News & Insight • Market Insights

16 January 2026 | William Buckhurst

That Was The Week That Was

MACRO NEWS

In an overtly political move, the Federal Reserve received grand jury subpoenas from the Justice Department regarding Chairman Jerome Powell’s June congressional testimony about renovations at the Fed’s headquarters. The President has continued to push for lower rates from the Central Bank.

In the UK, Shadow Secretary of State for Justice and Shadow Lord Chancellor, Robert Jenrick, was sacked by Kemi Badenoch and duly joined Nigel Farage’s Reform Party.

In more positive news, there is growth in the UK. November GDP growth was 0.3% vs 0.1% expected with rolling three-month growth of 0.1% better than the forecast 0.2% decline. Both Industrial and Manufacturing production data were better than expected which was helped by the rebound in production at Jaguar Land Rover following the cyber-attack as half of the GDP increase was due to industrial production as car manufacturing increased 26% over the month while services grew 0.3%.

Japanese stock market continues to rally, and bond yields rise, as Prime Minister Sanae Takaichi spoke of her intention to call a snap election as she seeks to convert her high approval ratings into a parliamentary majority for her Liberal Democrat Party.

COMPANY NEWS

The luxury sector has bounced but Richemont fell even after reporting excellent third quarter results with sales increasing 11% vs 7.5% expected. Jewellery sales increased 14% vs 9.5% expected and Watchmakers sales growth of 7% better than the forecast 0.1% decline.

We mentioned last week that ‘footfall’ stocks were up against it. Dunelm is a well-run company, but the shares fell 19.5% after issuing a profit warning as revenue only increased 3.6%. Guidance was at the lower end of views.

It is a tough market for alcohol companies and Heineken CEO, Dolf van den Brink is stepping down from the position after more than six years. Diageo is also considering selling its Chinese assets, which include a 63% stake in Shanghai listed Sichuan Swellfun which is valued at around $2.7bn ($1.7bn for Diageo).

UK housebuilder Vistry shares fell sharply as it flagged a dip in forward sales position at the start of 2026, after reporting fewer annual home completions amid lingering market uncertainties which was not helped by the Chancellors Budget. The housebuilder sold around 15,700 homes in 2025, down 9 per cent from 17,225.

TSMC is undervalued compared to its international peers but is it purely down to a Taiwan discount? It finished 4.44% higher after reporting income increasing 35% with sales rising 20%. The company guided to full year capex of $52-$56bn, well above estimates which led to a rally in the semi-cap equipment sector.

The Institute of Clinical Research (ICR) conference took place in Florida and several companies presented. Lululemon moved higher after providing a guidance update as it expected revenue to be at the high end. Abercrombie & Fitch fell 17.69% after updated earnings and operating margins were fell below expectations.

China announced it was banning the use of some US and Israeli cybersecurity software companies due to security concerns. Banned companies included Broadcom’s VMware, Palo Alto and Check Point Software.

China's National Grid equivalent, State Grid Corporation plans to boost spending by 40% to 4trn Yuan over the next five years to expand its power network to keep pace with rising electricity demand.

THE GREEN TRANSITION

Mixed news in the green theme as BP announcing that it could take up to $5bn of write-downs at its next set of results related to its energy transition business. The company spent a lot of money under former CEO Bernard Looney particularly in onshore and offshore wind farms. In their results they also flagged weak oil trading and flat production while net debt was expected to be reduced but we wonder whether their exit from renewables is mistimed.

Wind turbine manufacturer, Orsted wound up 5.4% after it received a favourable appeal ruling related to its US offshore wind project off Rhode Island which had been halted by orders from President Trump. Orsted stated that it would focus on completing the Revolution Wind project while it also continues work on the Sunrise Wind project off New York along while awaiting a court ruling on that project.

WALL STREET RESULTS

After performing well, the financial sector was on the back foot as President Trump commented on social media that he was calling on credit card companies to cap interest rates at 10% for a year from around 20% which would ruin card economics and could wipe out earnings from cards for a year. Card companies Capital One and Amex fell 6.42% and 4.27% respectively with JP Morgan and Citigroup following.

The results on Wall Street were pretty good but shares fell. Although Bank of America and Citigroup both fell on results their revenue and guidance were better than expected. BofA stated that it expected economic growth in the year ahead, whereas Citigroup saw further progress in their turn around.

Wells Fargo also finished 4.6% lower with income and revenue slightly lower than expected. The guidance was also in line with analyst expectations. JP Morgan profit exceeded estimates as its traders cashed in on volatility, but investment banking missed numbers. Later in the week, Morgan Stanley and Goldman Sachs rose as their investment banking teams beat analyst expectations.

THE WEEK AHEAD

In the US, we will get the October and November PCE reports on Thursday and PMI data on Friday. We also go into the week with the possibility of a Supreme Court ruling on Trump’s emergency tariffs.

In China, the latest GDP numbers are on Monday. On Wednesday we get the latest CPI (inflation) data.

Netflix and Rio Tinto report on Tuesday. Johnson & Johnson and Experian on Wednesday and Procter & Gamble, LVMH, and Freeport-McMoRan on Thursday.

THE WEEK IN HISTORY

1942: President Franklin D. Roosevelt announces The Emergency Price Control Act to control inflation in the US during World War II. The Act authorized the newly formed Office of Price Administration to set maximum prices and establish rent controls.

2022: Global equities (technology stocks in particular) saw their worst week in over a year, and bond yields surged, as it became increasingly clear that the Federal Reserve would be withdrawing Covid-stimulus measures and that higher central bank rates were on the cards.