Key Takeaways
- The Bank of Japan (BOJ) has commenced a monumental, century-long initiative to divest its ¥83 trillion ($534 billion) exchange-traded fund (ETF) holdings, signaling a major shift in its monetary policy.
- Daimler Truck (DTG) announced an 8% year-over-year decrease in its total full-year deliveries, reaching 422,510 units, reflecting a challenging period for the automotive giant.
- In a significant political development, South Korea's ousted leader, Yoon Suk Yeol, was sentenced to five years in prison in the initial verdict stemming from his martial law trials.
- Vietnam is making a strategic high-tech push, breaking ground on its first domestic chipmaking plant, a project spearheaded by the military-run Viettel Group.
- Italy's December EU Harmonized Consumer Price Index (CPI) remained steady at 1.2% year-over-year, aligning with market expectations and indicating stable inflation.
Central Bank Policy
The Bank of Japan (BOJ) is embarking on a historic plan to gradually sell its vast holdings of exchange-traded funds (ETFs). This divestment, which could span more than a century at the currently planned pace, aims to normalize the central bank's balance sheet without disrupting financial markets. The BOJ's ETF portfolio held a market value of ¥83 trillion ($534 billion) as of late September, with a book value of ¥37.1 trillion. The central bank intends to sell at a cautious pace of approximately ¥330 billion per year based on book value.
Global Economic & Political Developments
In South Korea, former President Yoon Suk Yeol was handed a five-year prison sentence on Friday, January 16, in the first of eight criminal trials related to his failed martial law declaration in December 2024. The charges included obstructing his arrest, fabricating the martial law proclamation, and bypassing a mandatory Cabinet meeting. This verdict underscores the ongoing political instability following his impeachment and removal from office in April 2025. Prosecutors are seeking the death penalty in a separate trial for an insurrection charge.
Meanwhile, Italy's latest inflation data shows a stable economic picture. The EU Harmonized Consumer Price Index (CPI) for December registered a 1.2% year-over-year increase, precisely matching both analyst estimates and the previous month's figure. The month-over-month increase was 0.2%, also consistent with expectations. This consistent data suggests a period of stable price growth within the Eurozone's third-largest economy.
Political uncertainty continues to plague Bulgaria, the newest member of the euro area. The country is likely to face its eighth snap election in five years in the coming months. This follows the rejection by the reformist PP-DB parliamentary grouping to form a new government, after the previous coalition resigned amidst public protests over corruption. Despite this domestic turmoil, Bulgaria successfully adopted the euro on January 1.
Corporate Earnings & Deliveries
Daimler Truck (DTG) reported a notable decline in its full-year performance, with total deliveries falling 8% year-over-year to 422,510 units. The automotive manufacturer has been navigating a challenging market environment, with previous reports indicating decreased sales across various segments in 2024 and Q3 2025.
Emerging Markets & Technology
Vietnam is making a significant stride in its high-tech ambitions, with the groundbreaking ceremony for its first domestic semiconductor wafer fabrication plant on Friday, January 16. The project, led by the state-owned Viettel Group, is strategically located in the Hoa Lac Hi-Tech Park in Hanoi. The plant aims to commence trial production of 32-nanometer chips by the end of 2027, marking a crucial step towards establishing a self-sufficient chipmaking ecosystem and enhancing Vietnam's position in the global technology supply chain.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.