. Monday night’s strikes, which marked the eighth round of allied attacks in 12 days, targeted an underground storage site and locations linked to the Houthis’ “missile and air surveillance capabilities,” the two countries said in a statement along with partners Australia, Bahrain, Canada, and the Netherlands.
  5. Fed Watchdog Clears But Chastises Ex-Officials in Trading Probe

    (Bloomberg) — The Federal Reserve’s internal watchdog cleared two former policymakers of legal wrongdoing in a years-long probe into their personal trading activity in 2020, but chastised them for undermining public confidence in the central bank. Robert Kaplan carried out multiple $1 million-plus transactions when he was president of the Dallas Fed, at a time when the Federal Open Market Committee deployed a variety of large-scale operations to stabilize markets at the onset of the pandemic.
  6. Dean Phillips Says New Hampshire Primary Will Show Biden Is Weak

    (Bloomberg) — US Representative Dean Phillips set low expectations for his long-shot campaign to upset President Joe Biden for the Democratic party’s nomination in New Hampshire, saying anything less than 80% by the incumbent president — who is running as a write-in — should serve as a warning sign for Democrats.
  7. Yen Near 150 to Dollar Raises Odds of Jawboning From Japan (1)

    (Bloomberg) — The yen has performed worse than any of its major peers so far this year, renewing speculation that Japanese authorities will be drawn in to defend the currency. While there’s no indication of imminent intervention by the government, the yen has weakened about 4.8% versus the greenback this year and is just two yen short of 150 to the dollar.
  8. Wall Street Tries to Lure Back Loans Lost to Private Credit

    (Bloomberg) — Investment banks including Goldman Sachs Group Inc., Citigroup Inc. and Barclays Plc are seeking to poach back leveraged finance deals that were snapped up by direct lenders when markets were more volatile, according to people with knowledge of the matter.
  9. Hedge Funds Are ‘Significant’ Sellers of China ADRs: China Today

    (Bloomberg) — Hedge funds are dumping American depositary receipts of Chinese companies while ramping up short bets, according to Morgan Stanley, another sign that markets have little confidence in Beijing’s ability to help limit the selloff in the nation’s stocks.
  10. Carnival Corp. is redeeming about $870 million of notes, giving bondholders a sweetened deal as the company takes out expensive debt it issued during the throes of the pandemic.

    The Miami-based company plans to redeem its 9.875% second-lien senior secured notes due 2027 on Feb. 1, at just under 105 cents on the dollar, according to a filing Monday. The cruise line operator is riding on the tailwinds of a two-notch ratings upgrade to BB- from S&P Global Ratings last month after it reported better-than-expected earnings. The company is working to get back to an investment-grade rating and has been taking steps to whittle down its interest expenses. Carnival has $28.4 billion in long-term borrowings, according to data compiled by Bloomberg.