Chinese £600 million UK Investment | Tougher US Sanctions on Russian Oil | Stocks Slide on Strong US Job Report

Market Update

• Apple CEO Tim Cook's 2024 pay rises 18% to $74.6M.

• Option trades in China ETFs swing from gain to $100 million loss.

• Apple's board recommends shareholders vote against proposal to eliminate diversity programs.

• Meta, Amazon scale back diversity programs ahead of Trump inauguration.

Chinese investment of £600 million in UK ‘a start’, says Cabinet minister

China has committed to investing £600 million in the UK economy over the next five years.

The investment is seen as a starting point for future economic engagement and cooperation between the two countries.

The UK government aims to rebuild its relationship with China, focusing on pragmatic cooperation and addressing areas of disagreement.

The agreements are expected to benefit various sectors, including financial services, trade, and sustainable finance. [Learn more]

Tougher U.S. sanctions to curb Russian oil supply to China and India

New US sanctions target Russian oil producers and vessels, including Gazprom Neft and Surgutneftegas, as well as 183 vessels that have shipped Russian oil.

Sanctions aim to reduce Russian oil exports to China and India, which have been major customers since Western sanctions shifted trade from Europe to Asia.

Chinese and Indian refiners will seek alternative oil sources, likely from the Middle East, Africa, and the Americas, leading to higher prices and freight costs.

The sanctions are expected to significantly impact Russian oil exports, with potential reductions in refining output from Chinese independent refiners. [Learn more]

Strong US jobs report sends stocks sliding, dollar rising

US economy added 256,000 jobs in December, surpassing market expectations.

Stock markets reacted negatively because investors fear the strong jobs report will lead the Federal Reserve to maintain higher interest rates to combat potential inflation.

Bond yields surged, with the 10-year Treasury yield reaching its highest level since October 2023, making fixed-income investments more attractive compared to stocks.

The strong jobs report reduced expectations for further interest rate cuts by the Federal Reserve this year, which could slow economic growth and impact corporate profits. [Learn more]

Joke of the Day!

What kind of tree fits in your hand?

A palm tree