Good morning. China weighs a stock market rescue package, the Bank of Japan holds steady and Red Sea tensions continue. Here's what's moving [View in browser](
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Good morning. China weighs a stock market rescue package, the Bank of Japan holds steady and Red Sea tensions continue. Here's what's moving markets. â[Charlotte Hughes-Morgan]( Chinaâs rescue package Chinese authorities are considering a [package of measures]( to stabilize Chinaâs slumping stock market as they seek to stem a selloff that sent the benchmark CSI 300 Index to a five-year low this week. Policymakers are seeking to mobilize about 2 trillion yuan ($279 billion), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link. Meanwhile, India has become the worldâs [fourth-largest stock market](, overtaking Hong Kong, where some of Chinaâs most influential and innovative firms are listed, as global capital pours out of Chinese equities on stalling growth and regulatory uncertainty. BOJ holds rates The Bank of Japan [kept investors guessing]( over when it will shift policy after sticking with its negative interest rate for now while indicating it is getting more confident about hitting its long-sought inflation goal. The Japanese central bank maintained its -0.1% short-term rate and kept its yield curve control parameters intact at the end of a two-day meeting. With the hold, the BOJ retains its status as global outlier on policy, as the Federal Reserve and European Central Bank hint at rate cuts later this year. The yen [strengthened]( against the dollar as investors looked for signs of when the Bank of Japan will exit from its ultra-loose monetary policy. BOJ Governor Kazuo Ueda said certainty in the outlook is rising gradually. Red Sea tensions Oil held gains after the US and UK made a [fresh round of strikes]( against Iran-backed Houthi rebels in Yemen. Global benchmark Brent was steady around $80 a barrel after rallying almost 2% on Monday.  Fears of escalation are growing as the Houthis have vowed to continue attacking vessels until Israel pulls out of Gaza. This comes after Israel said 24 of its soldiers were killed in Gaza on Monday, marking the [worst single-day death toll]( for the military since the war against Hamas began in October. Companies around the world, from retailers to car makers, are also starting to weigh up the [impact on profits]( of a long-term disruption to global shipping. Listen to more on our [Daybreak Podcast](. Boeingâs woes continue Boeingâs travails continue as one of the planemakerâs biggest customers says it has [lost confidence]( in Boeingâs ability to overcome the ongoing quality lapses that climaxed this month with a mid-air emergency on an Alaska Airlines flight. United Airlineâs Chief Executive Scott Kirby has been venting his frustrations with management and voicing his concerns over the handling of the Max grounding. He has also spoken to the US Transportation Secretary over the grounding, which is now heading into its third week. The frustrations at United Airlines, which has been forced to ground dozens of 737 Max 9 aircraft following the Jan. 5 accident, underscore the pressure on Boeing CEO Dave Calhoun and the companyâs directors. The Federal Aviation Administration, which grounded most of the Max 9 fleet and is investigating Boeing production, on Sunday [doubled down](on its scrutiny of the company. Earnings get underway Tech earnings kick off in earnest today, with updates from Verizon Communications and Netflix. Wall Street is optimistic the streaming giant can beat its own forecast for subscriber growth. The update comes just after Netflixâs Scott Stuber, who built the firm into Hollywoodâs most prolific movie studio, prepares[to leave]( the company in March. General Electric as well as consumer goods giants Johnson & Johnson and Procter & Gamble are also due to report earnings today. The reports should provide an insight into the state of consumer demand and the outlook for 2024.  Stocks futures kept to small ranges ahead of the slew of company results. Weâll also get the Richmond Fed Manufacturing Index. Tune in to [Bloomberg Television]( and [Radio]( for special, on-the-ground coverage of the New Hampshire Republican primary election, which could be a make-or-break event for some campaigns after former President Donald Trump won the Iowa caucuses on Jan. 15. What Weâve Been Reading This is whatâs caught our eye over the past 24 hours. - Will This Be Haleyâs Moment? [What to Watch]( in New Hampshire Primary
- Bill Gross Says Fed Should Stop QT, [Cut Interest Rates]( Soon
- An Isolated Israel Doubles Down on War in Gaza â [At All Costs](
- Unhappy Workers Cost US Firms [$1.9 Trillion](
- Hedge Fund Asia Genesis Shuts After [âBig Mistakeâ]( on China
- Samsung Races Apple to Develop [Blood Sugar Monitor]( That Doesnât Break Skin
- SEC X Account Hacker [Hijacked]( Staffer Phone Number, Agency Says And finally, here's what Joeâs interested in this morning Stocks rallied again on Monday, and already the S&P 500 is up 1.69% for the year. The NASDAQ is up 2.32%. Not bad at all, especially given the red hot gains in 2023. We're just talking about a short period of time, but what's interesting to me is that these gains have come even with rates on the rise. The 2-year is back above 4.4%. And the 10-year yield has seen a substantial bounce since the end of December. What's interesting too is that there are at least some concerns of faltering growth. Obviously this picture is very murky. [But as we discussed yesterday with Jason Cummins](, various measures of labor market activity warn of some cooling in hiring. So here you have higher stocks at a time of upward rate pressure -- or at least a break in falling rates -- and some yellow flags on the employment side. It's not necessarily what one might expect, given the conditions. Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Tell us what you want to see in the Five Things newsletter! Please [take our quick survey here.]( [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before itâs here, itâs on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals canât find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox.
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