Weekend roundup

Catch up on what happened while you were off the clock:

• 📊 S&P 500 logs a rare streak. For only the fifth time in history, the index has posted seven consecutive monthly gains, a trend that historically signals strong future returns. Investors are optimistic, but some caution against overconfidence as economic uncertainties loom.

• 🛢️ Saudi Arabia cuts oil prices for Asia. The kingdom slashed January crude prices as sluggish demand in key Asian markets raised concerns about global economic recovery. Analysts warn this move could signal broader weakness in energy markets heading into 2025.

• 🏠 Rocket Mortgage hit with appraisal lawsuits. The company is accused of inflating home valuations, prompting lawsuits that could reshape mortgage lending standards. If proven, the allegations may force widespread changes in appraisal practices and consumer protections.

Featured weekend story

Trump Floats Tariffs—and Statehood—for Mexico and Canada

President-elect Donald Trump stirred controversy by suggesting that Mexico and Canada could become U.S. states to justify their trade benefits. This comes as Trump threatened a 25% tariff on imports from both nations, citing concerns over drug trafficking and migration. While Trump claims the U.S. “subsidizes” Mexico and Canada by hundreds of billions annually, experts note these figures are exaggerated.

Such tariffs could disrupt the existing U.S.-Mexico-Canada Agreement, which has maintained largely duty-free trade across the continent. A tariff war risks higher prices for American consumers while straining diplomatic ties. Canadian officials have expressed alarm at the economic fallout, while Mexican leaders demand respect for their sovereignty, reflecting escalating tensions between the neighbors.

This shake-up in North American trade policy arrives amid broader global uncertainty over tariffs, with Trump also eyeing China for new duties. As the U.S. readies for another Trump presidency, businesses and governments brace for a potentially volatile trade landscape that could redefine economic alliances on the continent and beyond.

What to watch this week

Indices at 12:00 AM (ET)

Here are your upcoming market events:

• 💵 Dollar steadies ahead of CPI data. With inflation figures on the horizon, the dollar remains jittery, while currencies like the Australian and New Zealand dollars rise on optimism surrounding China's economic rebound. Markets are watching closely for signs of softer U.S. inflation, which could shift Federal Reserve policy in 2025.

• 🔌 Samsung enters the HVDC market. In a major push toward clean energy infrastructure, Samsung C&T has partnered with Hitachi Energy to tap into the high-voltage direct current market. The collaboration positions Samsung to play a key role in supporting the global transition to renewable energy.

• 🏦 China loosens monetary policy for the first time in 14 years. In a historic move, China is easing its monetary stance, signaling a shift to stimulate growth amid global economic headwinds. This policy pivot could have far-reaching implications for trade, commodity markets, and global inflation dynamics.

Off-balance sheet items

Here’s what we’re reading this week:

• 📅 Tokyo’s bold experiment: a 4-day work week. Japan’s capital is embracing a shorter workweek to tackle its aging population and plummeting birth rates. Officials hope the extra time off will boost family life and increase the country’s declining birthrate.

• 🌊 America’s priciest home comes with a catch. A $150 million Naples, Florida mansion is making waves for its opulence—and its risky location in a flood zone. Buyers are questioning whether luxury can outweigh climate concerns.

• 👠 Ruby slippers fetch $28 million at auction. The iconic shoes from The Wizard of Oz set a new record, drawing bidders eager for a piece of cinematic history. Originally stolen from a museum, they’ve now found a home with a private collector.

Chart of the week

French Government spending as a share of GDP, 1880 to 2022

The bottom line

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