11th February 2026

MACRO

US: AI Selloff Spreads, Tariff Votes Coming

The latest AI selloff erupted Tuesday when Altruist Corp.’s tax-strategy tool sent Charles Schwab, Raymond James and LPL Financial down 7% or more. Bloomberg notes Wall Street’s new trade is dumping any stock in AI’s crosshairs.

House lawmakers rejected Speaker Johnson’s attempt to block votes on resolutions disapproving of Trump’s tariffs - a stinging blow to his leadership. Democrats can now bring resolutions challenging Trump’s signature economic policy to the floor.

(Bloomberg, Wall Street Journal)

US: Rates and Fed Expectations

Short-term rate traders are coalescing around bets that would pay off if the Fed cuts just two or three times this year. Swaps markets are pricing roughly 30% odds of a third quarter-point cut, with two almost priced in by September. Barclays highlighted increased rates volatility following Warsh’s nomination, with investors favouring long bond positions.

The White House revised its fact sheet on the US-India trade agreement to adjust language around agricultural goods, adding to confusion about the deal.

(Bloomberg)

China: Deflation Eases, Car Sales Slump

Factory deflation eased more than expected in January thanks to the global metals rally, though weak domestic demand restrains a sustainable turnaround. Consumer inflation slowed to just 0.2% on base effects. Car sales fell at the fastest pace in nearly two years as competition steepens amid fading subsidies and softening demand.

Chinese shares secured their biggest wave of net additions to MSCI’s key gauges in almost three years, setting the stage for stronger inflows. The PBOC pledged “flexible and efficient” cuts to rates and RRR to maintain an accommodative environment.

China sold yuan-denominated sovereign bonds in Hong Kong at the lowest yields in more than a decade, signalling stronger demand and supporting Beijing’s push to expand the currency’s global use. Dozens of cities have reported progress clearing hidden debt, including reducing local government financing vehicles.

Premier Li Qiang said rare earth resources should be developed in a rational manner during a visit to mineral-rich Jiangxi province.

(Bloomberg, Reuters, China Securities Journal, Shanghai Securities News, Xinhua)

Europe: Software Fears, Political Tensions

Europe’s software companies are set for slower earnings growth than hardware counterparts this year, compounding fears that AI will reshape their business models.

France’s National Rally has yet to win over the business elite, who fret over its shifting economic positions. Swedish PM Kristersson warned Europe cannot succeed with protectionism as promoted by France, ahead of an EU summit focused on reviving the economy.

Centrica’s CEO warned British electricity prices in 2030 will be higher than after Russia’s invasion of Ukraine, as investment needs drive up costs.

(Bloomberg, Reuters, Financial Times)

Australia: RBA Deputy Warns on Inflation

RBA Deputy Governor Hauser said the RBA sees inflation as too high and will take all necessary measures to bring it under control. “I don’t think anyone thought we would be sitting here in 2026 with the global economy powering ahead,” he said.

(Wall Street Journal)

Emerging Markets Roundup

EM stocks climbed to a fresh record high, propelled by Asian tech shares on AI optimism and dollar weakness.

Poland quietly abandoned plans to put central bank governor Glapinski on trial over concerns a legal battle could unsettle foreign investors. India’s top jewellery maker Titan sees shoppers turning cautious as record gold prices weigh on demand. Indonesia’s biggest nickel mine will have output slashed as authorities try to boost global prices. The Philippine peso climbed to its strongest in almost four months.

(Bloomberg)

GEOPOLITICAL

US-Iran: Tanker Seizures Discussed, Netanyahu Visit

Trump officials have discussed seizing additional tankers transporting Iranian oil to coerce Tehran into a deal, but have held off over concerns about retaliation and global oil market impacts. Netanyahu visits the White House Wednesday to press for wider talks including missile curbs and other security threats beyond the nuclear programme.

The Trump administration let US companies supply Venezuela with equipment to boost oil production. The licence allows Halliburton and SLB to work in the country.

(Wall Street Journal, Reuters)

Ukraine, China & Regional Tensions

Zelenskyy intends to announce plans for presidential elections and a referendum on 24 February.

The US is concerned about China’s expanding presence in South Asia and plans to offer Bangladesh’s next government US and allied defence systems as alternatives to Chinese hardware. Australian authorities charged two more Chinese citizens with allegedly collecting information on a Buddhist association for Beijing.

(Financial Times, Reuters, Bloomberg)

EQUITIES

AI & Software

OpenAI has cut ties with one of its top safety executives on grounds of sexual discrimination after she opposed the rollout of AI erotica in ChatGPT. A sixth co-founder of Musk’s xAI is leaving amid tensions over demands to improve models as the AI startup merges with SpaceX.

Cloudflare surged 15% on AI-driven demand, forecasting annual and Q1 sales above estimates. Dassault Systemes crashed 20% after weaker-than-expected 2026 guidance - JPMorgan said results were “worse than even the most negative had feared.”

(Wall Street Journal, Financial Times, Reuters, Bloomberg)

Semiconductors & Memory

Samsung’s chip division chief declared the company is “back at the top of the memory industry” with HBM4. SK Hynix was profiled in the FT as the “zombie chipmaker” that became Nvidia’s vital AI ally.

SMIC’s CEO said more memory supply could come to market in nine months, telling consumer electronics clients not to be too pessimistic since they’d get priority over AI chips needing longer verification. SMIC also warned breakaway AI chip spending is pulling forward years of demand, raising risks that some data centres could sit idle. The company expects margin pressure from surging depreciation costs due to massive capacity expansion.

(Bloomberg, Financial Times, Wall Street Journal, Reuters)

Media & Entertainment

Activist investor Ancora Holdings built a roughly $200 million stake in Warner Bros. Discovery and plans to oppose the Netflix deal. Mattel plunged 28% after holiday sales came up short with a weak 2026 profit forecast.

(Wall Street Journal)

Autos

Ford’s quarterly core profit fell about 50% to $1 billion on costs from an aluminium supplier fire, but CEO Farley predicted strong performance this year as the company slashes costs. Tencent Cloud partnered with Tesla to offer in-car features including instant WeChat location transfer.

(Reuters)

China Property

Shenzhen’s municipal government is drafting an 80 billion yuan ($11.6 billion) rescue package for distressed state-backed developer China Vanke.

(Reuters)

European Corporates

TotalEnergies reported a 13% drop in Q4 earnings, slightly missing expectations, and trimmed buybacks while ramping up production. Siemens Energy said data centre demand is driving earnings growth and its highest-ever order backlog.

Commerzbank, fending off UniCredit’s takeover, said 2026 net profit would probably exceed its €3.2 billion target. Heineken said it would remove thousands of jobs after volumes continued to slide. ABN Amro profit missed on higher expenses. Elliott Management built a stake in London Stock Exchange Group.

Monte Paschi board member Di Stefano is leaving shortly after reports he’s under investigation for alleged insider trading linked to the Mediobanca takeover.

(Reuters, Wall Street Journal, Bloomberg, Financial Times)

Other Movers

Lyft fell 17% on mixed quarterly results. Zillow swung to profit but Q1 guidance was soft on challenging housing conditions. AIG logged lower profit but expects recent investments to boost results. Barratt Redrow fell 8% despite seeing reason for optimism in the housing market. Evolution Mining jumped 8.7% on record profits and will push ahead with expansion plans.

(Wall Street Journal, Bloomberg, Reuters)

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