Crypto News: Rate-cut hopes rise in Australia

Good morning. It's Angus in Sydney with the key morning news items.

Today's must-reads:
• Australia's inflation cools
• US Fed in no rush to cut rates further
• New Zealand's largest solar farm

What's happening now

The door is open in Australia for an interest-rate cut as soon as next month after core inflation eased by more than expected in the final three months of 2024. The annual trimmed mean gauge of consumer prices, which shaves off volatile items, rose 3.2% in the three months to December, compared with an expected 3.3% gain.

Over in the US, the central bank is much further along the path of easing monetary policy. But the Federal Reserve held borrowing costs at its latest meeting and Chair Jerome Powell said officials now aren't in a hurry to lower interest rates again. Powell and his colleagues want to see more progress on price pressures.

UK developer Harmony Energy will start building New Zealand's largest solar farm after closing financing for the project. The 202 megawatt Tauhei project on the North Island will be able to supply electricity to about 35,000 homes, and cost about £113 million ($141 million). It's the first of 10 solar and battery projects planned in the country by Harmony Energy, each of up to 250 megawatts.

Hedge fund manager Jun Bei Liu will launch her new long-short equity strategy next month with about A$1.5 billion. Together with Ten Cap Chief Executive Officer Jason Todd, the duo will target companies on the S&P/ASX 200 Index.

What happened overnight

Stocks whipsawed and bond yields rose in the US as traders digested the Fed decision and big-tech earnings. Futures contracts suggest a mixed open in Asia.

Trump administration officials are exploring additional curbs on the sale of Nvidia chips to China, according to people familiar with the matter, who emphasized that talks are in very early stages as the new team works through policy priorities. Officials are focused on potentially expanding restrictions to cover Nvidia's H20 chips.

Microsoft and OpenAI are investigating whether data output from OpenAI's technology was obtained in an unauthorized manner by a group linked to Chinese artificial intelligence startup DeepSeek, according to people familiar with the matter. Microsoft's security researchers in the fall observed individuals they believe may be linked to DeepSeek exfiltrating a large amount of data using the OpenAI application programming interface.

Apple has been secretly working with SpaceX and T-Mobile US to add support for the Starlink network in its latest iPhone software. The firms have been testing iPhones with the Starlink service from Elon Musk's Space Exploration Technologies, according to people with knowledge of the matter. In an under-the-radar move, the smartphone's latest software update now supports the technology.

What to watch

• RBA Assistant Governor Brad Jones speaks at a conference

One more thing...

In the wake of this month's catastrophic fires in Los Angeles, a new study says climate change made the dangerous wildfire conditions 35% more likely compared with before the industrial era. Greenhouse gas pollution raised temperatures, made drought more likely and extended the fire season, scientific group World Weather Attribution said.

Residents embrace outside the remains of their childhood home, destroyed by the Eaton Fire, in Altadena, California, on Jan. 23. Photographer: Kyle Grillot/Bloomberg

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