Eleven central financial institution chiefs defend Fed’s Jerome Powell over DoJ investigation; oil hits two-month excessive as Trump threatens Iran’s buying and selling companions – enterprise reside | Enterprise
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Worldwide central bankers again Fed’s Powell over DoJ investigation
Newsflash: Eleven of the world’s high central bankers have launched a press release of assist for Federal Reserve chair Jerome Powell, after the US Division of Justice opened a legal investigation into him.
In an unprecedented transfer, high central financial institution chiefs together with the Financial institution of England’s Andrew Bailey, and Christine Lagarde of the European Central Financial institution, have backed Powell, and warned in opposition to undermining central financial institution independence.
The heads of the Swedish, Denmark, Swiss, Australian, Canadian, South Korean, and Brazilian central banks have additionally signed, as have two senior officers on the Financial institution of Worldwide Settlements.
Othes might but signal the letter too, Reuters recommended this morning.
The central financial institution chiefs say:
We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.
The independence of central banks is a cornerstone of value, monetary and financial stability within the curiosity of the residents that we serve. It’s due to this fact vital to protect that independence, with full respect for the rule of regulation and democratic accountability.
Chair Powell has served with integrity, targeted on his mandate and an unwavering dedication to the general public curiosity. To us, he’s a revered colleague who’s held within the highest regard by all who’ve labored with him.
The letter is signed by:
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Christine Lagarde, President of the European Central Financial institution on behalf of the ECB Governing Council
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Andrew Bailey, Governor of the Financial institution of England
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Erik Thedéen, Governor of Sveriges Riksbank
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Christian Kettel Thomsen, Chairman of the Board of Governors of the Danmarks Nationalbank
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Martin Schlegel, Chairman of the Governing Board of the Swiss Nationwide Financial institution
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Michele Bullock, Governor of the Reserve Financial institution of Australia
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Tiff Macklem, Governor of the Financial institution of Canada
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Chang Yong Rhee, Governor of the Financial institution of Korea
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Gabriel Galípolo, Governor of the Banco Central do Brasil
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François Villeroy de Galhau, Chair of the Board of Administrators of the Financial institution for Worldwide Settlements
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Pablo Hernández de Cos, Basic Supervisor of the Financial institution for Worldwide Settlements
Key occasions
China ‘firmly opposes’ Trump’s Iran tariffs risk
China has criticised Donald Trump’s risk of latest 25% tariffs on firms doing enterprise with Iran.
Liu Pengyu, the spokesperson for the Chinese language Embassy within the US, mentioned China’s place in opposition to the “indiscriminate imposition of tariffs is constant and clear”, including:
Tariff wars and commerce wars haven’t any winners, and coercion and strain can’t resolve issues. Protectionism harms the pursuits of all events.
China firmly opposes any illicit unilateral sanctions and long-arm jurisdiction, and can take all essential measures to safeguard its respectable rights and pursuits.
In a single day, the USA legal professional for the District of Columbia defended her determination to problem the Federal Reserve with subpoenas final week.
Jeanine Pirro posted on X that the Fed had ignored earlier contact over its renovation mission, writing:
America Lawyer’s Workplace contacted the Federal Reserve on a number of events to debate value overruns and the chairman’s congressional testimony, however have been ignored, necessitating using authorized course of—which isn’t a risk.
The phrase “indictment” has come out of Mr. Powell’s mouth, nobody else’s. None of this might have occurred if they’d simply responded to our outreach.
This workplace makes selections primarily based on the deserves, nothing extra and nothing much less. We agree with the chairman of the Federal Reserve that nobody is above the regulation, and that’s the reason we count on his full cooperation.
America Lawyer’s Workplace contacted the Federal Reserve on a number of events to debate value overruns and the chairman’s congressional testimony, however have been ignored, necessitating using authorized course of—which isn’t a risk.
The phrase “indictment” has come out of Mr.…
— US Lawyer Pirro (@USAttyPirro) January 13, 2026
Reuters: International central financial institution chiefs plan assertion of assist for Fed’s Powell
International central financial institution officers are reportedly planning to launch a coordinated assertion of assist for US Federal Reserve Chair Jerome Powell, after America’s high central banker was threatened with a legal indictment.
Reuters is reporting that the assertion, which is predicted to include the signatures of central bankers from all over the world, will again Powell and stress the necessity for impartial central banking.
It comes after Sunday evening’s bombshell information that the US Division of Justice has opened a legal investigation into Jerome Powell and the Federal Reserve, over renovations to the Fed’s historic workplace buildings in Washington DC.
The transfer has been broadly seen as an assault by the Trump White Home on the independence of the Federal Reserve.
Yesterday, former Fed chairs Alan Greenspan, Ben Bernanke and Janet Yellen all condemned the “unprecedented” try by the Trump administration to weaken the US central financial institution’s independence, and warned that related prosecutorial assaults in different nations had led to “extremely destructive penalties” for the price of residing.
Trump has lengthy criticised Powell for not slicing rates of interest sooner; the hazard is that traders conclude that future Fed selections can be dictated by political issues, not what’s greatest for financial coverage.
Financial institution of England governor Andrew Bailey has supplied assist to Powell up to now; final summer time, he referred to as the Fed chair “a person of utmost integrity.”
Final April, European Central Financial institution president Christine Lagarde mentioned she had “monumental respect” for Powell, explaining:
“I’m reassured by the expertise and the competence of the chair of the Fed.
And I do know for a proven fact that he’s placing all his efforts and all his self-discipline into delivering on his mission.”
Yesterday, a number of Republican lawmakers started talking out in opposition to the Trump administration’s legal investigation into Powell, and Democratic Senator Elizabeth Warren warned that Trump’s makes an attempt to manage the Federal Reserve “undermines America all all over the world”.
Julia Kollewe
Warhammer maker Video games Workshop is paying out a contemporary dividend to traders, after first-half gross sales and earnings rose past expectations regardless of successful from US tariffs.
The Nottingham-based firm, which makes tabletop miniatures and video games, has loved booming gross sales, together with from online game licensing earnings, and is constructing its fourth manufacturing facility within the UK.
It mentioned right now it is going to pay a dividend of £1.10 a share, taking dividends declared up to now in 2025/26 to £4.85 a share.
Arrange 5 a long time in the past by three faculty pals in Shepherd’s Bush, Video games Workshop has grown right into a FTSE 100 firm value greater than £6bn.
It had mentioned tariffs imposed by Donald Trump final spring may influence revenue earlier than tax by £12m in 2025/26. It incurred £6m as a result of tariffs within the six months to 30 November, however the influence on its gross revenue margin has been greater than offset by efficiencies, value rises of three.5% on its fantasy miniature figures and books, extra steady commodity costs and decrease inventory write offs.
Core revenues, excluding licensing, rose by 17% to £316.1m and complete gross sales have been £334.7m at fixed forex, up 11%. Revenue earlier than tax climbed by 11% to £140.8m, higher than anticipated.
The corporate, which has 570 shops, together with 134 within the UK, 201 in North America and 167 in continental Europe, mentioned it could open a restaurant Warhammer World retailer on the US east coast in 2027. It makes all of its miniatures within the UK, and plans one other warehouse within the UK.
Video games Workshop is working with Amazon MGM Studios, actor Henry Cavill and manufacturing firm Vertigo on reside motion initiatives, which is able to take a number of years.
It signed up with Amazon simply over a yr in the past to adapt its Warhammer 40,000 model into movies and tv collection, and work is sort of full on a Warhammer Age of Sigmar episode for its Prime Video.
Even so, Video games Workshop’s shares fell by over 3% this morning – however are up 38.5% over the previous yr.
EU urges Musk to repair Grok rapidly
Lisa O’Carroll
The EU has warned Elon Musk’s X to urgently “repair” the “horrendous” AI device permitting customers to “undress” ladies and kids or face pressing motion.
The blunt warning comes because the European Fee prolonged a retention order despatched to Elon Musk’s X final yr to retain and protect all inner paperwork and information associated to xAI chatbot Grok till the top of 2026, amid a world outcry over Grok-generated “undressed” photos.
The EU tech commissioner Henna Virkunnen mentioned final evening:
“X now has to repair its AI device within the EU, they usually must do it rapidly.
“If not, we is not going to hesitate to place the DSA to its full use to guard EU residents”
“X providing using Grok to create and share photos of undressed ladies and kids is horrendous,” she added in a publish on X.
Governments and regulators from Europe to Asia are cracking down on sexually specific content material generated by Grok on X, launching probes, imposing bans and demanding safeguards, in a rising international push to curb unlawful materials.
The British prime minister has warned that X may lose its proper to self regulate if Musk’s platform retains creating sexual photos.
Malaysia’s communications regulator mentioned on Tuesday it is going to take authorized motion in opposition to social media platform X as a result of considerations over person security in relation to Grok.
UK minicomputer-maker Raspberry Pi is affected by the AI business’s rapacious urge for food for reminiscence chips.
Raspberry Pi advised shareholders this morning that volatility within the provide and value of reminiscence was clouding its outlook past the primary half of this yr.
It says:
As has been broadly reported, the price of the LPDDR4 DRAM utilized in many Raspberry Pi merchandise has elevated quickly in latest months, with some main suppliers now indicating limitations of provide at excessive densities. This pattern has largely been pushed by reminiscence distributors diverting manufacturing capability to fulfill the surge in AI information centre funding.
Raspberry Pi is taking steps to mitigate this drawback, together with approving new suppliers, creating merchandise that use much less reminiscence, and elevating its costs.
Shares within the Cambridge-based firm have dropped by over 6% this morning, the worst performer on the FTSE 250 index.
From oil to wind energy…. and shares of Danish renewables large Orsted have jumped over 5% this morning, after a US choose gave it clearance to renew work on a mission off the coast of Rhode Island.
The ruling by US district choose Royce Lamberth is a authorized setback for Trump, who has sought to dam growth of offshore wind in federal waters.
It means Orsted can full its almost completed Revolution Wind mission, which may start producing energy this yr.
Within the Metropolis, resort operator Whitbread has jumped to the highest of the FTSE 100’s high risers desk this morning, after predicting a smaller hit from UK property taxes.
Whitbread advised shareholders this morning that it now expects enterprise fee hikes introduced within the autumn funds to value it round £35m within the subsequent monetary yr.
That’s an enchancment on its earlier estimate, that the funds would value it between £40m and £50m.
Whitbread’s shares are up 4% this morning.
Mamta Valechha, client discretionary analyst at Quilter Cheviot:
“Whitbread, proprietor of Premier Inn, posited a strong buying and selling replace this morning. Its UK income per obtainable room (RevPAR) got here in higher than anticipated with a rise of two.5% in Q3 and displaying one other sequential enchancment quarter-on-quarter.
The corporate’s present buying and selling stays robust, with RevPAR accelerating to 4% within the first six weeks of This autumn. This was pushed predominantly by London the place it grew 7% and Areas up 0.9%, with pricing having the most important influence in each areas.
Volkswagen gross sales hit by US tariffs
Car producer Volkswagen has reported that its gross sales within the US fell final yr, as a result of Donald Trump’s tariffs.
In 2025, Volkswagen’s international gross sales fell by 1.4%, which it blames on “difficult market circumstances”.
Volkswagen grew its gross sales in Europe by 5.1%, and by 18.5% in South America.
However gross sales fell by 8.2% within the US, with VW warning that “US tariffs additionally had a marked influence on deliveries in North America”.
Demand additionally weakened in China, the place VW’s gross sales fell 8.4%.
Martin Sander, Volkswagen board member for gross sales, advertising and after gross sales, says:
“The pattern in our supply figures underscores that our merchandise are being properly obtained by our prospects and in addition that we’re heading in the right direction with our model technique. We count on the market setting to stay difficult general in 2026.
All the identical, I firmly consider that because of our refreshed, engaging product portfolio and our clear concentrate on effectivity and competitiveness we’re very properly geared up to rise to this problem. In China alone, we can be bringing out greater than ten new electrical fashions this yr.”
US crude oil can be climbing this morning.
US West Texas Intermediate crude rose to $60/barrel this morning, for the primary time in over a month.
ING commodities strategists mentioned right now:
“The value improve comes amid intensifying protests in Iran, elevating the potential for some type of intervention by the U.S.”
Trump: WE’RE SCREWED if we lose supreme courtroom tariff case
Talking of tariffs…. Donald Trump has additionally claimed that the US can be “screwed” if the supreme courtroom doesn’t uphold his commerce levies.
In a publish final evening, Trump claimed the US must repay “many A whole bunch of Billions of {Dollars}” if the US highest courtroom guidelines in opposition to the White Home, plus the “payback” which firms constructing factories in America to keep away from tariffs would – he argues – demand.
Trump wrote:
When these Investments are added, we’re speaking about Trillions of {Dollars}! It might be a whole mess, and nearly unattainable for our Nation to pay. Anyone who says that it may be rapidly and simply carried out can be making a false, inaccurate, or completely misunderstood reply to this very giant and sophisticated query.
In a dramatic twist, Trump concluded:
Keep in mind, when America shines brightly, the World shines brightly. In different phrases, if the Supreme Courtroom guidelines in opposition to the USA of America on this Nationwide Safety bonanza, WE’RE SCREWED!
[Reminder: tariffs are paid by US companies when they import goods]
The Supreme Courtroom may rule as quickly as tomorrow on Trump’s tariffs. Final November, they expressed some scepticism of the authorized foundation of the Trump administration’s sweeping international tariff regime, declaring that Congress is answerable for taxes.
Introduction: Oil hits two-month excessive as Trump says nations doing enterprise with Iran face 25% tariff
Good morning, and welcome to our rolling protection of enterprise, the monetary markets and the world economic system.
Oil has hit its highest degree in nearly two months this morning, after Donald Trump theatened new tariffs on any nation doing enterprise with Iran.
In a publish on Fact Social on Monday, the US president declared:
Efficient instantly, any Nation doing enterprise with the Islamic Republic of Iran can pay a Tariff of 25% on any and all enterprise being carried out with the USA of America. This Order is ultimate and conclusive. Thanks on your consideration to this matter!
Prime export locations for Iranian items embody China, the United Arab Emirates and India, so this might reignite Trump’s smouldering commerce battle.
The risk got here as Iranian auhorities crack down on nationwide protests; as of this morning, at the very least 648 folks have been killed by Iran’s safety companies and greater than 10,600 have been arrested.
Iran is likely one of the largest producers of the Group of the Petroleum Exporting International locations, so any escalation may disrupt oil provide or add a geopolitical danger premium.
Brent crude has climbed to $64.46 a barrel this morning, its highest degree since 19 November.
Every week in the past Brent fell under $60/barrel, when traders have been pondering the prospect of elevated crude provide from Venezuela.
Analysts at Barclays have calculated that the unrest in Iran has added about $3-4/barrel in geopolitical danger premium in oil costs.
The agenda
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10am GMT: Lords Business and Regulators Committee to look at relationship between regulators and financial development
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1.30pm GMT: US inflation report for December
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2.30pm GMT: World Financial institution up to date financial forecasts printed – 14.30 embargo, on-line presser 13.30 – p26 development forecasts – World economic system downgraded from 2.7% forecast development to 2.4% this yr, with US downgraded from 2% to 1.6%
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3pm GMT: Richard Hughes, former chair of the UK’s Workplace for Price range Accountability, to seems earlier than Home of Lords financial affairs committee
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