The Finimize Daily Brief
South Korea And China Broke Records, And US Prosecutors Opened An Investigation Into The Fed Chair
13 Jan 2026
Chapter 1: What records did South Korea and China break recently?
Hey, I'm Lana with your daily brief for Tuesday, January 13th. Coming up, South Korea and China broke records while India ended a five-day fall. And U.S. prosecutors opened an investigation into the Federal Reserve Chair, leading investors to seek safety. We'll also check in with Carl to get his answers to your burning questions. More on the way, but first, a word from Guy at Finimize HQ.
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South Korea's main KOSPI index has picked up 10% this year to notch a record high, building on last year's 75% rally. China celebrated a different all-time high at the same time. Investors traded a record value of mainland-listed shares, encouraged by talk of institutional interest. Meanwhile, India's Sensex index has slipped about 1% this year.
Investors are jittery about the country's slow progress on a US trade deal, reliance on oil imports, and high stock valuations. That said, after five drops in a row, the index finally finished a day in the black on Monday.
Chapter 2: Why are investors seeking safety amid the Fed Chair investigation?
AI is pivotal for these countries. South Korea's two biggest companies dominate global memory chip manufacturing, a core part of AI infrastructure, and China is pushing ahead with the latest cutting-edge models. But India is missing the kind of AI heavyweights that would move the needle for investors.
Meanwhile, the US stock market has kept breaking records, but the dollar has weakened and interest rates are low. That combo makes international and especially emerging market stocks look more appealing by comparison. It doesn't hurt that they're cheaper than American shares too, so any good news can stretch a bit further.
With a bigger share of investors' returns now coming from outside the U.S., you may want to broaden your own horizons. You could consider combining emerging markets and income-generating shares with U.S. growth stocks and targeted themes like AI. And to make that work harder for you after tax, you can use tools like ETFs and tax loss harvesting to keep more of what you earn.
Before we dive into the next story, it's time for our daily check-in with Carl. You've got questions, he's got your answers. Carl, what have you got for us today?
Emma in Dublin has a question that keeps getting bigger and bigger because it keeps on Dublin and Dublin. She says, you mentioned tax wrappers. Is that just another word for an account? Sort of, Emma. A tax wrapper is any structure that protects your investments from taxes. It's like a clear plastic saran wrap. What's inside is visible but shielded.
So, for example, that would be ISAs, pensions, or Roth IRAs. Each, of course, have their own rules. The goal here is to reduce the tax you owe on dividends, capital gains, or incomes. And the right wrapper can make a massive difference over time, especially if you reinvest along the way.
Thanks, Carl. Next up... U.S. prosecutors opened a criminal investigation into the Federal Reserve's chair, rattling confidence in one of the world's most important institutions and pushing investors toward safer assets. The Justice Department's inquiry is tied to a testimony from the Fed's chair over a $2.5 billion renovation of the central bank's headquarters.
But he says it isn't about construction costs at all, calling the probe political payback for refusing to slash interest rates faster. The White House insists that has nothing to do with it, but officials have made no secret of their frustration with the country's high borrowing costs.
Lawmakers from both parties have pushed back, with at least one senior Republican vowing to block confirmation of any new Fed nominee until the issue is resolved. The highly unusual move is raising fears that political pressure could start shaping interest rate decisions at the world's most important central bank.
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Chapter 3: How is AI influencing the stock markets in South Korea and China?
It's a timely reminder that markets trade on trust as much as data. The investigation comes just as the U.S. president unveiled a proposal to cap credit card interest rates at 10%, down from around 30% for one year. The goal is to make it cheaper for consumers to borrow, but the move could make banks think twice about lending to riskier borrowers.
That could impact households, the broader economy, and banks' profit margins. So it's no wonder investors have backed out of some U.S. bank stocks. That's it for today. I'm Lana. I'll see you tomorrow.