Before the bell: attack on the Fed

The US central bank receives a subpoena and tensions escalate in Iran, yet markets remain resilient.

The first full trading week of the new year was a strong one for European markets. An average European stock, measured by the Euro Stoxx 50, rose 2.3% over five days. The Bel20 also made solid gains, up 1.9%. UCB (+7.8%) and Aedifica (+6.9%) led the Brussels index higher last week. Elsewhere in Europe, Rheinmetall (+19.4%), Novo Nordisk (+15.5%) and ASMI (+12.2%) also posted an excellent week. On Wall Street, it was a good five-day stretch for Intel (+12.1%), Amazon (+8.7%) and Costco (+8.2%). Yes, money is being made on the stock market again in 2026.

This morning, the Japanese stock market remains closed due to the Respect for the Aged Day public holiday. Trading is taking place in Hong Kong, where the Hang Seng index is up 1.2%. Notable gainers include Alibaba (+5.1%) and Baidu (+4.2%). Today we will get figures from Sify Technologies, an Indian technology company providing data centre and cloud services. On the corporate front, the week starts quietly, but earnings season will kick off in the second half of the week, traditionally led by the first results from US banks.

Trump subpoenas Powell

A criminal investigation into the US central bank may be launched. According to the US Department of Justice, renovations at the Federal Reserve’s headquarters in Washington are taking too long and costing too much money. Donald Trump said in an interview with NBC News on Sunday evening that he knows nothing about the subpoena. Jerome Powell, however, says the situation is crystal clear. This is the latest blow aimed at the Fed, as the White House attempts to pressure policymakers into cutting interest rates more quickly. The strained relationship between the US president and the Fed chair has been known for some time. Trump has repeatedly said he would like to dismiss Powell and replace him. This time, Powell did not mince his words either. Responding to the subpoena, he called Trump a stubborn donkey. The idea that a government would seek to control a central bank is absurd and will unsettle US investors. That could put further pressure on the dollar. But rest assured: Trump will ultimately prove to be less powerful than the Federal Reserve.

Shopping with AI

Two American giants, Walmart and Alphabet, are joining forces. Users of Gemini will soon be able to ask Alphabet’s AI chatbot which sports shoes suit them best. Gemini will not only offer tips and suggestions, but will also highlight Walmart products and immediately provide the option to purchase them. The new feature will not be limited to clothing. Even when a user asks how best to remove a wine stain from a carpet, it will no longer be Aunt Kaat’s advice that appears, but a Walmart product. Fresh and frozen food are not yet included in the new feature, but will be added at a later stage. Walmart is reportedly not only working with Alphabet, but also with OpenAI. The supermarket chain is therefore a fine example of a not-so-young company (founded in 1962) that does not shy away from embracing new technologies. We have previously noted that Walmart holds its own remarkably well against “newcomer” Amazon.

Did you know…

that OpenAI and Microsoft are also looking for ways to monetise their AI chatbots? Both companies have recently added shopping carts to their AI applications, and in the future we are likely to see more advertisements appearing when we chat with Gemini, ChatGPT or Copilot.

This article was translated from Dutch and was originally published on Spaarvarkens.be.