Weekly Briefing: Key Policy Developments
This weekly briefing provides overviews of the top policy developments that business leaders should monitor.
Key policy and political developments for the week ended January 26, 2024:
Biden stops natural gas exports: The Biden administration stopped reviewed of applications to export natural gas to countries with which the United States does not have free trade agreements. The administration. The pause is to allow the administration to consider the climate impacts of increased LNG exports. The Biden administration will take a “hard look at the impacts of LNG exports on energy costs” and on “America’s energy security, and our environment.” The pause in reviews “sees the climate crisis for what it is: the existential threat of our time,” President Biden said in a statement.
Trump wins New Hampshire primary: Former president Donald Trump won the New Hampshire primary with more than 54% of the vote. The win over Nicky Haley likely secures the Republican presidential nomination for Trump. Polling indicates that Trump would beat President Joe Biden in the November election. The strong possibility of Trump returning to the White House has caused concern among some business leaders that he will bring a more protectionist turn on trade and tariffs, including a proposed 10% universal tariff; changes in the current climate change policy, including repeal of energy tax credits; and a tougher approach to China.
Commerce reports U.S. economy grew 3.3% in Q4: U.S. GDP grew 3.3% in the fourth quarter of 2023 and 3.1% over the past year; inflation eased to 1.9%, the Commerce Department reported. The stronger-than-expected growth followed the 4.9% growth during the third quarter of 2023. Consumer spending, business investment, exports, and government spending drove the increase.
Additional reading
U.S. economy
US economy brushes aside recession fearmongering with strong Q4 performance (Reuters)
Yellen says 'tax fairness,' workforce funds key to Biden's second-term agenda (Reuters)
The Bipartisan Tax Deal Is Good But Not Good Enough (Bloomberg)
Rubin Says US In a ‘Terrible Place’ on Deficit, Urges Tax Hikes (Bloomberg)
What Big Tech antitrust gets wrong (FT)
FTC investigating relationships between AI startups, tech giants (The Hill)(FTC)
Global economy
ECB to Hold Interest Rates as Lagarde Beats Back Cut Bets (Bloomberg)
Steel, GDP and scepticism over China’s data (MSN)
Trudeau Is Preparing a ‘Team Canada’ Approach to a Possible Trump Return (Bloomberg)
Elon Musk says Chinese electric car brands could ‘demolish’ rivals as Tesla earnings fall (CNN)
China Says EU’s ‘Unfair’ EV Subsidies Probe Risks Damaging Ties (Bloomberg)
Starbucks, Coke Boycotts Over Gaza War Are Boosting Middle East Rivals (Bloomberg)
Energy and climate
US hits Iraq militia sites and anti-ship missiles in Yemen as fight with Iranian proxies intensifies (AP)
Exxon files lawsuit against investors' climate proposal (Reuters)
Clean sources of generation are set to cover all of the world’s additional electricity demand over the next three years (IEA)
EU must invest about €1.5tn a year to meet net zero targets, says Brussels (FT)
U.S. politics
Trumponomics 2.0: Less Tax Tailwind, More Trade Turmoil (WSJ)
The world is bracing for Donald Trump’s possible return (The Economist)
Many CEOs fear a second Trump term would be worse than the first (Economist)
Exclusive: US, Iraq to initiate talks on end of US-led military coalition (Reuters)
Trade and supply chain
UK-Canada trade: Talks stall as Britain toughens approach (Reuters)
Investment
EU must prevent sensitive assets from falling into ‘wrong hands’, warns Valdis Dombrovskis (FT)
EU to Upgrade Economic Security to Shield Key Tech From China (Bloomberg)
Geopolitics
China shifts Latin America investment to compete with west (FT)
New Report Shows Shifting Chinese Investment in Latin America (China Digital Times)
“New Infrastructure”: Emerging Trends in Chinese Foreign Direct Investment in Latin America and the Caribbean (The Dialogue)
China Is Recalibrating Its Latin America Strategy (Bloomberg)