Top Overnight News
House lawmakers are returning to Washington today to pass a funding deal that Trump worked out with Democrats last week. Approval would fund the Department of Homeland Security for two weeks, and the rest of the government through Sept. 30. BBG
US Senate voted 71-29 to pass the USD 1.2tln government funding deal, and the House is expected to vote as soon as Monday on the plan after a brief government shutdown.
Trump launches a strategic critical-minerals stockpile with $12 billion in seed money to insulate manufacturers from supply shocks.
The venture, dubbed Project Vault, will marry $1.67 billion in private capital with a $10 billion loan from the US Export-Import Bank to procure and store minerals for manufacturers: BBG
Iran signaled it hopes diplomatic efforts to avert a war with the US will bear fruit within days, after Trump said he is hopeful “we’ll make a deal.” BBG
Oracle plans to raise up to $50 billion this year through a mix of debt and equity to expand cloud capacity. BBG
Kevin Warsh’s nomination as Fed chair is reigniting debate over the central bank’s $6.6 trillion balance sheet. White House economic adviser Kevin Hassett told Fox that it should be “as lean as possible.” BBG
Trump said Fed Chair nominee Warsh may get Democrat votes, and he hopes that Warsh will lower interest rates. In relevant news, Trump said on Friday that Warsh did not commit to cutting rates and he will probably talk about cutting rates with Warsh, while Trump also stated that Warsh will cut rates without White House pressure.
China’s manufacturing activity unexpectedly improved in January, with the PMI rising to 50.3 from 50.1 a month earlier, according to a private survey. BBG
Japanese Prime Minister Sanae Takaichi's party is likely to score a landslide victory in next week's lower house election, a survey by the Asahi newspaper showed, heightening the chance the country will continue to pursue big spending and tax cuts. RTRS
Narendra Modi unveiled a budget aimed at shielding India’s economy from Trump’s tariffs and providing fresh backing for strategic sectors such as rare earths, critical minerals and chips. Bond yields rose to a one-year high on the government’s record debt-sale plan. BBG
Oil prices fell more than 4% on Monday after U.S. President Donald Trump said Iran was "seriously talking" with Washington, signalling a de-escalation of tensions with an OPEC member, while a stronger dollar also weighed on prices. RTRS
SpaceX is in advanced talks to combine with xAI, people familiar said. The two firms could announce an agreement as soon as this week. BBG
Fed's Bowman (voter) said on Friday that she supported a rate pause as inflation remains elevated, while she added that downside risks to the labour market have not diminished and that policy is modestly restrictive. Bowman also said that they should not imply that they expect to maintain the current stance of policy for an extended period of time, and noted she projected three rate cuts for 2026 in the December SEPs.
Trump picked Brett Matusmoto to head the BLS: WSJ
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