Hedging Against U.S. Trade Volatility

Good morning! Here is the latest in trending:

My precious: Gold is at it again, topping $5,100 in the latest session. Silver also notched new highs, but JPMorgan’s Kolanovic issued a new warning.

Delays? Asia markets rise despite new U.S. duties on certain South Korean goods in response to the failure to ratify last year’s trade deal.

Medical rates: Shares of insurers tanked on a proposal to hold payments to private Medicare plans nearly flat in 2027.

As President Trump levels tariffs on nations across the globe, along with recurring threats on trade, some countries are looking for deals of their own, given the new business environment. Canada’s Mark Carney just came back from China after looking to reset relations there, which triggered a backlash from the White House. However, these scenarios are looking increasingly likely going forward, with several high-profile trips on the horizon.

Quote: “I’m often invited to simply choose between countries. I don’t do that,” U.K. Prime Minister Keir Starmer said ahead of this week’s visit to Beijing. “I remember when I was doing the U.S. trade deal, and everybody put to me that I’d have to make a choice between the U.S. and Europe, and I said, ‘I’m not making that choice.’”

The mission to China will mark the first by a British prime minister in nearly a decade, and he’ll be bringing along representatives from companies such as AstraZeneca (AZN), BP (BP), Rolls-Royce (RYCEY), Prudential (PUK) and HSBC (HSBC). The four-day stop will see Starmer meet with President Xi Jinping, along with Premier Li Qiang and top legislator Zhao Leji. Finland Prime Minister Petteri Orpo also arrived in China with an extended delegation earlier this week, while German Chancellor Friedrich Merz has a trip scheduled for February.

Elsewhere: It’s not just the U.S. and China. Trade blocs are looking to ink their own deals, like the Mercosur free trade agreement signed between the European Union and South America. Another one just wrapped up overnight, which has been referred to as the “mother of all deals” involving 2 billion people. Here are the details of the landmark pact between the EU and India, which represents about one-third of global trade. (3 comments)

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What else is happening…

WSB survey results: Will mass deportations impact the U.S. economy?

Meta (META) to test premium subscriptions for Instagram, Facebook.

France’s National Assembly OKs social media ban for under-15s.

Tesla struggles in Europe as BYD (BYDDF) surges in EV sales.

Ford (F), GM (GM) in talks with First Brands over rescue financing.

The world’s largest restaurant chain (MXUBY) made its U.S. debut.

Automation push: Nike (NKE) cuts 775 jobs at its distribution centers.

U.S. takes first step toward restarting oil leasing offshore California.

Anthropic sought ‘several billion dollars’ for Apple (AAPL) Siri deal.

Treasury ends Booz Allen (BAH) contracts over data safeguards.

Today’s Markets

In Asia, Japan +0.9%. Hong Kong +1.4%. China +0.2%. India +0.4%.
In Europe, at midday, London +0.6%. Paris +0.3%. Frankfurt flat.
Futures at 6:30, Dow -0.2%. S&P +0.2%. Nasdaq +0.6%. Crude +0.3% to $60.83. Gold flat at $5,082.90. Bitcoin +0.2% to $87,891.
Ten-year Treasury Yield unchanged at 4.22%.

On The Calendar

Companies reporting today include UnitedHealth (UNH) and Boeing (BA).

See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.