SONIA: Stepeener Flow

Reuters carrying comments from the three principal US negotiators following the conclusion of talks with Russian officials in Riyadh, Saudi Arabia. 

• US Secretary of State Marco Rubio said, "today's meeting first step of long and difficult journey", adding that his delegation "agreed on four principles" with the Russians and noting that the Russian delegation appeared "willing to engage in a serious process."
• Rubio said, addressing concerns in Kyiv and Brussels that the US would strike a deal without input from the EU or Ukraine: "...everyone involved in Ukraine conflict has to be OK with the solution to end it… goal is a fair, enduring, sustainable end to Ukraine war… European Union needs to be involved at some point… no one is being sidelined here".
• Rubio said that Russia and the US, "will appoint teams to re-establish the functionality of our missions in [Washington DC] and Moscow", a major step toward restoring diplomatic relations.
• US President Donald Trump's Middle East envoy Steve Witkoff, elevated to a key negotiator with Moscow, said, "talks were positive, constructive, solution-based".
• Trump's national security advisor Mike Waltz said, "there needs to be a permanent end to Ukraine war," adding "there will be talks about territory and security guarantees" and stressing that, "Trump is determined to move very quickly".
• Waltz confirmed comments from the Russian delegation that there is no near-term date set for a meeting between Trump and Russian President Vladimir Putin. 

• CANADA JAN CPI +1.9% YOY VS PRIOR +1.8% ON MORTGAGES AND GAS
• CORE RATES QUICKEN: MEDIAN 2.7% FROM 2.6%, TRIM 2.7% FROM 2.5%
• CANADA JAN CPI +0.1% MOM FROM PRIOR -0.4%

• Canada Jan CPI +1.9% YOY from +1.8% in Dec despite the price drag from the 2-month tax holiday which started on Dec 14.
• Jan CPI +0.1% MOM vs prior -0.4%.
• BoC preferred core measures, which exclude the impact of indirect taxes, accelerated. Core median +2.7% from prior +2.6% and core trim +2.7% from +2.5%. 
• Headline acceleration led by mortgage interest costs (+10% YOY) and gasoline (+8.6%). Prices for new passenger vehicles +2.3% YOY in January vs +0.9% in Dec.
• The tax holiday lowered inflation for some components. Food -0.6% YOY in Jan, the first yearly decline since May 2017 with food prices from restaurants a record -5.1%. Toys also -6.8%.  
• Excluding effect of the tax holiday, StatsCan said CPI would have been +2.7% YOY. 
• StatsCan said CPI for any tariffs will require no adjustments because their effect would be embedded in final prices the agency collects.
• This is the last CPI report before BoC's interest rate decision meeting on March 12. Investors were split on whether the policy rate would be cut a seventh time in a row.