Wealthion Macro Bites 2-18
In the first tranche of Japan’s $550B U.S. investment commitment under its recently negotiated trade agreement, Japan has identified $36B in investments in U.S. oil, gas and critical mineral projects, most notably a $33B investment in a massive 9.2GW Ohio natural gas facility to be led by SoftBank subsidiary SB Energy. Prime Minister Takaichi stated, “This initiative is fully aligned with its core objectives: promoting mutual benefits between Japan and the U.S, ensuring economic security and fostering economic growth.” President Trump was more concise, “Our MASSIVE Trade Deal with Japan has just launched!”
Canada January CPI was flat m/m (vs. +0.1% est.) and +2.3% y/y (vs. +2.4% est. and +2.4% in Dec.). CPI annualized 3- and 6-month rates now stand at -0.4% and +0.2% respectively. Monthly data demonstrates 6-month inflation has been below target and is weakening rapidly. Without Feb. ‘25’s 1.1% m/m increase (which drops out in Feb.), the 11-month annualized rate is just 1.42%. Money markets are pricing in a chance of a rate cut by July.
U.K. January CPI registered -0.5% m/m (vs. -0.5% est. and +0.4% in Dec.) and +3.0% y/y (vs. 3.0% est. and +3.4% in Dec.). CPI annualized 3- and 6-month rates declined to -1.2% and +0.8% respectively. Stripping out April’s 1.2% m/m increase (1-time mandated energy price hike), the 11-month annualized rate stands at +1.87%. Global inflation rates are declining.
Port of Los Angeles exports (busiest U.S. gateway) fell 8% in January (to the lowest monthly level in 3 years) and imports fell 13%. Executive Director Gene Seroka observed, “Exports to China look dismal.” Soybean exports to China dropped 80% in ‘25, with no improvement in November or December despite ongoing trade discussions.
Sherritt International will suspend its nickel and cobalt production in Cuba due to fuel supply constraints. The company will pause mining and processing at its Moa joint venture this week and expects inventory to be sufficient to operate its Alberta refinery until mid-April.
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