Wealthion Macro Bites 1-16-26

After the yen hit 159.45 on Wednesday (weakest since July ’24), Japanese authorities escalated their verbal threat of intervention.  Japan Finance Minister Satsuki Katayama said, “We’ll take appropriate action against excessive currency moves without excluding any options.”

President Trump and the governors of several Northeastern states will announce on Friday plans to push for an emergency wholesale electricity auction to compel technology companies to effectively fund new power plants to satisfy burgeoning AI power needs.  The Trump administration and the governors plan to force grid operator PJM Interconnection to hold an auction for tech companies to bid on 15-year contracts for new electricity generation capacity.  Tech companies would pay for power over the duration of the contracts (whether they use the electricity or not), providing revenue stability to a notoriously volatile market.

Maaden Chief Executive Bob Wilt (Saudi Arabia’s state-controlled mining company) announced investment of $110B during next decade to triple its production of phosphates and gold and double its production of aluminum at eight megaprojects currently on the books (2 underway, 6 planned).  Also among spending plans is a JV with MP Materials (U.S. govt. major shareholder) to develop a Saudi rare earths refinery.

Shanghai Securities News reported Thursday that China’s State Grid Corporation plans to boost spending to $574B on fixed-asset investment in China’s power grid over the next five years (40% increase from ’21-‘25).

Media reports suggest Middle Eastern leaders (including Israeli PM Netanyahu), advised Trump not to attack Iran.  Reportedly they (and some U.S. officials) believe a surgical strike would be insufficient to collapse the regime. A larger and prolonged attack would be needed, and U.S. assets are not currently mobilized for such a campaign.

Euro Stoxx 50 -0.5%, S&P futures +0.15% and Nasdaq futures +0.5%.  DXY dollar index -0.1%, spot gold -0.25% and spot silver -2.0%.

U.S. financial markets are closed on Monday for Martin Luther King Day.