Donald Trump offered international companies “among the lowest taxes of any nation” if they produce their goods in America—and warned that he would impose tariffs if they do not. In a remote address to the World Economic Forum Mr Trump also called on Saudi Arabia and OPEC to bring down oil prices, before demanding that the world’s central banks then lower interest rates “immediately”.
A judge temporarily blocked Mr Trump’s effort to end birthright citizenship, a practice guaranteed in America by the 14th Amendment. The judge, agreeing with the four Democrat-led states that brought the legal challenge, called Mr Trump’s executive order “blatantly unconstitutional”. It would restrict automatic citizenship to newborns with a parent who is either an American citizen or a permanent resident.
The Bank of Japan raised its policy rate from 0.25 to “around” 0.5%, the highest level in 17 years. The decision, which was expected, came after Mr Trump held off imposing tariffs, at least for now, calming markets’ fears. The bank also lifted its core-inflation outlook, a positive sign for a country hoping to escape decades of deflation.
Boeing said it expects to lose $3.9bn in the October-December quarter, as the planemaker counted the cost of a two-month strike that paralysed aircraft production. It also lost money on some big military contracts in America. Reporting preliminary results, the firm estimated revenue for the most recent quarter to be $15.2bn, around $1.4bn lower than analysts expected.
Singapore’s central bank loosened its monetary policy for the first time in nearly five years. The bank said it would slightly reduce the slope of its exchange-rate policy band, allowing for a slower rate of appreciation, citing a faster-than-expected decline in inflation and “trade frictions”. GDP growth is expected to drop from 4% in 2024 to between 1% and 3% over 2025.
Ireland’s lawmakers elected Micheál Martin as prime minister after a day of deadlock. The centre-right coalition government is bracing for trade tensions with America. Mr Trump is threatening higher corporate taxes and tariffs on Ireland, which hosts several multinational companies. Mr Martin, who returns to office, has pledged to fend off the fallout to protect the country’s economic model.
Purdue Pharma, the maker of OxyContin, and the Sackler family, its owner, offered $7.4bn to settle litigation related to their role in spawning America’s opioid epidemic. The Sacklers would contribute $6.5bn; $800m of that would be put aside for their legal defences. The Supreme Court rejected a previous deal, which would have granted the family immunity from all future civil lawsuits.
Figure of the day: 27%, the extension of wildfire seasons around the world between 1979 and 2019. Read the full story.
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