SECURITY: Trump: 'Bad Things Will Happen' If Iran Doesn't Join 'Path To Peace'
Additional comments from US President Donald Trump on Iran during his opening remarks to the Board of Peace. Trump says: "Even people with extremism are exhausted... They want peace. Now is the time for Iran to join us on a path that will complete what we're doing. If they join us, that'll be great. If they don't join us, that'll be great too, but it will be a very different path."
- Trump continues, "[Iran] cannot continue to threaten the stability of the entire region. They must make a deal. Or if that doesn't happen... Bad things will happen."
- The comments appear somewhat conciliatory but strike a similar tone to recent remarks from senior Trump administration officials: Diplomacy is the preferred option, but the US reserves the right to military action if Iran fails to deliver a sufficient compromise in nuclear talks.
- Notably, Trump delivers his remarks from what appears to be a prepared speech. He refrains from ad-libbing and doesn't stray from a text in front of him, which suggests the speech has been calibrated to avoid offering much of a guide on the Trump administration's Iran policy.
- In what could be a bullish signal for a compromise with Iran, Trump's remarks focus on Iran's access to nuclear weapons, rather than more sticky issues like zero-enrichment or Iran's ballistic missile programme. "We do have some work to do with Iran. They can’t have a nuclear weapon," Trump said.
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GILT AUCTION RESULTS: On offer next week
The DMO will look to sell GBP3.25bln of the 4.125% Mar-33 Gilt (ISIN: GB00BVP99780) at its auction next Tuesday (Jan 27)
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US DATA: Philly Fed Nonmanufacturing Another Good Sign For Services Activity
The Philadelphia Fed's Nonmanufacturing Business Outlook Survey saw a substantial improvement in January, with softer inflation evident. This is another positive sign for services sector activity momentum (ISM Services posted a 14-month high in December) going into 2026, following the improvement in the NY Fed's equivalent index.
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