<Five things to know before the opening of today's market_1/21 Bloomberg>
1) Trump emphasizes American first priority
Trump prioritized America's interests and promised to create a "golden age" in his inaugural address. He lamented that "our government is facing a crisis of trust," and domestically, it cannot even manage simple crises, while internationally, it is caught up in a series of "disastrous events." He said he planned to sign a "series of historical executive orders" and declared that "these measures will begin the complete recovery of America and a revolution of common sense." Trump's inaugural address expressed his intention to create an innovative administration to reshape America's economy, government, and relationships with other countries, fulfilling his campaign promises to reform immigration, trade, tax, and energy policies.
2) Trump declares energy emergency
Trump promised in his inaugural address to declare a national energy emergency to significantly increase domestic energy production and curb inflation. He also announced the abolition of the Green New Deal and mandatory electric vehicle policies. A White House official explained that because energy prices affect all aspects of the economy, Trump intends to reduce regulations that hinder investment in vital natural resources to lower costs for American consumers.
3) Trump's tariff uncertainty shakes the Canadian dollar
The Canadian dollar experienced extreme volatility after Trump took office. The Canadian dollar fell to a new low against the US dollar since the pandemic, as the options market bet on further weakness in the Canadian dollar. Later, news that the Trump administration would not immediately impose high tariffs led to a rebound of more than 1% during trading hours.
4) Putin says 'dialogue with Trump on Ukraine war is open'
Vladimir Putin, President of Russia, congratulated Trump on his inauguration and said that Russia is ready to engage in dialogue with the United States regarding the Ukraine war. At a Security Council meeting held ahead of Trump's inauguration, President Putin said, "I congratulate the president-elect of the United States." He welcomed Trump's desire to restore direct communication channels and prevent World War III.
5) Xi Jinping urges preemptive macroeconomic policies to maintain China's momentum
Xi Jinping, President of China, ordered the implementation of more proactive macroeconomic policies this year to maintain growth momentum. He stressed that China must pursue development while maintaining stability and promote a high level of self-reliance in science and technology. The Chinese economy achieved a GDP growth rate of 5.4% year-on-year in the fourth quarter of last year, thanks to various stimulus measures and strong exports, allowing it to achieve an annual growth rate of 5% for 2024.
(Source: Bloomberg News)
